Why Canada should follow California’s example

By Jim Harris

Climate change is suddenly a hot issue in North America, and so it should be. But in our rush towards environmental consciousness we are missing out on simple and inexpensive ideas which, added up, will reduce our energy consumption and save us all money.

Fortunately, we can look to California for leadership. Building codes, appliance standards and energy-efficiency programs at utilities have made the state the most efficient in the U.S. Since 1974, California energy consumption has remained constant, while overall U.S. per capita use has jumped 50 per cent. The average American uses 12,000 kilowatt-hours of electricity a year, while for the average Californian it’s less than 7,000, according to the California Energy Commission. These energy-efficiency programs are today saving the average family in the state more than US$700 a year. 

Bigger, better, cheaper 
Let’s look at one specific example. In 1974, the average North American refrigerator was grossly inefficient, using 1,800 kWh per year. Manufacturers used little insulation and inefficient motors. Then California imposed efficiency standards and today the average refrigerator is four times as efficient. Manufacturers eventually met California’s standards for products shipped to other states, resulting in annual energy savings of US$17 billion in the U.S.

And the average price for a refrigerator has fallen from US$1,272 in 1976 to less than US$460 today, while cubic volume increased by more than 20 per cent, according to the California Energy Commission. 

Save US$6 billion for free 
Here’s my favourite example: phantom or standby power. Four billion power supplies are sold annually worldwide with devices like TVs, DustBusters and microwaves. These draw power 24 hours a day even when “off”—sucking two to 12 watts on average, with some as high as 20 watts.

Standby power accounts for 10 per cent of U.S. residential electricity consumption, or more than US$6 billion in annual electricity costs. In 2004, U.S. residential electricity consumption was 1.29 billion MWh, meaning this “vampire power” consumed almost 130 million MWh. That’s equal to the output of 36 power plants. But here’s the kicker: manufacturers could build electronic devices that draw as little as 0.25 watts—often for no incremental cost, or at most 25 cents per unit.

Back to California. The phantom power draw was about to surpass the electricity required to power all refrigerators in the state, so in 2004 the Commission imposed limits on standby consumption for a number of devices. As of January 2006, standby mode could consume no more than three watts; this fell to 0.75 watts in 2007 and will drop to 0.5 watts in January 2008. Applying this standard in all OECD nations would reduce CO2 emissions by the same amount as removing 18 million cars from roads—and again, at no cost. 

Other savings 
Escalators account for one per cent of energy use in commercial buildings. Installing sensors which turn elevators off when not in use can have a pay back of as little as two months.

White roofs on buildings reflect heat and dramatically reduce the need for air conditioning. Greece has white roofs but shingles in Canada are brown or black, guaranteeing our houses achieve the maximum toasty setting and driving peak power consumption.

California’s power utilities have budgeted US$2 billion for consumer-facing energy programs for 2006 to 2008. Projections indicate state residents will save up to US$4 billion on their bills over the same period; this reduction means California can avoid building three power plants.

Many standards adopted first by California have been enacted by other states and often by the federal government, and energy spending in the U.S. has dropped by US$700 billion in 2005 alone.

California’s energy conservation program has replaced millions of incandescent light bulbs with compact fluorescents, which use 75 per cent less electricity; installed thousands of light-emitting diode (LED) traffic lights, which consume 50 per cent less electricity; and swapped out thousands of old inefficient motors in factories. These initiatives alone saved 5,000 megawatts—equal to 10 large power plants.

Why can’t we have this approach in Canada? Instead, Ontario is spending billions of dollar to build more nuclear plants.

Jim Harris is the author of the international bestseller Blindsided, published in 80 countries worldwide, and The Learning Paradox, nominated for the national business book award. E-mail him at
jharris@backbonemag.com.

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