Completing energy efficiency upgrades and operational improvements in public facilities is one of the most impactful and immediate ways for local governments to cut carbon pollution and save taxpayer dollars. Local government leadership can also encourage energy efficiency upgrades in non-governmental buildings, which drives deeper, community-wide carbon reductions and monetary savings.
Energy efficiency in your community
Some local governments conduct efficiency improvements using internal resources, while others partner with energy service companies (ESCOs). Many ESCOs provide all-inclusive efficiency solutions that pay for themselves through energy savings over a specified time period. It is even possible to negotiate an energy savings performance contract with no up-front costs, paid for entirely with energy savings.
Each $1 invested in electric energy efficiency produces $1.25 - $4.00 in benefits
American Council for an Energy-Efficient Economy
The benefits of energy efficiency
Fewer GHG Emissions—In most communities, saving energy reduces greenhouse gases (GHGs), the emissions that trap and hold heat in the atmosphere, creating the greenhouse effect, which contributes to global warming and climate change.
Lower Operating Costs—Saving energy in public facilities reduces building operating expenses, demonstrating effective government stewardship of tax funds and freeing up resources for other needs.
Improved Building Function and Comfort— Many of the same features that drive energy savings also make work environments healthier and more comfortable for employees and visitors.
Support for the Local Economy— Because energy efficiency improvements often require onsite work, they are good opportunities to use local workers and expertise.
Public Leadership— By making a serious commitment to improving energy efficiency, local governments can catalyze investment in commercial, industrial, and residential buildings.
Examples of energy efficiency
What about the cost of upgrades?
Energy efficiency measures include no- and low-cost improvements, as well as incremental efficiency investments that offer rapid payback when combined with scheduled maintenance and equipment replacement. Local governments can also take advantage of new diagnostic tools, proven technologies, and well-established conservation tactics. By generating reliable, predictable cost savings, energy efficiency investments create opportunities to use private capital, shared savings contracts, or revolving energy efficiency funds (in addition to traditional infrastructure financing).
Energy-efficient operations enjoy lower costs and better financing terms, resulting in short payback periods.
ENERGY STAR
Tools and resources for upgrading public facilities
Guaranteed Energy Savings Contracts (GESCs)— The Indiana Department of Local Government Finance allows city, town, and county governments to finance energy savings projects without a large upfront cost. The project can be paid for with energy savings. GESCs allow local governments to skip some procurement steps if the upgrade meets certain guidelines.
Payback Period Calculators— Tools like the "ENERGY STAR Cash Flow Opportunity Calculator" or the "Department of Energy's Cost-Savings Calculators" quantify how much upgrades will cost, how much they will save in energy reduction, and the cost of forgoing the upgrades to determine how long it will take to pay off the project.
Energy Use Tracking and Assessment— "ENERGY STAR Portfolio Manager" makes it easy to baseline energy consumption and draw apples-to-apples performance comparisons. Additionally, there are companies that can help local governments automate energy use tracking to enable better facility management. This software helps facility managers analyze energy use per building. Local governments can highlight progress and create shared accountability for meeting economic and environmental goals by publishing the data.
How to support energy efficiency in your community
Beyond upgrading your own facilities, local governments can use incentives and policies to encourage other building owners to implement energy efficiency upgrades. Some local governments offer building energy use benchmarking programs, such as the ENERGY STAR Portfolio Manager or a benchmarking ordinance, to encourage building owners to report their energy use and compare it to other buildings. Local governments can also require energy efficiency audits for anyone who is not meeting pre-determined standards.
Local governments can conduct outreach campaigns to homeowners to encourage them to implement energy-efficient measures in their homes. Providing incentives and financial assistance will help encourage adoption while easing the burden on lower-income residents.
