Funding energy efficiency David Fain Director of Public Works City of Haltom City, Texas Member, APWA Facilities and Grounds Committee s local governments continually strive to become more efficient in all aspects of daily operations, usually focusing on saving time and money, energy efficiency is one topic that has become particularly important in today’s environmentally-conscious society. Local governments often serve as a kind of role model for the citizens and businesses they serve. From reducing, reusing and recycling to conserving water, to purchasing recycled materials for everyday use, local governments have taken a leadership role in helping to save the environment for future generations. With the increasing demand to do more with less, governments are continually challenged to find sources of funding for projects to make public buildings and local government facilities more energy efficient, ultimately saving both the environment and the public’s tax dollars. Across the nation, new legislation has been passed, at both the state and federal levels, requiring more energy efficiency and conservation. To assist public and nonprofit organizations in this endeavor, federal and state governments and private corporations have begun implementing grant programs and low-interest loan programs to assist with building renovations and new construction projects with the goal of protecting the environment and conserving precious energy sources for future generations. On December 19, 2007, President Bush signed into law The Energy Independence and Security Act (H.R. 6). H.R. 6 includes a new grant program for state and local governments called the Energy Efficiency and Conservation Block Grant Program. This program authorizes $2 billion annually over five years to primarily help larger-populated cities and counties address energy efficiency and emissions concerns based on allocation levels. This program is modeled after the Community Development Block Grant (CDBG) program. The State of Tennessee’s Energy Division administers the State’s Local Government Energy Efficiency Loan Program which offers low-interest loans to municipal and county governments for energy efficiency-related projects in courthouses, administration buildings, schools, maintenance facilities, and any other building owned by the city and/or county. Eligible projects include energy-efficient lighting, 72
APWA Reporter
April 2009
heating, ventilation and air conditioning, and boiler rebuilding, replacement or modification. Local governments may borrow up to $500,000 and repay the loan annually for seven years. Some communities can also qualify for free energy audits. The State of West Virginia Division of Energy provides lighting evaluations and a 50/50 matching grant program for the installation of energy-efficient fluorescent lighting systems. Thirty thousand dollars is available for state and local government facilities and schools, nonprofit hospitals and public libraries. A typical middle school could complete a lamping project for $40,000 with 50 percent support through this grant. The State of Maryland’s Energy Administration is promoting energy efficiency through the Jane E. Lawton Conservation Loan Program and Energy Efficiency Grants. This program is available to local governments, nonprofits and businesses. Through this program, the State offers low-interest loans and grants to encourage energy efficiency and renewable energy projects. Grants and low-interest loans make energy efficiency and renewable energy projects more financially attractive. Another program offered through Maryland’s Energy Administration provides assistance to water and wastewater treatment plants for energy efficiency. About 3% of U.S. energy usage comes from water and wastewater treatment. By focusing on this sector, significant energy savings can be obtained for taxpayers. The California Energy Commission offers programs such as the Energy Partnership Program which helps cities and counties to reduce energy use in their office buildings, police and fire stations, and other buildings. An initial free feasibility study identifies possible energy efficiency projects. The California Energy Commission’s Energy Efficiency Financing Program provides financing for schools, hospitals and local governments through low-interest loans for feasibility studies and the installation of energy efficiency measures. Approximately $40 million is available. Loans can finance up to 100 percent of the cost of energy efficiency projects for schools, hospitals, cities, counties, special districts or public care institutions.