Saving the Economy, One Furnace at a Time

Like most Americans, I'm guarding my dollars, but when my furnace died during Seattle's coldest winter in decades, I needed to replace it. And when I did, with a high-efficiency Trane model made in Trenton New Jersey, the costs and gains underscored key lessons about what we need to do to craft a stimulus package that actually builds for America's future. My new furnace saves energy and fights climate change. It promotes American jobs, and pays back its costs in a reasonable time frame. It points toward how to genuinely renew America's economy instead of encouraging the same consumption for consumption's sake that has helped create our current problems.

Let's look at what my $5,000 purchased. It supported Trane's unionized factory workers in New Jersey and in their main plant in Tyler, Texas, supported local Seattle installers, and supported beleaguered New Jersey, Texas, and Washington state and city governments through the sales tax I paid and the taxes paid by the companies involved. In my personal economy, it meant I'll save more than a third of my yearly gas bill and a commensurate amount of my CO2 emissions. My old furnace was a thirteen-year-old 70% efficient model that was down to barely 60% because single-cycle furnaces lose 1% a year as their burners corrode and heat exchangers get less efficient. The new one is 97% efficient and will maintain far more efficiency because its variable speed motor is much easier on its components. I live in a relatively small and well-insulated house in a generally temperate climate, and I keep my thermostat low, but I've still been spending $850 a year on gas heat (solar panels take care of most of my hot water), and if I add in savings on my electric bill from the furnace's extra-efficient fan, I'll save roughly $340 a year at current gas prices, and more as fossil fuels of all kinds become scarcer. If natural gas costs continue to increase at their recent rate, 61% in the past five years, my investment will pay back in roughly nine years--a far better and safer return than I could get from any bank account or roller-coastering stock market investment. If I lived in a colder climate or had a larger or less-insulated house, the furnace would pay off sooner still. I'll also prevent the release of roughly three tons of CO2 every year.

So how do we make similar choices affordable for everyone, whether or not they have the savings to do this on their own? Imagine if the pending stimulus package helped people make such investments nationwide, combining direct incentives with low or no-interest loans, along the lines of those long advocated by Al Gore. Imagine if it prioritized energy efficiency and investment in renewables, particularly those that are American-made.

I'm not saying high-efficiency furnaces solve all our economic or environmental challenges. Plugging building leaks, adding insulation and switching light bulbs give the maximum energy efficiency for the least expenditure of dollars. We need solutions that move us toward eliminating fossil fuel use altogether, like solar thermal, industrial-scale wind, advanced geothermal, ultra-efficient green buildings, and smart electrical grids. The 300,000-person Swedish city of Malmo already gets 40 percent of its residential heat (and 60 percent of its electricity) from a municipal incinerator plant and is steadily extending its district heating to the suburbs. We could do the same. But adding a high-efficiency furnace buys time--like scrapping a Hummer to drive a Ford Focus. It takes us part of the way--and if the furnaces are American-made, does so while keeping money in our domestic economy. If made by union labor, like the International Union of Electrical Workers-Communications Workers of America local that built our furnace in Trenton, they build equity and justice as well. If we could replace every furnace older than 10 years with a high-efficiency American-made model, and mandate the same in new construction, we'd come out far ahead.

Every industry is hurting these days, and they all have their hands out. But if we spend seven hundred billion or a trillion dollars to jumpstart the economy without simultaneously addressing root problems like fossil fuel dependence, we may not have the resources to do so later on--or when we do, they'll require far more sacrifice. My furnace upgrade was from necessity, but it symbolizes a fundamental choice about the direction of America's economy, and therefore about the stimulus package aimed at reviving it.

We can continue to support consumption for its own sake, and that's what we've been doing. But although $5,000 granite countertops look swell, they don't solve global warming, heal our trade deficits, or move us toward a more sustainable society. Nor do endless truckloads of Chinese Wal-Mart goods for those at the bottom or the $3,000 suits, $100,000 necklaces, and fifteen-million-dollar mega-mansions for those at the top whose choices have steered us into our present crisis. At some point, we need to shift incentives and priorities. We probably need fewer people working at mall stores, and more manufacturing furnaces or wind turbines and retrofitting houses. Even if this means we won't be able to buy as many cool toys as some Americans did during the boom, we'd actually be investing in the future instead of cannibalizing it. If we make enough of these investments we might even look back on this moment as a national turning point--much as we do now to the wise choices made during a comparable economic challenge, from which we emerged with a far stronger and more equitable economy than ever before.

Paul Rogat Loeb is the author of The Impossible Will Take a Little While: A Citizen's Guide to Hope in a Time of Fear, named the #3 political book of 2004 by the History Channel and the American Book Association. His previous books include Soul of a Citizen: Living with Conviction in a Cynical Time. See www.paulloeb.org To receive his articles directly email [e-mail] with the subject line: subscribe paulloeb-articles

Comments

[Schmeiz]

High efficiency furnaces are certainly a step in the right direction, but ground source heat exchange systems actually are about 400% efficient compared to gas units. For every btu used, you get around 4 btus back, because the heating energy is absorbed from stored sunlight in the form of heat in the ground. The systems can be reversed in hot weather to dump heat into the ground and provide A/C. Additionally, no gas is used at all, which means no green house gas emissions. The average user will save up to 70% on their utility bills by eliminating gas, and significantly reducing electrical demand for cooling purposes in the summer. The best part is that it is ready to go now, and creates good permanent jobs for Americans.

[Cosine50]

This is a practical yet compelling take on the nuts and bolts of a sustainable economy. I'm one of the spoiled Northwest residents who heats with cheap hydro-electric power from Federally subsidized dams - it's easy to keep a small carbon footprint from this part of our energy expenditures, although there are other issues with the dams. Still, I've been up in the attic piling on the insulation and we're having new double-paned windows put in for most of our house. Thanks for the doable ideas, Paul

[lleger]

Great article. These are things we all should do, and the necessity of it is just highlighted by our current economic crisis. Unfortunately though, as others have said, changing our lightbulbs and furnaces isn't enough to stop climate change; sooner or later these changes will have to happen at state and national levels if there's going to be any meaningful impact.

[Scottyp]

Good Job Paul. I've been preaching this kind of thing for a couple years and now people are starting to listen. Barack Obama actually gets it, too. Chris Dorsi and John Krigger wrote a great book called "Residential Energy" that really digs in and explains the nuts and bolts how houses work. If you would like a copy I'll buy you one because guys like you can get the word out. And while we're at it why don't we phase out atmospherically vented furnaces altogether. Some legislation that would actually work. Make it illegal to install anything less than 90% efficency. Not only would it save energy but there's a lot of retro-fit work out there for some hungry,out of work contractors..

[wadehudson]

Instructive report. Thanks for the details. At the same time, I think it's important that it was mostly only "some Americans" who bought lots of "cool toys" during the boom.Those who study the Consumer Expenditure Survey at http://www.bls.gov/cex/#tables will likely be surprised by how little luxury or extravagant spending is done by the typical American, in contrast to those consumer units whose income is $150,00 and more.

[Paul Loeb - Huffpost Blogger]

Great chart.... It's definitely the spending at the top that's key--driven by huge salaries and bonuses and accentuated by a regressive tax system.

We need to be able to recapture some of that income and distribute it to basic challenges like insulating people's dwellings (including rental units) and making sure that people have efficient appliances

[juancarlos7]

not bad, but it goes alot deeper than just a proper furnace. the big problem starts at the county level. the people in charge of who's allowed to develop in the community! on the majority level, across the country, your elected officials are allowing idiots to produce homes/apts that are pathetic in thier build quality! there need to be a standard across the whole country for what we as AMERICANS deserve!!! look @ the new houses being built in the 9th ward in New Orleans. they are well thought-out for thier enviroment. the "standard" dosen't need to be catergorized as"socialist", but as respectful & thoughtful to those who deserve(hard-working) to live in a well insulated home! as for new furnaces.....be sure to check ALL the areas that heat can escape your home and fix them properly. that saved me an extra $1000 annually! really!

[PATina]

Great ideas !!!!

[Russycle]

Right on. I recently bought an ultra efficient, made in Minnesota, Marathon water heater, saw my electric bill take a big dive. Many electric utilities will give you a rebate for buying one. And it has a lifetime warranty. Spend a little more for a quality product, save a lot in the long run!

[Davwbaird]

Paul sell this to our great governor, Chris Gregoire, I believe she will be very open to this.

I have suggested a round table of industry, government and higher education leaders to look at ways for our state to make it through this time and to set the stage for the future. Our 2 year and tech schools are the ones to conduct the short course to get this started.

What we get started here can be a model for other states (our HIV/AIDS Prescription Drug Program became the model for the rest of the country).

[Davwbaird]

Great ideas here (so many come out of Washington State). The thought of a green Corp, helping folks to acclimatize their homes throughout American is a doable thing right now. Developing educational seminars( 3 months at the most of course work and use seniors with administrative backgrounds struggling on Secial Security to help) to train workers to evaluate and suggest and when necessary to obtain the funds to do it, is a win win situation. Yes we can!

Dave
Tumwater

[everyvoice]

This is exactly the kind of thing Van Jones is writing about (www.vanjones.net) in his book Green Collar Jobs. This is the true meaning of "investing in the future" . . Paul saves money, people in Seattle and New Jersey stay employed, and the planet gets a breather.

Why is this so hard for Hank Paulson and company to understand?

[Davwbaird]

Sell these ideas with your state governments.

[Paul Loeb - Huffpost Blogger]

Van is definitely one of my heroes

[iwantmcb]

You are so right on. And, for the sake of future generations, we must get off our dependence on fossil fuels. We now have a golden opportunity to do so and to do so quickly. It's an opportunity to create millions of new jobs as well. I just hope that Obama is bold in his actions.

Three notes... and the first one would actually take care of the other two:

1) We need citizen awareness. That means we need to take back our media.
2) We need 'clean elections', that is publicly funded elections.
3) We need 'fair elections', that means getting rid of all programmable voting equipment.
==========================

[nigeld]

Great article. I find it ironic that in my own mind I used to sneer at the phrase "buy American" as jingoistic nonsense. Not anymore. The more we continue to import lead-containing toys or putrid drywall from China, the more the moniker "Made in China" will begin to be synonymous with "garbage."

I was saddened to learn that a company in the town where I grew up, Syracuse China, is going to close and send its manufacturing to China. This after 150 years in business and a position as the market leader selling dishware to restaurants nationwide. They survived the great depression for goodness sake. And now, after their first bad quarter, their owner, Libby Glass, is running for the hills. My prediction is that in ten years the brand will be gone, its products having declined in quality, the company name a victim of short-sighted management and greed. We have a full set of Syracuse China, it's lasted over 25 years daily use. But I'll never buy another saucer from them and will seek out another American maker instead.

[Paul Loeb - Huffpost Blogger]

If we don't renew our manufacturing base, they we're expecting to live on vaporware. Microsoft, Disney, and biotech alone isn't going to support us. I too was a bit contemptuous at one point about "Buy American" until I started thinking about it--it's not that global trade is always bad, but if we don't redevelop some real base of our own, we're in trouble.

[fnygy]

Here's another slogan worth remembering "Look for the Union Label..."

[zjemi]

Ah, if only the "made in China" was as garbage-y as you wish it were. In fact China has been investing in quality improvement and especially in green technology for the last 8 years while we
have been twiddling. Check out China's electric car, the BYD. It may be turn out to be a piece of junk but it will have a lower price and come out sooner than GM's Volt (which may also turn out to be a piece of junk.) I'll buy quality American any day, but there's plenty of Chinese stuff that's competing both in price and quality, and they've been winning.

I only hope we can catch up.

[jerseysurfer]

Right you are. I'm a Massachusetts resident whose home is not served by piped-in natural gas. However, by replacing my '60s vintage oil-fired boiler with the latest off-the-shelf offering from my local installer/serviceman, my oil consumption has been decreased by about 1/3, with attendant decreases in global warming gas emissions, stinking chimney effluvia, and cost. With the price at $4.89/gallon as it was last summer (I heat my hot water off the same unit, and had to buy oil at this price), I was on-track to recover my $4200 installation fee inside of three years. Even at the more "reasonable" present $2.50/gallon, I estimate the cost of the new unit will be amortised in about six years. Anyone who replaces their old fossil fuel fired heating system will be doing their bankaccounts and the environment a lot of good.

[Davwbaird]

Sell this idea to your governor. Our elected officials are more open to new ideas that can be implemented quickly then ever before.