by Brianna Crandall — March 23, 2012—Building owners, managers and tenants desiring to join forces to reduce energy use and costs should take note that the U.S. Department of Energy launched on March 20 the Green Lease Library, an online resource to help the commercial building sector implement “green leases”—rental agreements that encourage energy efficiency. By unlocking the potential to save energy in more of America’s commercial building space, the Green Lease Library supports the Obama Administration’s goal to reduce energy use in commercial buildings 20% by 2020 and will help families and business across the country save money.
Leases for commercial buildings specify how energy costs will be divided between building tenants and owners. Many lease agreements put the building owner in charge of paying utility bills regardless of how much energy the tenant uses, allowing the tenant to waste energy without penalty, notes DOE. Conversely, leases that make the tenant responsible for paying the energy bill give the building owner little reason to make energy efficiency upgrades to their properties and don’t allow building owners to recoup energy cost savings generated through efficiency improvements.
Green leases, also known as energy-aligned leases, high-performance leases, or energy-efficient leases, encourage the building owner and tenant to save energy and implement sustainable practices by distributing the benefits and costs of energy efficiency upgrades between building owner and tenant, explains DOE. These leases use modified lease clauses to align the financial interests of building owners and tenants so both have an incentive to save energy and make cost-effective upgrades. This can help both tenants and landlords to save money, conserve resources, extend the lifetime of equipment, and operate more efficiently.
The Green Lease Library is the result of collaboration between the Energy Department’s Commercial Real Estate Energy Alliance (CREEA) and other organizations, including the U.S. General Services Administration, Rocky Mountain Institute, Natural Resources Defense Council, the Institute for Market Transformation, NYU Schack Institute of Real Estate, and Building Owners and Managers Association (BOMA) International.
CREEA is part of the Energy Department’s Office of Energy Efficiency and Renewable Energy (EERE), which accelerates development and facilitates deployment of energy efficiency and renewable energy technologies and market-based solutions that strengthen U.S. energy security, environmental quality, and economic vitality. To learn more about EERE’s support of building technologies and about its Commercial Building Initiative, visit the agency’s Web site.
