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State Retirement Funds For Energy?

 February 1, 2010 ⋅  Post a comment

We have a new GUARDIAN consultant who is a real doc and works on “gut issues” like internal medicine and renewable energy. Prior to working on humans, he worked for Idaho Fish and Game as a biologist. ( please excuse the format problem–using a foreign computer at the moment)

BY BOB McKIE, MD

Green energy projects have been proposed as a way to create jobs and reduce energy consumption. Unfortunately, deteriorating budgets at the national, state and local level limit the ability of governments to support these initiatives. Idaho has the ability to modestly facilitate green energy development by allowing state employees to voluntarily access retirement funds to make energy investments.

The State of Idaho should provide vested state employees with the option of taking one-time disbursements of retirement funds in order to make cost-effective renewable energy and energy efficiency upgrades.

In exchange for the disbursement, the employee will give up a share of retirement
benefits. The amount of the benefit reduction will be calculated by state accountants to be in proportion to the size of the disbursement.

If the program is a success, it could be expanded to other energy saving interventions like hybrid cars, energy efficiency upgrades, solar water heaters, solar panels and perhaps even small hydroelectric power plants on canals or existing dams. Technologies with clear track records like ground source heat pumps and stoves would be approved automatically, and other technologies would be approved once they prove that they can pay for themselves over a period of about 15 years. This would prevent unscrupulous dealers from selling ineffective products to well-meaning state employees. Several renewable energy technologies are cost-effective for home use.

Ground source (geothermal) heat pumps, wood stoves and pellet stoves can all displace oil, propane, natural gas and electricity from home heating. Ground source heat pumps can also heat water and cool buildings far more efficiently than conventional systems. According to the Department of Energy, ground source heat pumps can reduce electricity use in heating and air conditioning by 25-50% or more. These systems usually pay off in about 8-12 years. Unfortunately, energy upgrades require substantial up-front investments.

These energy investments would benefit everyone involved. State employees would have the right to take some of their retirement benefits to make energy upgrades that would immediately reduce their energy bills. This would lower retirement expenses and exposure to unstable energy prices. Work and tax revenue would be generated in the industries that build and install ground source heat pumps, wood stoves and pellet stoves. Work would also be created for wood cutters and wood pellet manufacturers. Pellet stoves can be modified to run on nut shells, fruit pits and other wastes. Only EPA certified stoves would be eligible for the disbursements, and areas like Boise with local air pollution problems would not be eligible for wood stove installation.

Idaho would experience other benefits. Idaho produces no propane, natural gas or oil, and is a net importer of electricity. Replacing these energy sources with local wood and geothermal power would keep money in Idaho. Displacing fossil fuels with wood and geothermal power will reduce Idaho’s carbon footprint. Ground source heat pumps reduce peak electricity use, which improves the function and reliability of the electric grid. Finally, local demand for renewable energy products will make Idaho a more attractive destination for the manufacturers of green technologies. This would not be a panacea for Idaho’s problems, but it would be a meaningful step in the direction of energy independence, natural resource conservation and economic recovery.

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