Full 50-State Green Retrofit Initiative

-----------Arguments------------ R1: Saves Money For the average home, an energy retrofit would save about 30% on the average energy bill. If we had a nationwide retrofit loan guarantee program, so that banks are assured that they would be repaid, we could nationally have about $1 trillion in energy savings over 10 years, or about 30% of total electricity spending in the U.S. [1] R2: Expanding Economic Prosperity This has crucial implications for the prosperity and health of America. With over $100 billion annually (or $1 trillion over 10 years), this money would could simply be put to use for other economic needs, such as consumption, critical investments in infrastructure, or paying off debts. The figure of $100 billion annually is the result of several careful studies done on the subject relating to energy efficiency and retrofits. [1] These huge savings cannot be overstated. With over $100 billion annually simply to use, many businesses and public buildings could spend this money on investments to improve their competitive ability in the global economy, either by investing in human capital of their workers, investing it on cutting edge technology to make them have a more competitive edge, or other ways to improve their ability to gain market share. Ultimately, having these huge pivotal savings is a huge opportunity for America, that would greatly improve America's competitiveness globally. R3: Expands Market If gov't did set up a loan guarantee program, it would easily guarantee confidence to banks, so they would be willingly to lend. If we did set up a business friendly loan guarantee program, and used a fund of about $30 billion to guarantee banks that they would be repaid, it could easily (the banks collectively) result in over $280 billion in loan guarantees from that initial guarantee fund. [2] The risk is very low. The huge, vast majority of those engaged in a retrofit would be able to afford about the same rates as before. On average, banks have a reserve rate of 10%. So, thus a loan guarantee of $30 billion (10%) would allow banks to expand loans for retrofits to $300 billion or similar. Same kind of monetary idea here. *If the savings don't cover the costs, the contractor or utility makes up the difference. This would allow the retrofit market to expand by large amounts to create confidence to consumers. To pay off the retrofit, which has higher upfront costs, utility rates would slightly go up and consumers continue to pay the slightly elevated rate for a period of time, until the retrofit is fully paid off, and the cost of interest for the bank and the utility ends up as a net profit for the bank, utility, local contractor (who engages to perform the retrofit), and ultimately the consumer. Since the average savings on a modern, efficient, green energy retrofit is about 30% on average [1], the whole retrofit + interest is payed off relatively quickly, and the rest of the savings is reflected on the utility bill, which is about a 30% cut from earlier, and is a windfall gain for the consumer, who continues to enjoy lower utility rates from then on. Ultimately, a $30 billion loan guarantee fund could expand up to $300 billion in bank loans, which would result in substantial savings for consumers, and the economy as a whole could greatly expand with this opportunity, if it was taken. R4: Clean Environment By having likely tens of millions or more green energy retrofits nationwide, it would have large benefits for the environment. By installing green-friendly equipment in buildings in retrofits such as clean insulation and heating systems, planting green gardens on rooftops, installing solar panels, etc., it takes large strides in cleaning our air and water. It would reduce our energy emissions by 10%. [3] A more green, cleaner energy system for America is an imperative to clean our environment and to protect our natural heritage which includes a more sustainable energy solution for a more clean environment. R5: Job Creation In addition to the $100 billion in extra savings annually, which could create an untold amount of jobs through the market, these energy retrofits would spur hiring in the retrofit industry and, especially increase the demand for local, small town contractors to perform these retrofits on their buildings. The studies have shown that a $30 billion loan guarantee fund, after expanding the bank loans to about $300 billion, would create about 3 million jobs to perform these green retrofits. [1] This would massively decrease unemployment, and create a chain reaction to jump start our economy. Conclusion A national green energy retrofit initiative with a $30 billion loan guarantee fund would be hugely beneficial. From the creation of over 3 million jobs would jumpstart our economy, and cause a unique increase in jobs in local contracting businesses in small towns nationwide, resulting in broad prosperity. Our environment would be generously rewarded. Our emissions would decrease 10% nationwide, helping to clean our air and water, which would then improve the health of millions of Americans. The green energy equipment would jumpstart America's journey to a 21st century energy solution as well. The savings would be huge. With $100 billion in savings annually, this would be a stimulus that would essentially be free. For the banks, utilities, and consumers, they would all gain, especially the latter. It would be essentially free. Ultimately all consumers would get savings from the retrofit (or their utility as mentioned above *), and the cost to the fed gov't would be very minimal. Thus, a nationwide retrofit initiative is a compelling idea to launch America's economy, health, opportunity, and green environment forward. The resolution is affirmed. Sources: [1] http://tinyurl.com... [2] Clinton, Bill. Back To Work. New York City: 2011. 145-151. Print. [3] http://tinyurl.com...