Sacramento Area Commerce & Trade Organization

 
Economic Daily China December 21, 2007

by Zhang Jieling in New York

 

The American city of Roseville is located in Placer County in northern California. It has a population of about 105 thousand people and is 16 miles from Sacramento, the capital of the state. Roseville is hot and dry in the summer, with ample sunshine. As one of the top ten retail markets in California, the retail sector is thriving. In recent years Roseville’s economy has flourished, making it one of the state’s fastest-developing cities. Well-known companies located in the city include Hewlett-Packard, Kaiser Permanente and Union Pacific Railroad. While moving its economy forward, the city has placed great importance upon environmentally friendly construction at the same time. The sustainable development of energy has always been a critical component of its strategy for economic development. Julia Burrows, Deputy Manager for City Operations and Director of the Committee for Economic Development, described for this reporter some of the fresh and innovative measures the city has adopted in the area of saving energy and protecting the environment.

The first measure is the “BEST Homes” program. Roseville’s construction of solar-powered communities is famous throughout the country. In June of last year, Roseville Electric signed agreements with Lennar Homes, the largest homebuilder in the United States, and Power Light Corporation, a solar power systems provider, to equip 450 new homes with solar power systems and energy conserving equipment within two years as a means of building one of the largest solar-powered communities in the country. This will be the equivalent of planting 65 acres of trees or reducing oil consumption by 570 thousand barrels. The city has stipulated that people buying these new energy efficient homes in 2007 will receive a tax credit of US$2,000. During the first half of this year Roseville also decreed that 20% of all new homes must adhere to strict energy conservation standards in their design. The main ways of achieving this include installing solar power generating systems on the roof; making use of equipment which is environmentally friendly and energy-saving, such as energy-saving air conditioning and home appliances, etc.; encouraging developers to invest in home construction using new energy conservation technology by offering a rebate of US$8,530 for each “BEST Home”; and participating in the “Shade Tree Program.” As a means of lowering temperatures and reducing energy consumption in the summer, Roseville Electric has teamed up with the Urban Forest Fund to provide trees and planting equipment to homeowners for free. Homeowners are allowed three trees per residence and are provided basic training for tree-planting, which includes going to people’s homes to guide them in how to select the right trees and where to plant them. The actual planting and care for the trees will be the responsibility of the homeowners. The forecast is that these new trees will be of great benefit in thirteen years as they help to conserve energy and reduce electric bills. The program’s plan is for 3,200 energy efficient homes to be built in the next ten years in Roseville. Estimated energy savings will be some 1,400 kilowatt-hours of electricity and reductions of 62 thousand tons of carbon dioxide emissions each year, the equivalent of planting 44 million trees. At the same time, the new energy efficient homes will use only half of the electricity of regular homes, so homeowners will see great savings on their electric bills.

The second measure is the “Residential Energy Conservation Rebate” program. As a means of making energy conservation even more effective, Roseville Electric is putting close to US$5 million per year into incentives for residential and business users to update their existing homes and facilities. The energy conservation incentives for 2007 include a reward of US$100 for each residence with an energy efficient washing machine with a water factor (WF) coefficient of 7.5 or less or a refrigerator which is “Energy Star” compliant; a reward of US$25 per home with an “Energy Star” compliant dishwasher; a reward of US$1 per square foot for high efficiency windows (with a heat transmission coefficient and solar heat gain coefficient of 0.40 or less) or sunscreen windows which block at least 60% of sunlight; rewards of US$150, US$200 and US$75 for each house with ceiling material with an insulation value of R-19 (equal to 6 inches) or lower increased to R-38 (15 inches), wall material rated at R-11 and floor material rated at R-19, respectively; rewards of US$750 and US$550 for changing to energy efficient air conditioners depending upon the model; and a reward of US$200 for changing heat pumps.

The third measure involves putting great efforts into promoting renewable energy. As a means of ensuring the safety of the energy supply and protecting natural resources, Roseville has been persistent in maintaining the balance and multiplicity of its electricity supply, of which 20% comes from renewable energy. First, Roseville is working with Renewable Energy Institute International (REII) to establish a renewable energy research center for the development and testing of biomass, solar and wind energy. Placer County has instituted a “Bioenergy Program” for this purpose which will coordinate and supervise research and development for bioenergy. It will also study how combustible materials in forests can be converted into energy products which are either economically sustainable or used for other beneficial purposes. Second, the city has launched its “Green Roseville” program and has established a “Green Fund” to encourage residential and business customers to use wind and solar energy. The stipulations are that users participating in the Green Roseville program pay 1.5 US cents per kilowatt-hour above the regular rate for electricity per home, and those participating in the Green Fund program pay 1 US cent per kilowatt-hour above the regular rate for electricity; those participating in both programs pay 2.5 US cents more per kilowatt-hour. The funds obtained through the program will be used to pay for research and development into local renewable energy. Research has shown that electricity used in the home is the greatest contributor to climate change in the U.S. The environmental benefits from each home that participates in these programs will be the equivalent of planting more than 500 trees or not driving a car for eight months.

The fourth measure is the “Power Partner” program. With this program, residents install automatic switches on their air conditioners to ensure that the units automatically turn on and off for periods of time during peak power usage periods in summer. Typically, this means turning off the air conditioner for no more than 10 minutes every half hour, and no more than 30 minutes every hour. Roseville Electric has stipulated that residents willing to participate in this power-saving program will get a US$10 signing bonus and US$10 for participating. Residents sign up for the program once per year, and get a US$10 reward for signing up for a subsequent year. Experts have calculated that this energy-saving measure will result in an average indoor temperature increase of only 1 to 3 degrees, which will not affect residents’ comfort level.

The fifth measure is to build an energy park. Roseville recently spent US$17.9 million to build an energy park as a means of stabilizing power pricing, attracting investment and reducing environmental pollution. The energy park takes up 12 acres of land and uses natural gas-fired combined cycle power generation and produces a zero discharge of wastewater. Under normal conditions 120 megawatts of power are produced, while 160 megawatts can be put out during peak periods in summer, enough for 40% of local demand. The cooling tower uses recycled water from the adjacent wastewater treatment plant.

The sixth measure is foam plastics recycling. Foam plastics have become a critical source of garbage on both land and water. The cost of cleaning up foam plastics is over US$1 per pound, which is alarming. In 1999 alone the foam plastics buried in California amounted to 300 thousand tons costing US$30 million to process. In mid-November of 2007, Roseville launched its “Foam Plastics Recycling Project,” in which the agency in charge was responsible for setting up foam plastics recycling bins in various locations in the city and at shopping malls. The foam plastics are then sold to companies who recycle them into baseboards, moldings, lightweight concrete and packaging materials.

Experts hold that small and mid-sized cities are duty-bound to conserve energy and can do much in this area. Conserving energy and protecting the environment not only involve reducing power usage in order to lower costs of living, improve the quality of the environment and the air, reduce dependence on foreign energy and reduce greenhouse gas emissions, but are also helpful in creating a positive commercial environment, attracting green investment, creating job opportunities and promoting the sustainable development of the local economy. If California reduces its greenhouse gas emissions by 2020 to 1990 levels according to plan, then 89,000 jobs will be created and gross state product will go up by US$74 billion. An important city in northern California, Roseville has firmly grasped the temper of the times with its various programs, which is undoubtedly a smart move on its part.