Thursday, August 11, 2016

Advancing America's Green Electric Metering Infrastructure

Advanced Metering Infrastructure

The buzz coming from our nation's public electric utility grid here in 2016 is not the one that would generally be heard say if you were traveling down a rural Kansas farm road and happened to pass beneath the electrical transmission lines while drinking beer and piloting your vintage 1957 Chevy Apache Step Side pick up truck past wheat fields in mid July.

As that Kansas buzz has a very specific high tension tone to it, the buzz I'm talking about today in 2016 is the buzz going on in the engineering and bookkeeping offices of every industry having anything whatsoever to do with the entire reconstruction of our nation's electric grid. As within this conversation today there are not only an enormous amount of technologies, regulations and energy sources themselves that have to be neatly woven into the fabric of our nation's obviously aging electric grid, there is the singular most important conversation of cost to be included in that dialog as well.

With the key to cost management essentially wrapped around the ability any electric utility provider has to track the entire path of its electrical current from the moment the current is generated to the moment it is consumed, utilizing Smart Metering Infrastructure is pretty much the consensus tool of choice when it comes to doing so. As these meters are slowly making their way into homes across America, the pace in which this is being done is unfortunately, directly associated with the cost of the smart meter, the time and labor involved with installing the meter and the sheer volume of homes as well as buildings of all types that exist across America that of course, need the meter to begin with. Having said the above, the question becomes twofold; how many years or decades is such an endeavor going to take, and, can the process be brought up to a much faster and more efficient rate of installation if in fact a variety of other equally important American public utility based upgrades were addressed simultaneously?

As the big conversation in today's public electric utility sector is centering around the incorporation of renewables into the existing framework of our national electric grid, and, smart metering is considered the mechanism from which all of this integration will eventually be enabled, the associated technologies of both solar and wind energy are currently being reviewed not only for their electrical generation attributes, but a host of other electrical providership needs particular to their technologies, or more specifically, to the mobility or whole regulatory segmentation of their interchangeable technologies. Both solar and wind energy can be picked up and moved just as easily as these technologies can be left in place for extended periods of time. Either way, as electrical storage capacity is considered by many as being crucial to the multi faceted success of both wind and solar, any combination of electrical co generation, or storage, really only works if in fact the management of such capacity is itself managed by Advanced Metering Infrastructure.

Yet before infrastructure can be fully managed by advanced metering technologies, infrastructure itself must be fully defined. With this being the case, answering the initial question of how many other equally important American public utility needs can or should be upgraded simultaneously (in conjunction with updating our electric grid) must then be the determining factor from which the full blueprint of the infrastructure definition being sought is in fact found.

To grasp the sheer scope of this endeavor, I have designed a series of charts that I think will help in the general conceptualization of the public utility blueprint I have mentioned above and continue to frame below. Before getting to these charts however, I think a careful assessment of the key regulatory elements currently being considered as being benchmarks from which this utility blueprint to move forward, must be adhered to, is needed.

Energy Efficient Architecture And Evenly Applied Local, Regional and Statewide Building Codes.

Energy Efficient Architecture can, in its simplest terminology, be summed up as the ability the homeowner has to do things to their personal architectural environment that will enhance the overall energy conservation of a particular dwelling.

Within the process of doing so, it has, up until the nationwide financial collapse of the housing market, been more or less assumed that an individual homeowner can, either through the efforts of their own physical labor, or, by hiring “professional contractors” make some rather “economically adolescent” energy improvements to their dwelling, and, in doing so, being able to state that in terms of resale valuation, that home is more up to par environmentally and economically than the house next door. Whereas again this more or less sophomoric ideological interpretation of energy efficient architecture inspired our nation as a whole to go out and purchase a few roles of fiberglass insulation and another few energy efficient appliances, all of this was done without even for a moment realizing that every piece of municipal infrastructure going into that residential dwelling was in such a dire need of upgrading, that even if virtually every homeowner in every community were to simply install fiberglass batts while cooking on the coolest new stove on the planet, that infrastructure would still be in the same state of both mechanical and economic collapse.

Knowing this then is sufficient enough reason to ask what in fact the establishment of truly multi dimensional building codes plays not only on the improvement of the whole of our municipal infrastructure, but, the subsequent approach to real property valuation as well as the growth of an educated building trade work force has on both.

As again, currently in our nation, the emphasis on integrating renewable electrical generation technologies into our national electric grid seems to be the general theme, thus far that theme is as relevant economically today in our America as installing fiberglass insulation was prior to the economic collapse of our housing industry. But, as Advanced Metering Infrastructure has the capacity again to elevate the whole of municipal utility infrastructure, surprisingly, neither wind or solar, or, insulation of any form, really has the ability to fully enhance the overall economic model needed to be implemented into the whole of our infrastructure model. Whereas all three are clearly essential, another of several equally renewable energy technologies stands somewhat obscurely at the economic sidelines of our nationwide infrastructure development potential.

With that technology being geothermal energy, and, as geothermal energy cannot in and of itself be considered as being a renewable energy source in and of itself, once the technologies of geothermal (and, several other equally renewable energy system technologies) are fully integrated into our national electric (or whole mixed energy) infrastructure grid via the substantial help of Advanced Metering Infrastructure, the structural industrial and economic fluidity of geothermal melds equally with the fluidity of true renewable energy sources (solar and wind) in every bit the same manner as it does as well meld with traditional main frame electrical generating technologies. As the larger issue here is, of course, that there are virtually no traditional energy sources left in our America today, and the myth that such technologies still exist is wholly financially redundant, geothermal in particular is one energy harvesting technology that has, within its dynamic mechanical framework, perhaps the most architecturally significant capacity to act as one of the structural, building code based benchmarks I mentioned above.

To be quite specific, and, in the process address yet another crucial element of rebuilding our national infrastructure grid, geothermal energy has, within its overall mechanical capacity, certain regionally constraining structural parameters. Whereas I would suggest that a significant nationwide geographical area would of course benefit from the inoculation of geothermal heat pumps into and out of either individual buildings or neighborhood based building clusters for the dual purpose of both heating and cooling the structures contained within such a regional footprint, powering these heat pumps with electricity as opposed to powering HVAC heating technologies with electricity while also fueling HVAC with natural gas, clearly from within a regionally economic and energy efficient standard suggests geothermal over natural gas in a heart beat.

None the less, to suggest for some reason that a building should not be piped for natural gas is as ridiculous as suggesting that a building should not be insulated, the multi dimensional function of natural gas as well as the multidimensional function of stationary electrical storage as that storage pertains to the successful integration of all aspects of solar generation storage capacity brings into this discussion, both the mobility of all energy sources in general as well as again, the need for comprehensive Advanced Metering Integration to begin with.

Energy Efficient Architecture - What exactly does Advanced Metering Integration Imply?

In this first chart then is a picture of a typical American house that is connected to the larger national energy grid I have outlined above via AMI technology.

Just as I have stated above, once another energy (geothermal for instance) technology is integrated into the whole of all energy based infrastructure technologies, the “system”, if you will, begins the rather dynamic and exciting industrial as well as regulatory process of financially fleshing itself out. As essentially all of what we are doing when integrating a broad host of energy sources into the shell of any given American home is putting meat on the bones of a far too skinny “public electric utility grid” model, we are doing the same with our “natural gas utility grid” that is in some cases creating that electricity to begin with, while in other cases, needlessly stands alone as its' own efficient, but, somewhat ancient public utility providership model. Whereas alone these two utility models have historically sustained us economically, once both are truly and systemically fleshed out, the outcome will be the capacity of both of these utility models to produce the long term economic food for the tens of thousands of new workers potentially employable in the emerging, multi-segmented energy industries we have had at our creative advanced industrial disposal for several decades, but, for overall lack of systemic connectivity, have become needlessly sidelined due to overwhelming systemic redundancy. Thus again it is Advanced Metering Infrastructure that finally enables all of us to get on with the collective task of rebuilding our nation's whole infrastructure.

Looking more closely at the above chart, you'll notice “vehicle EV metering” and “vehicle CNG metering". The most exciting aspect of these two Advanced Metering Infrastructure models is very much new and very much long term and substantial utility rate generation that is, for all practical purposes, entirely separate from any rate model associated with either existing electric or existing natural gas rate providership structures as such rate structures apply to architectural dwellings as well as overall transportation based fueling function and transportation based infrastructure funding, once such stationary utilities become fully mobile in both their electric and natural gas evolutionary public utility function. With this being the case, and, in fact both of the above mentioned vehicle based fueling models see metering functions as again mobile, or, transit oriented in function, they should be transit oriented in regulatory authority as well. Why this should be so is simple, although such vehicles might very well be fueled at an individuals home, once these vehicles are in motion, they and the vehicles inhabitants are utilizing the roads leading to and away from those homes to conduct business or commerce if you will upon the roadways leading to and from their own private doorstep.

Having stated the above and going back to the chart above, the question becomes, what of any of the energy technologies that are now affixed to an individual home can be affixed to or along the roadway said vehicles travel on as well?

As the answer here is essentially all 21st century energy generating or management technologies found in a 21st century home can and should be embedded into the roads that service that home, again the rate structures and rate revenues found from within Advanced Metering Infrastructure are both diverse and enormous as well as being quite sustainable for the long foreseeable energy future of our nation's entire utility infrastructure network only if such structures are applied financially to the highway transportation funding mechanisms that unfortunately today are very much unfundable due to the overall obsolescence of 20th century infrastructure symmetry in the first place.

The next chart begins to explain what it is that I mean.

As again, the moment we look upon energy management for what it actually is today in our 21st century, we find a remarkable array of energy based industrial entities to fill the clearly overwhelming financial infrastructure funding void that is all but stopping the long term sustainable growth of every other industry that relies on such infrastructure to thrive, taking a good solid look at Chart 2 above then, gives us a fairly good view of how by simply starting the initial nationwide utility grid retrofitting process from a single residential dwelling, all one has to do is work backwards through all aspects of any element of our whole American infrastructure framework and begin the logical task of connecting multiple 21st century mixed energy elements together to form an industrial chain linking energy generation, transportation and all aspects of our whole municipal infrastructure to everything mechanical that can be found along the way while visiting either a Chicago inner city museum to going pumpkin hunting in a farm field in rural Illinois during Halloween. As each of these places are in fact geographical in nature and therefore somewhat multi-faceted in scope, the mechanical functions needed to provide all aspects of advanced industrial infrastructure to these places are essentially the same.

But, again, the only way to grasp the whole of our nation's potential infrastructure connectivity is to begin by retrofitting a home in Hyde Park, Chicago near the Museum of Science and Industry located on the shores of Lake Michigan while simultaneously doing the same to a home in inner city Dekalb, Illinois that is the home of Northern Illinois University as well as the home of some of America's most fertile farm land.

Simply put, whereas the homes in Dekalb came before the University, just as the homes in Chicago came before the museum, what drew the museum and the university to these seemingly separate towns was the infrastructure the people in the homes engineered and built to run their neighborhood economies in the first place and what (said infrastructure) today is ultimately responsible for the overall economic decline of those same communities.

Having said the above then, and, again focusing on the funding of transit based infrastructure improvements related to every aspect of advanced 21st century road improvement in America, what should technologically be going on beneath the surface or alongside our roadways is the extension of our electric and natural gas utilities as those utilities are in turn extended by a broad range of either renewable utilities such as wind and solar or utilities such as geothermal or bio gas that naturally begin to strategically co mingle first in our homesteads and neighborhoods, and second, the more distant some of these utilities are from either the urban core of Dekalb, Illinois or the same urban core of Chicago, Illinois. Thus, while within the populated clusters of our nation's metropolises, the geographical assumption that some of those metropolises are urban in nature whereas others are rural, is both a fundamentally useless and economically disastrous assumption that negates entirely the sheer value of all energy spectrum's once they are, through, Advanced Metering Infrastructure fully integrated. An excellent case in point here is the financial intersection where CNG fueling intersects with ethanol based fueling of all aspects of America's transportation grid work as well as the vehicle types that utilize that grid work and those fuel sources (as well as others) to assure the efficient movement of commerce throughout our nation daily.

Going quite logically on the assumption that CNG powered vehicles will be primarily used in the interurban transportation settings found in either of the two cities mentioned above, and, on the equal assumption that such urban oriented vehicles will be used more frequently in those urban environments because of the overall need to go that many more places on a daily basis, fueling stations would obviously need to be found more frequently as well. Knowing this fact then while also knowing that such vehicle fueling stations are as well, food fueling stations (or mini marts), brings to the human architectural design element of the mart, the very same energy based efficiency dialog that would be had in a private residence. With the only real difference in dialog being the financial direction data coming from that fueling station's Advanced Metering Infrastructure heads in, the overall dynamic becomes how such refueling of CNG powered vehicles also becomes the revenue stream for the constant improvement of the road bed such vehicles travel upon constantly to begin with.

Whereas CNG fueled vehicles will reach a point geographically where building a CNG fueling station is not financially sound, at that same point ethanol or other fuel type based fueling stations most certainly do become financially viable. As such, geographically speaking, whereas the farm land surrounding DeKalb, Illinois would be the host of more ethanol stations than the suburbs surrounding Chicago, such industrial idiosyncrasies (if you will) are in fact not idiosyncrasies, but, instead, highly articulated and profitable economic nuances that could not possibly be capitalized on without the use of Advanced Metering Infrastructure managing such economic and regulatory based interactions in the first place. Thus,rRegardless of the fuel source, it is the function of industrial symmetry that guarantees the success of any fuel source; hence, the more symmetry, the more economic and industrial diversity.

What is quite interesting about the city of DeKalb, Illinois is its remarkable collection of energy sources that have more or less been developed due to the fact that the town is essentially in the middle of a corn field. As it is, it is also the home of a sizable wind turbine farm that produces a sizable amount of electrical energy. What is even more interesting about this situation is that again, geographically speaking, the land that grows the corn which creates the bio fuel and the people fuel and the industrial raw material for a wide range of other end products, is also the land ideally suited for solar farms.

With this being the case and referring once again to Chart 2 above, at the moment structurally/geographically where bio fuel based fuel service stations meet CNG based fuel service stations, another even more tangible industrial/infrastructure based regulatory meeting takes place. That meeting, which is also quite structural and geographical in context, is essentially the interchange of electricity generated from farm based solar arrays to transit based solar arrays that will be found atop the massive architectural footprint of warehousing that is found along interstate highways just outside of major urban areas throughout America. These architectural “sun belts” if you will, not only stand as shrines to our nation's brilliance in creating warehousing and distribution hubs, but, from the perspective of both energy production and broad spectrum energy distribution, are actually the critical geographical interface for the cohesive merging of energy sources as those sources are brought to full industrial functionality via again, Advanced Metering Infrastructure management. Whereas a Dekalb solar farm situated in and around Dekalb only serves to broaden the electrical supply chain for the region around DeKalb, utilizing the rooftops of our massive American warehousing facilities simply serves as the logical transition point between rural farm based solar arrays and urban residential based rooftop solar arrays. These rooftops do as well serve as the logical point of wind generated electrical power which in rural America is based upon horizontal axis wind turbine use to what in urban America will ultimately become vertical axis wind turbine use. Either way when these two technologies are combined at the point of our nation's warehousing and shipping corridors, not only does the interface of solar and wind occur, but the subsequent interface of natural gas and geothermal energy occurs as well.

But of Course, that's not all that occurs.

Whereas we have already looked at the multi faceted functions of residential and commercial CNG fueling, and in doing so, determined that there are logical geographical cut off points as such points define both the selected placement, construction and subsequent funding of fueling stations for personal vehicles as well as light duty, urban oriented commercial or service or public transit based vehicles, at this same “sun belt” based American shipping and warehousing juncture of both architectural and urban transit applied energy sources, comes the larger “transportational interface” of interstate over the road heavy truck traffic as well as comprehensive freight transportation associated with America's rail industry. Thus within the framework of pure industrial symmetry is in fact the foundation for dynamic economic symmetry which in turn is the structural foundation for real job growth that demands physical dexterity in every bit the same manner as it demands advanced industrial engineering discipline that ultimately diversifies every manufacturing entity and every construction (building trades) entity in virtually every industrial sector.

Thus, whether or not such an entity has anything whatsoever to do with the production of an energy source is no where near as important to grasp as the fact that every industrial sector is consuming that energy source, and, through highly defined Advanced Metering Infrastructure management, all associated manufacturing and installation functions of an industry change significantly as a result.

As I cannot emphasize enough the importance of starting our nation's overall reconstruction of every aspect of our public utility infrastructure at the front door of a single residential home in either DeKalb or Chicago simultaneously and working collectively outward to the shipping and distribution “sun belts” that essentially connect the vital urban centers of DeKalb and Chicago to every other town in America, if we can't articulate the actual industrial needs of a single home in America from the holistic standpoint of what Advanced Metering Infrastructure can only attain, then much sooner than later, our “sun belt” warehouses will find themselves empty due exclusively to the fact that without such infrastructure based job creation, the collective use of mixed energy needed to produce our national goods is entirely squandered.

In other words, if somebody owns an American made company that manufactures work and dress shirts and that company is not utilizing the broad mix of energy systems available to them to manufacture the garments that must ultimately be placed into the homes their workers live in, how can that worker expect to afford to install a closet system that prevents any form of moisture or mold from growing on the garment that hangs in their obsolete urban American bedroom closet to begin with? In the same breath, if someone owns an American made company that manufactures EV's and the worker for that company wants to both purchase and use that vehicle, how on earth can such an employee do so if his or her garage is devoid of both the charging and financial metering technologies required to keep the car rolling down the road in the first place? As the issue then is that it is one thing to be able to build a state of the art garment manufacturing company that utilizes all aspects of energy source and management, such an accomplishment cannot be deemed as economically valid to the whole of our nation's energy and utility infrastructure if the company manufacturing the closet system that holds the garment as well as the construction company that installs the system and subsequently attaches the system to the energy grid is and are in fact, equally upgraded.

While all of what I am discussing here seems on one level to be monumentally complex, the role government plays to alleviate such complexity has never been more important to grasp. As there is today a significant dialog pertaining to the fundamental restructuring of virtually every tax base, and, in fact every public utility rate base, the core of all such discussions ultimately boils down to how such an endeavor could actually be pulled of. What is important to understand about this entire conversation however, is not at all what has happened to our national tax base over the past forty years, but the larger understanding of why.

Having said the above, the reason why our tax base has become so tremendously overburdened is that that base has been crafted almost entirely on the overall physical decline of our nation's historic but obsolete industrial infrastructure. Whereas for decades we had an economy based upon workers who were employed in the construction of that original infrastructure, once such infrastructure was built, massive amounts of labor based revenue were simply lost due to the fact that the infrastructure had been built and only therefore needed to be maintained as opposed to being constantly re engineered and re thought. While national infrastructure maintenance continued for awhile and the equipment designed to maintain that infrastructure grew in technological advancement, eventually the labor decline from the original completion of our nation's infrastructure met up with the labor decline in the manufacturing of equipment designed to maintain the infrastructure resulting in what is now today in 2016 an enormous philosophical conundrum pertaining to how in fact we fund the whole of technological infrastructure improvement needed today. Where again all of this might sound rather monumental in scope in terms of finding a solution, the solution has never not been there. That solution is the ordinary issuance of municipal bonds buttressed by equally ordinary issuance of long term industrial and public utility bonds that are simply guaranteed by the stocks offered from the companies that are manufacturing, shipping, installing and maintaining our 21st century energy technologies in the first place. The moment such bonds are issued then and such issuance is conjoined with comprehensive modernization of the whole of America's building codes, which in turn are fully commingled with advanced utility rate structures, which in turn are integrated with traditional mortgage lending models, individual property appraisal and overall neighborhood based property appraisal will not only rise significantly and be woven quite seamlessly together creating not only a substantial work force, but an equally substantial blueprint for sustained long term growth of our overall GDP, which in turn, one more time, guarantees the whole inoculation of distributed energy resources into the whole of our entire nationwide electric utility grid.

To put the Above paragraph into a different analogy, Think About The Following.

Let's just say that a homeowner has the roof capacity to hold a large enough solar array to power his home. Let's say that not only does he have enough power, but, extra that can be fed back into the grid, and/or can be shared by one or more neighbors who are also connected to a smaller community grid that in and of itself is connected to a larger regional grid. Let's also say that “having enough electrical power” has only been accomplished after he has had Advanced Metering Infrastructure installed into his entire home power infrastructure, his entire home transportation infrastructure and his entire home, energy efficient architectural footprint.

Within that architectural footprint, this guy has installed a geothermal heating and cooling system to replace an old HVAC heating and cooling system. As he no longer wanted to use natural gas to heat his home, he did still want natural gas for home cooking and bathing on one hand while wanting to utilize compressed natural gas CNG to power his vehicle on the other. While powering the new GEO heating and cooling system demanded less electrical energy to do so than HVAC, the combination of fully retrofitting his home's entire physical structure and utilizing a variety of additional energy consuming and energy saving “lifestyle technologies” in the process simply enabled him to transfer his natural gas usage to functions he needed in his life but did not need in his home life. In the same breath, by incorporating new technologies into his home that more or less enabled him to redefine his use of electricity both inside and outside of his home, his “whole energy demand model” began a rather remarkable process of both applied industrial and economic transformation.

With the GEO system up and running and providing overall generic year round heating and cooling needs for his home, this guy (let's call him, Bob), set about the task of installing a somewhat over sized hot water tank into his home which of course was heated by both natural gas and a solar heat exchange system mounted atop his roof with his solar electric generating panels.

As you are probably getting the impression that Bob is somewhat of an advanced thinker, he in fact is. The reason why he chose an over sized hot water heater then was due to the fact that he had a rather advanced perspective on how he and his family would use hot water in their home life. Whereas taking baths and showers, washing the laundry and having preheated water to cook and clean dishes were all traditional functions served by traditional sized hot water heaters, hanging terry cloth bathing towels on water heated towel bars adjacent to large water volume bathing tubs served to change the traditional hot water use dynamic considerably. Whereas such changes were welcome by every member of his family, the family wanted more. Thus, Bob built a steam room whereas he did as well, let the circulating pipes of the whole house hot water heating system flow through the family green house providing timely supplemental heating to this area of Bob's whole house architectural footprint when his whole house “Advanced Metering Infrastructure” communicated the fact that such heat was needed to keep the spring seedlings perky at 5:00 AM just as the barometric pressure on the outside of that green house began dropping and the subsequent eastern sunrise drew the heat from the greenhouse through the windows designed to let in the sun once it had risen sufficiently enough in the sky to do so.

While all of this was going on with the hot water system, two entirely different electrical systems were doing their thing as well. The main house electrical system, which at 5:00 AM is in somewhat of a slumber mode, was pretty much off line if you will. As it was, the DER system working in conjunction with the overall AMI was getting ready for what would as always be another well managed and productive day of whole energy grid management. With battery storage energy anticipating a rather dramatic rise in outdoor temperature between the hours of 2 – 5 PM, the whole house hot air ventilation system installed on the second and third floors of Bob's dwelling would be set to open via the use of battery power once the outdoor temperature reached a point where it would overwhelm the capacity of the house GEO heating and cooling system once said temperatures do in fact rise.

If in fact you have been paying attention to what I have been talking about in this essay, you will remember that at the beginning of this essay, I was discussing the architectural matter of fiberglass insulation, and, how, regardless of the amount of insulation installed into any type of dwelling, until the whole of municipal infrastructure functionality is addressed, such concepts of insulating anything are entirely useless, what I am talking about here goes directly to the point of why I made such comments in the first place.

From the standpoint of Bob's specific residential architectural footprint, that could very much be identical to the architectural footprint of the house next door, his specific AMI information is stating that due to increased external temperatures during the late afternoon hours of a specific day, his whole house hot air ventilation system will open up, and, in doing so, reduce significantly the load on his GEO air conditioning demands. In other words, as hot air simply rises, the notion of having either a GEO or HVAC cooling technology attempting to cool such hot air when allowing such hot air to simply escape, becomes an overwhelmingly well written essay on the need for DER technology in the first place. With the subsequent advanced engineering of insulation technologies as such technologies define either full energy containment or full energy disbursement of overall energy build up inside of Bob's residential architectural footprint, suffice to say AMI is virtually the only framework from which such holistic architectural energy management can ultimately function from. By simply adding to the above dialog as such dialog pertains to the technological harvesting of released heat, AMI, again, merely suggests, the much broader incorporation of residential based CHP (combined heat and power) development/management as well.

Whereas DER storage technology is really the key to individual residential architectural energy management and is equally the key to broad spectrum energy management of architectural clusters as such clusters can and should be defined as urban block upon urban block of residential neighborhoods or commercial or industrial corridors, EV technology, much like CNG technology, gives us the freedom to entirely leave home without ever having to ask the neighbor to either come in and turn down the thermostat, water the lawn or shovel the snow while we are away vacationing on Pluto only after arriving there via traveling on roads that are just as technologically advanced as our home or any other architectural environment we live and/or do business in.

Within the context of either EV or CNG energy management, there is, as I have stated earlier, ample room for significant long term funding of the surface roads that we do in fact travel over on a daily basis via our nation's combined public electric and natural gas utility fueling and regulatory infrastructure. As such funding ultimately must be as intricately blueprinted as the whole of Bob's AMI house, that blueprinting does for all practical purposes start with either watering Bob's lawn or shoveling his snow when in fact he is away with his family visiting Pluto. As AMI suggests the whole management of sensors and pumps designed to utilize collected rainwater for the purpose of watering Bob's private property, the moment one moves from Bob's property to adjacent municipal property, while still engaged in the whole of rainwater management, EV and CNG transit vehicles with highly articulated municipal storm water as well as municipal parks and recreation maintenance tasks assigned to such vehicles through AMI, virtually eliminate ancient municipal fleet function and fleet fueling parameters on one economic level, while on another, open up the regulatory and financial investment justification for installing neighborhood alternative vehicle charging stations substantially in the first place. Whereas once applied, municipal service fleet vehicles “now require” such fueling networks, the simple fact that these fueling stations are in place, suggest personal use as well as commercial use of the same EV or CNG transit technology combined with municipal, more than likely has ample revenue generators attached to the long term upgrading and continued maintenance of the neighborhood residential, commercial and light industrial roadway surfaces such vehicles operate upon.

As again the preliminary funding of such an initiative is, from within a municipal framework, carried out by the issuance of rather traditional municipal bonds, given the overall nature of AMI, I would suggest that the issuance of such bonds would be much more guarantee able if in fact said bonds where neighborhood based and guaranteed by neighborhood development corporations as opposed to city wide financial guarantors.

With the reason for this being that said municipal bond issuance could be offset with equally dynamic micro industrial or micro public utility bonds, suffice to say, the neighborhood based growth of micro industries whose transportation model more or less depended upon both EV and CNG based vehicles would do quite well accordingly. Subsequently, the economic and regulatory functionality of neighborhood micro utility power grids would become that much more capable of monitoring the whole of both electric and natural gas usage and transmission that would ultimately flow through such an overall finely tuned grid network.

Taking transportation (highway improvement) funding a bit further out, such funding goes to the point that I mentioned earlier in this essay. That point is defined by what can only be considered as the effective mileage range of the vehicle as said vehicle travels farther from either a highly clustered urban environment to what should probably be considered as a moderately clustered urban/rural environment from which said vehicle presumably fueled up via either an EV or CNG residential fueling port that in fact obtained such fuel from a stationary electric or natural gas power/refueling grid in the first place. As within these points of travel there are hundreds of miles of changing municipal topography, and, as such, certain infrastructure constraints limit the travel of certain fueled vehicle types, commingled AMI metering of overall regional transportation fueling need brings to bear, among other transportation fueling and funding issues, the exact point where the fueling and the subsequent taxation of bio fueled powered vehicles, brings to our overall nationwide highway funding conundrum a blueprint that will enable the EV or the CNG or the BIO fueled infrastructure to smooth itself out over the course of say several hundred interstate highway miles that are currently devoid of such high tech, multi faceted transit based economic fueling interaction today.

No matter how one chooses to characterize our nation's plight to create an advanced public utility infrastructure, defining the parameters of whole energy management is simply crucial to that definition. As it might seem somewhat odd that after years of back and forth bickering over the plight of our planet and the rights of those who live on our planet that a simple Advanced Metering Infrastructure device could resolve all such social turmoil, the fact of the matter is that it both can and must much sooner than later.

Below in Chart 3, you will find a rather comprehensive outline of the issues that can be resolved once in fact such a device is used to our collective national benefit.

Whereas the information contained within Chart 3 above simply lists a rather substantial amount of “data” that needs to be both processed and applied so that we can, as a nation, get on with the task of growing all aspects of our 21st century mixed energy infrastructure, needless to say such a chart is nothing more than yet another interpretation of the structural issues we face.

As it is, in Chart 4, I try to put this dialogue into a more human setting.

Chart 4 is entitled “the Utility Grid, LEVERAGING ENERGY, Powering Finance, In the Neighborhood.”

As you will be able to see from viewing this Chart 4 diagram, the list of things we need to get on with doing in this country, truly needs to be applied in a structural fashion that enables everyone the ability to benefit. Earlier on in this essay, I characterized the fact that all such infrastructure improvement within our nation, ultimately needs to be applied first to one single house in every neighborhood throughout America before we can expect to be able to map succinctly the vast array of advanced energy business models that are all ultimately supposed to be going into out nation's overwhelming supply of entirely obsolete residential property portfolios. As our residential properties are in fact the engineering vehicles that drive virtually every aspect of our economy, the only possible way for such a drive to be truly ignited throughout our nation is to grasp firmly the concept of strict application of Building Codes that simple allow every expert in every industry, the means necessary to communicate with not just the homeowner, but, virtually every segment of the building trades, municipal regulatory agencies, public utility regulatory bodies, community based educational institutions, labor organizations, bankers, and on and on.

Chart 4 simply gives those who are reading it, my version of what it is that needs to be done so that in fact we can get on with the task of getting it done.

Beyond all of that, Chart 5 is simply a picture of a 1957 Chevrolet Apache Step Side Pick Up Truck.

Thanks for stopping by.

Curriculum vitae

Please take the time to visit some of my other essays.

The Real Flint, Michigan Water Pipeline.

Restructuring Public Utility Industrial Demand Response.

House Flipping, Gentrification and Gun Control in..... ..A Green America?

Transforming Redundant Affirmative Action To Green Affirmative Action In America

Interior Urban Networks and Sustainable Chicago 2015

The National Movement toward Green Urban Renewal Takes a Turn to the Country to Pick Up a Few Tomatoes.

COP21 Obama's Great Green Socioeconomic Blunder

Is The Great Recession Really Over? 

Connecting The Industrial Dots Of Neighborhood Based Economic Revitalization

Pension Reform: Welcome To Illinois, If You Don't Like It, Leave

Wind Powered Solar Oil Wells

Friday, May 20, 2016

What's Wrong With -- S.2012 - The Energy Policy Modernization Act of 2016 ?

The Federal Housing Administration
 Attempting To
Draft Nationwide Building 
Energy Efficiency Policy?

Is there another more dynamic economic development option?

With all of the discussion revolving around the adoption of a unified national energy policy, and, the recent passage of  the S.2012- EnergyPolicy Modernization Act of 2016 which in fact was written to, at least in part, move us as a nation towards the establishment of such a policy, one would think that after so many decades of dabbling along the fringes of that whole policy ideal , we collectively would simply have created one that actually and finally works.

Whereas the future of our nation’s entire industrial and economic livelihood is just as much at stake as our ability to rebuild virtually every inch of public utility and transportation infrastructure, one again would think that any type of energy based legislation pertaining to the above and passed in either the Senate or the House would be done so for the purpose of simply getting on with the task of fixing what is so obviously broke within our nation’s entire energy dialog. Unfortunately, this is still not the case, and, as such, far too many truly dynamic mixed energy based industrial ideas get buried in legislation that is designed more to be a social science experiment as opposed to being a blueprint for applying highly focussed industrial momentum across the full spectrum of our whole national economy.

Having said the above, and, having as well, a rather innate capacity to look deeply into the wording of such things as Federal and State laws, I’ve done so with the S.2012 - Energy Policy Modernization Act of 2016. With several dozen amendments attached to this act, I’ve chosen one amendment in particular to pick apart from within that innate frame of mind.

Entitled SA 3202, the summary of purpose both for the addition and outcome of this particular amendment is “To improve the accuracy of mortgage underwriting used by the Federal Housing Administration by ensuring that energy costs are included in the underwriting process, to reduce the amount of energy consumed by homes, to facilitate the creation of energy efficiency retrofit and construction jobs, and for other purposes.”

While SA 3202 might appear to some as being an amendment that is at best, either marginal in scope or entirely pointless to begin with, from my particular perspective SA 3202 has the potential to become a rather crucial legislative tool. Yet before it can become what it is I think the authors were intending, I also think that it is important to go through this amendment word for word, peeling away the nonsense and strengthening its combined or multi dimensional legislative potential in the process.

As such, below is SA 3202 in it’s entirety. The original text of this amendment will be found in Black lettering.

Please keep in mind my particular summary of purpose for this amendment before reading it.

Due to the rather obvious fact that virtually everyone in America actually lives in a building and all buildings should be energy efficient, should the federal government be attempting to set a standard of improving the accuracy of mortgage underwriting that is based on energy efficiency on only FHA insured mortgages, or, would that same government better serve the entirety of residential building efficiency by establishing a uniform mortgage lending model that is anchored simultaneously to the growth of micro public utility entities that are themselves creating the foundation for real job growth in the residential renovation and retrofitting construction and manufacturing sectors at the same time?”

What’s more important - strengthening the FHA, or, truly rebuilding every aspect of our nation’s energy and transportation infrastructure?

Shouldn’t an energy efficient house be considered as a crucial part of energy efficient infrastructure?

Is a community full of energy efficient homes owned by people who work in energy efficient industries more economically viable than a community pock marked by FHA funded housing subsidized by the federal government and filled with unskilled, low income non achievers who are themselves nothing more than a nascent social science experiment?

My comments will be in Red lettering.

SA 3202. Mr. ISAKSON (for himself, Mr. Bennet, Mr. Portman, Mrs.
Shaheen, and Mr. Coons) submitted an amendment intended to be proposed
to amendment
SA 2953 proposed by Ms. Murkowski to the bill S. 2012, to
provide for the modernization of the energy policy of the United
States, and for other purposes; which was ordered to lie on the table;
as follows:
      At the end of title I, add the following:                         Subtitle F--Housing    SEC. 1501. DEFINITIONS.      In this subtitle, the following definitions shall apply:

      (1) Covered loan.--The term ``covered loan'' means a loan     secured by a home that is insured by the Federal Housing     Administration under title II of the National Housing Act (12     U.S.C. 1707 et seq.).
(1A) Covered loan.--The term ``covered loan'' means a loan
secured by any home that is insured by the issuance of both public    utility and municipal bonds created for the overall improvement of neighborhood infrastructure under the
National Community Banking And Infrastructure Reinvestment Act.

    (2) Homeowner.--The term ``homeowner'' means the mortgagor     under a covered loan.

    (3) Mortgagee.--The term ``mortgagee'' means an original     lender under a covered loan or the holder of a covered loan     at the time at which that mortgage transaction is consummated.    SEC. 1502. ENHANCED ENERGY EFFICIENCY UNDERWRITING CRITERIA.      (a) In General.--Not later than 1 year after the date of     enactment of this Act, the Secretary of Housing and Urban     Development shall, in consultation with the advisory group     established in section 1505(c), develop and issue guidelines     for the Federal Housing Administration to implement enhanced     loan eligibility requirements, for use when testing the     ability of a loan applicant to repay a covered loan, that     account for the expected energy cost savings for a loan     applicant at a subject property, in the manner set forth in     subsections (b) and (c).

(a) In General.--Not later than 1 day after the date of     enactment of this Act, the Secretary of Housing and Urban     Development along with the advisory group     established in section 1505(c) shall be fired for the abject failure to
    develop and issue guidelines for the Federal Housing Administration to  
    implement enhanced loan eligibility requirements prior to the
    introduction of SA 3202 in the first place. In addition, for their
    collective failure to produce employment for the loan applicant being
    tested for his or her ability to repay a covered loan that only in theory     accounts for the expected energy cost savings for a loan     applicant at a subject property, in the manner set forth in     subsections (b) and (c), these same government employees will be
    banned from living in anything other than FHA low income housing for  
    the rest of their natural born lives.

(b) Requirements to Account for Energy Cost Savings.--

      (1) In general.--The enhanced loan eligibility requirements     under subsection (a) shall require that, for all covered     loans for which an energy efficiency report is voluntarily     provided to the mortgagee by the homeowner, the Federal     Housing Administration and the mortgagee shall take into     consideration the estimated energy cost savings expected for     the owner of the subject property in determining whether the     loan applicant has sufficient income to service the mortgage     debt plus other regular expenses.

    ((a) shall require that, for all covered     loans for which an energy efficiency report is voluntarily     provided to the mortgagee by the homeowner? - how can a law be
    enacted if the basis for the entire law is voluntary submission of a
    vaguely worded energy efficiency report for a home that is already  
    deemed to be energy inefficient in the first place?)  

      (2) Use as offset.--To the extent that the Federal Housing     Administration uses a test ( a theoretical hunch ) such as a
    debt-to-income test that includes certain regular expenses, such as
    hazard insurance and property taxes--??old car liability insurance??---
    ??non organic backyard garden insurance??---      (A) the expected energy cost savings shall be included as     an offset to these expenses; and
      (B) the Federal Housing Administration may not use the     offset described in subparagraph (A) to qualify a loan     applicant for insurance under title II of the National     Housing Act (12 U.S.C. 1707 et seq.) with respect to a loan     that would not otherwise meet the requirements for such     Insurance. ( delete due to overall vagueness )

      (3) Types of energy costs.--Energy costs to be assessed     under this subsection shall include the cost of electricity,     natural gas, oil, and any other fuel regularly used to supply     energy to the subject property.

     (3) Types of energy investments.--Energy investments to be assessed     under this subsection shall include the use of Advanced Metering   
    Infrastructure(AMI) smart metering technology to balance the use of
    electrical generation and distribution, fixed natural gas used for
    heating, natural gas an EV based personal transportation, heating oil,
    and any other fuel regularly used to supply energy to the subject
    property - all of which are regulated by the combined governance of
    individual State Public Utility Commissions (PUCs) and the Federal  
    Energy Regulatory Commission (FERC) through the regional and local  
    jurisdiction of Planning Commissions and Building Code Enforcement  
    entities charged with the overall implementation of whole national
    energy policy.

(c) Determination of Estimated Energy Cost Savings.--

      (1) In general.--The guidelines to be issued under     subsection (a) shall include instructions for the Federal     Housing Administration to calculate estimated energy cost     savings using--      (A) the energy efficiency report;      (B) an estimate of baseline average energy costs; and      (C) additional sources of information as determined by the       Secretary of Housing and Urban Development.

      ( This is the “Buy an Energy Star Rated Appliance And Hope For the  
      Best Economic Outcome Theory” which entirely overlooks the larger  
      fact of crafting legislation that rates the whole infrastructure of both  
      the home and the community the home and its occupants live in as  
      being the baseline from which overall energy supply, demand and
      distribution do not define average energy costs, but instead, define  
      overall investment potential in broad energy sectors. )

      (2) Report requirements.--For the purposes of paragraph           (1), an energy efficiency report shall--

      (A) estimate the expected energy cost savings specific to     the subject property, based on specific information about the     Property;

      (B) be prepared in accordance with the guidelines to be     issued under subsection (a); and

      (C) be prepared--

      (i) in accordance with the Residential Energy Service     Network's Home Energy Rating System (commonly known as     ``HERS'') by an individual certified by the Residential     Energy Service Network, unless the Secretary of Housing and     Urban Development finds that the use of HERS does not further     the purposes of this subtitle;

    (i) The HERS program, which has been in existence since 2006 was   
    developed as a theoretical computer model of supposed energy  
    efficient benchmarks that more or less assume the fact that one  
    “already real and built actual living house” similar to the one crafted in
    a computer model, either meets or does not meet the faulty
    assumptions of the undereducated computer programmer to begin
    with. As the simple placement of a tree in front of a bay window on a
    real house will alter significantly, the whole energy performance of  
    that house, and, assuming that there may very well be several houses  
    of the exact same floor plan built on an entire block, each house  
    placed upon a separate real estate parcel on that block, will, just by
    such placement, have decidedly different performance characteristics
    associated to it.

As a portion of said characteristics could be wind shear, solar gain, geothermal heat absorption, rainwater run off, overall building material selection, personal lifestyle living patterns, etc., to suggest the HERS program is nothing more than an excuse to employee useless building inspectors and computer programmers to replace the knowledge of true master builders and their whole combined architectural and site engineering based historic knowledge of the area is a massive insult to the entire home construction industry. It is as well, an insult to the entire public utility sector that if such monitoring were left to Public Utility Commissions to regulate via wholly integrated smart metering, the whole economic growth of all sectors having to do with residential and community energy retrofitting would flourish?

To think about the fact that one individual certified by the above proposed Residential Energy Service Network would, in all likelihood, have to live in one home on one block for one full year to document the overall fluctuations of energy use any given building goes through over the course of four seasons. AMI, Advanced Metering Infrastructure suggests overwhelmingly, the distinct possibility that each home on each parcel of land is in and of itself, a wholly independent energy system only as such independence is fully dependent upon the whole energy grid for its unique energy functionality. From the simple viewpoint of Economics 101, grasping the cumulative effects of gathering what is essentially whole climatic performance of a given residential architecture via AMI, such gathering is the gold in our emerging 21st century American Public Utility Infrastructure Development Bank. As such, this whole technological model puts a decidedly new spin on the old saying “A Man’s Home Is His Castle”.         

      (ii) in accordance with the Alaska Housing Finance     Corporation energy rating system by an individual certified     by the Alaska Housing Finance Corporation as an authorized     Energy Rater; or

      (iii) by other methods approved by the Secretary of Housing     and Urban Development, in consultation with the Secretary and     the advisory group established in section 1505(c), for use     under this subtitle, which shall include a third-party     quality assurance procedure.

Puerto Rico is now in the news as this “51st United American State” is, for the second time, defaulting on its loan payment after the Government Development Bank of Puerto Rico failed to repay almost $400 million. As this seemingly unrelated matter to Senate Amendment (SA 3202) is of significant economic note to Puerto Rico, the State of Alaska may not be very far behind due to its overall statewide economic reliance upon fossil fuels.

As such, what is strikingly bizarre to SA 3202 is the reliance the Secretary of Housing and Urban Development has upon establishing energy efficient building standards for the entire country (and presumably Puerto Rico) based upon the Alaska Housing Finance Corporation energy rating system. The wording of this particular portion of SA 3202 clearly suggests that the people of Puerto Rico, as well as the people of Alabama and New Mexico, New York and North Carolina all must travel all the way to Alaska to gain the title of Alaska Housing Finance Corporation authorized Energy Rater.

Think about this whole notion for a minute.

The people of Puerto Rico, in pursuit of solutions to their overall economic conundrum, will, in traveling all the way to Alaska, not only be able to establish energy efficient building standards for their tropical island geographical domain, but, in the process,avoid default on their $400 Million loan???????????????????????????????

Is there such a thing as a Puerto Rican Polar Bear?

Can Polar Bears wear grass skirts?

      (3) Use by appraiser.--

    If an energy efficiency report is     used under subsection (b), the energy efficiency report shall     be provided to the appraiser to estimate the energy     efficiency of the subject property and for potential     adjustments ( commonly referred to as the Puerto Rican/Alaskan
    Energy Absorption Climate Change Polar Bear Relocation Adjustment
    Clause - PRA EAC CPBRA - Eskimo-Aluet-Inuit for “what the fuck” )  for energy efficiency.      
       (d) Pricing of Loans.--

      (1) In general.--The Federal Housing Administration may     price covered loans originated under the enhanced loan     eligibility requirements required under this section in     accordance with the estimated risk of the loans.

(1) This particular segment of SA 3202 is clearly the most pliable, or, the most tangible asset of the entire amendment, as it is as well, critical to our collective national path of merging a broad host of seemingly detached and unnecessarily counter intuitive ideologies, as such ideologies pertain to multi energy source based economic cohabitation from within the whole nature of what should be, neighborhood based, comprehensive public utility installation.

As I am convinced that competing energy sources such as solar and natural gas (to name a minute few micro utility profiles), cannot possibly function within the constraints of what it is the FHA is supposed to be able to accomplish as a result of the eventual passage of SA 3202, what is monumentally lacking within the whole potential perspective of this amendment is the fact that from a purely financial perspective, overall community based economic development will not be realized unless the passage of broad federal energy (FERC oriented) public utility based mortgage underwriting instrument is systematically brought to every homeowner, regardless of whether or not they (the homeowner) choose FHA as the underwriter or guarantor of said residential based mortgage instrument.

With the much larger issue being the full, multi dimensional development of a mixed energy based micro community power and transportation grid model, and, as in grasping the clearly larger implications of doing so, every home, through the incorporation of truly advanced building code modeling, community education and subsequent positive enforcement of said building codes, has the clear potential of enabling communities nationwide to benefit not from the application of building codes (as they are quite abstractly and generically applied within the framework of this nascent SA 3202 document), but, from the much broader application of codes as they interact substantially more so via state based, regionally based and municipality based  management of micro public utility regulatory commissions. Thus, from an economic perspective, suggesting that the FHA should be the only regulatory body insisting upon such building efficiency is, at best, pointless, and, from within the constraints of the wording in SA 3202, would, much more likely than not, serve to be a legislative inhibitor of a much larger economic growth platform if in fact that public utility regulatory and overall building code enforcement platform was neighborhood based.       

      (2) Imposition of certain material costs, impediments, or     Penalties ( except polar bear penalties ).--In the absence of a publicly  
    disclosed analysis that demonstrates significant additional default risk
    or prepayment risk associated with the loans, the Federal     Housing Administration shall not impose material costs,     impediments, or penalties on covered loans merely because the     loan uses an energy efficiency report ( from Alabama ) or the  
    enhanced loan eligibility requirements required ( in Rochester, New
    York ) under this section.

      (e) Limitations.--

      (1) In general.--The Federal Housing Administration may     price covered loans originated under the enhanced loan     eligibility requirements required under this section in     accordance with the estimated risk ( defaulting on its loan payment
    after the Government Development Bank of Puerto Rico failed to repay
    almost $400 million. ) of those loans.

      (2) Prohibited actions.--The Federal Housing Administration     shall not--

      (A) modify existing underwriting criteria or adopt new     underwriting criteria that intentionally negate or reduce the     impact of the requirements or resulting benefits that are set     forth or otherwise derived from the enhanced loan eligibility     requirements required under this section; or

(Regardless of where one reads, there is virtually no underwriting criteria outlined in SA 3202. Everything that is stated is purely theoretical with virtually no benchmark from which any form of national building energy emission, conservation, production, distribution, rate making or funding standards in general can be applied to a point in which some sort of measured economic attainment is realized as a result of passing SA 3202 within its current and hopelessly abstract form.)   

      (B) impose greater buy back requirements, credit overlays,     or insurance requirements, including private mortgage     insurance, on covered loans merely because the loan uses an     energy efficiency report or the enhanced loan eligibility     requirements required under this section.

(B)Again, a certain sense of plausibility should ultimately be the benchmark for legislative sustainability. If in fact, a legislative idea, initially vague in circumference is haunted by equally vague terms such as “buy back requirements”, needless to say, whatever truly constructive benefits such an amendment is hopefully designed to achieve, is at best negligible if not lost or squandered entirely.

      (f) Applicability and Implementation Date.--Not later than     3 years after the date of enactment of this Act, and before     December 31, 2019, the enhanced loan eligibility requirements     required under this section shall be implemented by the     Federal Housing Administration to--

( Another Application and Implementation Date for a theory, admitted to by its own authors, as being in the development stage only? )

      (1) apply to any covered loan for the sale, or refinancing     of any loan for the sale, of any home;

(1) This essay has been written within the the context of my overall
support of what I consider to be as, the most substantial and
constructive amendment (SA 3202) to the overall S.2012 - Energy
Policy Modernization Act of 2016. - Residential energy
conservation and overall energy based home mortgage letting,
guarantorship and long term sustainability of the whole portrait of
energy consciousness is then, at the financial center of such
residential or community or neighborhood based guarantorship.

As such, it is in my view, crucial to grasp the underlying dialog of   
what, in the view of the FHA, must ultimately be stated…)  

      (2) be available on any residential real property     (including individual units of condominiums and cooperatives)     that qualifies for a covered loan; and

(2) be available to all residential property throughout every  
geographical and climatic region of the United States Of America as
such regions are defined by the whole cooperative analysis of building energy efficiency and consumption, as well as overall energy generation as such generation can be defined from within the context of residential building clusters occupying state based PUC and federal based FERC building code benchmarks for overall energy management within said geographical parameters.
(2A) As such parameters can and most certainly must be defined in extremely small city block or equally small rural based energy acreage increments of micro energy sectors specific to the climatic as well as architectural nuances of said sectors, building code benchmarks defined by state based PUCs and federal FERC policy ultimately serve as the financial guarantorship models required of both private and federal home mortgage fluidity.

      (3) provide prospective mortgagees with sufficient guidance     and applicable tools to implement the required underwriting     Methods.

(3) guidance and application tools are comprised of the regulatory
instruments defined above in (2) and (2A)

          GUIDELINES.      (a) In General.--Not later than 1 year after the date of     enactment of this Act, the Secretary of Housing and Urban     Development shall--
(a) In General.--There is nothing, within the context of this Act, the Secretary of Housing and Urban Development can point to that would justify the implementation of SA 3202 for any reason whatsoever other than to further the employment of persons who have never really been responsible for anything other than getting paid taxpayers dollars to waste taxpayers dollars.

      (1) in consultation with the Federal Financial Institutions     Examination Council and the advisory group established in     section 1505(c), develop and issue guidelines for the Federal     Housing Administration to determine the maximum permitted     loan amount based on the value of the property for all     covered loans made on properties with an energy efficiency     report that meets the requirements of section 1502(c)(2); and

Page S504]]      (2) in consultation with the Secretary, issue guidelines     for the Federal Housing Administration to determine the     estimated energy savings under subsection (c) for properties     with an energy efficiency report.      (b) Requirements.--The enhanced energy efficiency     underwriting valuation guidelines required under subsection     (a) shall include--      (1) a requirement that if an energy efficiency report that     meets the requirements of section 1502(c)(2) is voluntarily     provided to the mortgagee, such report shall be used by the     mortgagee or the Federal Housing Administration to determine     the estimated energy savings of the subject property; and      (2) a requirement that the estimated energy savings of the     subject property be added to the appraised value of the     subject property by a mortgagee or the Federal Housing     Administration for the purpose of determining the loan-to-    value ratio of the subject property, unless the appraisal     includes the value of the overall energy efficiency of the     subject property, using methods to be established under the     guidelines issued under subsection (a).
There has been virtually nothing written in the above three paragraphs that would indicate that those who actually wrote these paragraphs had even a clue as to what on earth they were talking about within these paragraphs to begin with.

      (c) Determination of Estimated Energy Savings.--      (1) Amount of energy savings.--The amount of estimated     energy savings shall be determined by calculating the     difference between the estimated energy costs for the average     comparable houses, as determined in guidelines to be issued     under subsection (a), and the estimated energy costs for the     subject property based upon the energy efficiency report.
(1) There is no such thing as an estimated savings on energy costs either for and/or of a comparable house(s). As every residential property is essentially an extension of the human personality that occupies a house, to suggest that human behavior for some reason must be measured by energy costs and said energy costs are the determinant of mortgage valuation is at best sheer insanity, and, at worst, human engineering for the sake of attaining a mortgage in the first place.
      (2) Duration of energy savings.--The duration of the     estimated energy savings shall be based upon the estimated     life of the applicable equipment, consistent with the rating     system used to produce the energy efficiency report.
(2) In other words, the Federal Housing Administration is going to rely upon an ENERGY STAR performance label on an appliance and the IT system utilized to produce an energy efficient report knowing full well that all appliances as well as all IT software undergoes virtually constant technological improvement and such improvement has virtually no bearing on the advanced architectural energy efficiency of the actual housing unit and overall neighborhood housing unit clusters such appliances actually operate in while consuming the power generated from said micro urban, rural or (neighborhood based in general) mixed energy power clusters.
      (3) Present value of energy savings.--The present value of     the future savings shall be discounted using the average     interest rate on conventional 30-year mortgages, in the     manner directed by guidelines issued under subsection (a).
(3) The present value of the future savings??????????????? ---
      (d) Ensuring Consideration of Energy Efficient Features.--    Section 1110 of the Financial Institutions Reform, Recovery,     and Enforcement Act of 1989 (12 U.S.C. 3339) is amended--      (1) in paragraph (2), by striking ``; and'' at the end;      (2) in paragraph (3), by striking the period at the end and     inserting ``; and''; and      (3) by inserting after paragraph (3) the following:      ``(4) that State certified and licensed appraisers have     timely access, whenever practicable, to information from the     property owner and the lender that may be relevant in     developing an opinion of value regarding the energy-saving     improvements or features of a property, such as--
(4) Can any sane and rational person imagine State certified and licensed appraisers having timely access to energy use information that is not only entirely pointless to begin with, but is unequivocally violating an individual’s constitutional right to privacy?
(4) Even more so, when is the last time a state inspector on any level had either the time or the budget to visit virtually every home in the network of FHA funded homes to inspect technology that they themselves most likely are entirely incapable of working with in the first place?
(4) Are such ideas being generated solely for the purpose of creating public sector jobs for people who are entirely too stupid to compete in the private sector?
      ``(A) labels or ratings of buildings;      ``(B) installed appliances, measures, systems or     technologies;      ``(C) blueprints;      ``(D) construction costs;      ``(E) financial or other incentives regarding energy-    efficient components and systems installed in a property;      ``(F) utility bills;      ``(G) energy consumption and benchmarking data; and      ``(H) third-party verifications or representations of     energy and water efficiency performance of a property,     observing all financial privacy requirements adhered to by     certified and licensed appraisers, including section 501 of     the Gramm-Leach-Bliley Act (15 U.S.C. 6801).    Unless a property owner consents to a lender, an appraiser,     in carrying out the requirements of paragraph (4), shall not     have access to the commercial or financial information of the     owner that is privileged or confidential.''.      (e) Transactions Requiring State Certified Appraisers.--    Section 1113 of the Financial Institutions Reform, Recovery,     and Enforcement Act of 1989 (12 U.S.C. 3342) is amended--      (1) in paragraph (1), by inserting before the semicolon the     following: ``, or any real property on which the appraiser     makes adjustments using an energy efficiency report''; and      (2) in paragraph (2), by inserting after before the period     at the end the following: ``, or an appraisal on which the     appraiser makes adjustments using an energy efficiency     report''.      (f) Protections.--      (1) Authority to impose limitations.--The guidelines to be     issued under subsection (a) shall include such limitations     and conditions as determined by the Secretary of Housing and     Urban Development to be necessary to protect against     meaningful under or over valuation of energy cost savings or     duplicative counting of energy efficiency features or energy     cost savings in the valuation of any subject property that is     used to determine a loan amount.      (2) Additional authority.--At the end of the 7-year period     following the implementation of enhanced eligibility and     underwriting valuation requirements under this subtitle, the     Secretary of Housing and Urban Development may modify or     apply additional exceptions to the approach described in     subsection (b), where the Secretary of Housing and Urban     Development finds that the unadjusted appraisal will reflect     an accurate market value of the efficiency of the subject     property or that a modified approach will better reflect an     accurate market value.      (g) Applicability and Implementation Date.--Not later than     3 years after the date of enactment of this Act, and before     December 31, 2019, the Federal Housing Administration shall     implement the guidelines required under this section, which     shall--      (1) apply to any covered loan for the sale, or refinancing     of any loan for the sale, of any home; and      (2) be available on any residential real property,     including individual units of condominiums and cooperatives,     that qualifies for a covered loan.    SEC. 1504. MONITORING.      Not later than 1 year after the date on which the enhanced     eligibility and underwriting valuation requirements are     implemented under this subtitle, and every year thereafter,     the Federal Housing Administration shall issue and make     available to the public a report that--      (1) enumerates the number of covered loans of the Federal     Housing Administration for which there was an energy     efficiency report, and that used energy efficiency appraisal     guidelines and enhanced loan eligibility requirements;      (2) includes the default rates and rates of foreclosures     for each category of loans; and      (3) describes the risk premium, if any, that the Federal     Housing Administration has priced into covered loans for     which there was an energy efficiency report.    SEC. 1505. RULEMAKING.      (a) In General.--The Secretary of Housing and Urban     Development shall prescribe regulations to carry out this     subtitle, in consultation with the Secretary and the advisory     group established in subsection (c), which may contain such     classifications, differentiations, or other provisions, and     may provide for such proper implementation and appropriate     treatment of different types of transactions, as the     Secretary of Housing and Urban Development determines are     necessary or proper to effectuate the purposes of this     subtitle, to prevent circumvention or evasion thereof, or to     facilitate compliance therewith.
(a) In General.--The Secretary of Housing and Urban Development shall prescribe regulations that will dictate to anyone choosing to apply for a FHA backed loan to be found guilty of something related to the circumvention or evasion thereof, or to facilitate compliance therewith of a federal energy act SA 3202 that is so pointlessly vague in scope to suggest that while FHA homeowners may be found guilty of peeling off ENERGY STAR appliances labels and selling the same on the urban ghetto black market, there is nothing within the wording of this act to suggest that same black market ENERGY STAR label thief would be found guilty of blowing the brains out of a State Inspector for entering into a home that under federal law clearly suggests an individual has the right to protect his or her self if in fact the intruder, due to the abstract and wholly delusional nature of the inspector’s request, might be deemed to be a threat to the physical safety of that homeowner’s family and friends.    
      (b) Rule of Construction.--Nothing in this subtitle shall     be construed to authorize the Secretary of Housing and Urban     Development to require any homeowner or other party to     provide energy efficiency reports, energy efficiency labels,     or other disclosures to the Federal Housing Administration or     to a mortgagee.      (c) Advisory Group.--To assist in carrying out this     subtitle, the Secretary of Housing and Urban Development     shall establish an advisory group, consisting of individuals     representing the interests of--      (1) mortgage lenders;      (2) appraisers;      (3) energy raters and residential energy consumption     experts;      (4) energy efficiency organizations;      (5) real estate agents;      (6) home builders and remodelers;      (7) consumer advocates;      (8) State energy officials; and      (9) others as determined by the Secretary of Housing and     Urban Development.    SEC. 1506. ADDITIONAL STUDY.      (a) In General.--Not later than 18 months after the date of     enactment of this Act, the Secretary of Housing and Urban     Development shall reconvene the advisory group established in     section 1505(c), in addition to water and locational     efficiency experts, to advise the Secretary of Housing and     Urban Development on the implementation of the enhanced     energy efficiency underwriting criteria established in     sections 1502 and 1503.      (b) Recommendations.--The advisory group established in     section 1505(c) shall provide recommendations to the     Secretary of Housing and Urban Development on any revisions     or additions to the enhanced energy efficiency underwriting     criteria deemed necessary by the group, which may include     alternate methods to better account for home energy costs and     additional factors to account for substantial and regular     costs of homeownership such as location-based transportation     costs and water costs. The Secretary of Housing and Urban     Development shall forward any legislative recommendations     from the advisory group to Congress for its consideration.


 (a) In General.--Not later than “18 seconds” after the date of enactment of this Act, virtually every community in America will be divided into ½ square mile micro energy grid sectors fully governed by the following:--
(1) State Public Utility Commissions;
(2) Federal Energy Regulatory (micro regional) Commissions;
(3) Municipal Building Code Coordinators;
(4) Neighborhood Building Trade Associations;
(5) Industry leaders in all energy sectors;
(6) Neighborhood micro transit authorities.
(b) The Immediate Function.--these entities will be responsible for the following:--
(1) The full architectural redesign of every residential dwelling within said ½ square mile                     micro energy grid sector.
(2) The site specific, full energy demand, supply and distribution model of each residential                   dwelling within aforementioned micro energy grid sector.
(3) The full transportation demand model of each dwelling.
(4) The full above ground and below ground design/engineering schematic of all utilities going to and leaving a single residential property as well as the subsequent schematic of the overall mixed energy, micro utility interface said residence will share with other residences within the ½ square mile micro energy grid sector said residence is an integral part of.
(5) A complete and multi faceted construction material list developed specifically for one                     individual home that--
(a) May or may not have the same community based building code guidelines to adhere to as that of the building right next door, or--
(b), several other residential, commercial or light industrial structures located within the ½ square mile micro energy grid sector that has been defined as a grid sector for its overall potential to create multi level, long term sustainable revenue streams that are--
(c) directly associated with equally substantial neighborhood based job creation within the broad family of mixed energy private as well as public utility industries involved with either the demand, supply or distribution of overall utility function within that ½ square mile micro energy grid sector.
(d) Private sector industries will include all construction/building trade sub groups associated with--(1) Full building energy retrofits.
(2) Full building construction waste stream management.
(3) Full building landscape design, engineering, construction and long term environmental/economic management and maintenance.
(4) Full building transportational needs analysis.
(5) Full building transportational fueling analysis.
(6) Full building vehicle maintenance analysis.
(7) Fresh water treatment and management.
(8) Rainwater management.
(9) Sewage and graywater treatment.
(10) All aspects of micro electrical generation, storage and distribution analysis.

Thanks for stopping by.

Mike Patrick Dahlke
312 – 493 – 7935

Curriculum vitae

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