by Brianna Crandall — December 5, 2011—President Obama announced on December 2 nearly $4 billion in combined federal and private sector energy upgrades to buildings over the next two years. These investments are expected to save billions in energy costs, promote energy independence, and, according to independent estimates, create tens of thousands of jobs in the hard-hit construction sector. The $4 billion investment just announced includes a $2 billion commitment, made through the issuance of a Presidential Memorandum, to energy upgrades of federal buildings using long-term energy savings to pay for up-front costs, at no cost to taxpayers.
Simultaneous with Obama’s announcement, 60 chief executive officers (CEOs), mayors, university presidents, and labor leaders committed to invest nearly $2 billion of private capital into energy efficiency projects, and to upgrade energy performance by a minimum of 20% by 2020 in 1.6 billion square feet of office, industrial, municipal, hospital, university, community college and school buildings. This announcement builds on a commitment made by 14 partners at the Clinton Global Initiative America meeting in June 2011 to make energy upgrades across 300 million square feet, and to invest $500 million in private sector financing in energy efficiency projects.
These commitments were announced by President Obama and former President Clinton along with representatives from more than 60 organizations as part of the Better Buildings Challenge. The Challenge is part of the Better Buildings Initiative launched in February 2011 by President Obama, and is spearheaded by former President Clinton and the President’s Council on Jobs and Competitiveness to support job creation by catalyzing private sector investment in commercial and industrial building energy upgrades to make America’s buildings 20 percent more efficient over the next decade, reducing energy costs for American businesses by nearly $40 billion. Last year, commercial buildings consumed roughly 20 percent of all the energy used by the U.S. economy.
“Upgrading the energy efficiency of America’s buildings is one of the fastest, easiest, and cheapest ways to save money, cut down on harmful pollution, and create good jobs right now. But we can’t wait for Congress to act. So today, I’m directing all federal agencies to make at least $2 billion worth of energy efficiency upgrades over the next 2 years — at no up-front cost to the taxpayer. Coupled with today’s extraordinary private sector commitments of $2 billion to upgrade businesses, factories, and military housing, America is taking another big step towards the competitive, clean energy economy it will take to win the future,” said President Obama.
In a move the U.S. Chamber of Commerce has recognized as critical to job creation, the Presidential Memorandum calls for fully implementing existing federal authority to utilize Energy Savings Performance Contracts (ESPCs) in order to promote energy efficiency and create new jobs. Under the ESPC program, new energy-efficient equipment is installed at federal facilities at no up-front cost to the government. The cost of the improvements is paid for over time with energy costs saved on utility bills, and the private-sector contractors guarantee the energy savings.
Better Buildings commitments were announced by such companies and organizations as 3M; AFL-CIO; Alcoa; CBRE; Denver, CO; The District of Columbia; GE; HEI Hotels & Resorts; Houston Independent School District, TX; IHG (InterContinental Hotels Group); Jones Lang LaSalle; Kohl’s Department Stores; Legrand; Michigan State University; Nissan North America Inc; The PNC Financial Services Group; Prologis; RREEF Real Estate; Sacramento, CA; Saint-Gobain Corporation; Schneider Electric; Serious Energy, Inc.; Shorenstein Properties LLC; State of Iowa, Department of Administrative Services; State of Minnesota; SUPERVALU; TIAA-CREF; University of California, Irvine; Southern California Edison; Walgreens Co.; Wyndham Worldwide; and Ygrene Energy Fund.
Better Buildings commitments were made in June 2011 by: Abundant Power; Atlanta, GA; Best Buy; Citi; Green Campus Partners LLC; Green Sports Alliance; Lend Lease; Los Angeles, CA; Metrus Energy; Renewable Funding; Seattle, WA; Transcend Equity; Transwestern; and USAA Real Estate.
