Federal/Private Sector Pooling Together Nearly $4 Billion For Energy Upgrades To Buildings

The Obama administration has just set a plan to partner with private industry to provide energy upgrades for buildings nationwide.

Graphic courtesy of Columbia Law School.

Nearly $4 billion in combined federal and private financing will go toward the initiative over the next two years. The investment will include a $2 billion federal commitment to make energy upgrades in federal buildings.

The energy upgrades to federal buildings are expected to be made under the government’s Energy Savings Performance Contracts (ESPC) program. Under the program, new energy efficient equipment will be installed in those buildings at no up-front costs to the government, said the administration during the announcement of the plan.

The costs of the improvements will be paid over time with the energy savings on utility bills, added the administration.

The plan was announced at a White House press event by President Barack Obama, who was joined by former President Bill Clinton, as well as about 60 CEOs, mayors, university presidents, and labor leaders from around the country.

The private sector participation is part of the Better Buildings Challenge, which is part of the Better Buildings Initiative that was launched by the president in February 2011.

The purpose of the Better Buildings Initiative is to support job creation in the private sector through investments in upgrades in commercial and industrial buildings, with the goal of making U.S. buildings 20 percent more efficient over the next 10 years.

The members of the private sector present at this event have committed to contributing the remaining $2 billion of the $4 billion investment.

The private sector financing is expected go toward energy upgrades in facilities including hospitals, universities, community colleges, school buildings, industrial buildings, and municipal buildings.

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