Energy Crisis and the Nonprofit Sector

By Lisa Kay Mencer

Graduate Student
Ferris State University

Definition

“Energy crisis” is a phrase commonly used to describe any situation in which the United States (as well as other energy consuming nations) faces a shortfall in the supply of energy. That shortfall, coupled with static or even rising demand (a typical phenomenon, especially in the United States) creates the conditions for the price of available energy resources to rise. In an energy crisis, the cost for petroleum is usually the trigger that drives energy prices higher. The result is higher prices for gasoline, electricity, natural gas, and heating oil. Higher prices for these commodities create higher costs for transportation, manufacturing and distribution, and construction. Consumers are impacted directly because of higher costs for gasoline and fuels for heating or cooling. The combination of static demand for and a reduced supply of energy can lead to an inflationary spiral.

Nonprofits fill several roles in an energy crisis. First, foundations, trusts, and other nonprofits study the factors that create the crises and through education and information distribution help policy makers, government officials, and citizens make informed choices. Those informed choices may range from policy decisions at the highest level of government to individual decisions about conservation and energy recovery.

Second, as stewards of donated funds, nonprofits typically take an active role as community leaders in conservation, alternative fuel usage, and energy recovery initiatives. Nonprofits live what they advocate by practicing conservation in the operation of their agencies.

Finally, nonprofits fund and manage a number of energy assistance programs. These programs, originally designed to help low income or fixed income families make ends meet in severe winters, are of considerable assistance to a broader group of people for whom the rising cost of energy during an energy crisis becomes a personal financial crisis.

Historic Roots

Wikipedia, the free online encyclopedia, lists 6 significant energy crises since 1973:

1. 1973 Oil Crisis Caused by an OPEC oil export embargo by many of the major Arab oil-producing states, in response to western support of Israel during the Yom Kippur War.
2. 1979 Energy Crisis Caused by the Iranian revolution 1990 spike in the price of oil Caused by the Gulf War.
3. 1990 Spoke in the Price of Oil Caused by the Gulf War.
4. California Electricity Crisis of 2000 & 2001 Caused by failed deregulation, and business corruption.
5. UK Fuel Protest (of 2000) Caused by the rise in the price of crude oil combined with already high taxation on road fuel in the UK.
6. Oil Price Increases of 2004-2006 Caused by near-stagnant world oil production in the face of increasing demand in the U.S., China and India. (Wikipedia)

GuideStar, the Web database for nonprofits lists 113 nonprofit organizations involved with the energy crisis and over 500 involved with energy conservation. These organizations all serve one of the three key roles for nonprofits in the energy crisis.

A number of new nonprofits were founded after the first or second energy crisis described above. In addition, a number of the nonprofits listed are based in California and were chartered as a direct result of the California electricity crisis of 2000 and 2001.

Importance

Each energy crisis this country faces focuses attention on energy consumption, the shortfall in supply vs. the increase in demand, and the need to explore alternative energy sources to meet escalating demand. Nonprofits play an increasingly large role in providing solutions to these challenging questions. In addition, nonprofits provide the leadership and vision to explore alternative energy sources and enact conservation initiatives.

Nonprofits are not the only organizations involved in managing the energy crisis. A number of for profit organizations advocate conservation and use of alternative energy at some level. However, most of these organizations have direct ties to the oil industry, the power industry, or the automotive industry. While some of their initiatives are significant, they tend to be self-serving in that they ultimately help the organizations maintain profitability.

Leaders in energy management within the nonprofit sector also look beyond the current energy demands and shortfalls and voice concern for larger environmental issues. Al Gore, former Vice President and founding member of The Alliance for Climate Protection, a nonprofit whose purpose is to try to raise awareness about global warming among labor groups, hunters, Christian evangelicals, and others, is one of those leaders. In his book, “An Inconvenient Truth”, he makes some powerful statements about the impact of energy consumption on the environment:

"Unfortunately, in the intervening years, time has not stood still for the global environment. The pace of destruction has worsened and the need for a response has grown more acute. The relationship between human civilization and the Earth has been utterly transformed by a combination of factors, including the population explosion, the technological revolution, and a willingness to ignore the future consequences of our present actions. Not only does human-caused global warming exist, but it is also growing more and more dangerous, and at a pace that has now made it a planetary emergency.” (Gore 2006)

Ties to the Philanthropic Sector

The energy crises in the United States have been a significant factor in the growth of the nonprofit sector. Without the crises, the 500 plus nonprofits that were established as a direct result of previous energy crises would not exist. The addition of these organizations is both an advantage and a challenge to the sector. It is an advantage because these organizations bring new people into the sector both as participants and donators of funds. It is a challenge because the pool of funding for nonprofits is less dynamic than static and the addition of this many organizations may result in fewer dollars per nonprofit.

Nonprofits lead the way in conservation, alternative energy, and renewable, sustainable energy education and information. The energy related nonprofits sponsor research, provide information and opinions to government policy makers, and offer energy saving conservation information to business operators, building contractors, and individuals.

Nonprofits manage and disseminate emergency energy funds for those who have difficult paying their energy bills. This function was a traditional role of nonprofits even before the energy crises. Since the first energy crisis in 1973, the number of people who qualify for assistance from these programs has increased dramatically, primarily due to the rising cost of energy.

Key Related Ideas

Climate Change/Global Warming “refers to the variation in the Earth’s global climate or in regional climates over time. It describes changes in the variability or average state of the atmosphere (or average weather) over time scales ranging from decades to millions of years. These changes may come from processes internal to the Earth, be driven by external forces (e.g. variations in sunlight intensity) or, most recently, be caused by human activities. In recent usage, especially in the context of environmental policy, the term “climate change” often refers only to the ongoing changes in modern climate, including the rise in average surface temperature known as global warming.” (Wikipedia)

Energy Conservation “is the practice of decreasing the quantity of energy used while achieving a similar outcome of end use. Individuals and organizations that are direct consumers of energy may want to conserve energy in order to reduce energy costs and promote environmental values. Industrial and commercial users may want to increase efficiency to maximize profit”. (Wikipedia)

Renewable energy sources/ RES “capture their energy from existing flows of energy, from on-going natural processes, such as sunshine, wind, wave power , flowing water (hydropower), biological processes such as anaerobic digestion, and geothermal heat flow.  The most common definition is that renewable energy is from an energy resource that is replaced by a natural process at a rate that is equal to or faster than the rate at which that resource is being consumed. Renewable energy is a subset of sustainable energy”. (Wikipedia”

“Sustainable energy sources are energy sources which are not expected to be depleted in a timeframe relevant to the human race, and which therefore contribute to the sustainability of all species. This concept is termed sustainability.  Sustainable energy sources are most often regarded as including all renewable sources, such as solar power, wind power, wave power, geothermal power, tidal power, and others.  Fission power and fusion power meet the definition of sustainability, but there is controversy over whether or not they should be regarded as sustainable”. (Wikipedia)

Important People Related to the Topic

James Dulley (1949 —) Author of Earth Friendly Home and a popular newspaper columnist, Jim focuses on environmentally friendly home construction and maintenance.

Sylvia Earle (1955 —) “Sylvia Earle is the best-known woman marine scientist on the planet. Among other accomplishments, she has walked untethered on the sea floor at a lower depth than any other human being”. ( Academy of Achievement)

Erin Brockovich-Ellis (1960 —) “The woman who, despite the lack of a formal law school education, was instrumental in constructing a case against the $30 billion Pacific Gas & Electric Company (PG&E), of California in 1993”. (Wikipedia)

Al Gore (1948 —) The former Vice President and author of An Inconvenient Truth, The planetary emergency of global warming and what we can do about it.  He is a champion of energy conservation and alternative energy usage.

Related Nonprofit Organizations

• The Area Five Agency on Aging & Community Services in Logansport, IN is a social services agency serving the needs of the elderly, disabled, and disadvantaged in the Logansport area.  The agency provides a variety of services to the elderly and to low income families, which include, but not limited to weatherization of homes and energy assistance.
  
  
• The Hawthorne Social Service Association Inc in Indianapolis, IN provides (among other services) housing information, referrals, energy and Federal emergency management assistance to the Hawthorne community.
  
  
• The Special Assistance Fund for Energy (SAFE) program in Reno, NV has provided assistance through the payment of funds to the poor, distressed and underprivileged who are having difficulty paying their utility bills because of illness, family crisis, unemployment or a low or fixed income.
  
  
• The Costal Economic Development Corporation in Bath, Maine provides housing weatherization, repair services, and replacement services to low-income individuals and households.  In addition the Corporation provides home energy assistance and crisis intervention supplemental food and emergency food and shelter. 
  
  
• The Hoosier Environmental Council in Indianapolis, Indiana “addresses the root causes of Indiana's environmental challenges by working to improve state environmental policies to protect our air and water.   The Council promotes public acquisition and wise management of Indiana's forests, parks, wildlife refuges and wetlands.  The council also works to redirect government spending from building new roads that induce urban sprawl to repairing our deteriorating existing roads and improving our present neighborhoods”. (HEC)

Related Web Sites

• The Alliance to Save Energy at http://www.ase.org/ promotes energy efficiency worldwide to achieve a healthier economy, a cleaner environment, and greater energy security.  The Alliance believes that energy efficiency is the quickest, cheapest, cleanest way to extend our world's energy supplies.
  
  
• The California Association of Nonprofits at http://www.canonprofits.org/  works to expand and strengthen the influence, professionalism and effectiveness of nonprofit organizations in a manner that builds their capacity to accomplish their missions and preserve the idealism and value of nonprofit organizations in California.   As one means of meeting this end, CAN has instituted the Energy Equity for Nonprofits program to assist nonprofits in not only reducing energy consumption by 20% but also provide accountability for nonprofits in grant seeking.
  
  
• NJ Shares at http://www.njshares.org/ provides assistance through a statewide, year-round independent energy fund to individuals and families living in New Jersey who are in need of temporary help in paying their energy bills.
  
  
• The Department of Energy at http://www.energy.gov/ has as a major goal the protection of our national and economic security by promoting a diverse supply and delivery of reliable, affordable, and environmentally sound energy.

Bibliography:

The Academy of Achievement.  Silvia Earle.  Accessed 4 August, 2006.
http://www.achievement.org/autodoc/page/ear0pro-1

The Center on Philanthropy at Indiana University.  Welcome to the
Center on Philanthropy.  Accessed 3 August, 2006. 
http://www.philanthropy.iupui.edu/

Gore, Al. An Inconvenient Truth.  Emmaus:  Rodale, 2006.  ISBN:
1594865671.

GuideStar.  Energy Crisis and Conservation Search.  Accessed 8 and 9 August, 2006. 
http://www.guidestar.org/pqShowResults.do?type=guidestarIt&partner=guidestar

The Hoosier Environmental Council.  Purpose.  Accessed 7 August,
2006.  http://www.hecweb.org/

Wikipedia.  Erin Brockovich.  Accessed 8 August, 2006. 
http://en.wikipedia.org/wiki/Erin_Brokovich

Wikipedia.  Energy Crisis.  Accessed 7 August, 2006. 
http://en.wikipedia.org/wiki/Energy_crisis

Wikipedia.  Climate Change.  Accessed 8 August, 2006. 
http://en.wikipedia.org/wiki/Climate_Change

Wikipedia.  Energy Conservation.  Accessed 9 August, 2006. 
http://en.wikipedia.org/wiki/Energy_Conservation

Wikipedia.  Renewable Energy.  Accessed 9 August, 2006. 
http://en.wikipedia.org/wiki/Renewable_energy

Wikipedia.  Sustainable Energy.  Accessed 8 August, 2006.
http://en.wikipedia.org/wiki/Sustainable_energy