The Road to Energy Independence

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But to really catalyze change, we need a combination of public and private initiatives.

MEASURE AND MOTIVATE.

First we need to measure. Tag all energy-consuming devices with an estimated yearly energy cost, and provide suggestions on how that cost could be reduced. Install energy meters on every new home -- and any renovation greater than $10,000 -- showing in dollar value how much electricity, hot water, and other resources are being used. You can only save what you can see, and such meters would encourage consumers everywhere to take energy savings into their own hands.

Then there's a need to motivate. Establish energy cost-sharing programs for those projects that both save energy and increase productivity (see BW Online, 05/31/05, "Policy that Rewards Productivity"). For example, the government could help offset the cost of improved diesel catalytic converters in exchange for their vastly improved fuel economy. Or, it could offset the added cost of a power meter on an outlet strip, which would motivate people to turn off computers at night.

Other incentives include developing energy teaching modules and weaving them into the No Child Left Behind program, as well as granting National Medals of Freedom to the greatest contributors to energy independence.

GOVERNMENT MANDATE.

Finally, the government must mandate. Specifically, it should set standards on all new buildings and renovations above $25,000 to improve energy efficiency by 5% compared to benchmarks, with the benchmarks rising over time. Any excess above 5% could be traded in for credit on other projects. And goverenment should raise Corporate Average Fuel Economy (CAFE) standards targets by 30% over the next 10 years. With diesel or hybrid power, this bold reduction is easily within reach, and cost effective over the life of the car. And, if you want, you could still drive your SUV.

We need Washington to lead, but we cannot wait to follow. Everyone can become more energy savvy. Buy a more efficient car and water heater. Install LED lights. Build your home with south-facing windows. Advocate for energy-sensitive local zoning codes. Save money by saving energy. And demand leadership. The price of deciding not to decide is simply too high.

Blonder is a partner at venture capital firm Morgenthaler Ventures and is based in Princeton, N.J. He writes about technology investing in an occasional column at http://www.businessweek.com/technology/.