This week I have an I-can’t-take-it-anymore topic: gasoline prices. It is not the gasoline prices that chap me, but the pouting, mud throwing, food fights, whining and probably worst of all the stupid solutions to the so-called problems.
Gasoline is like any other product or service that is a must-have in society and therefore, like electricity and natural gas, consumers feel entitled to all they want at a negligible price. And by the way, why all the hype right now? It’s around $3.50 per gallon. Being an election year obviously feeds the flames and I guess there just isn’t enough other bad news in the world for the 24/7 cable news and internet news world to hype up for ratings.
Products and services for which consumers feel entitled are sold and manipulated by blood thirsty, evil, corrupt, large corporations. A little sarcasm? Not so ironically, the evil and most hated industries are the most heavily regulated: utilities, oil companies, insurance companies, and pharmaceuticals. If oil companies were able to drill willy nilly wherever they want, prices would come down. But Americans don’t want that. If health insurance would be decoupled from employment and people were able to shop for it anywhere in the country and if the tax subsidy were removed, prices would come down. But it has become a right that employers provide it. You’re probably thinking I’m crazy on this because individuals pay way more than large groups. That’s because large groups exist. If insurers had to fight for individuals one by one and there were no large groups the “gouging” of individuals would go away.
We are not hostage to oil companies. We can drive less and people can buy more efficient vehicles. If your vehicle today doesn’t get at least 30 mpg, your rights for complaining about gasoline prices are rescinded. If you have to haul a hockey team, soccer team, or squad of ballerinas I’m quite certain there are minivans that can do the job at 30 mpg. Suck it up.
Politicians, as usual, are more concerned about making political hay from the issue than doing anything about it. The left piles on the populist evil big oil and a few evil individuals like the Koch brothers. The right beats on the President even though domestic production is up. When Bush was in office, high oil prices were the result of his connections to big oil. With Obama in office, the narrative is he wants high oil and gasoline prices.
Then there are completely ignorant talking heads like Bill O’Reilly. As I mentioned in Electric Bills and Waldo a couple months ago, the United States had become a net exporter of refined petroleum products and I said that was a good thing. Oh no! O’Reilly just found this out a couple weeks ago and he is completely incensed. Oil refineries selling their product in markets that have the greatest demand and selling to the highest bidder is a crime, apparently. Exports should be taxed to the gills! Are you kidding me? Nothing makes smoke pour out of my ears more than the political class talking as though the only reason companies exist is to fund the government. They want to set the rules so the private sector company doesn’t make what the politicians think is too much profit, doesn’t move manufacturing overseas, builds factories in the right state, pays the right wages, provides the right benefits and so on, and of course pays enough taxes to the emperor. Ditto O’Reilly.
Next is the narrative of the evil “speculator”. “Speculators” view the market, world events, current prices and futures prices. Most speculators are companies that buy a lot of petroleum products – like airlines. It’s called a hedge against risk. They may believe locking in $3 jet fuel for the next year is a good thing to do in case all hell breaks loose in the Middle East. By the way, this is one of the major reasons prices are high now – because AquaVelvejiad threatens Israel on a daily basis and is thumping his chest over the straight of Hormuz.
Sure there are gamblers in the futures market but they too serve a purpose. They provide liquidity and capital to help the markets work. However, they DO NOT make a lot of money just because oil prices are high as O’Reilly believes. They buy and sell futures and futures options. They can bet the price will rise by buying long or buying call options or bet the price will fall selling short or buying put options. For every winner there is a loser. In whole, it all stabilizes the market although once in a while a house of cards develops and the market collapses and many of those evil speculators get torched badly.
Then there is this dopey accusation: gasoline companies are price fixing. This has been disproven a thousand times. And it is simple common sense – if they are conspiring to fix prices, why not price gasoline at $8? Why does the price go down? Why does it fluctuate at all Mr. Conspiracy?
Causes of rising prices include the aforementioned tensions in the Middle East, and demand from the developing world. But also, many folks don’t realize that the weakness of the US dollar plays a significant role. A year and a half ago in Playing with Fire, I railed against the Federal Reserve’s “Quantitative Easing” (money printing) because it floods the world with dollars and with rising supply there is falling demand and value. This occurred last spring and the dollar scraped along at interim lows as gasoline prices peaked in May and fell into the summer. Gas prices otherwise never fall in the summer, except when somebody is messing with the value of the dollar in a big way. The dollar peaked in December 2011 as gasoline prices hit the lowest prices in a couple years. The dollar has since fallen off and gasoline prices are up. Get it?
The US isn’t going to go bankrupt and it won’t default on its debt. The government will either get the deficit and debt under control or we will inflate our way out of debt. We can effectively lop a couple zeros off our 16 trillion debt and voila, our debt is suddenly only 160 billion old dollars. The downside: a loaf of bread and gallon milk cost $700. A gallon of gasoline: $350. I feel the start of a credit card commercial coming on but I won’t go there.
The fact is, there are many factors that push prices up or down. Like any complex model, it is extremely difficult if not naïve to isolate the effect of one actor. Cleary though, rising world demand, limiting supply, tension in the Middle East, and a weak dollar and a dozen other factors put upward pressure on prices.
One thing I’ve learned many times over with approaching or ongoing energy efficiency projects with clients, mostly end users, is that when the decision maker is replaced for whatever reason – the guy took a different job, retired, moved to a different place in the company – you name it, it is time to pull over to the side of the road.
The most common thing a new guy (androgynously) does upon taking over the helm of whatever ship he’s driving is say no, to everything. I’m not sure why this is but I think it possibly has something to do with ego and ignorance and I don’t mean these in a negative way.
I believe the inherent egotistical component of people has to do with power and control. Since many times new guy doesn’t know much about the job at all (ignorance), the first way to grab power and control is “NO”, in particular to spending – anything. Even with a contract or agreement in hand with the previous guy holding that position, it is smart to assume the initiative is not safe.
I can understand their situation but it’s frustrating to start all over building the relationship and some folks will just refuse to do that. But what really ticks me off is when the new guy is cornered and should be committed to a contract, they have selective memory of the process of how the deal was made, selective fact adherence, or they select which rules or contract provisions apply and which ones don’t. In other words, they start making things up, tell half truths, and change the rules after the buzzer sounded. People don’t do deals. People do deals on behalf of their organization, which remains the same regardless of employees coming and going.
Then there are new guys who join an organization we may have worked with for quite some time and for whatever reason treat us like gougers and con men and they never soften. I don’t know whether they expect hourly rates lower than the guy who changes tires or they just don’t like the way I dress or my accent. Fortunately, I can only think of one instance of this quite a few years back but it stuck with me.
The flip side of all this is the key to growth. That is, individuals with whom we build relationships may move up the ladder, hire us for different/additional services, or better yet, they move to another company and now we gain a new client while we maintain great relationships with folks with the former employer as well. And they have other clients and business partners we spread to as well.
Business is ALL about relationships. As I said in an earlier post, people who screw others over, even competitors, are really damaging their organization; the reasons of which can fill another post.
Last fall I ranted about the Federal Reserve’s “Quantitative Easing” or QE2, a.k.a. printing $600 billion (as I recall) to buy short term treasuries to drive down interest rates and juice the economy. I said in the long term it would either lead to high inflation or a ballooning deficit with soaring interest rates to lure real cash to finance the debt, or economic malaise or some combination of all of the above.
The short term result (first two quarters of the year) is growth ground from over 3% year over year at the time of QE2 to virtually zilch now. Now what’s the plan? More of the same gimmicks. Now the fed, led by the great Bush-appointed Ben Bernank, is going to sell short term bonds it bought with the money it printed in QE2 and buy long term debt with those proceeds to drive down long-term interest rates – e.g. mortgage rates. Some are calling it QE3. This purportedly will firm the still plummeting housing market. It will not. The cost of money isn’t the problem. Catching falling knives is the problem. People stuck in underwater mortgages is the problem. No confidence in the puppet master is the problem.
It’s a bit difficult to find a job when you can’t move because selling your home requires writing a $20,000 check, which you can’t do because you have no job. Others with money and no financial problems don’t want to buy in a falling market. So what’s it amount to: people who are not in trouble can refinance at lower rates and save money. Good for them but this won’t do squat for the economy.
Meanwhile, the President announced another round of term-formerly-known-as-stimulus and tax increases on the wealthy.
The DJIA (Dow Jones Industrial Average) reaction to each of these plums on the day of their announcement:
QE3: Minus 400 points, or about 4%
Term-formerly-known-as-stimulus: Minus 300 points.
Per last fall’s rant, the entrepreneurs and institutions that drive the economy are not lab rats. We think and reason and we look at past attempts at similar gimmickry and the results, all of which are terrible. We are essentially living the Japanese experiment 1990-2011; humongous borrowing and negative real interest rates while treading water at best.
Moral of the story: (1) “This time” is never different. (2) A bad idea on a grander scale is not better than the less grandiose earlier one.
Dreadful Electric Car Sales
In other news, electric cars don’t seem to be selling as intended. Nissan, headed by the (formerly) great Carlos Ghosn who saved Nissan from the collapse, targeted 25,000 in sales of its pure-electric Leaf this model year, which is apparently the calendar year. Through August, it is almost a quarter of the way there. Could it be that one can buy starter “luxury” vehicles like Infiniti, Mercedes, Lexus vehicles for the same price, no government subsidies included?
Earlier this week I read that the Chevy Volt “electric” car (with a so-called on board gasoline engine for recharging the battery when needed – i.e. a hybrid) can go 1,000 long ranges (on gasoline) through mountains and whatnot at an astounding mileage of 36 mpg. Great – This $40,000 gem performs as well as a $14,000 Toyota Corolla. It’s pretty clear why the government is shoveling billions to subsidize these vehicles: they are terrible ideas.
This week’s great headline from Treehugger.com, “World Energy Use to Increase 53% by 2035, Despite Facebook Changes,” made me laugh.
This week in Coon Valley, where I’ve lived for 15 years, we were hit with frost that ended the growing season for unprotected plants. I have said for years that the first killing frost is always around the first of October, depending on the timing of cold fronts, but this year was earlier than normal – earlier than its been for many years I think (I’m getting old so I’m becoming a walking almanac like your grandfather is/was).
To the point, I thought, the killing frost may be symbolic of the death of “green,” I don’t think the death of the concept just yet, but the death of the term. “Green” may join the trash heap of burned out terms that were symbolic of failure and/or some sort of scandal:
- “Jobs created” converted to “jobs created or saved”.
- “Global warming” converted to “climate change”.
- “Stimulus” converted to [I’m not sure what yet but Nancy Pelosi has declared the term “stimulus” to be off limits]
A few months ago when we were rebuilding our website and updating some content, I was pondering for a replacement for the word “sustainable”. The word is entirely overused and I don’t think the average Joe Public has a clue what it means – maybe something hippie-like, living in communes, drinking herbal tea, wearing hemp over a Bob Marley tie-dyed tee shirt and dreadlocks, and riding a crappy looking single speed bicycle.
Green is also wearing out its welcome if you ask me. Speeding it to its death is the raft of bad news coming from what I would call misallocated stimulus (ironically) funds. I mentioned the Solyndra bomb a couple weeks back, but then it was merely a half billion dollars of taxpayer money that might as well have been pelleted and mixed in with coal and burned to generate electricity. THE US GOVERNMENT BLOWS A HALF BILLION DOLLARS! READ ALL ABOUT IT!, as the boy would yell on the street corner selling newspapers in the old days. In 2011 however, a half billion dollars of totally wasted taxpayer money is barely worth mentioning. Something like this would be buried on page 21 of the Arts and Leisure page, next to the movie listings.
The Solyndra episode has ballooned into a scandal of sorts. When boiled down, it was actually a $500 million dollar television ad for the President to tout successful green jobs in a state of the art manufacturing facility, in California of all places – probably the worst place in the union to make anything. At first it was hyperventilating right wingers on Fox News parading the successful failure of green jobs and the Obama administration.
However, now everyone including numerous news outlets, congress, and even the FBI is piling on like a school of piranha attacking a case of bratwurst. ABC first broke the scandal part of this they claim. The CEO was a crony donor to the President. And the best part: venture capitalists (of the private sector stripe) are first in line to get their money out during bankruptcy “restructuring”. Taxpayers last – my anthem for all government activity. Taxpayers are always last in line for any sort of break. Solyndra will not emerge from bankruptcy. It will be liquidated. Anybody need some light fixtures, fancy cabinetry, office furniture or equipment? Robots? The liquidation is my prediction because any company that burns through cash this fast and manufactures a product that competes against a similar product at 1/6 the cost is unsalvageable.
In other galling cases, we have General Electric, with CEO Jeffrey total-failure Imelt on the President’s jobs task force maneuvering to pay zero income taxes thanks in large part to “green energy” tax credits. In ten years Imelt has guided the company with a starting share price of $55, now trading at $15. Imelt claims he’s advising the president on jobs, not tax policy. Right. His henchmen are lobbying the bajeebas out of Capitol Hill for these tax breaks and loopholes. Regarding the jobs advisory, he is doing a fine job as he moves GE Healthcare manufacturing from Wisconsin to China.
Look; companies are free to make stuff where they want. A major reason for moving offshore is high corporate taxes for the unfavorable companies (like ours) and red tape like, oh, SarbOx, Frank-Dodd, OSHA, EPA, NLRB, protesters, and an incomprehensible byzantine tax code. I do have a problem with lobbying and manipulating tax code to one’s benefit. I do have a problem with Imelt being in the White House all the time on a jobs and competitiveness advisory this or that with the President. Why doesn’t the President immediately boost his image by losing this guy and holding a rose garden ceremony to do so?
In another success story, Whirlpool, which purchased Maytag about five years ago and closed the Newton, Iowa clothes washer and dryer plant, also pays no income tax thanks to green tax credits. It also happens to be moving jobs south of the border. Are these green jobs that are being exported?
Combine once-great American companies that move most manufacturing overseas, while paying no tax on the money they do still earn onshore with throwing taxpayer money in the incinerator for political photo ops and you get “green jobs” becoming a vulgar taboo phrase.
In still more program-formerly-known-as-stimulus news, $38 million in weatherization funds do wonders in West Virginia. The money was filtered down from the state to local “anti-poverty agencies”. Half the projects failed inspection. Projects were doled out without bidding per state law. Employees (of the weatherizers) and their relatives served themselves first, one spending $10k with new windows and doors. I’m surprised they didn’t build a garage and call it a vestibule. A lawyer was paid $25,000 (that’s right, twenty-five thousand dollars) to write two sentences approving the awarding of funds to the agencies. The topper of them all, and there’s no way Jay Leno could come up with this, one person was paid $2,500 to inform Washington there was not enough money to track the money.
I get the feeling we won’t be hearing about the creation of green jobs much longer, if ever again. Actually, the word green may even become foul.
This is bad for our industry and we are going to suffer collateral damage and take some shrapnel from this I am concerned. As I’ve been beating on the past month, independent and in depth evaluation of program impacts and cost effectiveness are needed. The way to do it is to have government (regulators) police the private sector – utilities and other implementers, using other private sector evaluators.
I kid you not. After writing the above, I came across this article in the NYT. Yes, in addition to the banning of the word “stimulus”, “green” is now verboten per the White House. http://economix.blogs.nytimes.com/2011/09/12/the-green-jobs-numbers/
written by Jeffrey L. Ihnen, P.E., LEED AP
As my crop of silver hair continues to expand, I have become more of a historian, particularly when it comes to cause and effect, and peoples’ behavior. I step back and observe what is happening and what has happened as a result of this or that policy. Theories are nice, and they may be well thought out and make sense but if they fail miserably, should we double down and try it again? Policy isn’t like launching rockets or breaking the speed of sound.
For those things, you can test, observe failure/problems and make adjustments. For example, Chuck Yeager was the first to break the speed of sound in an airplane. As he did so, the vehicle, which looked like a beer keg with wings (tap included), shook violently and about blew apart. Why? Because it had straight wings, not “delta” shaped wings. The tap of the keg was led by a shock wave that emanated back in a V, kind of like the wake behind a boat. The straight wings resulted in the ends leading the beer keg’s shock wave and the portions closer to the fuselage were safely behind the shock wave. There is a large difference in pressure upstream and downstream of the wave causing instability and the violent vibrations. They learned. Sweep the wings back so the entire wing is post shock wave. All supersonic aircraft have since been designed that way. Google for pictures of the Blackbird, Concorde, Stealth Fighter, F-14, 22, and a gazillion others and you can see this delta wing design. You don’t see this on your basic subsonic A320 passenger jet. Mechanical engineers should already know this. If not, they went to the wrong school or slept through fluid dynamics.
Policy, on the other hand, does not work this way in my opinion because policy affects infinite variables and you are dealing with peoples’ decisions on a macro basis, not physics. When accounting for decisions made by 300 million individuals followed by a chain reaction of decisions that is limitless, you will get the same results from the same policy every time.
Keynesian theory (stimulus), for example has failed, what a thousand times, not counting the depression? But we keep trying. See this damning report by two Ph.D. economists, one from The Ohio State University and one from the University of Western Ontario. The Act “saved or created” 443 thousand government jobs and “destroyed” about 1 million private sector jobs. I wonder if the study was funded by ARRA! LOL! Has anyone seen Joe Biden lately?
I could write a book regarding why it doesn’t work on a macro level, but let me just provide some reasons believers give for it not working: it wasn’t enough money ($800 billion is almost $3,000 for every man woman and child in the country – how many flat screen TVs from China do we need?), it doesn’t work during deficit spending, the financial crisis, the Bowl Championship Series, La Nina, Rosie quit The View, people were busy preparing for the apocalypse that failed to materialize over the weekend – you name it.
Likewise, it’s been a bomb for energy efficiency.
- Utility and regulatory stakeholders in Iowa opined they couldn’t wait for the funding to stop so people would get off their hands and get in the game again. Now that ARRA is wearing off, an objective observer can see this happening – the economy improving, slowly.
- Cash for clunkers miniscule EE impacts. Over an AESP conference lunch last week, I visited with an engineer from Southern Company, Alabama and he said the Honda and Mercedes plants in their service territory were running around the clock, full tilt. Post cash for clunker they were running at half capacity. And savings?
- A long time ago, I said the money going to EE needs oversight to ensure it isn’t wasted. Well lo and behold, a few weeks after this we bid as a sub-consultant to evaluate the funds spent in California and won the project. We haven’t seen a nickel’s worth of work yet.
- With a business partner’s lead, we pursued pilot work to pursue some ARRA funds, despite my vowing not to pursue ARRA funds. Result: $130,000 lost in work we will never be paid for.
- We had a “shovel ready” LEED® project for a new federal building ready to go. After dragging on for months, our LEED services were value-engineered out of it. Did the OSU guy capture this?
- In the past couple weeks we considered going after some DOE EE evaluation work with one of our best clients but dropped out once intelligence revealed a competitor was going to low-ball it with their “government rates”. Reverse price fixing. I wonder how the rest of their clients feel about this??
What else is ironic is I would say our industry is quite progressive, yet when politically favored are in power, EE gets the shaft. Consider WI, which during the recession prior to this one, the Democratic governor Jim Doyle, almost collapsed the state’s energy program by taking HALF the budget dollars rather than cutting spending elsewhere. In speaking with Californians last week at AESP, the same thing is on the table in Sacramento, with a Democrat uber-super-duper majority. I said, I bet there’s uproar over that. Not a peep. How could this be? Unions Trumpka EE, get it?
Meanwhile, on the right you have people like Rand Paul with his kooky bill to undo the incandescent ban; Glen Beck waxing hysterically that George Soros will use the CFL as a tool to overthrow the US government and Media Matters will control your smart grid connection; Bush and hydrogen; and of course there is a considerable faction of right wingers that would just as soon gut all EE efforts and drill, mine, build power plants, and power lines willy nilly, and waste resources per market forces.
Finally there is this triple lindy irony: the incandescent ban, signed into law by Bush, hated by right, generally applauded by policy people in our industry, is causing much angst for program people. It’s taking with it a gravy train of easy savings for EE programs. An entire cottage industry is developing to rationalize the legitimacy of maintaining these savings. There’s a problem though. I can get CFLs on Amazon.com for less coin than the less efficient halogen. We may actually see incentives for throwing away working incandescent light bulbs (just guessing).
Will the Republicans dismantle our industry? It’s probably not going to happen in Wisconsin. A friend (Shaw) of a friend (Koch) of the governor is the administrator! What a hoot – a story for another day.
written by Jeffrey L. Ihnen, P.E., LEED AP
State and federal budgets are headed for the cliff to varying degrees with few exceptions. Here in Wisconsin, we’ve had the Battle Royale fight to the death cage match with the repubs on one side and the unions on the other while the dems were hiding out in a witness protection plan.
Meanwhile at the federal level, we are on a dangerous trajectory unseen in my lifetime. People have whined about the deficit and debt since my adolescence – the Miracle on Ice days against the Soviet Union. I kept saying, “It’s not a problem. It’s not a problem.” Why? Because the debt as a percentage of our economy was reasonable, and flat but very few people consider this metric – the one that matters most. They just clobber each other over the head and call each other names and we have Jay Leno fodder like “pay-go”.
However, this all changed since the meltdown Lehman Brothers in the fall of 2008. The debt as a percentage of our economy really IS becoming a major concern. We are staring at $1.6 trillion deficits for as far as the eye can see. Personally, I think the word trillion should be banned because it sounds inconsequential. How about $1.6 million million, or $1,600 billion?
Do we cut spending, take away grandma’s pharmaceuticals, sell her home, and set her and her senile dog up in a tent under the bridge, or do we fleece “the rich”. See, I’ve always believed when politicians talk about “the rich” they mean households with incomes of two freshly college-educated people, say an engineer and a nurse or a school teacher and pharmacist.
As a rational person, I did a little Saturday morning research and some pretty simple math to prove my point. The chart below containing data from the IRS paints a pretty clear and grim picture for those expecting a free ride from “the rich”. What it shows is total incomes and numbers of returns (households) by income bracket. The average income of those in the top 1% is $1.2 million and the next 4% the average drops sharply to $220,000. My analysis goes like this: suppose we just took everything these people made above $100k, $250k, and so on. Taking everything in excess of $100k from the top 10% of earners is “only” $2.4 trillion – $800 billion more than the deficit. I.e., if the government confiscated all household income above $100k, we would have an $800 billion surplus. But almost no one in this country considers $100k to be wealthy.
So let’s move to $250k, which apparently according to the President is the line between the rich and not rich because he’s said ten thousand times he’s not touching the piggy bank of anyone making less than $250k. Well guess what; if we take everything in excess of $250k, it doesn’t even balance the budget. Everything! Of course if we tried this, no one would make more than $250k. If we took 90%, there would be very little income over $250k and so on. Lastly, if we take everything in excess of $1 million, you know, stick it to the rich, it has practically a negligible impact on the deficit. Hello Pesky! And remember, this is EVERYTHING above $1 million.
I conclude with facts that raising taxes on “the rich” is akin to fixing the weather-stripping on a large commercial building that is hemorrhaging energy waste.
And so it goes for energy savings. One has to ask themselves, what can I expect for savings to pay for a renovation I want? Start by considering you can’t save more than the building or a piece of equipment is using. Sound pretty ridiculously simple? Some end users could learn from this.
If you are on a buildings and grounds committee, you should know a few basic rules of thumb. I will use schools as an example here. New construction costs around $150 per square foot. The cost of lighting and HVAC for the building is probably 20-30% of that cost with HVAC costing $20-$35 per square foot. People should consider their own energy costs per square foot, but it’s most likely going to be in the $1-$2 per square foot per year.
So put some numbers together to get a SWAG (scientific wild ass guess) of what your return on investment may be for an HVAC system replacement. At Michaels we call such a limit of savings or return on investment a bracket or a bracket calculation. For example, if you are paying $1.50 per square foot per year and a new HVAC system costs $30 per square foot, your best possible return is a 20 year payback – that is if you save ALL the energy being consumed now. It is safe to say that actual payback is twice that long. Ditto for adding a variable speed drive to a pump. One of our engineers may consider a variable speed drive for a pump and I may pull out my calculator and within thirty seconds conclude it’s never going to fly. The motor uses $750 electricity at most, and installing a drive is going to be at least $2,000. After screwing around with more detailed data and analysis, it will be a 12 year payback and that’s going nowhere.
Imagine being hired to analyze options for an HVAC replacement, considering several alternative systems. Wouldn’t you know it! The payback was infinite because the new system would cost more to operate in energy than the 90 year old steam system that provides no ventilation and no air conditioning. The board is shocked at the price tag and doesn’t want to pay for the study! They were “misled”. Wha? I would call it an introduction to the real world, circa 2011.
This is like going to the optometrist because the patient can’t see very well, thinking they need a $100 pair of glasses. The doctor does his series of tests and he diagnoses cataracts. The exam costs $150 and the cataract surgery costs $7,000. Otherwise, the eyes are fine. The patient is enraged and refuses to pay for the exam. The patient still wants the eyeglasses – prescribed by said optometrist! This is a perfect allegory to a real story.
You may be able to choose among solutions, but you cannot rewrite history, pick your own reality, or defy the arithmetic.
Checking in after my rant No Brazil Syndrome, how many radiation-related deaths have occurred as a result of Fukushima’s damage sustained in March 11’s massive earthquake? Zero. Meanwhile, in the same period, probably more than 3,000 Americans have died in car crashes and deaths from the tsunami in Japan alone exceed 13,000.
Like most other things, you (you) have infinitely more control over your well being than that thing poses. Stay out of the sun or wear strong sunscreen, don’t smoke, keep your BMI within better than recommended limits, skip the red meat, wear your seatbelt/helmet, exercise, don’t break the speed limit, check your cholesterol and blood pressure, get your colonoscopies…
written by Jeffrey L. Ihnen, P.E., LEED AP
Although I don’t appreciate talking about it, we have a black list of companies and organizations for which we will not again partner with, work with, or bid their request for proposals. What type of activities land somebody on this list?
Companies or organizations that take our business development efforts and give it to someone else.
We are working on retro-commissioning for a major player in the Midwest grocery market. As with most of our investment-grade studies for energy retrofit or retro-commissioning, we like to use contractors to provide us with pricing because we expect they will get the work and therefore, the pricing is going to be more accurate in addition to having accountability for the prices at implementation time. The contractor was very reluctant to help because he was afraid he would help develop pricing and concepts and then somebody else would get the work. I laughed out of familiarity with such shenanigans.
Unfortunately, while working on the grocer project, we were victims of just what the contractor was talking about, on a different project. We had completed an energy study for a quasi non-profit, quasi-government outfit (Jeff, how many times do you have to get burned before you learn?) and we were moving into developing the design and provided a proposal. We had already pretty well nailed down the scope of the project.
Inject another righteous government agency to “help” this end user. Well, they took our developed scope of work and put out a competitive request for proposals with OUR work on it. So now we’re faced with throwing away all the development we had already done just to be competitive with the other bidders who were handed this on a silver platter. As I wrote last week, it’s a rainy day in hell when a government outfit takes anything but the low bid, otherwise known as the cheapest, crappiest system imaginable; one that meets only the major recognizable features, like equipment efficiency. There are plenty of places to cut cost on the design and on the project itself.
That agency is blacklisted.
Companies that use our credentials to win a job and then dump us like a cheap date.
Last year we had “teamed” with a local architect on a LEED project for a new nearby federal facility. I must digress for a moment. This project was in progress when the “stimulus” was passed – you know the one that was supposed to break loose the shovel-ready projects. If this wasn’t shovel-ready, I don’t know what was. The plans and specifications had been lying about for year or two waiting for approval to proceed. It drug on for months once the stimulus passed.
Come to think of it, this one too was in our hip pocket and they bid the work out again. I’m not sure why because the design was 90% completed but I suppose some milestone had passed and federal statutes required a rebid or something.
So now that it’s competitive, once again after doing a bunch of development and front end work, we have to cut cost to beneath the cheap and crappy level. So our client, the architect asked us to chop our down our price. We provided a counter offer and waited. And waited, and waited.
We already had 20 or so LEED projects under our belt compared to near zilch for the architect. Finally, we get a hold of the scumbag, er, I mean client, and he says, oh yeah, “The good news is, we won the project. The bad news is, you aren’t on the team.” This is lower than a pregnant snake’s armpit. (stolen from the aussies and modified by me).
Companies or organizations that use our proposal in attempt to beat “their” firm down in price.
This one is more difficult to nail down but let’s just say if it walks like a duck and quacks like a duck… A large organization pursued by a bunch of consultants / contractors has been working with a provider for years and maybe they want a new or modified service, or maybe it’s just the same stuff they’ve been provided with many times. Now they suddenly want a proposal from us. This is either a Sarbanes Oxley corporate requirement (ok), process to actually evaluate invited bidders (ok), charade to fake a bureaucrat into thinking the chosen one was competitively selected (not ok), or a hammer to beat down the firm they know they are going to hire (not ok). Essentially, we are wasting a bunch of our time to benefit only the buyer. The other bidder(s) gets screwed too.
Blacklisted after a few of these – typically takes a few rounds of abuse to have this scam come into clear focus.
Wolves in sheep clothing.
Over the years we’ve been pursued by numerous companies that would like to partner with us. It would be a marriage made in heaven. Next step: an initial public offering on the NASDAQ! Uh huh. Sure. These dirt bags just want access to our clients and for some reason, controls companies and performance contractors make up a substantial portion of this bunch.
Show me the money before I lift a finger or you are blacklisted.
A better way.
Recently a business partner stated it well, “What do we have in business and life but our reputations?” And I always say to our company’s people, you best treat well everyone you work with in the company, our clients, and even the competition. You never know who will one day be your client or supervisor, employee, or maybe someone you want to partner with, or get help from.
Everyone involved in business transactions should benefit – consultant, owner, utility, shareholders, and contractor. Clearly and unfortunately, some entities think they can get ahead while screwing others and thinking they are getting a good deal or making extra profit. Sooner or later these outfits run out of victims to exploit. It shouldn’t be a fixed pie that everyone fights over. It should be a pie from which everyone’s slice grows.
It appears Sacramento is contemplating the same fateful robbery of EE program dollars by hocking the stream of energy efficiency money. In WI, this grab actually happened and crippled programs. Ironically, or maybe not so, they would be both carried out under Democrat governors.
Outrage of the Week
Maybe I should start an outrage of the week? Well here is the inaugural. The DOE is calling it “Market-Driven Solutions” to work with behemoths like Target and Wal-Mart to develop new efficient rooftop heating and cooling units. Is this the same Wal-Mart with $420 billion worldwide sales and $14.4 billion in annual earnings? Chu, you have got to be kidding me.
Like General Electric, why doesn’t Wal-Mart get back to what they used to do well; innovate, rather than going to Washington with its hand out. Time to put a “strong sell” on Wal-Mart stock. They’re washed up.
This is a free market solution: an RFP for manufacturers of rooftop units to develop units that meet Wal-Mart’s specifications, reliably, and supply them with heating and cooling equipment for the next 100 stores. After 100 stores, the incumbent has a huge advantage for (hopefully) proven success.
A portion of the $1.6 trillion, or as I like to say $1.6 million million, deficit is funding this kind of crap. This wouldn’t be funny even if it weren’t true.
Oxymoron of the week: “DOE facilitates market-driven solutions”.
written by Jeffrey L. Ihnen, P.E., LEED AP
Last month, the one session I attended at the AESP national conference was how to write a better request for proposal (RFP). It was sort of a forum led by our friends at Tetra Tech. Essentially, it was full of people like me, for whom a major responsibility is business development and marketing – responding to RFPs. For a while I sat there like a lump, thinking, eh, just deal with it and quit whining. Toward the end of the session I started getting fired up.
Here are some guidelines for writing RFPs:
- If you’ve already decided who you are going to hire but have to go through an RFP process as a formality to keep some government wonk off your back, just issue the RFP with a one-week deadline with an impossible pile of content to gather so it is obvious to everyone who knows anything (i.e., not the clueless wonk), that the RFP is a charade. I have plenty of opportunity without being duped into writing a proposal for which we have no chance. And whatever you do in this scenario, don’t extend the deadline because some clueless bidder doesn’t “get it” and asks for an extension.
- If you are going to extend the deadline, do it days before the deadline passes. One thing that really smoked my butt last summer was having a deadline extended with about three hours to go for the 5:00 deadline. This was obviously to accommodate some whining bidders. The RFP had been out for weeks. If a bidder can’t manage their time better than that they deserve no chance at the project. Is that how you would handle the actual work should you win? I wrote as much in our proposal on that one, sparing the name calling, however.
- If you are going to extend the deadline, do it before the original deadline. That is correct. We recently submitted a proposal on a Friday, the due date. We added to the proposal that we had not received the questions (from bidders) and answers (from buyer) for the proposal. Samples of this Q&A are discussed in You Are So Fired. As a result of not having the Q&A, we wrote that if there is something we didn’t get from the guy who promised we would get the Q&A, have mercy on us. The next Tuesday here came the Q&A and an extension to the next Thursday, two days away. Good grief! And it had MAJOR implications. See next bullet…
- If there is a deadline for completing the actual project, PUT THIS IN THE RFP! (please) The RFP discussed in the previous bullet was for a quarter million dollars with no project timeline mentioned in the original RFP. We provided two scenarios: first to complete it by late fall for one price and second to finish early the next year. In the Q&A provided after the due date, the report was to be completed by June 30. Nice. If I had known that I probably wouldn’t have even bid the thing because it’s too aggressive and practically impossible to deliver. Did I mention this was an ARRA (“stimulus”) project. Makes sense that it makes no sense.
- Either provide a very detailed scope of work or budget, or both. If neither is provided, you have nothing to bid on. This may sound like a “duh” but some RFPs want innovation and therefore leave the approach wide open, which is ok, but unless the RFP comes from congress, which knows no limit on spending, please give me a number to work with.
- Know what you are doing. We were recently teaming with another firm on a proposal for a relatively huge pile of work. The constraints on cost per project and per unit of savings were about 40% lower than industry standards. For example, a rule of thumb is that a program should deliver savings for about 1.5 times the energy cost per unit. They were talking about something more like 0.8 times cost per unit. C’mon. This will be a case of hopefully getting the project and then explaining their plan is naive and needs a reality pill.
- Keep it linear not a convoluted, semi-parallel piece of junk. Some RFPs have an approach, scope of work, form of proposal, with a total of about 4 separate lists of things to cover. I want to be sure to cover everything and present it clearly but this gets a little difficult when the format detailed in the RFP is a mess. It doesn’t flow like I want because the RFP is a heap of junk.
- Don’t mislead or outright lie about selection criteria. When I see an RFP from a government entity with a proposal selection process that puts less than 50% scoring on cost, I know nobody put any thought into that. Sometimes it’s a laughable 20% of the weighting. It would be a rainy day in hell when a government entity doesn’t select the lowest cost proposal. Quality and ROI rarely (and I do mean not always) matter to government entities, which is why we skip most of them. I did fall for the ARRA one above, like a dope.
- And of our wonderful utility clients, tell the purchasing / sourcing departments we are not designing a power plant, transmission system, or even a measly substation. We don’t need to carry $20 million in professional liability insurance. This may be asking for the impossible too, but ask the legal department to be reasonable.
- Finally, for cry sakes hire the firm / team with the best proposal. In the past year, we assembled a team to do a study for a regional energy efficiency consortium. Our team put a lot of thought into the proposal and developed an outstanding approach and work plan. I knew who our competition would be. A firm that had done a million of these and they would switch covers on the last report, make some adjustments for the region and tell them what they tell everyone else. If you kid yourself long enough, you’ll start accepting it as correct. At some point you have to go to the streets and find out rather than tweak the last edition. Our approach was to get real data from the ground up. We lost to the mass-market provider and in the post mortem, the consortium rep couldn’t tell us a single reason why we weren’t selected. In fact, she only told us how much they liked our proposal, over and over. Head, meet wall.
I was in Austin, TX last week for my first real visit to the state. Per my experience, there is no shortage of traffic. Per the locals, the city likes sprawl. It features a nice downtown and believe me when I tell you I’ve never seen so many people running in the morning darkness as there were in Austin. Not in New York, Washington DC, Columbus, Chicago, Milwaukee, Madison, Minneapolis, Denver, Tucson, Phoenix, San Diego, Sacramento, Portland, or Seattle. The only thing that I’ve experienced that was close was in the hills outside Silicon Valley. And the Austin dudes are fast. I was passed by three women in one six miler – four if you count one that pulled out in front of me and pulled away. Fantastic! These women were probably in their running prime but I’m not going to whine about my age till I’m at least 60. But the average high temperature in July/August is 96F, which to me in WI, is a god-awful 4-H day, hazy, hot, humid, heinous.
written by Jeffrey L. Ihnen, P.E., LEED AP
I attended the Midwest Energy Efficiency Alliance last week and it was an interesting environment, to say the least. This was the 4th or 5th MEEA conference I have attended.
Behavioral stuff is an up and coming topic/issue in the EE industry. I am planning to do a rant that to save energy, people have to give a crap. I just need something to push me over the edge. After all, just about all lasting energy efficiency requires behavioral changes. Only inanimate, stationary, non-energy consuming stuff, e.g., insulation, doesn’t require behavior change. Everything else has a behavioral component for maintenance, avoiding rebound and things like that.
What was probably most interesting to me was the political environment addressed by speakers at the conference. For whatever reason, MEEA likes to attract people from Washington DC to discuss current events. Essentially, people from the Department of Energy, Alliance to Save Energy, and Center for American Progress, to name a few, are on the defensive with the congressional wipeout last fall. The theme I absorbed was one of playing defense and riding out this storm. The mood for some was as though their dog had just left them and passed on to k9 heaven.
One speaker was afraid of the jobs that were going to be lost but also threw wild numbers around – like the energy efficiency portion of the stimulus produced $50 billion in economic activity and that the regulation put in place and on auto pilot will produce billions of baskets of bread from the heavens in the next couple years.
Energy efficiency is not like giving a child an immunization. I’m a member of Rotary International and one of Rotary’s missions is to end polio worldwide. We were down to just a few very poor and politically repressed countries like Afghanistan and Sudan, but like anything, completely eliminating something is very difficult. Anyway, I’ve seen many photos of children bawling their eyes out as volunteers dripped immunization in their mouth. This may seem unpleasant to the tikes but it is obviously in their favor and has a practically infinite benefit/cost ratio.
Conversely, we can’t ram energy efficiency down peoples’ throats. How many times do I have to say it? The price of ramming things down American’s throats: 63 house seats, 6 senate seats, 5 net governorships with a near sweep in the Midwest, and a tidal wave of state house flips. Here’s how regulations work: increase the cost of doing business and businesses move out of the state or overseas and then they get blasted for being Benedict Arnolds by the very folks who impose the regulations.
Like light bulbs I discussed last week, energy efficiency is gathering really positive momentum, not because of top down regulation, but because it’s good for business. See Save Energy – Get Out of Jail where Wal-Mart used “green” to get thousands of critics off its back. They in turn are requiring energy efficiency standards for their suppliers. I just red about Holcim cement getting ENERGY STAR® ratings on five of their plants. I can’t speak with certainty but I don’t think they are taking the time and expense to get ENERGY STAR to pump up their four-wheel-driven employees. They are obviously doing it for marketing.
And the DOE person was concerned about the jobs that will be lost once the stimulus is gone. What jobs? I’ve never lived through such a bizarre two years in my life and I’ve been in business for 20 years – eewe, old codger, I am. It’s been crazy. Talk about modifying behavior. Millions of people purchasing vehicles a few months before they otherwise would, leaving in its wake a predictable buying vacuum – how many jobs did that create? I don’t know, but I just read that Ford is planning to bring on 7,000 workers about 17 months after the cash for clunkers fiasco. The $8,000 first-time home buyer credit – same thing. The housing market is still searching for a bottom. Just let it bomb and let’s get on with the recovery. With regard to EE, probably hundreds of millions of dollars have been spent pursuing federal grants. Enormous efforts have been expended trying to get free money. This, my friends, is not stimulative. It’s fighting over other people’s money to be repaid sometime in the future by said people. This too as with my rant last week was a bipartisan bad idea started by Bush.
Meanwhile, our industry is booming but the DOE speaker doesn’t know this because she lives in the beltway bubble. The downturn only hit our new construction and LEED services. Our other EE services have more than made up for it and we have four engineering spots to fill but we can’t find qualified people. How bizarre is this?! I think I mentioned we had an outstanding candidate we spent no time giving an offer to but she already had two other offers and took one closer to the spouse’s job. Our usual evaluation teams have had to sit out requests for proposals because some couldn’t handle the work they already had in the tank. We’re passing on RFPs as well. So jeezo woman, when the stimulus goes away we’ll still be working hard to find people – as will be many others in this industry.
Back to the MEEA conference: After a series of “Oh woe is me” talks, one guy in the crowd walked up to the mic to make a suggestion. Rather than duking it out over regulation and climate change policy, why don’t we focus on the irrefutable common benefits that everyone can buy into – that EE is cost effective and is good for business. Give that man a standing O, a green jacket, cigar, bottle of milk, gold rings, a trophy and a trip to Disneyland. THIS is what we ought to be doing, not battling it out over something people rank 19th out of the most critical issues of the day and something half the population opposes.
Speaking of jobs… Note to wonks trying to “create” or “focus on” jobs: People invest and are in business to make money; period. They are not in business to hire people. People are hired as necessary to make more money. Think about that. If the bureaucrats want more jobs, let people and companies make more money.
And speaking of sole purpose of business is making money… In New Years Collage I chronicled a three way fight The Wall Street Journal, several utility CEOs and the EPA were having. Among the CEOs cheering the EPA’s increase in emissions regulation was Exelon Corporation’s John Rowe. I was eating lunch at MEEA next to a long-time Chicagoan familiar with Mr. Rowe’s strategy for Exelon (parent of ComEd, which serves Chicago). The gentleman said Mr. Rowe sold off all of Exelon’s coal generation, leaving it with only nuclear plants. He said the nuclear plants had among the highest operating costs in the country, which left Exelon with a high operating cost, which had to be made up by higher rates. The gentleman explained how Mr. Rowe brought on a former Naval Nuclear engineer (Yeah! Go Navy!) to improve the “efficiency” of the nuclear fleet. And so he turned them around overnight. As a result Exelon has virtually no coal generation, very efficient nuclear plants, and the highest return on capital of any utility in the business. As I mentioned above and in several other rants, CEOs report to shareholders. Shareholders rule. Profit is king. I have no problem with any of this except, I think lobbying for government to regulate a competitive advantage for yourself is not something I would do. Preparing for and reacting to policy, good or bad policy, is fine, and indeed smart business to me. Otherwise you might find yourself on a street corner with a tin cup.
BTW, this was not a wild eyed ideologue I was enjoying lunch with, but I did check the facts and what he told me was pretty well right in line with an article by Forbes magazine.
written by Jeffrey L. Ihnen, P.E., LEED AP
Back in August I came close to posting a blog “Enough of the Empire State Building Already” but that one faded away. In case you never read anything about energy savings and sustainability, the building is undergoing a $20 million renovation to improve energy efficiency. The project would shave the facility’s $11 million energy bill (a cool $4 per square foot) by 38%. Johnson Control ran ads in every trade magazine I get and various publications, including major newspapers, ran articles by the dozens.
Coming in a close second to the Empire State Building was the Northland Pines High School in Eagle River, WI. Apparently it was the first LEED Gold certified High School for New Construction Version 2.1. Ok. It seems everybody associated with the project ran an ad for their greatness: manufacturers and vendors of stuff used for construction, contractors, service providers, congress people, the governor, priests, rabbis, dog catcher, and the feral animals themselves. This went on for months.
Well it all hit the fan. As I was flipping through my stack of trade magazines this long holiday weekend, I saw in HPAC (short for Heating Plumbing and Air Conditioning but they actually go by HPAC – HPAC.com) in their August issue that a group of stakeholders including the building committee, a couple licensed professional engineers, and other taxpayers are appealing the certification with the USGBC. They claim the design does not and cannot meet indoor air quality standard ASHRAE 62, minimum energy performance, ASHRAE Standard 90.1, OR the minimum commissioning requirements. Ouch! What do you feral animals have to say for yourselves now?
I’m not going to do a ton of investigating of this crime but I have no reason at all to believe the appellants are not standing on firm ground. What is interesting is the firestorm of HPAC reader comments, which read like blog comments of far left and far right cutting each others’ livers out. Jeezo, the comments are still swirling three issues AFTER the first mention of it in August. Comments include the following, each of which I respond to:
- One of the points I raised concerned legal liabilities and the USGBC’s refusal to accept responsibility for advice about guideline compliance.
o The USGBC shouldn’t have responsibility for advice it gives. It’s up to the design and construction teams. The guidelines are available. If they can’t read, find new firms to do the job.
- The USGBC seems to prey on undereducated, uninformed owners and the public.
o Nice. There are certainly uninformed folks, but I’m sure the USGBC is a deceitful money grubbing outfit headed by Gordon Gekko’s offspring. The guy would probably dump a five gallon bucket of used motor oil in the lake if you paid him $100.
- LEED is a standard of relative greenness, not a contract for overpaid lawyers and underemployed engineers to litigate. …the LEED process has been a powerful force bringing green design mainstream.
- LEED is bogus. Let common sense prevail. Why can’t you simply tell the architect/engineer firm(s) to design the most EE building you can without a third party intervening?
o Because cheap and crappy always wins the bid and the average firm doesn’t really know squat about REALLY producing an efficient, comfortable, and code-compliant facility.
- I agree [not me – the next guy reader/commenter]. USGBC does not check if equipment is installed per drawings.
o If it did, it would cost a fortune and no one would do it.
- [in response to the previous statement the next guy says] Get a life. LEED is a standard of relative greenness… blah blah. [The exact same statement as above by the same guy, published two months in a row]
- [in response to the previous] Mr. Perkins just doesn’t get it. Building green just to get LEED points, rather than building a building that will improve the health of occupants[with minimal] lifetime costs, is total BS… Too many folks just care about LEED certification, not if a building really works.
o In my opinion, LEED actually improves the odds that a building “really works”. It requires somebody to at least fake their way through commissioning and at least think about designing for efficiency and healthy environments. To say LEED diverts designers and contractors away from these things is irresponsible.
I mentioned before in this blog that our MO is to fix immediate problems first and take corrective action later. Too frequently building owners/stakeholders go after the party they think is responsible and meanwhile the building festers away. The second too-frequent approach is to hire the same fools responsible for the kludge to fix it.
Owners and stakeholders should first fix the problem by hiring somebody who knows what they are doing. This does two things, both of which they want to fix a screwed up building: (1) gets the building working optimally as soon as possible and (2) by doing so gives them leverage with the responsible parties for some sort of settlement.
Attacking USGBC for establishing green building methods and metrics but not enforcing them with an iron fist is ridiculous. Why not go after ASHRAE for not coming down on people like a ton of bricks for not following ASHRAE’s standards? Energy codes that are state law in many states aren’t even enforced in some of them. I’m not sure about the rest of the parties involved with LEED projects but engineers have codes of ethics. I would say blowing off owner desires, cutting corners and lying about what was or was not done probably violates these ethics. How about attacking these losers and scoundrels and running their underwear up the flagpole instead?
I would guess you haven’t heard but the Chicago Climate Exchange is shutting down. At one point in this blog I explained I think that trading something that has no value in and of itself is unprecedented. Currency is only thing I can think of that has no intrinsic value but currency is actually a means to put value on things. I can buy groceries with currency. I can’t buy anything with a carbon credit.
Numerous corporations were buying carbon credits and even “supporting” the legislation in the event some sort of cap and trade passed. The legislation disintegrated and there remain only a few ashes of political will to even whisper the phrase. The carbon value that existed was 100% speculation. The value that remains is 100% nothing.
As I mentioned in a recent post, if cap and trade didn’t pass during last congress with unstoppable majorities in both houses and the White House, I don’t see it happening. This does not rule out the EPA creating their own laws to put a price on carbon dioxide.
In “The Nebulous Green Job” I ranted about Green Jobs, of all things. As it turns out the green jobs stimulus portion of the stimulus has not been too stimulating. The Washington Post reports that the recently green-educated graduates are having difficulty finding work in solar energy installation, green landscaping, recycling, and green building demolition. Well, heeeyeah! Electricians and plumbers are on the prowl for PV and solar water heating systems. There is already a live and well recycling and building demo industry. I just burned up “the tube” in my microwave oven this weekend and the nice local do-everything, small but mighty superman store otherwise known as Coon Valley Dairy Supply replaced it. I asked what they did with the old ones. A local guy picks them up and strips them down into piles of materials to be sold to buyers – no government green-job intervention included. Cool! If there is a market people will find it and fill it.
written by Jeffrey L. Ihnen, P.E., LEED AP
I stay in hotels/motels probably 40-50 nights per year, at least it seems so. If lodging facilities were in a league of teams competing to be the greenest facilities, these guys would be the Detroit Lions.
Most franchise motels, those not located in downtown high rise buildings, are built with the cheapest, crappiest stuff possible. The only thing that is decent in them is the TV but sometimes even that is a junky 19 inch CRT clunker. Who has spent a night in room with through-wall air conditioner/heater with a temperature control knob that spins round and round like the fake knobs on a Fisher Price toy for a 2 year old? They fit as tight as clown pants and leak like a small fishing boat with a cannon ball hole in the hull.
At least they’ve gotten rid of the “Styrofoam” comforters that were once ubiquitous lodging fixtures. I believe Styrofoam comforters were made of some sort of synthetic material and I think they may have been fireproof, like children’s fireproof pajamas. (do they still make those things?) Anyway, they could probably survive in a steel melting furnace. They were scratchy and stiff like snuggling up under a cozy hunk of cardboard or yesterday’s newspaper at best.
Ventilation and exhaust in most lodging facilities are terrible. A year ago I stayed in an older hotel in suburban Chicago. They had the room temperature set way back to 55F and this was mid-January, about 15F outside. Good thing? NO! I turned it up to around 70F. I worked on my computer in the room for a couple hours before our client/colleague arrived from O’Hare for dinner. In two hours the room struggled to get to 65F. I never took my coat off in that time. Why was this happening? Exhaust fans somewhere, kitchen or swimming pool were sucking the building negative, big time, as I noticed with the blast of incoming wind when I entered the building. So these guys probably thought they were saving energy by setting back room temperatures but instead, they were heating their makeup air coming in through the cheesecloth walls with crappy guest room electric resistance heaters, rather than much less expensive natural gas that they probably had somewhere on the rooftops. At the same time they were freezing their guests. This is the polar opposite of the Iowa State University removal of kitchen trays. They are wasting energy like crazy and shooting their feet with terribly uncomfortable guest rooms.
Later last winter I stayed in a motel in Phoenix. Ironically, this place was suffering from moisture problems. The bathrooms had no exhaust whatsoever. After a reasonable shower there is a stagnant fog bank until the door is opened. The fog condenses on the cooler room surfaces. The metal stuff around the ceiling was discolored by rust and the wallpaper was sagging and also discolored. So let’s take a space that has plenty of cooling load, in Phoenix, and add a bunch of latent (moisture) dehumidification on top of that, and rot the bathroom to rubble at the same time.
In a motel in near the Minneapolis airport, they lacked ventilation/exhaust. Entering the building, it smelled like a high school football locker room in August. Again, I’m sure somebody thinks their saving energy while they are driving customers away with their raunchy environment.
Some lodging facilities still use incandescent light bulbs and there doesn’t seem to be a correlation with lighting type and facility age, nightly rates, or facility size. Needless to say, these places deserve to go out of business because if there is one easy thing to do to save energy in a lodging facility with no adverse effects…
Another thing that always cracks me up is the location of ice and vending machines – typically in a small almost enclosed space. The ice machine is hammering away as it bathes in its own waste heat at about 100F that hangs around like a cloud. The soda machine and ice maker are working overtime to keep their contents cold with excessive heat gain in 100F heat while their compressors are working harder with higher condensing pressure. Then there are those stupid ice machines that dump a pound of ice into an acrylic hopper thingy that dumps into your ice bucket. The ice sits there and mostly melts before the next guest comes by. They empty what’s left and need more. Push the button for more ice and it dumps about 3 pounds into the hopper again. They only need a handful so they either take 3 pounds or leave it there to melt – melt in the room or melt in the 100F cloud – take your pick.
With the bucket of ice in hand, go back to the room and take a crappy tiny plastic glass out of the crappy plastic liner. It holds about a thimble’s worth of fluid. You almost have to bite the ice cubes in half to fit them in the glass. Nothing shouts cheap and crappy louder than these plastic thimbles. A nice glass tumbler is probably worth paying at least $5 more per night.
And then there is breakfast which runs from reasonably sustainable to pornographically wasteful. I’m very easy to please for breakfast, like Jeff Spicoli in Fast Times and Ridgemont High, “All I need are some tasty waves, cool buzz, and I’m fine.” All I need is some cool milk, raisin bran and I’m fine. Last week’s raisin bran feast featured two of those tiny jokes for boxes of cereal, a half pint carton of milk, plastic bowl and spoon. I eat a tiny simple meal and have more garbage than I can carry in two hands to the waste bin. What’s wrong with a big dispenser of bulk cereal, some porcelain bowls, metal silverware, and bulk milk? What would that be, like 95% less landfill waste? Bulk cereal and milk must cost about ¼ of the hokey kiddy boxes and cartons. Somebody is short a few cards of a full deck.
Towels. I think every motel/hotel features reuse of towels with a cheesy door hanger thingy with a white owl on it. Help us save the planet (while we commit every environmental sin in the green bible). It says simply hang your towel up rather than throwing it on the floor in heap if you want to reuse it. I have found this to be more challenging than changing a tire with my bare hands. The housecleaners take it no matter where I put it. You almost have to hide it between the mattress and box spring but you would have to remove the mattress and lay it perfectly flat or they would notice the lump and take it.
I think the most sustainable motel I’ve stayed in was in Monterey (CA) last summer. My room had no air conditioning. Actually, I didn’t need cooling all week in mid-August so this was actually a pretty smart thing. The room also had all CFL lighting of course and the bathroom had wall-mounted occupancy sensors – impressive! Breakfast featured bulk everything, and no disposable dishes or utensils. But no raisin bran!
And by the way, not only is this gamble risky and won’t work, it already isn’t working. Interest rates have gone up since this was announced – the opposite of what was supposed to happen. Could it be that people aren’t rats after all? Supply and demand – when markets move in the opposite direction the puppet master would like, you know which is going to be right.
written by Jeffrey L. Ihnen, P.E., LEED AP← Older posts