TransActions - September 2002 (Vol 502)

Wisconsin Invests $308 Million in Energy Efficiency and Renewable Energy

Wisconsin Governor Scott McCallum recently stated, "Energy efficiency is a basic component of a strong and competitive economy. Expanding the production and use of energy efficiency technologies offers the opportunities to create entire new industries in Wisconsin. Using existing energy resources more efficiently and sustainably is a sound strategy for fueling a strong economy, improving environmental quality and creating a higher standard of living." To achieve this, the State of Wisconsin has created Focus on Energy, a unique public-private partnership that provides energy efficiency services and information to residents, businesses, local governments, and schools. For the three-year period from July 1, 2001 to June 30, 2004, the total budget for Focus on Energy is $308 million.

According to the American Council for an Energy Efficient Economy (ACEEE), only a few states have a Public Benefits energy efficiency budget as large as Wisconsin's (as a percent of utility revenues). Listed below are the states that are spending more on energy efficiency than Wisconsin:

¹ Source: American Council for an Energy Efficient Economy, Summary Table of Public Benefits Programs and Electric Utility Restructuring (May 2002).


Program Delivery: Public-private partnership

Wisconsin's public-private partnership calls for the program's services to be designed and delivered by a group of firms under contract with the State of Wisconsin Department of Administration's Division of Energy. The purpose of Focus on Energy is to encourage energy efficiency and the use of renewable energy, enhance the environment, and ensure the future supply of energy for Wisconsin. In addition to aggressive energy saving goals, the firms implementing Focus on Energy are charged with designing programs that will transform the markets for energy efficiency goods and services into profitable, self-sustaining markets.

The Budget
Figure 1 shows the breakdown of the Focus on Energy three-year budget. Forty-six percent of the budget is dedicated to energy efficiency programs for low- income customers, twenty-one percent for the business sector, twenty percent for the residential sector, and the remaining thirteen percent for program operations and evaluation (9 percent), renewable energy (3 percent), and environmental programs (1 percent).

                                                                    Fig. 1

Residential Sector

The Focus on Energy Program offers six programs for Wisconsin homeowners, landlords, and renters. One of the residential programs is the ENERGY STAR® Homes Program. This program helps homebuilders construct new homes that meet some of the highest building standards in the nation. Multiple on-site visits during the home construction process help to ensure that the home is comfortable, durable, safe, and energy efficient. 

During the twelve-month period ending June 30, 2002, the energy efficiency programs offered in the residential sector saved over 29 million kWh annually, 3,636 kW, and 1,102,597 therms of natural gas². The cost of the residential programs in fiscal year 2002 was $11 million. Table 1 below summarizes the savings for the residential programs for Fiscal Year 2002.

² The savings for the residential Programs are on a gross basis, before any adjustments are made to account for program participants who would have implemented energy efficiency projects in the absence of the Focus Program and the additional savings that occurred from program-generated activity that is not tracked.


The significant energy savings in the residential sector were achieved through the active participation of more than 1,500 retailers, builders, and contractors who are updating their business models to capture the value of energy efficiency for their customers, the business community, and the general public. The residential programs established active partnerships with:

• 16 Manufacturers
• 28 Distributors
• 725 Retailers
• 286 Home Builders
• 600 Contractors
• 43 Building Science Consultants/Raters

While the Focus on Energy evaluation team is still in the process of analyzing and determining the very early impacts on market preparation efforts in the state, the operational outcomes and anecdotal information provide an early barometer for future success. Highlighted below are just a few of the Year 1 residential program accomplishments:

• 10,373 ENERGY STAR appliances purchased
• 177,389 ENERGY STAR lighting products installed
• 7,112 second refrigerators recycled
• 1,871 WI ENERGY STAR Homes constructed or certified
• 1,352 furnaces with high efficiency motors purchased
• 2,951 high efficiency central AC units installed
• 332 homes receiving whole house assessments
• 3,136 apartment/condo units received energy efficiency measures
• 218 teachers trained on energy education curriculum
• 35,471 callers receiving information

Business Sector
Focus on Energy's Business Program offers eleven energy efficiency programs to business organizations in Wisconsin. Each is designed to address the issues of a different sector of the market. Among the services offered by the programs are:

• Surveys to identify energy savings opportunities
• Technical information and articles
• Workshops for business-to-business exchange on energy issues and technologies
• Technical seminars and training
• Metering assistance and equipment loans
• Access to energy experts at no cost
• Access to vendors and contractors
• Independent advice and review of vendor proposals
• Assistance in developing a corporate energy efficiency plan and implementation plan
• Works with Wisconsin manufacturers to increase their sales of products that meet nationally recognized standards for energy efficiency and quality

The Focus on Energy Business Program also uses financial incentives to address market barriers facing the energy efficiency marketplace. Such financial incentives include the following:

• Implementation grants for projects that yield substantial energy savings
• Feasibility study grants to help businesses, local governments, schools and farms to evaluate the potential of a particular energy saving technology or process
• Buy-down grants to help reduce the costs of energy-efficiency related maintenance services
• Interest rate buy-downs and lease payment subsidies for energy efficient equipment 
• Instant incentives to help small commercial businesses save energy and money for certain energy efficient technologies

Table 2 below shows that in FY 2002 these programs saved 26.7 million kWh annually, 11,257 kW and 1,393,379 therms. The actual spending for the business programs in fiscal year 2002 was $12.4 million. In fiscal year 2003, the annual energy savings targets are substantially higher (for example, the target for kWh savings has been increased to 120 million kWh).

During the past year, the Business Program had a significant impact on the Wisconsin economy, helping to reduce energy costs for business owners. Examples of specific energy savings projects completed in the business sector are shown below in Table 3:

Renewable Energy 
Focus of Energy's Renewable Energy Program promotes the use of renewable energy technologies by identifying the renewable technologies most likely to fit the needs of commercial, industrial, and agricultural customers. They also provide technical review, project feasibility analysis, and walk-though surveys/review assistance. Incentives, grants and scholarships are also available for feasibility studies, implementation projects, marketing and other assistance. Special services and incentives are available for eligible schools and non-profit organizations.

For More Information
To learn more about any of the Focus on Energy Programs, you can call the Focus on Energy Program at 1-800-762-7077, or you can visit the Focus on Energy web site at www.focusonenergy.com.
Or send an e-mail to Richard Spellman, the Deputy Project Director for the Focus on Energy Business Program and a Vice President at GDS at dick.spellman@gdsassociates.com.

Success in Siren
When a tornado struck the small town of Siren, Wisconsin, in June of 2001, many were left without their homes and businesses. Owners of the Pour House Restaurant were among those who lost just about everything in the disaster. The owners had completed their reconstruction plans when, by chance, one of them attended a seminar on energy efficient practices for small business presented by Focus on Energy. The owners immediately began working with Focus on Energy and their architects to revise their plans in order to take energy efficiency into account. The installation of a high-efficiency air conditioning system, natural gas booster heaters and other upgrades are expecting to result in energy savings of over $5000 annually.