$4 billion investment = $40 billion savings is estimated from the Better Buildings Challenge. That isn’t just savings, it’s Sumo sized savings resulting from a nationwide 20% cut to energy usage in existing buildings.
Through a public-private partnership, President Obama and former President Bill Clinton last Friday announced a $4 billion commitment to increasing energy efficiency in the nation’s government and commercial buildings. Despite the US Department of Energy’s share being roughly half, there will be no upfront cost to taxpayers.
With deadlocked Supercommittee-itis cramping the Obama administration’s style, at least we can hold hands over one thing: saving money on inefficient buildings’ energy use. Or as Huffington Post commenter and USGBC Founding Chair Rick Fedrizzi put it: “for one moment we found something we can all agree on.”
“If there’s one item on the energy agenda that’s managed to remain free of controversy, it’s energy efficiency,” proclaimed SmartPower owner Brian Keane in the Huffington Post this week. The investment is part of President Obama’s “We Can’t Wait” measures, or initiatives aimed at spurring the economy that don’t require Congress’ stamp of approval.
We can’t wait, indeed, for energy savings – nor do we have to.
As part of the program, 60 CEOs, mayors, university presidents, and labor leaders have committed to invest nearly $2 billion of private capital into energy efficiency projects. The $40 billion in savings is the projected result of upgrading energy performance nationwide – 1.6 billion square feet of office, industrial, municipal, hospital, university, community college and school buildings for those of you keeping track at home – by a minimum of 20% by 2020.
Big-time San Francisco firms such as Ygrene Energy Fund and Metrus Energy backed the announcement, showing their support as the kind of companies willing to step up and foot the bill on the other $2 billion. Of course, they will then reap some serious savings…
The Obama Administration is clear on how its not using taxpayer dollars for the initial investment, reported the Washington Post:
“The way it works is that the private firm [doing the renovations] takes the risk here,” Jeffrey Zients, the government’s chief performance officer, said. “They make the investment. They are paid through energy savings. Once they are paid back, the [federal government] enjoys the savings going forward.”
The Better Buildings Challenge is estimated to add approximately 50,000 jobs.
The announcement expands on an existing Clinton Global Initiative energy efficiency investment program announced last summer, that has already committed $500 million in private sector funding for energy upgrades.
Kinda trippy how Pike Research just issued that report last week predicting that HVAC systems will double to become a $6.4 billion business by 2017.
Image courtesy newsone.