Stale and Local
       Climate and Energy Program
LOCAL GOVERNMENT CLIMATE AND ENERGY STRATEGY SERIES
Energy Efficiency in
Local Government
Operations
A Guide to Developing and Implementing
Greenhouse Gas Reduction Programs
        U.S. ENVIRONMENTAL PROTECTION AGENCY
              2011

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EPA's Local Government Climate  and  Energy

Strategy  Series

The Local Government Climate and Energy Strategy Series provides a comprehensive, straightforward overview of green-
house gas (GHG) emissions reduction strategies for local governments. Topics include energy efficiency, transportation,
community planning and design, solid waste and materials management, and renewable energy. City, county, territorial,
tribal, and regional government staff, and elected officials can use these guides to plan, implement, and evaluate their
climate change mitigation and energy projects.

Each guide provides an overview of project benefits, policy mechanisms, investments, key stakeholders, and other imple-
mentation considerations. Examples and case studies highlighting achievable results from programs implemented in
communities across the United States are incorporated throughout the guides.

While each guide stands on its own, the entire series contains many interrelated strategies that can be combined to create
comprehensive, cost-effective programs that generate multiple benefits. For example, efforts to improve energy efficiency
can be combined with transportation and community planning programs to reduce GHG emissions, decrease energy and
transportation costs, improve air quality and public health, and enhance quality of life.
LOCAL GOVERNMENT CLIMATE AND ENERGY STRATEGY SERIES
All documents are available at: www.epa.gov/statelocalclimate/resources/strategy-guides.html.
 ENERGY EFFICIENCY

 Energy Efficiency in Local Government Operations

1 Energy Efficiency in K-12 Schools

 Energy Efficiency in Affordable Housing

1 Energy-Efficient Product Procurement

 Combined Heat and Power

 Energy Efficiency in Water and Wastewater Facilities


 TRANSPORTATION

 Transportation Control Measures
                                                    COMMUNITY PLANNING AND DESIGN

                                                    Smart Growth


                                                    SOLID WASTE AND MATERIALS MANAGEMENT

                                                    Resource Conservation and Recovery


                                                    RENEWABLE ENERGY

                                                    Green Power Procurement

                                                    On-Site Renewable Energy Generation

                                                    Landfill Gas Energy
Please note: All Web addresses in this document were working as of the time of publication, but links may break over time
as sites are reorganized and content is moved.

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CONTENTS

Executive Summary                                                            iii
1. Overview                                                                   __1
2. Benefits of Energy Efficiency in Local Government Operations                __1
3. Planning and Design Approaches to Energy Efficiency
  in Local Government Operations                                              4
   Improving Energy Efficiency in Existing and New Local Government Facilities              ._ 4
      Step 1: Make Commitments                                                    8
      Steps 2 and 3: Assess Baseline Energy Performance and Set Goals _                    11
      Step 4: Create an Action Plan                                                  13
      Steps 5 and 6: Implement the Action Plan and Evaluate Progress                     _ 19
      Step 7: Recognize Success                                                    21
   Energy Efficiency in Green Buildings                                              _ 21
      Benefits of Green Buildings  _                                                 ._ 21
      Planning and Design Approach for Incorporating Energy Efficiency in Green Buildings     22
   Energy Efficiency in Local Government Operations                                   _ 24
4. Key Participants                                                            25
5. Foundations for Program Development                                      29
6. Strategies for Effective Program Implementation
Strategies for Developing the Energy Efficiency Program
Strategies for Engaging the Community
7. Investment and Financing Opportunities
Investment
Financing
Financial Vehicles
Funding Sources
8. Federal, State, and Other Program Resources
Federal Programs
State Programs
Other Programs
9. Case Studies
Arlington County, Virginia— County Energy Manager and the Fresh AIRE Program
Program Initiation
Program Features
Program Results
30
31
32
34
34
36
37
40
41
41
42
44
45
45
45
45
47

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   Phoenix, Arizona—Energy Conservation Program _                                   _ 47
      Program Initiation                                                          47
      Program Features                                                          __48
      Program Results                                                            48
10. Additional Examples and Information Resources                             49
11. References                                                                 58

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EXECUTIVE SUMMARY

Developing and Implementing
Energy  Efficiency Programs

Saving energy through energy efficiency improvements
can cost less than generating, transmitting, and distrib-
uting energy from power plants, and provides multiple
economic and environmental benefits. As President
Obama said in June 2009, "By bringing more energy
efficient technologies to American homes and busi-
nesses, we wont just significantly reduce our energy
demand—we'll put more money back in the pockets
of hardworking Americans." Energy efficiency also
helps reduce air pollution and greenhouse gas emis-
sions, improves energy security and independence, and
creates jobs.

Local governments can promote energy efficiency in
their jurisdictions by developing and implementing
strategies that improve the efficiency of municipal-
facilities and operations and/or encourage energy
efficiency improvements in residential, commercial,
and industrial sectors. The energy efficiency guides
in this series describe the process of developing and
implementing strategies, using real-world examples,
for improving energy efficiency in local government
operations (see the guides on K-12 schools, energy-effi-
cient product procurement, combined heat and power,
and water and wastewater facilities), as well as in the
community (see the guide on affordable housing).

Energy  Efficiency in Local
Government Operations

This guide describes how local governments can lead
by example and achieve multiple benefits by improving
the energy efficiency of their new, existing, and reno-
vated facilities and their day-to-day operations. It is
designed to be used by facility managers, energy and
environment staff, other local government agencies,
and mayors and city councils.

Readers of the guide should come away with an under-
standing of options to improve the energy efficiency
of municipal facilities and operations, and to motivate
the private sector and other stakeholders  to follow suit.
Readers should also understand the steps and consid-
erations involved in developing and implementing
these energy efficiency improvements, as well as
an awareness of expected investment and funding
opportunities.
  RELATED GUIDES IN THIS SERIES

 1 Energy Efficiency: Energy-Efficient Product
  Procurement
  Many local governments are saving energy by requir-
  ing that the energy-using products they purchase meet
  energy efficiency criteria. Because energy-efficient prod-
  uct procurement helps reduce energy loads, it can also
  increase the cost-effectiveness of other energy efficiency
  activities, such as facility upgrades.

 1 Energy Efficiency: Combined Heat and Power
  Combined heat and power (CHP), also known as cogen-
  eration, refers to the simultaneous production of electric-
  ity and thermal energy from a single  fuel source. The use
  of CHP in government buildings and operations can help
  increase energy efficiency and reduce GHG emissions
  and criteria air pollutants by decreasing consumption of
  fossil fuel-based energy.

 1 Renewable Energy: On-Site Renewable Energy
  Generation
  Local governments can implement on-site renewable
  energy generation by installing wind turbines, solar
  panels, and other renewable generating technologies at
  their facilities. Combining renewable energy genera-
  tion with energy efficiency improvements that reduce
  energy loads enables local governments to meet a greater
  percentage of their electricity with electricity from
  renewable sources.

 1 Renewable Energy: Green Power Procurement
  Green power is a subset  of renewable energy that is
  produced with no GHG  emissions, typically from solar,
  wind, geothermal, biogas, biomass, or low-impact small
  hydroelectric sources. Green power purchasing can be
  used in combination with energy efficiency in govern-
  ment operations to reduce a local governments total use
  of fossil-fuel power and help it meet GHG reduction
  targets.

 1 Transportation: Transportation  Control Measures
  Transportation control measures (TCMs) are strategies
  that reduce vehicle miles traveled and improve roadway
  operations to reduce air  pollution, GHG emissions, and
  fuel use from transportation. Because many of these
  measures encourage public transportation, carpooling,
  bicycling, and walking, they can decrease the impacts
  of employees getting to and from work and help local
  governments reduce the transportation-related emissions
  of their operations.
Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series
                                                                                         EXECUTIVE SUMMARY

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The guide describes the benefits of energy efficiency
in local government operations (section 2); a step-by-
step approach to improving energy efficiency in new
and existing local government operations (section 3);
key participants and their roles (section 4); the policy
mechanisms that local governments have used to
support energy efficiency programs in their operations
(section 5); implementation strategies for effective
programs (section 6); investment and financing oppor-
tunities (section 7); federal, state, and other programs
that may be able to help local governments with infor-
mation or financial and technical assistance (section
8), and finally two case studies of local governments
that have successfully improved energy efficiency in
their operations (section 9). Additional examples of
successful implementation are provided throughout
the guide.


Relationships to Other Guides
in the Series

Local governments can use other guides in this series
to develop robust climate and energy programs that
incorporate complementary strategies. For example,
local governments can combine efforts to improve
energy efficiency in local government operations with
energy-efficient product procurement, combined
heat and power, on-site renewable energy genera-
tion, and green power procurement to help achieve
additional economic, environmental, and social
benefits. Local governments can also reduce their own
transportation-related energy use and GHG emissions
by implementing transportation control measures.

See the box on page iii for more information about
these complementary strategies. Additional connec-
tions to related strategies are highlighted in the guide.
   EXECUTIVE SUMMARY
                                       Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

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Energy Efficiency in
Local  Government
Operations
1.  OVERVIEW

Energy can account for as much as 10 percent of a lo-
cal government's annual operating budget (U.S. DOE,
2005), a proportion that is likely to grow as energy
prices rise. As President-elect Obama noted when
introducing his economic recovery plan in December
2008, reducing energy use in public buildings could
save American taxpayers billions of dollars each year.
Furthermore, he said, "It will put people back to work."
   THE NATIONAL ACTION PLAN FOR ENERGY
   EFFICIENCY AND VISION FOR 2025: ACHIEVING ALL
   COST-EFFECTIVE ENERGY EFFICIENCY BY 2025

   The National Action Plan for Energy Efficiency (Action
   Plan) recognizes that improving energy efficiency in our
   homes, businesses, schools, governments, and industries—
   which consume more than 70 percent of the natural
   gas and electricity needs in the country—is one of the
   most constructive, cost-effective ways to address our
   nation's energy challenges. The Action Plan, developed
   in July 2006 by more than 50 leading organizations
   representing key stakeholder perspectives, describes policy
   recommendations for creating a sustainable, aggressive
   national commitment to energy efficiency through gas and
   electric utilities, utility regulators, and partner organizations.

   In 2007, Action Plan leaders defined a vision that provides
   the framework for implementing the Action Plan. This
   Vision establishes a goal of achieving all cost-effective
   energy efficiency by 2025; describes 10 implementation
   goals for states, utilities, and other stakeholders; describes
   what 2025 might look like if the goal is achieved; and
   provides a means for measuring progress.

   The Action Plan documents the importance of lead-by-
   example (LBE) strategies in its "Vision for 2025" report. The
   Vision identifies LBE as a critical component of achieving
   the long-term goal of fully developing all cost-effective
   energy efficiency resources in the United States by 2025.
   Local governments are participating in the Action Plan
   Sector Collaborative to identify opportunities within their
   sector.

   For more information about the Action Plan, visit: http://
   www.epa.gov/cleanenergy/energy-programs/suca/
   resources.html.

   Sources: National Action Plan for Energy Efficiency, 2010;
   National Action Plan for Energy Efficiency, 2008.
Improving the energy efficiency of municipal facili-
ties and operations is a cost-effective strategy to help
stimulate the economy, create jobs, expand markets for
energy-efficient technologies, and reduce emissions of
air pollutants and greenhouse gases (GHGs) (U.S. EPA,
2008f; U.S. EPA, 2006b). Local governments can also
lead by example through improving energy efficiency
in their own operations, motivating the private sector
and other stakeholders to follow suit. Engaging the
private sector in municipal energy efficiency improve-
ments can also leverage a greater pool of expertise,
providing opportunities for education and outreach,
and fostering a community-wide discussion about
saving energy, money, and the environment.

This guide provides guidance on planning, designing,
and implementing an energy efficiency improvement
program for municipal operations; engaging stake-
holders; and identifying investment and financing
options. Case studies and real-world examples are
dispersed throughout, with two detailed case studies
presented in Section 9. A compilation of examples
and information resources is provided in Section 10,
Additional Examples and Information Resources.


2.  BENEFITS OF ENERGY
EFFICIENCY IN LOCAL
GOVERNMENT OPERATIONS

Improving energy efficiency in local government facili-
ties and operations can produce energy,  environmental,
economic, and other benefits, including:

Reduce GHG emissions and other environmental
impacts.  Improving energy efficiency in govern-
ment buildings and operations can help  reduce GHG
emissions and criteria air pollutants by decreasing
consumption of fossil fuel-based energy. Fossil fuel
combustion for electricity generation accounts for 40
percent of the nation's carbon dioxide (CO2) emissions,
a principal GHG, and 67 percent and 23 percent of the
nation's sulfur dioxide (SO2) and nitrogen oxide (NOJ
emissions, respectively, which can lead to smog, acid
rain, and  trace amounts of airborne particulate matter
that can cause respiratory problems for many people
(U.S. EPA, 2008e; U.S. EPA, 2008g).1
                                                           1 According to EPA, energy use in commercial and industrial facilities
                                                           accounts for nearly 50 percent of all U.S. GHG emissions (U.S. EPA, 2008e).
Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series
                                                                                     1. OVERVIEW-2. BENEFITS

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     St. Paul, Minnesota, has partnered with its
     electric utility to retrofit heating and cooling
     systems, purchase ENERGY STAR labeled
products, replace street lighting and traffic signals,
and implement other energy efficiency improve-
ments. These activities have saved the city nearly
$8 million in energy costs annually and reduced its
annual CO2 emissions by more than 73,000 metric
tons, equivalent to the annual emissions of 13,000
cars (St. Paul, 2007).
ENERGY CONSUMPTION IN LOCAL GOVERNMENT
BUILDINGS
This table presents average annual energy use by local
government-owned commercial buildings (any building
that is not residential, manufacturing or industrial, or
agricultural).*

End Use
Space heating
Lighting
Cooling
Ventilation
Water heating
Miscellaneous
Refrigeration
Computers
Office equipment
Cooking
Total
Consumption
(Trillion Btu)**
333
120
88
83
61
56
23
21
5
11
800
As
percentage
of Whole
42
15
11
10
8
7
3
3
1
1
100
* Data from the 2003 Commercial Buildings Energy
Consumption Survey (CBECS) conducted by the
Energy Information Administration (EIA). The CBECS is
conducted every four years.
**Figures are rounded to the nearest trillion Btu.
Source: EIA, 2008.

Reducing energy consumption can also contribute to
other local government environmental objectives, such
as resource conservation. For example, installing an
ENERGY STAR labeled energy-efficient dishwasher in
an office kitchen to reduce energy costs can also help
reduce water utility bills and decrease the amount of
used water that enters the wastewater system (U.S. EPA
and U.S. DOE, 2008a).

Reduce energy costs. Significant cost savings can be
achieved by improving energy efficiency in existing
buildings, leasing energy-efficient buildings, and
designing new buildings to be energy efficient.
Improving energy efficiency in municipal operations
such as drinking water systems and wastewater treat-
ment plants represents another opportunity for large
cost savings.

For a typical office building, energy represents 30
percent of the variable costs and constitutes the single
largest controllable operating cost (National Action
Plan for Energy Efficiency, 2008). The text box at left
shows how energy is used in a typical government
building.

Similarly, wastewater plants and drinking water
systems can account for up to one-third of a munici-
pality's total energy bill. A 10 percent reduction in U.S.
drinking water and wastewater systems costs would
collectively save approximately $400 million and 5
billion kWh annually (U.S. EPA, 2009a).
                                                               FAYETTEVILLE, ARKANSAS-REDUCED ENERGY COSTS

                                                               In 2007, Fayetteville, Arkansas, created an Office of
                                                               Sustainability to coordinate energy and environmental
                                                               programs aimed at reducing utility costs and
                                                               environmental impacts. Under this mandate, the office
                                                               coordinated an energy use assessment as part of a
                                                               comprehensive government GHG emissions inventory.

                                                               The office followed this assessment by initiating an
                                                               energy consumption reduction competition among 17
                                                               government facilities. In addition, 10 government facilities
                                                               were incorporated into an energy performance contract
                                                               and each completed a range of energy efficiency projects.
                                                               These energy efficiency investments are producing an
                                                               annual return of more than $400,000.

                                                               Sources: ICLEI, 2008b; Fayetteville, 2008.
 2. BENEFITS
                                       Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

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The lifetime energy cost savings produced by an
energy-efficient building, when compared with a
conventional one, can reach millions of dollars. The
potential energy savings in government buildings can
be significant. For example:

    Energy cost savings on the order of 35 percent or
    more are possible for many existing buildings (U.S.
    EPA, 2008f).

    In Story County, Iowa, where the county has
    designed or substantially renovated three govern-
    ment buildings to improve energy efficiency,
    energy consumption in the three buildings ranges
    between 40 and 45 percent less than conventional
    buildings (NACo, 2007a).

   >• Many new and renovated buildings designed for
    energy efficiency offer energy cost savings  of as
    much as 50 percent when compared with conven-
    tional buildings (U.S. EPA, 2008d).

    The average office building can reduce energy
    costs by 10 to 30 percent through low-cost energy
    efficiency measures and operational adjustments.
    At an average energy cost of $2.00 per square foot,
    that equates to savings of 20 to 60 cents per square
    foot—or $20,000 to $60,000 for a 100,000 square
    foot building.

    Buildings that have achieved the ENERGY STAR
    label for superior energy efficiency use 40 percent
    less energy than average buildings and offer savings
    of about $0.50 per square foot per year in lower
    energy costs, based on a conservative estimate
    (U.S. EPA, 2008d; U.S. EPA, 2006d).2

Increase economic benefits through job creation and
market development. Investing in energy efficiency
can stimulate the local economy and encourage devel-
opment of energy efficiency service markets. According
to the Department of Energy (DOE), approximately 60
percent of energy efficiency investments are put toward
labor costs and half of all  energy-efficient equipment
is purchased from local suppliers (U.S. DOE, 2004).
2 A review of the financial benefits of ENERGY STAR labeled office buildings
found that in buildings that earned the label for six consecutive years, energy
efficiency in the sixth year is on average 20 percent greater than in the first
year, an indication of the persistence of energy savings over multiple years
(U.S. EPA, 2006d).
Across the nation, energy efficiency technologies and
services are estimated to have created more than eight
million jobs in 2006 (ASES, 2007).
        The City of New York contributes funding
        for Sustainable South Bronx (SSBx), an envi-
        ronmental justice organization that works to
   prepare "green collar" workers through its Bronx
   Environmental Stewardship Training (BEST)
   Academy. Three 14-week training sessions are
   offered in green roof installation and maintenance,
   environmental restoration, and hazardous waste
   clean up. Students receive several key certifications
   and are assisted with job placement. As of 2009,
   the BEST Academy had more than 175 graduates,
   of whom over 80 percent were employed and 15
   percent had gone on to higher education
   (Sustainable South Bronx, 2009).
Demonstrate leadership. Local governments can also
set an example by improving energy efficiency in their
facilities and operations. In particular, investing in
energy efficiency epitomizes responsible government
stewardship of tax dollars. Many local governments
are improving energy efficiency in taxpayer-funded
facilities that are frequently visited by the public, such
as city halls and public libraries. These improvements
not only reassure constituents that tax dollars are being
spent wisely, they also serve to showcase real-world
applications of energy-efficient technologies.
        In 2004, Seattle, Washington, opened its new
        public library that incorporates energy effi-
        ciency features, including energy-efficient
   lighting and ventilation systems, a high-performance
   building envelope, and energy-efficient mechanical
   equipment and appliances, as well as various green
   building features, such as water conservation and use
   of low-toxic materials. Because the facility provides
   excellent demonstration opportunities (approxi-
   mately 8,000 patrons visit the library daily), the city
   has installed signage and an information kiosk,
   featured the building's sustainable features on a
   special Web site, and conducted public tours to
   explain the facility's energy and environmental bene-
   fits and the benefits of energy efficiency and green
   building in general. In addition, materials developed
   for children and teens educate library users on the
   health and conservation benefits of building sustain-
   ably (Seattle, 2008).
Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series
                                                                                                    2. BENEFITS

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Improve indoor air quality and productivity in
energy-efficient and green buildings. Energy
efficiency upgrades can improve occupant health
by enhancing indoor air quality. Installing energy
recovery ventilation equipment, for example, can
reduce infiltration of air contaminants from outdoors
while significantly reducing heating, ventilation, and
air conditioning (HVAC) energy loads (U.S. EPA,
2003b). One study on building performance found that
the average reduction in illness as a result of improving
air quality in buildings is approximately 40 percent
(Carnegie Mellon, 2005).

Enhanced indoor air quality, along with well-designed
lighting, greater use of day lighting, and comfort-
able heating, cooling, and ventilation, can improve
employee comfort and reduce fatigue, accidents, absen-
teeism, turnover, and health costs—all of which can
contribute to better employee morale and improved
productivity in energy-efficient buildings (U.S. EPA,
2008h).

Engage the community. An even broader impact on
emissions can be made by expanding efforts beyond
government buildings and operations. Programs that
not only educate the public of the benefits of energy
efficiency, but also provide tangible assistance in the
form of tax incentives and funding opportunities,
have been effective in communities across the country.
Residential and business sectors both provide good
target  opportunities.
       In 2007, the mayor of Louisville, Kentucky,
       signed on as an ENERGY STAR partner and
       took the ENERGY STAR Challenge, setting a
   goal to reduce energy use in Louisville by 10
   percent or more by the year 2010. During two days
   of kickorf meetings, the mayor and city staff met
   with city leaders, managers of city-operated facili-
   ties, private sector building owners and operators,
   and important local businesses to provide back-
   ground information on the ENERGY STAR
   program for buildings and to share best practices
   for achieving energy efficiency improvements with
   ENERGY STAR tools and resources. As a result of
   these efforts, local commercial real estate associa-
   tions joined Louisville Metro Government to form
   the Louisville Energy Alliance, which in 2009
   launched the Louisville Kilowatt Crackdown, a
   year-long competition to promote and recognize
   commercial building energy  efficiency by bench-
   marking and tracking building energy use via the
   EPA's Portfolio Manager. The city has also incorpo-
   rated the ENERGY STAR Challenge into its Go
   Green Louisville! campaign, an initiative to "go
   green and save green" by adopting sustainable
   practices (U.S. EPA, 2009b).
3.  PLANNING AND DESIGN
APPROACHES TO ENERGY
EFFICIENCY IN LOCAL
GOVERNMENT OPERATIONS

This section describes approaches for planning and
designing projects and programs to improve energy
efficiency in local government facilities and operations.
These approaches can help local governments achieve
the range of benefits described in Section 2, Benefits
of Energy Efficiency in Local Government Operations.
Specifically, this section addresses:

Improving energy efficiency in existing and new local
government facilities.

Incorporating energy efficiency in new and renovated
"green" buildings.

Improving energy efficiency in local government
operations.

Improving Energy Efficiency
in Existing and New Local
Government Facilities

The most effective way to reduce energy consump-
tion in local government buildings is  to engage in a
portfolio-wide, systematic approach for improving
energy efficiency in owned and leased building space,
and to incorporate energy efficiency into the design
of new and renovated buildings. A portfolio-wide
approach not only results in greater total reductions
in local government energy costs and GHG emissions,
but also enables local governments to offset the costs of
more substantial energy efficiency projects in buildings
that have higher upfront costs with the savings from
projects in other buildings. In addition, adopting a
portfolio-wide approach can help local governments
generate greater momentum for energy efficiency
activities generally, which can lead to sustained imple-
mentation and continued savings.
   3. PLANNING AND DESIGN
                                     Energy Efficiency in Local Government Operations | Local Government Climate and Energy Strategy Series

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          FIGURE 1   OVERVIEW OF ENERGY STAR GUIDELINES FOR ENERGY MANAGEMENT
                              Make
                           Commitment

                             Assess
                           Performance
             Recognize
           Achievements
Implement
Action Plan
                             Progress
      The ENERGY STAR Guidelines for Energy Management
      presents a seven-step approach to achieving superior
      energy management and savings across a portfolio of
      buildings.

      For detailed descriptions of the above steps, see
      http://www.energystar.gov/index.cfm?c=guidelines.
      guidelines_index.
The steps include:

1. Make Commitment
 •  Establish an Energy Team
 •  Institute an Energy Policy

2. Assess Performance
 •  Collect and Manage Data
 •  Establish Baselines and Benchmarks
 •  Analyze Data and Conduct Technical Assessments and
   Audits

3. Set Goals
 •  Estimate Potential for Improvement
 •  Establish Goals

4. Create Action Plan
 •  Define Technical Measures and Targets For Each
   Building
 •  Determine Roles and Resources

5. Implement Action Plan
 •  Create a Communication Plan, Raise Awareness, Build
   Capacity, and Motivate
 •  Track and Monitor Progress

6. Evaluate  Progress
 •  Measure Results
 •  Review Action Plan

7. Recognize Achievements
 •  Internal Recognition
 •  External Recognition
 A good place to start for local governments is EPAs
 ENERGY STAR program, which has developed a
 systematic approach for achieving superior energy
 management in existing buildings. This approach,
 summarized in the Guidelines for Energy Management
 and in Figure 1 above, Overview of ENERGY STAR
 Guidelines for Energy Management, involves seven
 steps:

1 Step 1. Make Commitment

 Step 2. Assess Performance

1 Step 3. Set Goals
                    Step 4. Create Action Plan

                    Step 5. Implement Action Plan

                    Step 6. Evaluate Progress

                    Step 7. Recognize Achievements
 Energy Efficiency in Local Government Operations  | Local Government Climate and Energy Strategy Series
                                                                                          3. PLANNING AND DESIGN

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 This subsection provides information on key strategies
 for each of these steps. While the primary focus of
 this subsection is to describe an overall approach for
 improving energy efficiency in a portfolio of existing
 buildings, the basic concepts can be applied to plan-
 ning and designing energy-efficient new and renovated
 buildings. Tools and resources for addressing energy
 efficiency in these projects are identified. The planning
 and design approach for improving energy efficiency
 in local government facilities (described in this subsec-
 tion) is also one of the most important components
 of a successful green buildings program (described in
 the following subsection, Energy Efficiency in Green
 Buildings).

 While this subsection describes an approach for imple-
 menting a comprehensive portfolio-wide efficiency
 strategy, there are cases where sufficient resources
(e.g., funding and personnel resources) are not avail-
able. In these instances, local governments can apply
the concepts to one or a few government buildings.
Experiences from such demonstration projects can
then be used to make the case for further energy
efficiency improvements, and subsequently can be
applied to a broader building portfolio when addi-
tional support and/or resources become available. For
more information on how to evaluate the investment
required for priority energy efficiency projects, see the
subsection on Using a Staged Approach in New and
Renovated Buildings.

Table 1, ENERGY STAR Program Resources, summa-
rizes the many tools and resources available to local
governments as they plan and implement energy effi-
ciency improvements in existing and new buildings.
TABLE 1      ENERGY STAR PROGRAM RESOURCES
                                     Title/Description
  ENERGY STAR Tools and Guidance for Existing and New Buildings
                                  Web Site
  Guidelines for Energy Management. EPA provides the seven-step Guidelines for Energy
  Management to assist in developing and implementing energy efficiency action plans.
                        http://www.energystar.gov/index.
                        cfm?c=guidelines.guidelines_index
  Guidelines for Energy Management Assessment Matrices. EPA has developed an assessment
  matrix to help energy managers determine if their organization's energy management practices are
  consistent with the Guidelines for Energy Management. A second matrix allows energy managers
  to compare current energy management practices to the Guidelines for Energy Management at the
  site-specific facility level.
                        http://www.energystar.gov/ia/
                        business/guidelines/assessment_
                        matrix.xls
                        http://www.energystar.gov/ia/
                        business/guidelines/Facility_
                        Energy^Assessment_Matrix.xls
  Portfolio Manager. Local governments can use EPA's Portfolio Manager tool to measure and track
  the energy intensity of their buildings, normalized for weather and square footage. For certain
  building types. Portfolio Manager can be used to score building performance on a scale of 1 to 100
  relative to similar buildings nationwide, enabling facility managers to assess their own facilities and
  identify priority energy efficiency improvements.
                        http://www.energystar.gov/index.
                        cfm?c=evaluate_performance.
                        bus_portfoliomanager
  ENERGY STAR Label. Buildings that achieve a score of 75 or higher using Portfolio Manager, and
  are professionally verified to meet current indoor environment standards, are eligible to apply for
  the ENERGY STAR label. The ENERGY STAR label is available for office buildings, schools, hospitals,
  courthouses, and other facilities.
                        http://www.energystar.gov/index.
                        cfm?c=evaluate_performance.
                        bus_portfoliomanager_intro
  Profiles of ENERGY STAR Labeled Buildings and Plants. EPA has compiled profiles of ENERGY STAR
  labeled government buildings, accessible at its Web page, ENERGY STAR Labeled Buildings and
  Plants.
                        http://www.energystar.gov/index.
                        cfm?fuseaction=labeled_buildings.
                        showBuildingSearch
  Building Upgrade Manual. The ENERGY STAR Building Upgrade Manual describes a five-
  step systematic approach to improving energy efficiency in existing buildings, including
  recommissioning/commissioning, lighting, supplemental load reductions, fan systems upgrades,
  and heating and cooling system upgrades.
                        http://www.energystar.gov/index.
                        cfm?c=business.bus_upgrade_
                        manual
  Target Finder. EPA's Target Finder lets a user establish an energy performance target for a
  design project or major building renovation based on similar building types and desired energy
  performance. By entering the project's estimated energy consumption, users can then compare the
  estimated energy use with the target to see if the project will achieve its goal.
                        http://www.energystar.gov/index.
                        cfm?c=new_bldg_design.bus_
                        target_finder
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TABLE 1   ENERGY STAR PROGRAM RESOURCES (cont.)
Title/Description
"Designed to Earn the Energy Star" Label. Building designs that achieve a score of 75 or higher
using the Target Finder tool are eligible to receive the "Designed to Earn the ENERGY STAR"
designation. These buildings can apply for the ENERGY STAR label if their score remains in the top
quarter of the energy performance scale after one year of operation.
Web Site
http://www.energystar.gov/index.
cfm?c=new_bldg_design.new_
bldg_design_benefits
ENERGY STAR Tools and Guidance for Existing and New Buildings
Target Finder Opportunities Flowchart. EPA helps architects and engineers integrate ENERGY STAR
into the design process with this flowchart.
Integrated Energy Design Guidance Checklist. EPA provides a checklist that highlights components
in the design process that can lead to ENERGY STAR labeling.
http://www.energystar.gov/ia/
business/tools_resources/new_
bldg_design/Design_process_
flow_diagram_101404.pdf
http://www.energystar.
gov/ia/business/tools_
resources/new_bldg_design/
BuildingDesignGuidance
Checklist_101904.pdf
ENERGY STAR Financial Calculators
Cash Flow Opportunity Calculator. This tool can be used to determine how much new energy-
efficient equipment can be purchased based on estimated cost savings; determine whether
equipment should be purchased now using financing or if it is better to wait and use cash from a
future year's budget; and determine whether money is being lost by waiting for lower interest rates.
Financial Value Calculator. This tool presents energy efficiency investment opportunities in terms
of key financial metrics. It can be used to determine how energy efficiency improvements can affect
organizational profit margins and returns on investments.
Building Upgrade Value Calculator. This calculator can be used to estimate the financial benefits of
improving energy efficiency in office buildings.
Savings Calculators. These calculators can be used to estimate the life-cycle and annual costs and
savings of a variety of ENERGY STAR labeled products.
http://www.energystar.gov/index.
cfm?c=assess_value.financial_tools
http://www.energystar.gov/index.
cfm?c=assess_value.financial_tools
http://www.energystar.gov/index.
cfm?c=assess_value.financial_tools
http://www.energystar.gov/index.
cfm?c=bulk_purchasing.bus_
purchasing
ENERGY STAR Financial Calculators
ENERGY STAR for Government. This Web site provides resources for state and local governments to
use as they plan energy efficiency activities, including energy management guidelines, information
on financing options, and tools and resources to measure and track energy use.
The ENERGY STAR Challenge. The ENERGY STAR Challenge-Build a Better World 10% at a Time
program calls on governments, schools, and businesses across the country to identify energy
efficiency improvements in their facilities and improve energy efficiency by 10 percent or more. EPA
estimates that if each building owner accepts this challenge, by 2015 Americans would save about
$10 billion and reduce GHG emissions by more than 20 million metric tons of carbon equivalent-
equivalent to the emissions from 15 million vehicles.
ENERGY STAR Free Online Training. ENERGY STAR offers free online training sessions on a variety of
energy performance topics.
Off the Charts. Off the Charts is EPA's ENERGY STAR e-newsletter on energy management
developments and activities.
http://www.energystar.gov/
index.cfm?c=government.bus_
government
http://www.energystar.gov/index.
cfm?c=challenge.bus_challenge
http://www.energystar.gov/index.
cfm?c=business.bus_internet_
presentations
http://www.energystar.gov/ia/
business/guidelines/assess_value/
Off_the_Charts_Summer_2007.pdf
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STEP 1: MAKE COMMITMENTS

Committing to a policy for improving energy efficiency
in a specified portfolio of buildings is an important
first step for ensuring success. This step involves: 1)
identifying a team of qualified personnel to initiate and
lead the energy policy development process; and 2)
instituting and committing to an energy policy based
on the team's guidance and recommendations.

Use a team approach. Identifying a team of qualified
and experienced personnel from across agencies to
initiate and lead the policy development process helps
to ensure that efficiency programs are  carefully crafted.
Bringing together a team of interested individuals with
diverse backgrounds in local government operations
also serves to ensure that energy efficiency programs
receive broad support.
        In 2007, the mayor of Fort Wayne, Indiana,
        issued an executive order that created a local
        government energy policy. The policy stated
   that the "City of Fort Wayne will include the basic
   tenet of energy conservation, energy efficiency,
   and use of renewable energy systems in all city
   operations and planning," including management
   and design of city facilities. The executive order
   also expanded the purview of the existing City
   Green Team (comprised of the directors of nearly
   20 government agencies), giving it additional
   responsibility to promote the energy policy, track
   and report on the status of its implementation, and
   develop plans to achieve a set of specific energy
   efficiency and renewable energy goals, including
   reducing energy consumption per square foot in
   local government facilities by 10 percent by 2010
   and 35 percent by 2015, based on 2003 levels (Fort
   Wayne, 2008).
In addition to using a team approach for developing
the overall local government efficiency policy, a team
approach should be applied within individual facili-
ties. At the building level, upgrading and designing
energy-efficient buildings requires all project team
members to be  involved early in the pre-design stages,
when the project's energy performance targets are set
to ensure that future decisions will be made with the
project intentions intact. The team works together to
identify information needs and share knowledge of
each building system to achieve optimal integration.
For more information on using a team approach to
continually develop and improve an overall local
government energy efficiency program, see Section 6,
Strategies for Effective Program Implementation.

Establish and commit to an energy policy. Based
on input from the energy policy team, the next step
is to formalize the local government's commitment
to improving energy efficiency. Instituting an energy
policy that clearly states a local government's objec-
tives can help secure support from elected officials and
buy-in from local government agencies. In addition,
committing to a formalized energy policy facilitates
accurate and useful tracking of the impacts of energy
efficiency programs in terms of energy and dollars
saved and greenhouse gas emissions avoided. (For
more information on tracking, see Establish and
Maintain a Tracking System on page 19.)
    SECTOR COLLABORATIVE ON ENERGY EFFICIENCY:
    LOCAL GOVERNMENT COMMITMENTS TO ENERGY
    EFFICIENCY

    The Sector Collaborative on Energy Efficiency
    Accomplishments and Next Steps report describes major
    findings of the Sector Collaborative for Energy Efficiency
    through July 2008, including key findings on energy
    efficiency barriers and potential opportunities. Based
    on these findings, a number of Sector Collaborative
    participants and interested parties have adopted sector-
    specific commitments to improve energy efficiency.

    For local governments, this commitment includes a pledge
    that the participant will undertake one or more of the
    following initiatives:

      • Conduct energy benchmarking for all properties
       greater than 5,000 square feet.
      • Implement all cost-effective strategies to improve
       energy efficiency.
      • Create and/or increase energy efficiency education
       and awareness within and outside each organization.
      • Pursue bulk purchasing of energy-efficient products
       and services.
      • Support expanded efficiency program offerings across
       states and utilities.
      • Support development of standardized electronic
       utility billing data access by large customers for
       benchmarking.
      • Explore energy efficiency programs offered by
       federal, state, and local agencies and sector-based
       associations.

    Source: National Action Plan for Energy Efficiency, 2008.
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Many local governments have included in their energy
policies a range of commitments to specific actions
that can eventually lead to easier and more effective
implementation of energy efficiency programs. These
commitments include:

   Improving energy efficiency across an entire
   portfolio. Many local governments have adopted
   energy policies that include commitments to
   reducing energy consumption in their facilities
   by a specific percentage portfolio-wide. These
   commitments provide a clear objective toward
   which progress can be continually measured.
            As a participant in the ENERGY STAR
            Challenge, Fort Worth, Texas, has
            pledged to reduce the energy consump-
      tion of its portfolio of buildings by 10 percent
      or more. Officials are benchmarking all city
      buildings in Portfolio Manager and using data
      from this tool to make decisions about energy
      upgrades and operations within their build-
      ings. They are also incorporating energy effi-
      ciency best practices into new building
      designs. City officials are leading by example
      and demonstrating to local government agen-
      cies and businesses that they too can reduce
      their energy consumption while continuing to
      deliver quality services (Fort Worth, 2008).
    Using life-cycle cost analysis. Because local
    governments are concerned with long-term—as
    well as short-term—benefits and costs, they are
    well positioned to adopt life-cycle cost analyses
    when making decisions about purchasing energy-
    using products. Traditional methods for assessing
    project cost-effectiveness typically focus on the
    initial design and construction costs in the short-
    term. The life-cycle cost of a product or service is
    the sum of the present values of the costs of invest-
    ment, capital, installation, energy, operation, main-
    tenance, and disposal over the life of the product
    (U.S. DOE, 2003). Because life-cycle cost analysis
    reveals whether energy efficiency investments are
    cost-effective over the long run, it can be an impor-
    tant feature of an overall energy policy.
Some local governments use life-cycle cost analyses
to prioritize energy efficiency activities and energy-
efficient products based on comparative simple
payback periods. Common applications of life-
cycle cost analysis employed by local governments
include analyses of efficiency targets for civic
buildings, machinery, electronic equipment for the
office, infrastructure such as that associated with
public transportation, land use planning, and regu-
lations for residential and commercial building
projects. Life-cycle cost analysis can be particularly
useful when evaluating high-cost infrastructure
and renewable energy opportunities (Union of
British Columbia Municipalities, 2009).
    >\  In 2008, Alexandria, Virginia, adopted
   1 [D f an eco-city environmental charter to
   I—I  promote energy and environmental
   initiatives throughout the city. To help imple-
   ment activities under this charter, the city
   created an energy committee. Among other
   activities, the Energy Committee has estab-
   lished a goal of reducing energy use in local
   government facilities by 3 percent per square
   foot per year through 2015, for a total reduc-
   tion of 20 percent below 2007 levels. To ensure
   that this goal is met, the committee resolved to
   take several energy efficiency actions,
   including using life-cycle cost analysis to
   ensure that the lifetime costs of not imple-
   menting energy efficiency projects are consid-
   ered (Alexandria, 2008).
        In 2008, Cobb County, Georgia's, board
        of commissioners approved a policy
        drafted by the county purchasing depart-
   ment that enables the department to use life-
   cycle cost analysis when purchasing products,
   such as energy-efficient appliances.
   Historically, the department had been
   required to accept lowest-bid offers for
   purchases of $1,000 or more, which would
   have precluded purchases of some energy-effi-
   cient products (Cobb County, 2008).
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       EPA has developed savings calculators that local
       governments can use to asses the life-cycle and
       annual costs and savings of a variety of ENERGY
       STAR labeled products, which are available at
       http:/'/www. energystar.gov/index. cfm ?c=bulk_
       purchasing.hus_purchasing. For a list of ENERGY
       STAR labeled products that are relevant for local
       governments, refer to Table 3, ENERGY STAR
       Specification Overviews: Energy Savings and
       Payback Periods on page 35.
                                                 Purchasing energy-efficient products. Some local
                                                 governments are making a procurement policy for
                                                 efficient products an explicit part of their energy
                                                 policy. Purchasing energy-efficient products can
                                                 make comprehensive energy efficiency upgrades
                                                 more cost-effective by reducing building energy
                                                 loads (and the size of the systems needed to
                                                 meet those loads), typically by as much as 5 to
                                                 10 percent (LBNL, 2002). Table 2 summarizes
                                                 the potential energy and CO2 savings associated
                                                 with purchasing energy-efficient products for five
                                                 product categories. More information and local
                                                 government examples on energy-efficient product
                                                 procurement are provided in EPAs Energy-
                                                 Efficient Product Procurement guide in the Local
                                                 Government Climate and Energy Strategy Series.
  TABLE 2
ESTIMATED ENERGY COST AND CO, SAVINGS FROM A SAMPLE OF ENERGY STAR PRODUCTS3
Annual , .. _ , Life-
__ , ., . Life-Cycle _ , __
. . Annual Energy CO, Lifetime _ _ Cycle CO,
Action _ , _ . _ . 2 ... . Energy Cost ' . 2
Cost Savings Savings (Years) _ . Savings
(Tons) SaVmgS (Tons)
Replace 5,000 computers and monitors with
ENERGY STAR labeled products and activate power
$290,210

2,177

4

$663,428

8,708

management
Replace 10 conventional commercial dishwashers with
ENERGY STAR labeled products
Replace 50 conventional vending machines with
ENERGY STAR labeled productsc
Replace 100 conventional water coolers with ENERGY
STAR labeled coolers
Replace 500 incandescent exit signs with ENERGY
STAR labeled LED exit signs




$8,690"

$8,544

$3,722

$16,737 in
energy costs
plus $33,696 in
maintenance
costs

57

64

28

125





10

14

10

10





$60,483"

$90,250

$30,188

$484,800 in
energy and
maintenance
savings
net price
differential
567

894

278

1,251





a Figures obtained from calculators on the ENERGY STAR Purchasing & Procurement Web site http://www.energystar.gov/purchasing using
default settings and an electricity rate of 10.3C per kWh (EIA, 2009). Annual costs exclude the initial purchase price and installation cost. All
costs are discounted over the product's lifetime using a real discount rate of 4 percent.
b Value includes water savings.
c Vending machines assumed to have capacities of less than 500 cans.
10
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   Ensuring energy efficiency is a key component of
   green building programs. Energy efficiency can be
   integrated with other green buildings measures to
   achieve additional energy, environmental, indoor
   air quality, and water savings benefits. Designing
   for superior energy performance is often the first
   step in green building and can improve environ-
   mental performance and overall cost-effectiveness
   of a green building strategy (U.S. EPA, 2003b; U.S.
   EPA, 2006c). Many local governments require
   energy-efficient performance as a feature of their
   green building policies. See the subsection on
   Energy Efficiency in Green Buildings for additional
   information.
           In 2006, the Washington, D.C., city
           council passed legislation requiring all
           publicly-owned and publicly financed
      buildings be designed to meet the U.S. Green
      Building Council's Leadership in Energy and
      Environmental Design (LEED) Silver certifica-
      tion standards for environmental perfor-
      mance. To ensure that these buildings achieve
      optimal energy performance, the legislation
      includes a requirement that buildings also be
      designed to earn the ENERGY STAR using
      EPA's Target Finder, and to be benchmarked
      annually using Portfolio Manager. To ensure
      compliance with these requirements, the legis-
      lation mandates reviews by a government
      agency or a certified third party. The green
      building program is guided by a Green
      Building Advisory Committee (Washington,
      D.C., 2006).
    Tracking results of energy efficiency initiatives.
    Tracking results of initiatives is a powerful tool
    to underscore their efficacy and promote public
    awareness. Tracked results can also be used as a
    rationale for obtaining additional funding or for
    gaining public support for a broader portfolio of
    programs. (For more information on tracking and
    evaluating progress, see page 19.)
            In 2006, the City of Santa Monica,
            California, updated its Sustainable City
            Plan to include a comprehensive set of
      indicators and targets to achieve the overall
      intergenerational sustainability goal for the
      city. The indicators identify the measurable
      data categories used to evaluate annual prog-
      ress toward the targets. Energy use per capita
      is used to measure both resource conservation
      and avoided GHG emission targets. The city
      releases an annual report card with grades
      based on changes in the indicators and on
      citizen efforts (Santa Monica, 2009).
STEPS 2 AND 3: ASSESS BASELINE ENERGY
PERFORMANCE AND SET GOALS

After making a commitment, the next two steps to
improve energy efficiency across a portfolio of build-
ings are to assess baseline energy performance and
set goals. Assessing energy performance involves
looking at how energy is used in existing buildings and
identifying priority opportunities to improve energy
efficiency. Setting goals, on the other hand, involves
looking at potential savings in new and renovated
buildings as well as existing ones.

ASSESS BASELINE ENERGY PERFORMANCE IN
EXISTING BUILDINGS
Understanding the impacts of improvements in energy
efficiency in existing buildings requires periodi-
cally reviewing a buildings energy performance by
comparing its energy consumption to its baseline
energy consumption (established at a specified time
in the past). Key approaches for assessing baseline
building energy performance in existing buildings
include:

Use available, standardized tools for baseline energy
consumption assessments. Standardized tools can
be used to help assess baseline energy performance
and track building energy data. For example, Portfolio
Manager is an online tool that can be used to assess
baseline energy performance in existing buildings and
compile data across a portfolio of buildings (U.S. EPA,
2008a).
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           Cambridge, Massachusetts, tracks energy
           consumption for all publicly owned build-
      I—I ings in the city, including schools, fire
      stations, and libraries. The city imports energy
      consumption data from the local utility, NStar,
      into software that was designed specifically for
      Cambridge's use. The software compiles data to
      then plug into Portfolio Manager each month,
      allowing for frequent updates on the city's prog-
      ress (ICLEI, 2009).
   Benchmark buildings. Benchmarking involves
   comparing a building's energy performance to the
   performance of similar buildings across the country.
   For certain building types, EPA provides an energy
   performance scale in Portfolio Manager to compare
   buildings nationwide on a scale of 1 to 100. For
   example, a score of 75  means that the evaluated
   building performs better than 75 percent of similar
   buildings nationwide.  This information can help local
   governments prioritize buildings for energy efficiency
   investments and/or a comprehensive energy audit (see
   the next bullet, below).

   Conduct technical assessments and audits. In addi-
   tion to establishing baseline energy performance
   and determining a buildings relative performance
   compared to its peers,  a thorough energy performance
   assessment includes comparing the actual performance
   of a building's systems and equipment with its designed
   performance level or the performance level of top-
   performing technologies.  These technical assessments
   can be conducted as part of a whole-building energy
   audit conducted by an energy professional and used to
   identify priority energy efficiency investments.

   Many local governments have incorporated these
   energy audits into energy  performance contracts,
   which are contracts that offer a one-stop process for
   purchasing, installing, maintaining, and often financing
   energy-efficiency upgrades at no upfront cost. EPA has
   developed a directory  of energy professionals, energy
   service companies (ESCOs), and other companies that
   can provide local governments with expert advice and
   technical assistance on conducting energy  audits and
   entering energy performance contracts.3 For more
   information on energy performance contracting, see
   Section 7, Investment and  Financing Opportunities.
   3 See http://www.energystar.gov/index.cfm?c=spp res.pt sppsfor a direc-
   tory of energy service and product providers.
        In Bangor, Maine, the city government
        worked with an ESCO to conduct an energy
        audit of its facilities in 2007. The audit
   surveyed local government buildings and provided
   recommended energy efficiency measures with
   estimated energy cost savings. The contractor
   provided an itemized list of feasible energy effi-
   ciency upgrades for each of the city's buildings.
   While the cost to initially upgrade properties was
   approximated at $1.5 million, the operational and
   energy savings over a 20-year period are projected
   to be $4.3 million, a net savings to taxpayers of
   $2.8 million (Bangor, 2007).
SET GOALS FOR EXISTING AND NEW BUILDING
PORTFOLIOS
Local governments can establish portfolio-wide energy
efficiency goals for existing and new buildings to
help maintain momentum for energy management
activities, guide daily decision-making, and track and
measure progress. For existing buildings, these port-
folio-wide goals can be based on the results of the base-
line energy performance assessment and the priority
investments identified through that process. For new
buildings, goals can be based on output from energy
performance projection tools and best practices.

Key considerations for setting goals for improving
portfolio-wide energy efficiency in buildings include:

Consider potential savings. Assessing potential
energy savings helps to determine appropriate
portfolio-wide energy efficiency goals that are clear and
measurable. Local governments can use information
collected during energy performance assessments and
technical audits to determine potential energy savings
from priority investments. Local governments can also
evaluate a building's benchmarking results to estimate
potential savings based on the energy performance of
similar buildings.
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For new and renovated buildings, local governments
can consider the potential savings of each new or reno-
vated building by using tools such as the Target Finder
to set energy performance targets and assess building
designs (e.g., local governments can aim for each new
or renovated building to achieve a specific energy
performance scale using Target Finder). In addition,
local governments can consider the savings achieved
by similar organizations. EPA estimates that most new
and renovated buildings can achieve energy savings on
the order of 30 percent as compared to conventional
buildings (U.S. EPA, 2008d).

Determine appropriate scope. Goals for improving
energy efficiency across a portfolio of buildings can be
established at different levels, ranging from sub-agency
and agency level up to portfolio-wide goals. These
goals can also be established over varying time periods.
Many local governments have established both short-
term and long-term goals for improving energy effi-
ciency in buildings that can lead to quick cost savings
that continue to accrue far into the future.

Goals for improving energy efficiency in a portfolio
of local government buildings can be part of a larger
goal that incorporates multiple clean energy activities.
For example, energy efficiency goals can be part of
a broader goal for reducing local government GHG
emissions. For information on how local govern-
ments can procure clean power for their facilities and
throughout the community, see EPAs Green Power
Procurement guide in the Local Government Climate
and Energy Strategy Series.

STEP 4: CREATE AN ACTION PLAN

A regularly updated action plan can serve as a roadmap
toward meeting portfolio-wide energy efficiency
goals by systematically improving energy efficiency
in existing buildings and designing energy-efficient
new and renovated buildings. Creating an action  plan
involves establishing energy performance targets  for
each building, identifying the technical measures that
can help meet that performance target, identifying
resources necessary to implement the action plan,
and determining the responsibilities of internal and
external parties.

Action plans for improving energy efficiency are
sometimes created in response to a local government
mandate. Such mandates, including executive  orders
and city council resolutions, can clearly articulate
the purpose of the action plan and can identify key
personnel to be involved in creating the plan. More
information on mechanisms that can be used to initiate
energy efficiency programs is provided in Section 5,
Foundations for Program Development.
   ENERGY PERFORMANCE TARGETS LEAD TO "DESIGNED
   TO EARN THE ENERGY STAR" LABEL

   The Poudre School District in Fort Collins, Colorado, used
   the ENERGY STAR Target Finder when designing its new
   Operations Building. By adjusting the design throughout
   the process, the design team was able to produce a design
   that repeatedly achieved projected ratings in the 80s and
   earned the designation "Designed to Earn the ENERGY
   STAR." Completed in 2002, the building earned the
   ENERGY STAR label after one year, and in 2005 achieved a
   perfect rating.

   Sources: U.S. EPA, 2008b; U.S. EPA, 2008k.
        A resolution passed by the Montgomery
        County, Maryland, county council in 2008
        directed the county Sustainability Working
   Group to develop an energy baseline, energy unit
   savings plan, and energy cost savings plan for each
   county building by January 2009. The resolution
   included a requirement for each building's energy
   cost savings plan to include a plan to use an energy
   performance contract, where cost-effective. It also
   directed the Sustainability Working Group to
   annually report to the county executive and county
   council on steps taken to implement these plans
   (Montgomery County, 2008).
        In New York City, the mayor issued an execu-
        tive order in October 2007 directing the city
        government to reduce its GHG emissions by
   30 percent by 2017, based on 2006 emissions
   levels, by improving energy efficiency in its facili-
   ties and operations. The order established a
   steering committee to develop short- and long-
   term plans for reducing the city's energy consump-
   tion. The steering committee's long-term plan
   demonstrates that while the cost of achieving the
   30 percent GHG reduction goal will be high
   (approximately $2.3 million), it is expected that
   the city will break even on its investment in five
   years due to the projected energy cost savings
   (New York City, 2008).
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   Local governments looking for information to help
   them prepare an action plan can obtain information
   on best practices from other organizations that have
   improved energy efficiency in their facilities. For
   example, ENERGY STAR Labeled Buildings and Plants
   is an EPA-maintained list of the more than 4,000
   buildings that have earned the ENERGY STAR label
   for energy performance (U.S. EPA, 2008J). In addition,
   many ESCOs have experience with proven technical
   energy efficiency measures and can incorporate these
   measures into an action plan through the energy
   performance contracting process. EPA has developed a
   directory of service product providers that can provide
   local governments with expert advice and technical
   assistance on entering energy performance contracts.4

   Key strategies for creating an action plan include:

   Develop whole building energy performance targets.
   Once a local government has evaluated its portfolio's
   performance and set portfolio-wide goals, it can
   establish energy performance targets for each existing
   and new building.  Establishing energy performance
   targets for each building allows local governments
   to clearly articulate to building occupants and other
   key personnel the expected results of energy effi-
   ciency investments in each facility, and enables local
   governments to track progress and measure results.
   Whole building energy performance measurements
   can be developed for existing buildings using the
   Portfolio Manager tool, which enables users to identify
   baseline energy performance and set targets based
   on the ENERGY STAR energy performance scale
   (U.S. EPA, 2008a). For new buildings, a tool called
   the Target Finder can be used to set whole building
   performance targets (U.S. EPA, 2008b). For building
   types not covered by these tools, EPA has developed a
   list of reference energy performance targets based on
   national averages.5
   4 See http://www.energystar.gov/index.cfm?c=spp res.pt sppsfor a
   directory of energy service providers. For more information on performance
   contracting, see Section.7, Investment and Financing Opportunities.

   5 For more information, see http://www.energystar.gov/ia/business/
   tools resources/new bldg design/2003 CBECSPerformanceTargetsTable.
   pdf
 Use a staged approach to identify technical measures
 for improving energy efficiency. A staged approach
 is a systematic method to gradually improve energy
 efficiency in existing buildings and incorporate energy
 efficiency in new and renovated buildings, which
 can lead to greater overall energy cost savings. This
 approach starts with steps that are cost-effective and
 feasible for the near term and follows with longer-term
 projects, so that decision-makers can gradually imple-
 ment energy efficiency. The subsections below provide
 information on using a staged approach in existing
 and new facilities, including a number of resources
 that offer guidance on selecting technical measures to
 incorporate into energy efficiency action plans.

 USING A STAGED APPROACH IN EXISTING
 BUILDINGS
 For existing buildings, a staged approach that
 sequences building upgrades in a logical, systems-
 oriented way, can lead to the greatest energy savings
 for the available budget. When following this approach,
 local governments can identify appropriate technical
 measures for each step in the process, which are most
 likely to improve energy efficiency in a cost-effective
 way.

 EPA recommends using a five-stage approach to
 upgrading facilities (see the text box on page 16 for
 a more detailed description of this approach). This
 approach includes the following stages:
1. Conduct retrocommissioning.

2. Install energy-efficient lighting.

3. Reduce supplemental loads (e.g., by purchasing
  ENERGY STAR labeled equipment).

4. Install fan system upgrades.

5. Install heating and cooling system upgrades.
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 Figure 2 illustrates the benefits of implementing
 energy efficiency upgrades based on several of these
 EPA-recommended stages. As shown in the figure,
 cooling capacity can be reduced by up to 5 percent for
 a typical office building when implementing HVAC
 measures after upgrading operations and maintenance
 (O&M) practices and improving lighting system
 efficiency. The figure also shows that implementing
 upgrades in appropriate stages reduces the overall
 cooling capacity needed, which can enable local
 governments to purchase "right-sized" equipment.
 "Right-sized" equipment is sized to meet the necessary
 load after efficiency measures are implemented, as
 opposed to oversized equipment that serves the load,
 but at a higher upfront cost. Figure 3 on page 17
 illustrates how implementing upgrades in a staged
 fashion can reduce a building's energy loads and result
 in an overall energy consumption reduction of 30
 percent (National Action Plan for Energy Efficiency,
 2008).
Energy efficiency upgrade and design guidance
materials are helpful for identifying and prioritizing
technical measures to incorporate into a local govern-
ment's energy efficiency action plan. For example, the
ENERGY STAR Building Upgrade Manual provides
guidance on using the staged approach for upgrading
existing buildings (see the text box regarding the staged
approach on page 16).
FIGURE 2    BENEFITS OF USING A STAGED APPROACH TO IMPLEMENTING ENERGY EFFICIENCY
             UPGRADES IN AN OFFICE BUILDING (250,000 FT2)
          Sequence of Upgrade Measures
                                                 Upgrade
  Upgrade     Upgrade
Cooling
Capacity
Reduction
in Cooling
 Capacity
Good
Better
Best
HVAC
O&M
O&M
O&M
HVAC
Lighting
Lighting
Lighting
HVAC
760
752
722
0%
1%
5%
Source: National Action Plan for Energy Efficiency, 2008.
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        OVERVIEW OF EPA BUILDING UPGRADE MANUAL STAGED APPROACH FOR IMPROVING ENERGY PERFORMANCE
        The staged approach outlined in the 2008 ENERGY STAR Building Upgrade Manual provides a systematic method for planning energy
        efficiency upgrades in buildings that accounts for interactions between building energy systems, enabling organizations to achieve
        significant energy savings. This approach involves the following stages:

        1. Retrocommissioning: Commissioning is the process of ensuring that a new building is designed, installed, tested, and capable of
        being operated and maintained according to the owner's needs. Commissioning a new building can produce energy cost savings
        of $0.02 to $0.19 per square foot (Mills et al., 2004). Commissioning can also produce non-energy benefits, such as improved
        occupant comfort and indoor air quality. One study estimates that the average value of non-energy benefits for every $1 spent on
        commissioning ranges from $1 to as high as $2.30 when accounting for energy efficiency rebates. Nonenergy benefits resulting from
        commissioning are estimated to be $0.50 per square foot (Mills et al., 2004; Jennings and Skumatz, 2006).
        Retrocommissioning buildings that were never commissioned is a key step in
        identifying technical measures for a staged approach to improving energy efficiency.
        This process can identify no- and low-cost technical measures for improving energy
        efficiency and can result in energy cost savings between $0.11 and $0.72 per square
        foot (Mills et al., 2004). Recommissioning is the process of commissioning a building
        that has already been commissioned.
        2. Lighting Upgrade: Improving the energy efficiency of the building's lighting system
        can reduce lighting energy costs. Lighting systems can account for up to 40% of a
        building's total energy use. Improving energy efficiency can halve lighting energy
        consumption while improving lighting quality and reducing unwanted heat gain.
        Improving lighting system energy efficiency involves the following steps:
          • Design light quantity and quality to meet task and occupant needs.
          • Maximize lamp and ballast efficiency.
          • Install automatic controls to turn off or dim lighting.
          • Establish schedules for group re-lamping and fixture cleaning.
          • Purchase ENERGY STAR  labeled lighting products.
          • Use responsible disposal practices.
ENERGY STAR*
Building Upgrade Manual
        3. Supplemental Load Reductions: Purchasing ENERGY STAR labeled office equipment and improving the energy efficiency of
        building envelope components (e.g., installing window films and adding insulation or reflective roof coating) reduces supplemental
        load energy consumption. Reducing supplemental loads enables organizations to install smaller fan, heating, and cooling systems
        that cost less and use less energy.
        4. Air Distribution System Upgrades: Air distribution systems account for approximately 7% of an office building's total energy use.
        Technical measures, such as right-sizing fan system equipment and converting to a variable-air-volume system, can significantly
        reduce air distribution system energy costs. For example, reducing a fan's speed by 20% (e.g., by using a variable-speed drive) can
        reduce its energy consumption by 50%.
        5. Heating and Cooling System Upgrades: Heating and cooling systems typically account for one-fourth of a building's energy use.
        Improving energy efficiency in these systems can produce significant savings. A strategy for improving heating and cooling system
        efficiency involves:
          • Measure heating and cooling loads
          • Right-size heating and cooling systems
          • Install energy-efficient chillers
          • Upgrade other heating and cooling system components
          • Install variable- speed drives on pumps and cooling tower fans
          • Optimize operations
       Source: U.S. EPA, 2008f.
                                                                                                    ENERGY STAR
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    FIGURE 3   TYPICAL OFFICE BUILDING
                 LOAD PROFILE

    The graphic below illustrates a typical 250,000 ft2
    office building's load profile for cooling, ventilation,
    lighting, and other energy demand on a summer day
    in Chicago, Illinois.
     12:00am 3:00am  6:00am  9:00am  12:00pm  3:00pm
                        Time of Day
                                      m  9:00 pm  12:00am
    Implementing a suite of energy efficiency upgrades
    could significantly reduce the building's energy
    consumption. The graphic below illustrates the
    energy loads for the same building after imple-
    menting several upgrades, including:
     • O&M/re-commissioning measures (e.g., opti-
       mizing temperature setpoints,  HVAC scheduling,
       etc.).
     • Lighting measures (CFLs, daylighting controls,
       etc.).
     • HVAC measures (high efficiency chillers, premium
       efficiency motors, etc.).

    Implementing these upgrades noticeably reduces
    each energy load. The total  resultant energy
    decrease is approximately 30 percent.
     12:00am 3:00am  6:00am  9:00am  12:00pm  3:00pm  6:00pm
                        Time of Day
Source: National Action Plan for Energy Efficiency, 2008.
USING A STAGED APPROACH IN NEW AND
RENOVATED BUILDINGS
While the preceding staged approach makes sense for
existing buildings, many local governments follow a
different approach for new buildings. To help local
governments design new building systems and mate-
rials as an integral network that will improve energy
performance, EPA has developed the ENERGY STAR
Integrated Energy Design Guidance to Design (U.S. EPA,
2008c). This guidance document can help local govern-
ments identify cost-effective energy efficiency invest-
ments that consider the environment, climate, building
orientation, and other features that affect performance
in new facilities. It is important to conduct commis-
sioning during the construction process and to
continue commissioning through  occupancy to verify
that the new building functions as intended.

For new and renovated buildings,  local governments
can also use the Whole Building Design Guide, a
resource developed with EPA and  DOE support by the
National Institute of Building Sciences, which provides
information on energy-efficient building design and
offers numerous case studies, tools, and guidance
documents (WBDG, 2008).

Secure necessary funding. When designing an
action plan for improving energy efficiency in local
government buildings, it is important to identify the
capital costs of implementing the action plan and to
evaluate funding opportunities. The following financial
tools, presented in Table 1, ENERGY STAR Program
Resources (see page 6), are available through EPAs
ENERGY STAR program to evaluate the investment
required for priority energy efficiency projects and
to help make the financial case for energy efficiency
investments:

    Cash Flow Opportunity Calculator. This tool
    can be used to determine how much new energy-
    efficient equipment can be purchased based on
    estimated cost savings, whether equipment should
    be purchased now using financing or if it is better
    to wait and use cash from a future year's budget,
    and whether money is being lost by waiting for
    lower interest rates.
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       Financial Value Calculator. This tool presents
       energy efficiency investment opportunities in
       terms of key financial metrics. It can be used to
       determine how energy efficiency improvements
       can affect organizational profit margins and
       returns on investments.6
       CASH FLOW OPPORTUNITY CALCULATOR

       The ENERGY STAR Cash Flow Opportunity Calculator is a
       decisionmaking tool that can be used to influence timing
       of energy-efficient product purchases. The tool can be
       used to determine:

         • The quantity of energy-efficient equipment that
           can be purchased and financed using anticipated
           savings;
         • Whether it is most cost-effective for the purchase to
           be financed now, or to be paid with future operating
           funds; and
         • The cost of delay: whether money is being lost while
           waiting for a lower interest rate.

       www.energystar.gov/ia/business/cfo_calculator.xls

       Source: U.S. EPA, 2003a.
      > Building Upgrade Value Calculator. This calcu-
       lator can be used to estimate the financial benefits
       of improving energy efficiency in office buildings.7

    Once a local government has determined the size of
    the investment required to implement priority energy
    efficiency upgrades, it can consider a range of financing
    options. Financial assistance for improving energy
    efficiency in local government buildings can be secured
    through a number of sources. Many states  administer
    programs that provide incentives to local governments
    for investments in energy efficiency, while  a number of
    local governments have identified and secured funding
    resources from external sources. Energy performance
    contracts, for example, can be used to implement
    energy efficiency upgrades at no upfront cost, often
    through a financial arrangement with an ESCO.
    For more information on funding energy efficiency
    improvements, see Section.7, Investment and Financing
    Opportunities.
   6  For more information on the Financial Value Calculator, visit: http://
   www.energystar.gov/index.cfm?c=assess value.financialtools

   7  for more information on the Building Upgrade Value Calculator, visit:
   http://www.energystar.gov/index.cfm?c=assess value.financial tools
In cases where local governments do not have sufficient
resources to improve energy efficiency across a broad
portfolio of buildings, they can concentrate resources
to systematically improve energy efficiency in one or
a few buildings. Experiences from such pilot projects
can be applied to a broader set of buildings when
additional resources become available. In addition,
many local governments have found that implementing
pilot projects and studies can be an effective strategy
for gathering information on the benefits and costs of
priority investments and can be used to increase public
awareness of energy efficiency activities. Pilot projects
can also help identify potential full-scale implementa-
tion challenges.
   NEW YORK CITY ENERGY SAVINGS PILOT PROGRAMS

   The New York City Short-Term Action Plan for Reducing
   Energy Consumption and Greenhouse Gas Emissions in
   City Municipal Buildings and Operations establishes plans
   for multiple pilot projects, including:

     • A pilot to audit energy consumption in 10 buildings
       that will inform a comprehensive project involving
       many city buildings.
     • A pilot to apply the LEED-EB rating system in at least
       five existing city  buildings.
     • A pilot to test energy tracking  hardware and software
       in at least 10 buildings.

   Information gathered through these pilots will be used to
   develop a database of information  on city building energy
   consumption.

   Source: New York City,  2007.
        Ocean City, New Jersey, began its energy
        conservation program with a pilot project at
        its city hall that involved a range of energy
   efficiency measures, including lighting retrofits,
   energy use monitoring, and ENERGY STAR
   equipment purchases. In addition, the city
   conducted a number of public education programs
   aimed at increasing constituent awareness of local
   government energy efficiency activities (Ocean
   City, 2007).
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STEPS 5 AND 6: IMPLEMENT THE ACTION
PLAN AND EVALUATE PROGRESS

Step 5 of the ENERGY STAR Guidelines for Energy
Management, Implement the Action Plan, involves
gaining the support and cooperation of individuals
at different levels within the local government. The
Guidelines identify five steps for ensuring the effective
implementation of the action plan:

Create a communication plan

Raise awareness

Build capacity

Motivate

Track and monitor

Section 6, Strategies for Effective Program
Implementation on page 30, provides information on
strategies that local governments have used to address
the first four steps, including strategies for gaining
buy-in from key personnel.
   MODEL ENERGY EFFICIENCY PROGRAM IMPACT
   EVALUATION GUIDE

   The Model Energy Efficiency Program Impact Evaluation
   Guide, developed for the National Action Plan for
   Energy Efficiency, provides detailed information on the
   processes and approaches for quantifying energy and
   demand savings, and avoided emissions resulting from
   energy efficiency programs. While the guide focuses
   on impact evaluations, it also presents information on
   process and market evaluations.

   Source: National Action Plan for Energy Efficiency, 2007.
 ESTABLISH AND MAINTAIN A TRACKING SYSTEM
 Part of the fifth step in implementing an action plan
 is the development of a tracking system that can be
 used to continuously track and monitor energy use
 data. Tracking key indicators is critical for evaluating
 program progress and begins from the comprehensive
 assessment of baseline energy performance through
 benchmarking and other tools, such as onsite building
 audits. Maintaining an effective centralized tracking
 system involves the following actions:

 Perform regular updates. Data can be collected and
 incorporated into the tracking system at regular inter-
 vals, typically weekly or monthly. Regular data updates
 ensure that the system provides helpful output when it
 comes time to evaluate program progress.

1 Conduct periodic reviews. Periodic reviews of
 progress made toward meeting interim goals and
 milestones can help ensure that an energy program will
 meet its ultimate performance goals (as established in
 Steps 2 and 3,  Establish Baseline Energy Performance
 and Set Goals) when the energy team conducts a
 complete program progress evaluation.

1 Identify necessary corrective actions. Periodic
 reviews can also be used to identify corrective actions
 the energy team can take before a formal program
 evaluation.

 EVALUATE PROGRESS
 Implementing an action plan for improving energy
 efficiency does not in itself guarantee that a facility
 will achieve its intended energy performance target.
 Step 6 of the ENERGY STAR Guidelines for Energy
 Management, Evaluate Progress, describes a process
 for evaluating the progress of an energy program using
 information collected during the tracking and moni-
 toring process described above. The Guidelines identify
 two critical steps involved in evaluating an energy
 efficiency program:
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       CONDUCTING IMPACT EVALUATIONS OF ENERGY
       EFFICIENCY PROGRAMS

       Impact evaluations of energy efficiency programs in
       municipal buildings involve determining and quantifying
       the benefits of the program. Direct benefits include net
       energy savings, cost savings, and emission reductions,
       while indirect benefits can include other economic,
       energy system, and  environmental impacts such as job
       creation, system reliability, and health benefits.

       Evaluations can be conducted at the individual project
       level (e.g., an energy-efficient lighting retrofit or a
       single  building) or at the program level (e.g., a portfolio
       of municipal buildings). When evaluating an individual
       project, a process called measurement and verification
       (M&V)a is often used to determine energy savings. The
       International Performance Measurement and Verification
       Protocol provides a framework and definitions that
       can help users develop M&V plans for their projects. It
       includes guidance on current best practice techniques
       available for determining energy savings and verifying
       the results of energy efficiency, renewable energy, and
       water efficiency projects in commercial and industrial
       facilities. When evaluating an entire program, savings
       from a sample of individual projects can be determined
       using M&V methods and then applied to all of the
       projects in the program.

       a Measurement and verification (M&V) is a subset of the
       evaluation process that refers to determining the direct
       benefits associated with reduced energy demand and/or
       efficient or cleaner generation at a single project or site (e.g.,
       an energy-efficient lighting retrofit in a state facility) using one
       or more techniques ranging from simple estimates of savings
       to actual measurements and computer simulations.
       Sources: IPMVP, 2002; National Action Plan for Energy
       Efficiency, 2007.
   Measure results. Comparing the performance of a
   portfolio of buildings at the time of evaluation to the
   baseline performance enables local governments to
   determine whether they have met their portfolio-
   wide goals (see Steps 2 and 3, Assess Baseline Energy
   Performance and Set Goals). Measuring results involves
   gathering data on energy use and costs from the
   continuous tracking system (see Step 5, Implement
   the Action Plan) and analyzing these data to deter-
   mine energy efficiency achievements. Third-party
   verification of these data can be a helpful step towards
   ensuring that buildings achieve their intended energy
   performance. Third-party verification by a certified
   professional engineer (PE) is also required in order for
   buildings to become ENERGY STAR labeled. PE veri-
   fication offers an unbiased and ethical assessment that
energy savings claims are accurate. Local governments
can obtain third-party verification from a number of
sources, including ESCOs and energy service provid-
ers.8 Certified PEs can sometimes be found within the
organization that owns the building, which can avoid
the cost of hiring an outside engineer.

Once the data are compiled and verified, local govern-
ments can conduct a formal evaluation based on
established performance metrics and then benchmark
their facilities to compare their achieved energy
performance against similar facilities. A number of
resources are available to local governments to help
plan and conduct evaluations that analyze the impacts
of their energy efficiency program. For example,
the Leadership Group of the National Action Plan
for Energy Efficiency has developed a Model Energy
Efficiency Program Impact Evaluation Guide that
identifies a structure and several industry-standard
approaches for calculating the impacts of energy effi-
ciency programs. The guide provides detailed informa-
tion on the processes and approaches for quantifying
energy and demand savings and avoided emissions
resulting from energy efficiency programs (National
Action Plan for Energy Efficiency, 2010). For more
information on conducting evaluations, see the text
box on page 20.

A final step in measuring results involves bench-
marking energy performance. As described under
Steps 2 and 3, Assess Baseline Energy Performance
and Set Goals, benchmarking can occur earlier in the
energy management process to estimate potential
savings in order to help develop a baseline and set
goals. Benchmarking can also be conducted during the
evaluation process. Using EPAs national energy perfor-
mance scale (e.g., using Portfolio Manager) allows local
governments to:

    Compare their new performance score to their
    baseline performance score,

    Compare their achieved performance against
    established goals for environmental performance
    or financial savings,  or

  >• Compare their achieved energy performance to
    peers to establish a relative understanding of where
    a local government's performance ranks.
                                                                    8  See http://www.energystar.gov/index.cfmfc = spp res.pt sppsfor a direc-
                                                                    tory of energy service providers.
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Review the action plan. Once a local government
has determined the results of its energy efficiency
investments, both in terms of energy savings and
benchmarking, it can use this information to evaluate
the effectiveness of its action plan. If the results indi-
cate that the local government did not reach its goals,
the local government can consider revising the action
plan (e.g., to focus  on implementing energy efficiency
upgrades in additional priority buildings). If the results
indicate that the local government did reach its goals,
the local government can consider setting higher goals
for achieving greater energy cost savings,  and revise
the action plan accordingly.

STEP 7:  RECOGNIZE SUCCESS

One way to sustain momentum and support for
energy efficiency activities is to obtain recognition
for achieving performance goals. As a complement to
opportunities for recognizing success internally, third-
party recognition options include:

ENERGY STAR Labeled Buildings. Buildings
achieving an energy performance score of 75 or greater
are eligible to apply for the ENERGY STAR label.
Buildings that have earned the ENERGY STAR label
use, on average, 35 percent less energy as  compared to
conventional buildings (U.S. EPA, 2008J).

ENERGY STAR Awards. EPA also provides recogni-
tion to organizations that meet important energy
savings milestones, such as improvements of 10
percent, 20 percent, and 30 percent relative to their
initial baselines.
    RECYCLING-ENERGY RELATIONSHIP

    Recycling one pound of steel saves 5,450 Btu of energy,
    enough to light a 60-watt bulb for over 26 hours.

    Recycling one ton of glass saves the equivalent of nine
    gallons of fuel oil.

    Recycling aluminum cans requires only 5% of the energy
    needed to produce aluminum from bauxite. Recycling
    just one can saves enough electricity to light a 100-watt
    bulb for 3V2 hours.

    Source: Pennsylvania, 2007.
Energy Efficiency in Green
Buildings

This subsection focuses on approaches for ensuring
that green building policies and activities are designed
to improve energy efficiency and achieve the associated
environmental and financial benefits that come with
combining energy efficiency and other green features.
   "GREEN BUILDINGS"

   Many terms are used to describe buildings that
   incorporate energy efficiency and other environmental
   features, including green buildings, high performance
   buildings, and sustainable buildings, among others.
   Regardless of the definitions, there is often a public
   perception that energy efficiency and "green" are
   interchangeable, and that green buildings are energy
   efficient. However, this is not always the case; some
   "green" buildings are not adequately energy efficient.

   This section uses the term "green building" as an all-
   encompassing description of buildings that incorporate
   energy efficiency plus other energy and environmental
   features where cost effective and practical, including:

      • Renewable energy supply
      • Combined heat and power (CHP)
      • Sustainable site design that minimizes stress on the
       local landscape
      • Water efficiency and quality
      • Green materials and resources that minimize
       consumption and waste
      • Indoor air quality
BENEFITS OF GREEN BUILDINGS

By incorporating energy efficiency into green buildings
and green building policies, local governments can
achieve all of the energy efficiency benefits described
in Section 2, Benefits of Energy Efficiency in Local
Government Operations. In particular, the reduced
energy costs associated with incorporating energy effi-
ciency in green buildings can help local governments
achieve overall cost-effectiveness in green building
design (U.S. EPA, 2008d; U.S. EPA, 2006d).
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    Green buildings can provide several additional envi-
    ronmental benefits, including:

    Lower GHG emissions

    Reduced construction/demolition debris

    Ecosystem protection

    Natural resources conservation
       GREEN BUILDING AND ENERGY STAR

       When upgrading existing buildings or designing new
       buildings, local governments are looking to green
       building certification programs such as U.S. Green
       Building Council's (USGBC) Leadership in Energy and
       Environmental Design (LEED) design-based rating
       system and the Green  Globes rating system. These rating
       systems standardize the elements of green building by
       conferring design certification based on requirements
       for 1) energy and atmosphere, 2) site sustainability, 3)
       water efficiency, 4) materials and resources, 5) indoor air
       quality, and 6) innovative design process.

       Depending upon the rating system, it can be important
       to add requirements for energy performance, such as
       achieving EPA's ENERGY STAR program levels. It is also
       important to require third-party verification, which is
       required to earn the ENERGY STAR label on commercial
       buildings.

       Some local governments, such as in Denver, Colorado,
       are ensuring that green buildings achieve superior
       energy performance by adopting policies that require
       local government facilities to meet both LEED and
       ENERGY STAR criteria.

       Sources: LEED, 2005; U.S. EPA, 20081; Denver, 2008.
   Some green building environmental features can also
   have secondary energy-saving benefits. For example,
   many green buildings incorporate water efficiency
   measures that reduce water heating energy consump-
   tion while conserving a natural resource (U.S. EPA,
   2008h). The benefits of green buildings depend upon
   the environmental features incorporated into the
   designs, which can depend on the green building
   rating system (e.g., LEED) and whether the building
   operates as designed.
PLANNING AND DESIGN APPROACH FOR
INCORPORATING ENERGY EFFICIENCY IN
GREEN BUILDINGS

When planning and designing for green buildings,
local governments can follow the steps outlined in the
preceding subsection on improving energy efficiency
in local government facilities. Incorporating energy
efficiency into green buildings can also include the
following actions:
    EPA WATERSENSE LABEL

    The EPA WaterSense Program label is for products
    that are independently tested to meet water efficiency
    and performance criteria. Labeling criteria have been
    established for plumbing fixtures (toilets, faucets,
    showerheads, and urinals), new homes, and training
    programs for irrigation professionals. In general,
    products that receive
    the WaterSense
    label are 20% more
    water-efficient
    than conventional
    products. In addition to
    conserving water, these
    products can reduce
    the amount of energy
    required to deliver and
    treat water.

    Source: U.S. EPA, 2007a.
Ensure that energy efficiency is specifically included
in green building policies. Energy efficiency is a
critical element of green building and is a key feature
of the design process. Local governments have found
that requiring a combination of energy performance
tools and green building approaches from the onset
can ensure that new and renovated buildings meet
both energy performance and environmental criteria.
An increasingly common strategy is to use the EPA'S
ENERGY STAR platform in conjunction with the
LEED rating system for green building design. For
more information on incorporating energy effi-
ciency in green building polices, see the text box
on page 23.
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      In Denver, Colorado, the mayor issued an
      executive order establishing a green building
      policy for new construction and major reno-
vations of existing and future city-owned and
operated buildings. In order to maximize the envi-
ronmental performance and energy efficiency, the
executive order requires municipal buildings be
built and certified to at least the LEED-Silver stan-
dard, Designed to Earn the ENERGY STAR using
Target Finder, and benchmarked with Portfolio
Manager (Denver, 2008).
Use energy efficiency investments to reduce the
cost of using renewable energy sources. Many local
governments are improving the environmental profile
of their green buildings by incorporating on-site
renewable energy generation systems into building
designs. These systems, however, can have a high
upfront cost. Many local governments have found
that reducing energy consumption in green build-
ings through energy efficiency allows them to meet
their renewable energy goals with smaller and less
expensive generation systems.  In addition, the energy
cost savings from energy efficiency investments can be
used to offset the cost premiums of using renewable
energy sources. For more information on using on-site
renewable energy generation systems, see EPA's On-site
Renewable Energy Generation guide in the Local
Government Climate and Energy Strategy Series.
 INCORPORATING ENERGY EFFICIENCY INTO GREEN BUILDING POLICIES

 Energy efficiency can be incorporated into green building policies in different ways, depending on the green building rating system
 used. Local governments can take the following steps to incorporate energy efficiency into green building policies.

 LEED for Existing Buildings (LEED-EB)

   • Require that the actual energy use of buildings meets aggressive energy performance targets, based on the most energy-efficient
     existing buildings in the market.
   • For building types covered by the Portfolio Manager rating system, the target should be at least 75, the level at which a building
     is eligible to earn  the ENERGY STAR label. This is more stringent than the LEED-EB requirement and will result in greater energy
     efficiency. See Develop Whole Building Performance Targets under Steps 4 and 5 in Planning and Implementation Strategies for
     Improving Energy Efficiency in Local Government Facilities for guidance for building types not covered by Portfolio Manager.
   • Strive to achieve the greatest possible quantity of credits in the LEED energy and atmosphere section.
   • Once a building has been operating for one year, compare the building's actual performance to the energy target used during the
     design phase and confirm that the building is eligible for the ENERGY STAR, where available.

 LEED for New Construction (LEED-NC)

   • Require design teams to meet an aggressive energy performance target, based on the most energy-efficient existing buildings in
     the market. For building types covered by EPA's ENERGY STAR Target Finder, the target should be at least 75, the level at which a
     building is "Designed to Earn the ENERGY STAR." See Develop Whole Building Performance Targets under Steps 4 and 5 in Planning
     and Implementation Strategies for Improving Energy Efficiency in Local Government Facilities for guidance for building types not
     covered by Target Finder.
   • Strive to achieve the greatest possible quantity of credits in the LEED energy and atmosphere section.
   • Once a building has been operating for one year, compare the building's actual performance to the energy target used during the
     design phase and confirm that building is eligible for the ENERGY STAR, where available.

 Green Globes Rating System for New Buildings or Significant Renovation

   • Strive to achieve the highest possible rating using the Green Globes rating system, which requires new building designs to achieve
     a rating of 75 (to be eligible for the ENERGY STAR) or better using EPA's ENERGY STAR Target Finder. See Develop Whole Building
     Performance Targets under Steps 4 and 5 in Planning and Implementation Strategies for Improving Energy Efficiency in Local
     Government Facilities for more detailed guidance and strategies for building types not covered by Target Finder.
   • Once a building has been operating for one year, compare the building's actual performance to the energy target used during the
     design phase and confirm that the building is eligible for the ENERGY STAR, where available.

 Sources: LEED, 2005; LEED, 2007; U.S. EPA, 20081; Green Globes, 2008.
                                                                                          3. PLANNING AND DESIGN
                                                                                                                      23

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       ENERGY-EFFICIENT DESIGN VERSUS PERFORMANCE

       While using design standards can be helpful for
       implementing energy efficiency measures in new and
       renovated buildings, not all design standards guarantee
       energy-efficient performance. For instance, facilities
       designed to exceed building energy codes will not
       necessarily achieve superior energy efficiency, since
       codes prescribe minimum design criteria for certain
       facility components but do not predict whole building
       energy performance. Studies have shown that exceeding
       building codes is not a guarantee of future energy
       performance.

       Source: U.S. EPA, 2006c.
   Include requirements for third-party verification of
   energy performance. Third-party verification is an
   important step towards ensuring that green buildings
   are energy-efficient. While some green building certi-
   fication only considers a building's design, third-party
   verification of energy performance can determine
   whether a building is performing as intended. A
   number of local governments have included provisions
   in their green building policies requiring third-party
   verification to confirm that, once they become opera-
   tional, buildings meet the energy performance targets
   established during the planning and design phases.
   Local governments can obtain third-party verifica-
   tion from a number of sources, including ESCOs and
   energy service providers.9

   Consider conducting a demonstration project. When
   resources and/or support for implementing a green
   building policy for local government facilities are
   limited, local governments can develop a single  green
   building to serve as a demonstration project. These
   projects can be used to showcase the energy efficiency
   and environmental benefits of green buildings, while
   helping to make the case for implementing a portfolio-
   wide green building approach as additional support
   and/or resources become available.
   9  See http://www.energystar.gov/index.cfm?c=spp res.pt spps for a direc-
   tory of energy service and product providers.
Energy Efficiency in Local
Government Operations

Many local governments are expanding the scope of
their energy efficiency activities to target opportunities
to improve energy efficiency in operations that occur
outside local government facilities. These opportunities
include:

Energy-efficient landscaping. Local governments can
achieve building energy load reductions by landscaping
for energy efficiency. According to the Lawrence
Berkeley National Laboratory (LBNL), peak energy
demand for air conditioning increases by 1.5 to 2
percent for every 1°F increase in temperature in cities
with populations of 100,000 or more (Akbari et al.,
1992). Planting trees and vegetation can significantly
reduce building energy consumption by blocking
unwanted sun in the summer, allowing sun in the
winter, and providing a winter wind shield.
        Research by LBNL through the EPA Urban
        Heat Island Pilot Project found that potential
        energy cost savings from energy-efficient
   landscaping and other heat island reduction
   measures in Salt Lake City, Utah; Baton Rouge,
   Louisiana; and Sacramento, California, could
   reach $4 million, $15 million, and $26 million,
   respectively (Konopacki and Akbari, 2000).
   ANN ARBOR, MICHIGAN-LED STREET LIGHTING

   Approximately 25 percent of Ann Arbor, Michigan's, energy
   budget has historically been spent on traffic signals and
   street lighting (8 percent and 92 percent, respectively). In
   its 2005-2006 budget, the city established a moratorium
   on new street lights to reduce energy costs.

   The  city began saving $49,000 annually in energy costs
   from installing LED fixtures in traffic and cross-walk
   signals beginning in 2000. Building on this experience and
   the success of a pilot project to test LED streetlights on
   one  city block, the city is in the process of equipping all
   1,000 downtown streetlights with energy-efficient LED
   fixtures. This measure, which is expected to reduce street
   lighting energy costs by $100,000 annually, is funded
   in part through a grant from the Ann Arbor Downtown
   Development Authority.

   Source: Ann Arbor, 2008.
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 Energy-efficient street lighting. Many local govern-
 ments are retrofitting street lights with energy-efficient
 equipment that reduces energy, maintenance, and
 procurement costs, since the fixtures use less energy
 and require less frequent maintenance and replace-
 ment. Using energy-efficient lamps and proper fixture
 spacing can also reduce local government capital costs
 by requiring fewer lighting poles and lamps. In addi-
 tion, replacing inefficient lamps with energy-efficient
 ones can often result in reduced glare and improved
 visibility (NYSERDA, 2002).
         Medford, Massachusetts, has worked with its
         utility to convert the city's old mercury vapor
         lamps to high-pressure sodium ones, which
    are 32 percent more efficient (NCS, 2007).
    KEENE, NEW HAMPSHIRE-LED TRAFFIC SIGNALS

    Keene, New Hampshire, is implementing measures to
    reduce energy consumption and GHG emissions to
    meet the goals of the ICLEI Cities for Climate Protection
    campaign. It has replaced inefficient traffic signals with
    energy-efficient LEDs at a cost of $29,000. The town
    continues to achieve energy cost savings of nearly $4,000
    annually. A $10,000 rebate from the local utility reduced
    the cost, enabling the town to achieve a payback period of
    five years. The energy savings translate into 15 tons of CO2
    emissions avoided each year, an amount equal  to what 11
    acres of pine or fir forests can sequester in one year.

    Sources: CACP, 2007; U.S. CTC, 2007.
1 Energy-efficient traffic signals. Many local govern-
 ments are reducing energy costs by replacing conven-
 tional traffic signals with energy-efficient light-emitting
 diode (LED) traffic signals. Traffic signals that use
 LEDs typically consume 80 to 90 percent less energy
 than conventional traffic signals, and because traffic
 signals operate continuously, LED traffic signals
 can reduce peak energy demand. In addition, LED
 traffic lights can have safety and maintenance benefits
 because they are less likely to burn out than conven-
 tional lights (GEE, 2007).
        Retrofitting 380 traffic signals in Clackamas
        County, Oregon, has produced annual
    —energy savings of $ 10,000, which will offset
   the costs of the measure within four years (NACo,
   2007b).
Exterior signage. Exterior signage, such as signs with
programmable, automatically changing messages, can
be selected based on energy efficiency. Some exterior
signs operate on LEDs, making them significantly
more efficient than conventional signs (Flex Your
Power, 2008).
        In Seattle, Washington, the municipally
        owned utility has offered bonuses to local
        businesses that use LEDs in exterior
   programmable signs (Seattle, 2007).
4. KEY PARTICIPANTS

Local governments are working with a range of partici-
pants to plan and implement programs to improve
energy efficiency in their facilities and operations. This
section provides information on the types of partici-
pants who are involved in local government efforts to
improve energy efficiency in facilities and operations,
and includes descriptions and examples of how each
can contribute unique authority or expertise.

Mayor or county executives. Local government
executives can provide key support for an energy effi-
ciency program by mobilizing resources and ensuring
program visibility. Many local government executives
have appointed local energy committee members to
provide guidance on improving energy efficiency in
local government facilities and operations.
        In an effort to make Milwaukee, Wisconsin,
        the "greenest city" in the country, the mayor
        established the Milwaukee Green Team and
   directed Team workgroups to provide recommen-
   dations on cost-effective opportunities for
   improving energy efficiency, reducing environ-
   mental impacts, and creating jobs (Milwaukee,
   2005).
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      ATLANTA ENERGY CONSERVATION POLICY

      In 2002, the Atlanta city council initiated the Energy
      Efficiency Project to reduce energy consumption in city
      facilities. A comprehensive audit in 2003 revealed potential
      energy cost savings of approximately $455,000 in 2003
      and $367,000 in 2004 and subsequent years. Following
      this audit, the city's chief operating officer drafted a
      memo that established a goal of reducing city government
      energy consumption by 10 percent by 2010 (based on
      2001 levels).

      Source: Atlanta, 2007.
   City or county councils. In many local governments,
   the city or county council must approve energy effi-
   ciency improvements, especially if substantial funding
   or a change to existing policies or codes is required. In
   addition, many city and county councils have initiated
   energy efficiency improvements by establishing policies
   that require departments to reduce energy consump-
   tion. Many local government legislative bodies have
   passed resolutions to participate in regional, national,
   and international campaigns to improve energy effi-
   ciency and reduce impacts on the climate.
           In 2007, the city council of Santa Barbara,
           California, adopted an energy ordinance that
           requires local government facilities to be
      designed to be 10 percent more energy efficient
      than required by the state building energy effi-
      ciency standards, which already exceed national
      standards by about 20 percent (Santa Barbara,
      2007).
   Energy and environment staff. Staff who work in
   energy- and environment-related local offices can offer
   unique expertise that facilitates the implementation of
   a range of energy efficiency activities, such as identi-
   fying priority investments and evaluating the impacts
   of energy efficiency improvements.
        Arapahoe County, Colorado, hired an energy
        conservation manager and established an
        energy efficiency team to support its involve-
   ment in the ENERGY STAR Challenge and create
   an energy-conscious culture in the county through
   education, awareness, and accountability. Using
   ENERGY STAR resources and tools, such as
   Portfolio Manager, the team has earned the
   ENERGY STAR for eight of the county's facilities
   since 2007. One administration building has
   reduced its energy consumption by almost 30
   percent, and an energy performance contract for
   nine of the county's buildings achieved verified
   savings of more than $900,000 in the first contract
   year (Arapahoe County, 2009).
   ENERGY EFFICIENCY CHAMPIONS

   Many local government agencies do not have staff
   members assigned specifically to energy efficiency
   activities or have staff simultaneously assigned to multiple
   programs. Some local governments have found that
   identifying an energy efficiency "champion" can help
   ensure that energy efficiency activities are implemented
   within each department. In Atlanta, Georgia, a coordinator
   is appointed from each department to oversee
   implementation of the Energy Conservation Program.

   Source: Atlanta, 2007.
Some local governments have designated an energy
manager to coordinate energy efficiency activities,
often as part of a comprehensive clean energy program.
This person is often appointed to monitor govern-
ment energy consumption, identify opportunities for
improvement, and engage the private sector in energy
efficiency initiatives.
        Waitsfield, Vermont's, energy coordinator
        sits on the town energy committee, works
        with the town planning commission to
   include energy policies in the town comprehensive
   plan, oversees energy audits of local government
   facilities, and coordinates energy efficiency
   upgrades (Waitsfield, 2007).
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Local planners. How and where communities are
developed has a significant impact on eventual
energy consumption. Planners, who are responsible
for creating the plans that determine how and where
development occurs, often serve as advisors to the
policy makers who develop local energy efficiency poli-
cies. Planners can directly affect local energy consump-
tion through developing energy-efficient building
standards, enforcing local ordinances, and developing
long-term plans that address clean energy and climate
action issues, including energy efficiency in local
government facilities and operations.
        In March 2007, the Epping, New Hampshire,
   Ifflf plannmg board presented an Energy
   I—I  Efficiency and Sustainable Design Ordinance at
   a town hall meeting. The ordinance, which was
   passed by voters, establishes energy efficiency
   design requirements for commercial and govern-
   ment building envelopes, HVAC systems, and
   other operational features (e.g., lighting systems)
   (Epping, 2007).
Facility management teams. Many local governments
rely on facility management teams to ensure that
energy efficiency improvements continue to produce
results, since these individuals have considerable
hands-on experience with energy-using equipment and
are well positioned to operate and maintain equipment
and facilities for energy efficiency. Some local govern-
ments provide training to these teams to assist them in
maintaining and operating equipment and systems in
an energy-efficient manner (U.S. EPA, 2008f).
        Madison, Wisconsin, adopted city sustain-
        ability guidelines that include a requirement
        that facility managers be trained in building
   commissioning (Madison, 2005).
        Flower Mound, Texas, has developed a guide
        to assist its Facility Management Division in
        meeting the town's energy conservation goals
   (Flower Mound, 2002).
        In 2008, the Public Works Facilities
        Maintenance team in Charlottesville,
        Virginia, conducted an energy audit of local
   government and school district facilities. The team
   used this audit to develop a set of recommenda-
   tions for the city to incorporate into an energy
   performance contract with a qualified ESCO. The
   projects included in the performance contract
   (which was completed in October 2008) encom-
   passed 22 municipal buildings and are expected to
   produce annual energy cost savings of nearly
   $220,000 (Charlottesville, 2008).
Other local governments and regional entities. Some
local governments have enhanced the effectiveness and
public awareness of their energy efficiency programs
by working with other local governments and regional
entities. Such partnerships allow local governments to
compare approaches and benefits and share informa-
tion on potential barriers to implementation.
        The Denver-area Metro Mayors Caucus
        signed a memorandum of understanding
        pledging to work together to reduce energy
   consumption in local government facilities and
   operations, promote energy efficiency and conser-
   vation for businesses and residences, and increase
   public awareness of clean energy (Metro Mayors
   Caucus, 2006).
State energy offices. Many local governments have
borrowed from state government experience in plan-
ning and implementing energy efficiency programs
and often receive technical and financial assistance
from states (U.S. EPA, 2006a).
        In Nampa, Idaho, local elected officials
        worked with the Idaho Energy Division to
        retro-commission the city hall, which was
   built in 1980. The Energy Division contracted with
   an ESCO to have the facility retro-commissioned,
   and arranged to have the cost of the project paid
   for through the Northwest Energy Efficiency
   Alliance's Commissioning in Public Buildings
   Project. The project produced annual energy cost
   savings of approximately $17,000 (PECI, 2007).
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   Utilities and other energy efficiency program admin-
   istrators. Many local governments have partnered with
   investor-owned utilities and other energy efficiency
   program administrators (e.g., independent or non-
   profit energy services providers) to obtain technical
   assistance for facility managers and building design
   teams and also to take advantage of energy efficiency
   rebates and incentives that many of these utilities offer.

   In California, the three largest investor-owned utilities
   are required by law to include a system benefits charge
   on ratepayers' bills to fund energy efficiency programs
   that provide assistance to local governments and
   customers (California, 2007).
           In New York City, local government agencies
           have worked with an energy efficiency
           program administered by the state-owned
      New York Power Authority to improve energy effi-
      ciency in local government facilities. The utility
      offers the city low-cost financing on energy perfor-
      mance contracts and provides technical assistance
      on specific projects. The cumulative savings from
      this program exceed $14 million across more than
      160 projects throughout the city (New York City,
      2004).
   In addition, a number of local governments own and
   manage municipal utilities that are responsive to local
   customer interests rather than stakeholders' interests.
   In some cases, as in Ashland, Oregon, municipally
   owned utilities are required by local law to support
   local clean energy activities (Ashland, 2007).

   Energy service companies (ESCOs). Many local
   governments have contracted with ESCOs to  conduct
   energy audits and perform energy efficiency upgrades
   on a performance-contracting basis. Under a  perfor-
   mance contract, local governments can often  avoid
   using capital budgets to pay for the upfront costs of
   energy efficiency improvements, which are paid for
   over time using energy cost savings. For more informa-
   tion on energy performance contracts, see Section.7,
   Investment and Financing Opportunities.
        Tyler, Texas, entered into a performance
        contract with an ESCO to upgrade city traffic
        signals, implement water efficiency
   measures, and retrofit the city's 29 facilities
   (including lighting system retrofits, energy
   management system installations in the city's
   major offices, and air conditioning unit replace-
   ments). Within three years these investments
   produced a combined savings and increased reve-
   nues that exceeded the goal of $2.3 million
   (Johnson Controls, 2008).
Non-profit organizations. A number of local govern-
ments have partnered with non-profit organizations to
plan and implement energy efficiency projects in their
facilities and operations. These organizations can offer
local governments technical and financial assistance
and can direct them to information resources.
        The Greener Hopkinton Committee in
        Hopkinton, New Hampshire, performed an
        initial energy performance assessment of
   several town facilities using Portfolio Manager.
   The town will be working with the Jordan
   Institute, a non-profit organization that focuses on
   promoting clean energy, to identify potential
   energy efficiency investments to reduce the town's
   energy expenditures. The non-profit recently
   entered into a project with the New Hampshire
   Office of Energy and Planning to create a revolving
   loan fund for energy efficiency projects in all
   sectors (initially starting with school districts and
   local governments) using grant money from DOE
   (Hopkinton, 2008; Jordan Institute, 2008).
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5. FOUNDATIONS FOR
PROGRAM DEVELOPMENT

Local governments have employed a variety of
mechanisms to initiate programs for improving energy
efficiency in their facilities and operations. This section
provides information on a range of these mechanisms,
including descriptions and examples of how partici-
pants have used different types of mechanisms to moti-
vate the creation or development of energy efficiency
programs and policies.

Mayor or executive initiatives. Mayors and county
executives can have a great deal of influence over
the creation and development of energy efficiency
programs. Many local government executives have
initiated energy efficiency programs through executive
orders and policy agendas.
   CHICAGO, ILLINOIS-MAYOR'S AGENDA

   The Mayor of Chicago announced his first Environmental
   Action Agenda in 2005, committing the city to a number
   of energy and environmental goals. The 2006 Agenda
   highlights nearly 200 achievements since 2005, including:

     • Incorporating building energy management systems
       in all new buildings.
     • Commissioning four existing facilities.
     • Using the LEED rating system for all new city facilities,
       including 22 LEED certifications.
     • Installing green or reflective roofs on all facilities
       undergoing roof repairs.

   Overall, the city has conducted energy efficiency retrofits
   for more than 15 million square feet of public facilities,
   including the city housing and transit authorities, city
   colleges, and the city's public libraries—the equivalent of
   three Sears Towers.

   When finished, the project should save $6 million annually
   and eliminate 30,000 tons of CO2 from entering the
   atmosphere.

   Source: WERF, 2009.
        In Lansing, Michigan, the mayor issued an
        executive order that directed the city to
        improve energy efficiency at the city hall and
   required all city departments to power-down non-
   essential electricity use in all city buildings during
   non-business hours (Lansing, 2006).
 Local government resolutions. Many city or county
 councils have initiated energy efficiency policies
 via resolutions or bills. City councils in a number
 of local governments, such as Baltimore, Maryland;
 Philadelphia, Pennsylvania; and Salt Lake City, Utah,
 have established policies requiring that new buildings
 and major renovations be designed in accordance
 with specific energy efficiency performance standards
 (Baltimore, 2007; Philadelphia, 2008; Salt Lake City,
 2005).
         Madison, Wisconsin, used a city council
         resolution to adopt The Natural Step, a
         sustainable development method that
    promotes energy efficiency. The resolution also
    requires that staff be trained in how to implement
    The Natural Step and how to commission facilities
    (Madison, 2005).
1 Local government planning processes. Many cities
 and counties have developed energy plans that guide
 decision making on energy-related issues. These plans
 often include recommendations or requirements to
 improve energy efficiency in local government facili-
 ties and operations. Other local governments, such as
 Boulder, Colorado, have incorporated energy efficiency
 components into climate change action plans (Boulder,
 2006). Local governments have also used other plan-
 ning documents, such as land use, transportation, and
 waste management plans, as vehicles for establishing
 energy efficiency goals in their facilities and operations.
         Concord, Massachusetts, developed a
         Comprehensive Sustainable Energy Plan that
         proposed recommendations based on model
    energy efficiency programs in other local govern-
    ments (Concord, 2007).
 Zoning ordinances. Zoning ordinances determine
 how and where development can occur. Incorporating
 energy efficiency as a priority into the zoning process
 can lead to improved energy efficiency in community
 design plans. A number of local governments have
 adopted ordinances that mandate energy-efficient
 street lighting and require buildings to meet specific
 energy performance and environmental design criteria.
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      GREENSBURG, KANSAS-MASTER PLAN

      In 2007, Greensburg, Kansas, developed a master plan to
      rebuild the city after a tornado destroyed more than 90
      percent of the buildings and infrastructure. In the plan, the
      town committed to a comprehensive green approach to
      rebuilding that focused on energy efficiency, renewable
      energy, and sustainable design.

      The master plan includes recommendations for
      reexamining the city's preexisting permitting processes,
      zoning ordinances, and building codes. Potential policy
      barriers to more energy efficient building strategies will be
      reevaluated and opportunities for implementing incentives
      will be explored.

      Greenburg's master plan has become a model for
      building a green city from the ground up. The town has
      been highlighted in the National Building Museum in
      Washington, D.C., as part of the "Green Community: How
      We Plan, Design, and Construct the World Between Our
      Buildings" exhibit as a model for building and maintaining
      a sustainable community.

      Sources: Greensburg, 2008; BN/M, 2008a; BN/M, 2008b; BN/M,
      2008c.
           White Lake Township, Michigan, has
           included specifications for energy-efficient
           fixtures for street lighting in amendments to
      zoning ordinances (White Lake, 2008).
   6.  STRATEGIES FOR
   EFFECTIVE  PROGRAM
   IMPLEMENTATION

   Local governments have significant opportunities to
   promote energy efficiency by investing in their own
   facilities, promoting participation by community
   members and constituents, and using their "bully
   pulpit" to act as a valuable educator and outreach
   coordinator for spreading the positive message about
   the benefits of energy efficiency. Inherent advantages,
   however, do not preclude numerous barriers from
   potentially hindering effective implementation of all
   types of energy efficiency programs. Barriers can be
   overcome by considering and employing several useful
   strategies, such as:
Engage management. Enforcing the benefits of energy
efficiency through life-cycle cost analysis, building an
experienced interagency team, and creating a well-
defined energy policy or plan can help secure support
from elected officials and local government agency
managers.

Provide adequate information. ENERGY STAR offers
many information resources and case studies for local
governments interested in implementing energy effi-
ciency initiatives (U.S. EPA and U.S. DOE, 2008b).

Utilize measurement tools and methodologies.
Setting up an energy efficiency program can be
daunting, especially for local governments that are
making decisions on behalf of their constituents.
Employing effective measurement tools and method-
ologies can address this barrier and help make the case
to begin or expand energy efficiency programming.
ENERGY STAR offers a number of resources that can
help measure progress, including Portfolio Manager
for buildings, which allows building managers to track
upgrades and energy savings resulting from those
upgrades.

Pursue creative financing options. Local govern-
ments, in contrast to the private sector, often have less
access to creative financing structures and mechanisms
such as performance contracting (National Action Plan
for Energy Efficiency, 2008), and often face limitations
for use of public funds. However, several funding
vehicles and opportunities exist, such as energy perfor-
mance contracts, lease-purchase agreements, public
bonds, or utility-based incentives, and are outlined
under Financing on page 36-40 (Section 7).

Develop political consensus. Local government deci-
sions are often subject to consensus and therefore can
run into barriers brought on by differing opinions
or political perspectives, which can in turn prolong
the development or adoption of an energy efficiency
program. However, by incorporating energy efficiency
goals into preexisting related initiatives, local govern-
ments can avoid some of the difficulties associated with
building political consensus.
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       6. STRATEGIES
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 Once a local government has initiated a program
 for improving energy efficiency in its facilities and
 operations (see Section 5, Foundations for Program
 Development), it can use a number of specific imple-
 mentation strategies to strengthen the program and
 address the barriers identified above. These strategies
 can serve two purposes:

 Developing the energy efficiency program to enhance
 its effectiveness, and

• Engaging the community to leverage additional
 resources and increase program visibility.

 Strategies to help overcome financial obstacles are
 discussed in Section 7, Investment and Financing
 Opportunities.

 Strategies for Developing the
 Energy Efficiency Program

 This subsection describes implementation strate-
 gies that local governments have used to develop
 and enhance the benefits of their energy efficiency
 programs after they have been initiated. These
 strategies are similar to those involved in planning
 and designing the program (see Section 3, Planning
 and Design Approaches to Energy Efficiency in Local
 Government Operations). For example, when plan-
 ning and designing energy efficiency improvements
 in local government facilities, it is important to use
 a team approach to develop an energy policy and to
 create an action plan. Similarly, when implementing
 the program for improving energy efficiency in local
 government facilities, it is important to use a team
 approach to guide the continual development, refine-
 ment, and successful execution of the program.

 Coordinate energy efficiency programs with climate
 change goals. Many local governments are taking
 active roles in developing climate policy by commit-
 ting to reduce GHG emissions. Incorporating energy
 efficiency activities into their climate policies can help
 local governments meet their GHG emission reduc-
 tion commitments and often reduce the costs of doing
 so. In addition, by making the link between climate
 change and energy efficiency, local governments are in
 a better position to gain support for both programs.
Integrate energy efficiency upgrades with other clean
energy objectives. Local governments have enhanced
the benefits of overall clean energy programs by
integrating energy efficiency with other clean energy
activities, such as green power purchases. Integrating
energy efficiency with other clean energy activities
can help local governments increase the visibility
of their clean energy activities and can increase the
cost-effectiveness of an overall clean energy program
by leveraging interactions between activities. For
example, local governments can improve the energy
and environmental profile of their electricity supply by
using the continuing energy cost savings from energy
efficiency upgrades to purchase larger percentages of
their electricity from green power sources, once the
initial costs of the upgrade are recovered. Combining
clean energy activities in this manner can lead to
increased political support for activities that require
a larger upfront investment. For more information
on how local governments have planned and imple-
mented green power purchases, see EPA's Green Power
Procurement guide in the Local Government Climate
and Energy Strategy Series.
    /\  Story County, Iowa, was able to recover the
        cost of installing geothermal energy storage
        equipment at a new facility within five years
   by coupling the installation with technical energy
   efficiency measures, including lighting upgrades,
   water heater retrofits, and window glazing.
   Aggregate energy cost savings over the first five
   years of the building's operation were greater than
   $200,000, which exceeded the cost of purchasing
   and installing the geothermal equipment by
   $25,000 (Story County, 2007).
Train staff to ensure energy efficiency improve-
ments are sustained. A number of local governments
coordinate training sessions for agency employees
and facility maintenance teams. These sessions can
be conducted by the local government, or by external
organizations, such as EPA's ENERGY STAR program.
ENERGY STAR offers free online training sessions
for local governments on a range of topics, including
Promoting Energy Efficiency in Your Community and
ENERGY STAR and the LEED Rating System (U.S. EPA,
2008m).10
                                                             10 See http://www.energystar.gov/index.cfm?c=government.bus^overn-
                                                             ment local training for more information.
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   Use a team approach to continually improve the
   energy efficiency program. Building a team of indi-
   viduals with diverse areas of expertise can be a critical
   step in implementing and continually developing a
   successful energy efficiency program.
       S\.  Many local governments, such as Medford,
      1 ffl f Massachusetts, have established scoping
       I—I  teams or energy efficiency advisory commit-
      tees, to create a forum for discussion to guide deci-
      sion-making related to existing energy efficiency
      programs. Medford's team members come from a
      number of backgrounds, including a meteorolo-
      gist, a public relations professional, an IT manager,
      a utility professional, teachers, students, and a
      community organizer, a representative diversity
      that helps the team plan with most sectors of the
      community in mind. To date, the committee has
      aided in the installation of a wind turbine at an
      elementary school, which provides 10 percent of
      the school's power needs, and solar panels for city
      hall; plans are underway for the installation of an
      additional $100,000 in solar panels for city prop-
      erty (Medford Clean Energy Committee, 2008).
   Strategies for Engaging the
   Community

   Local governments have also used implementation
   strategies that engage the community, the private
   sector, and other potential partners. Engaging multiple
   constituent groups serves to broaden the reach of the
   program message and participation, as well as access
   to ideas and tools. To help facilitate these partnerships,
   EPA has developed a Web site that provides informa-
   tion on how school districts, local governments, and
   other organizations can leverage community resources
   to support energy efficiency programs and promote
   energy efficiency. 11 The Web site outlines a five-step
   process for engaging the community. In addition,
   it provides examples and information resources,
   including  a fact sheet on examples of community-wide
   ENERGY  STAR events and key strategies for working
   with different types of groups within the community
   (U.S. EPA, 2008n).
   11 See http://www.energystar.gov/index.cfmyuseaction=chaUenge commu-
   nity.showlntroductionfor more information.
Local governments can gain access to additional
resources and increase the visibility of their programs
for improving energy efficiency by using some of the
following strategies:

Achieve more cost-effective energy efficiency
improvements by increasing economies of scale in
purchasing. Making small-scale or piecemeal energy
efficiency upgrades can be beneficial, but may impose
higher upfront costs on local governments. Working
together with nearby cities, towns, and counties to
aggregate purchases can reduce costs through bulk
discounts. Partnering can also create a network  of
colleagues for the exchange of ideas and best practices
while helping to coordinate local and regional goals
and policies.

Advance energy efficiency in the private sector. Local
governments have generated community-wide benefits
by extending the scope of their energy efficiency activi-
ties beyond their own facilities and operations to assist
local businesses and residents in improving energy
efficiency in their buildings. Programs for advancing
energy efficiency in the private sector can include
mandatory energy efficiency criteria for new buildings,
expedited review as an incentive for energy-efficient
development, and direct financial incentives for incor-
porating energy efficiency in facility design. Many local
governments offer such financial incentives for energy
efficiency investments, including rebates, low-interest
loans, and fee waivers.
        The city council in West Chester,
        Pennsylvania, unanimously voted to adopt a
        resolution that requires new commercial
   buildings higher than 45 feet to be designed to
   achieve the ENERGY STAR and to achieve the
   ENERGY STAR after one year of operation (West
   Chester, 2008).
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        The county council in Montgomery County,
        Maryland, passed a resolution in 2008
        requiring that beginning in 2010, all newly
   constructed single-family residences and all multi-
   family residences that are eligible to earn the
   ENERGY STAR score must achieve this score and be
   certified by a qualified home energy performance
   rater. The resolution also directs a Sustainability
   Working Group to evaluate and report on options for
   incentives to assist local residents and businesses
   improve energy efficiency (Montgomery County,
   2008).
        Asheville, North Carolina, waives permit and
   1 ffl F P^an ^ees f°r buildings that meet certain
   I—I  renewable energy and energy efficiency
   criteria, including a $100 waiver for residential
   new homes that are ENERGY STAR labeled
   (DSIRE, 2007).
   MASSACHUSETTS COMMUNITIES COMPETE TO
   CONSERVE ENERGY

   In 2007, four Massachusetts towns competed as part
   of ENERGY STAR'S "Change a Light, Change the World"
   campaign. The competition pitted the towns of Rowley
   and Georgetown against Groveland and Merrimac. Each
   of the towns' municipally-owned electric departments
   encouraged local businesses and residents to pledge to
   replace inefficient light bulbs with energy-efficient ones.
   One town, for example, gained 75 pledges for a total of
   402 bulbs replaced, translating to more than $7,000 in
   annual energy savings.

   Source: MMA, 2007.
Communicate the benefits of energy efficiency to
the public. Effective communication helps engage
and educate local businesses and residents about
energy efficiency, which can lead to broader adoption
of energy-efficient practices. Local governments have
reached out to businesses and residents using a variety
of strategies, including information sessions and by
challenging the public to meet community-wide goals.

When the city council of Missoula, Montana, adopted
an energy efficiency policy for new municipal
construction, it included directions on communi-
cating the benefits of improving energy efficiency to
the community by posting the results of a municipal
energy audit on its Web site and using a variety of
communications media to explain the reasons for the
city's investment in energy efficiency (Missoula, 2007).

Join regional, national, or international efforts. A
number of local governments have joined regional,
national, and international efforts to improve energy
efficiency and reduce GHG emissions. For example,
the International Council for Local Environmental
Initiatives (ICLEI) Cities for Climate Protection
campaign encourages local governments to reduce
energy consumption to achieve GHG emission reduc-
tion goals and provides local governments with infor-
mation and resources to do  so (ICLEI, 2008a).
   ARLINGTON COUNTY, VIRGINIA-SHORT PAYBACK
   PERIODS ON ENERGY EFFICIENCY INVESTMENTS

   Through its Arlington Initiative to Reduce Emissions
   (AIRE) program, Arlington County, Virginia, is generating
   significant energy cost savings by investing in energy
   efficiency in its facilities and operations. On average, the
   county's investments in energy efficiency are paid back
   in five years. However, many of its investments have had
   high returns on investment, leading to shorter payback
   periods. For example, the county implemented a $500
   energy efficiency project in one of its warehouses in 2006
   that produced annual energy cost savings of $10,000.
   In addition, a $6,000 lighting system retrofit at a teen
   detention facility is producing energy cost savings of
   $4,000 annually (resulting in a payback period of less than
   two years).

   Source: Arlington, 2007b.
    >\  More than 200 local governments have
   fW adopted the ENERGY STAR Challenge to
   I—I  improve energy efficiency in their buildings
   by at least 10 percent. The ENERGY STAR
   Challenge—Build a Better World 10% at a Time
   campaign calls on governments, schools, and busi-
   nesses across the country to identify energy effi-
   ciency measures in their facilities and improve
   energy efficiency by 10 percent or more. EPA esti-
   mates that if each building owner accepts this
   challenge, by 2015 Americans would save about
   $10 billion and reduce  GHG emissions by more
   than 20 million metric tons of carbon equivalent—
   equivalent to the emissions from 15 million vehi-
   cles (U.S. EPA, 2008i).
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   Work with neighboring local governments. Some
   local governments have increased the visibility of their
   energy efficiency programs and encouraged broader
   adoption of energy-efficient practices in the private
   sector by collaborating with neighboring local govern-
   ments to leverage public awareness.
           Ten local governments in Vermont and the
      Ifflf Upper Valley region of New Hampshire
      I—I  formed "town energy committees" that
      network to share information about local efforts to
      reduce energy consumption (SERG, 2008).
           In the Washington, D.C., area, local govern-
           ments are collaborating with businesses and
           residents to improve energy efficiency as part
      of the Energy Efficiency Partnership of Greater
      Washington (Washington, 2007).
   7  INVESTMENT AND
   FINANCING OPPORTUNITIES

   This section provides information on the size and
   payback periods associated with upfront investments
   in energy efficiency improvements in local govern-
   ment facilities and operations. It also identifies several
   financing opportunities that can help local govern-
   ments manage the costs of these investments.

   Investment

   Improving energy efficiency in local government
   facilities and operations is an investment that earns
   a return over time. The size and payback period (the
   length of time required to recoup upfront costs) of this
   investment varies depending on the extensiveness of
   the upgrade and the resources required. While some
   energy efficiency improvements require substantial
   upfront investment, the costs can often be quickly
   recovered. Life-cycle cost analysis, which measures the
   lifetime costs of design and construction, maintenance
   and replacement, and other environmental impacts,
   reveals the cost-effectiveness of energy efficiency
   upgrades. For more information on life-cycle cost
   analysis, see Section 3, Planning and Design Approaches
   to Energy Efficiency in Local Government Operations.
Life-cycle cost analyses can reveal short payback
periods for many energy efficiency investments.
Incorporating investments with short payback periods
into a comprehensive energy efficiency upgrade can
help reduce the overall payback period for the entire
project. For example, the third stage of the approach
for upgrading facilities described in Section.3 involves
reducing supplemental loads by purchasing energy-
efficient products. Purchasing these products, which
have short payback periods, can generate significant
energy cost savings that can shorten the payback
period for the building upgrade as a whole. Similarly,
behavioral adjustments such as setting thermostats
at lower temperatures in the winter can often be
implemented at no cost yet produce significant savings
and reduce the payback period of a comprehensive
upgrade. Other measures, such as caulking or sealing
seams in building envelopes, can be implemented at a
low cost yet produce substantial savings. Larger retro-
fits, such as HVAC system replacement or complete
lighting system upgrades, have higher initial costs but
can be cost-effective over the life of the investment.
Table 3, ENERGY STAR Specification Overviews: Energy
Savings and Payback Periods, illustrates the payback
periods for a variety of energy-efficient commercial-
capacity products.
        In 2001, Kings County, California, was able
        to reduce its typical peak energy costs by 10
        percent by altering its summer operating
   schedule to 7 a.m. to 4 p.m. for three months (Flex
   Your Power, 2003).
In addition, using a staged approach to improve energy
efficiency (as described in Section 3) can sometimes
minimize investment costs. Purchasing low-cost
energy-efficient products to reduce energy loads, for
example, can mean that energy savings goals can be
met using smaller energy-efficient building systems
(e.g., HVAC systems), which can reduce the purchase
and installation costs of the system (U.S. EPA, 2008g).
34
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TABLE 3.    ENERGY STAR SPECIFICATION OVERVIEWS: ENERGY SAVINGS AND PAYBACK PERIODS3
Product Category
Energy Savings Compared
to Conventional Product
Payback Period
Appliances
Dehumidifiers
Dishwashers
Refrigerators and freezers
Room air cleaners
Room air conditioners
15%
0 years (typically
no retail cost premium)
30% 2 years
20% (refrigerators) 3 years
10% (freezers)
40%
10%
0 years (typically
no retail cost premium)
Varies regionally
Commercial Food Service
Commercial fryers
Commercial hot food holding cabinets
5% (electric)
30% (gas)
<3 years
65% <5 years
Electronics
Battery charging systems 30% 0 years (typically
Combination units
Cordless phones
DVD products
External power adapters
60%
55%
35%
5%
0 years (typically
0 years (typically
0 years (typically
0 years (typically
Televisions 15% 0 years (typically
no retail cost premium)
no retail cost premium)
no retail cost premium)
no retail cost premium)
no retail cost premium)
no retail cost premium)
Envelope
Roof products
NA
0 years (typically
no retail cost premium)
Windows, doors, and skylights 7-24% Varies regionally
Lighting
Compact fluorescent lamps 75%
<1 year
Heating and Cooling
Air source heat pumps
10% Varies regionally
Boilers 5%
Ceiling fans
Furnaces
45% (with light kit)
10% (fan only)
15% (gas)
8% (oil)
< 5 year
< 4 years
< 5 years
                                                                7. INVESTMENT AND FINANCING
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  TABLE 3   ENERGY STAR SPECIFICATION OVERVIEWS: ENERGY SAVINGS AND PAYBACK PERIODS3 (cont.)
Product Category
Geothermal heat pumps
Energy Savings Compared
to Conventional Product
30%
Light commercial HVAC 5%
Ventilating fans
70%
Payback Period
Varies regionally
Varies regionally
0 years (typically no retail cost premium)
Other
Water coolers
45%
Vending machines 40%
0 years (typically no retail cost premium)
0 years (typically no retail cost premium)
" ENERGY STAR develops performance-based specifications to determine the most energy-efficient products in a particular product
category. These specifications, which are used as the basis for ENERGY STAR qualification, are developed using a systematic process that
relies on market, engineering, and pollution savings research and input from industry stakeholders. Specifications are revised periodically
to be more stringent, which has the effect of increasing overall market energy efficiency (U.S. EPA, 2007b). EPA and DOE screen all of the
specifications annually to determine if any require reassessment. These assessments may lead to a specification revision, a specification
being sunset, or no action being taken depending on market readiness for the next level. To view current ENERGY STAR criteria, please
visit http://www.energystar.gov/index.cfm?c=product_specs.pt_product_specs. To view specifications that are under review or revision,
please visit http://www.energystar.gov/index. cfm?c=prod_development.prod_development_index.
   Source: U.S. DOE, 2009; U.S. EPA, 2009c.
   Financing

   Upfront costs can present a barrier to improving
   energy efficiency in local government facilities and
   operations. However, delaying cost-effective energy
   efficiency improvements can also be costly; an activity
   not undertaken can result in increased operating costs.
   [As described on page 4 in Section 3, Planning
   and Design Approaches to Energy Efficiency in Local
   Government Operations, local governments can use the
   ENERGY STAR Cash Flow Opportunity Calculator to
   help make decisions about the most effective timing of
   energy-efficient product purchases (U.S. EPA, 2003a)].
   This subsection describes a variety of financing vehicles
   and funding sources that local governments can access
   to address financial barriers.
COSTS AND SAVINGS OF PERFORMANCE
CONTRACTING WITH ESCOs

In 2004, Lawrence Berkeley National Laboratory
conducted a study of the growth of ESCOs over the
preceding decade.

According to the survey, the average cost of an ESCO-
executed energy efficiency upgrade at the state and local
government level is approximately $2.93 per square foot,
and the average performance contract with an ESCO
for state and local governments is approximately 9.5
years. The average project costs $980,000 and produces
energy cost savings of approximately 14 kBtu per square
foot, which translates into a median payback period of
8.8 years.

Source: LBNL, 2004.
36
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FINANCIAL VEHICLES

Financing refers to accessing new funds through means
such as loans, bonds, energy performance contracts,
lease-purchase agreements, and grants to pay for
energy efficiency upgrades (Zobler and Hatcher, 2008).
Financial vehicles can be used to access the sources of
funding described in the following subsection to obtain
the capital for energy efficiency upgrades. Financial
vehicles that local governments use to finance energy
efficiency improvements include:

Energy performance contracts. An energy perfor-
mance contract is an arrangement with an ESCO
or energy service provider (ESP) that allows a local
government to finance energy-saving capital improve-
ments—usually over a 7-15  year term—with no initial
capital investment by using money saved through
reduced utility expenditures. Energy performance
contracts bundle energy-saving investments (e.g.,
energy audits, design and specification of new equip-
ment, ongoing maintenance, measurement and
verification of product performance, indoor air quality
management, and personnel training) and typically
offer financing (Zobler and Hatcher, 2008).
   AMHERST, NEW YORK: WORKING WITH ESCOS

   Amherst, New York, which has an electricity budget of
   $2.7 million and a total operating budget of $100 million,
   used an energy performance contract to implement
   energy efficiency upgrades in a number of its facilities.

   The town entered into a guaranteed savings agreement
   with an ESCO that maximized the amount  of new
   equipment that could be purchased from the energy
   savings. The result was a $5.2 million project that included
   the city's ice skating rinks, police station, three community
   and recreational centers, four libraries, a museum, and the
   local wastewater  treatment facility. The ESCO guaranteed
   $5 million in savings on these projects. The actual savings
   exceeded projected savings by 16%.

   Source: U.S. EPA, 2004.
An ESCO often provides a guarantee that energy cost
savings will meet or exceed annual payments covering
all activity costs. Such guaranteed savings agreements
are the most common type of performance contract
in the public sector.12 If the savings do not occur, the
ESCO pays the difference. Some performance contracts
include a reserve fund to cover potential shortfalls,
while others provide security enhancements in the
form of performance bonds or letters of credit. In some
instances, performance insurance may be available
(Zobler and Hatcher, 2008).

ESCOs often offer financing as part of the performance
contract. However, because ESCOs are private sector
firms that typically borrow at taxable, commercial
rates, it is often possible for a public sector entity to
secure better financing arrangements by taking advan-
tage of lower, tax-exempt interest rates available to
government entities  (U.S. EPA, 2003d).
   BUFFALO, NEW YORK-LEASE-PURCHASE AGREEMENT

   Buffalo, New York, used a $3.5 million tax-exempt
   municipal lease-purchase agreement to help finance
   energy efficiency upgrades to 55 public buildings,
   including lighting retrofits, installation of high-efficiency
   motors, HVAC upgrades, and installation of building
   energy management systems. The investment is expected
   to produce $6.1 million in energy cost savings over a 15-
   year period, with a payback period of less than nine years.
   After just four years, Buffalo is saving more than $600,000
   annually in energy costs.

   Sources: U.S. DOE, Undated; NASEO, 2002.
        Compton, California, entered a performance
        contract to install energy-efficient equipment
        in a number of its facilities, including new
   lighting systems with occupancy sensors, street
   lighting fixtures, chillers, and energy efficiency
   management controls. The performance contract,
   which will be paid for with guaranteed energy effi-
   ciency savings, is expected to produce savings of
   more than $4.4 million over 15 years (Johnson
   Controls, 2007).
                                                               12 .Another type of agreement is an own-operate agreement, in which the
                                                               ESCO maintains ownership of the facility and sells back its output to the state
                                                               entity.
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        Through the Washington State Department
        of General Administration, Kent,
        Washington, secured an energy performance
   contract to retrofit the heating system of one of its
   buildings and to perform energy efficiency
   upgrades in its recreational center with no upfront
   costs (AWC, 2006b).
        The Baltimore Public Works Energy Office
        used energy performance contracts to install
        LED lights in traffic signals and retrofitted 23
   city buildings. The costs for these improvements,
   estimated to be a combined $11.5 million, are all
   to be paid from energy cost savings (Baltimore,
   2006).
Lease-purchase agreements. A tax-exempt lease-
purchase agreement (also known as a municipal lease)
allows public entities to finance purchases and instal-
lation over long-term periods using operating budget
dollars rather than capital budget dollars.
   WESTMINSTER, COLORADO-LEASE-PURCHASE
   AGREEMENT

   The city council in Westminster, Colorado, passed a
   resolution in 2005 that authorized the city to enter into
   a lease-purchase agreement to purchase and install
   approximately $2.5 million in energy-efficient equipment
   in 21 city facilities. The city issued a request for proposals
   for financing bids for the project and the city was able to
   settle on a lease-purchase agreement with a low interest
   rate of 3.79%. The city council considered cash-funding
   the purchase, but determined that capital improvement
   budget constraints would mean that the project would
   have to be implemented piecemeal over 8-12 years.

   Source: Westminster, 2005.
        Boulder, Colorado, uses operating budget
        dollars and capital investment plan funds
        (which are designed to automatically fund
   upgrades at the end of a piece of equipment's
   useful life) to pay for energy-efficient equipment
   purchased through lease-purchase agreements
   (Colorado Energy, 2007).
Lease-pur chase agreements typically include "non-
appropriation" language that limits obligations to the
current operating budget period. If a local govern-
ment decides not to appropriate funds for any year
throughout the term, the equipment is returned to
the lessor and the agreement is terminated. Because
of this non-appropriation language, lease-purchase
agreements typically do not constitute debt. Under this
type of agreement, a local government makes monthly
payments to a lessor (often a financial institution) and
assumes ownership of the equipment at the end of the
lease term, which commonly extends no further than
the expected life of the equipment. These payments,
which are often less than or equal to the anticipated
savings produced by the energy efficiency improve-
ments, include added interest. The interest rates that
a local government pays under these agreements are
typically lower than the rates under a common lease
agreement because a public entity's payments on
interest are exempt from federal income tax, meaning
the lessor can offer reduced rates (U.S. EPA, 2004).

Unlike bonds, initiating a tax-exempt lease-purchase
agreement does not require voter referendum to
approve debt, a process that can delay energy efficiency
improvements. Tax-exempt lease-purchase agreements
typically require only internal approval and an attor-
ney's letter, a process that can often take one week (as
opposed to months or years for bonds). Local govern-
ments can expedite the process by adding energy effi-
ciency projects to existing tax-exempt lease-pur chase
agreements. Many local governments have master
lease-purchase agreements in place to finance a range
of capital investment projects.  Energy-efficient product
procurement can often be added to these agreements
without difficulty (U.S. EPA, 2004). For examples of
energy-efficient product procurement by local govern-
ments, see EPA's Energy-Efficient Product Procurement
guide in the Local Government Climate and Energy
Strategy Series.

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        Shenendehowa Central School District in
        Clinton Park, New York, faced high energy
        and maintenance costs in seven aging build-
   ings, due mainly to inefficient equipment. With
   constrained budgets and a reluctance to approach
   taxpayers for additional bond financing, the
   school district chose to obtain funds for energy
   efficiency upgrades from a commercial lender
   using a tax-exempt lease-purchase agreement for a
   period of 10 years. Repayments were limited to
   operating budget savings, rather than capital
   budget spending. The agreement allowed the
   school district to make the necessary upgrades
   without raising taxes (U.S. EPA, 2004).
In addition, many local governments have found
that the interest rates available through tax-exempt
lease-purchase agreements are typically lower than the
rates offered by an ESCO. Tax-exempt lease-pur chase
agreements can be especially effective when used to
underwrite energy performance contracts that include
guaranteed savings agreements, under which an ESCO
agrees to reimburse any shortfalls in expected energy
cost savings.
   TAX-EXEMPT LEASE PURCHASE AGREEMENTS AND
   ENERGY PERFORMANCE CONTRACTING

   The Miami-Dade County Public School District financed
   energy-efficient equipment installations in its facilities
   at a reduced cost by adding guaranteed savings energy
   performance contracts with three ESCOs to an existing
   tax-exempt master lease-purchase agreement, rather
   than financing the projects directly through the ESCOs.
   Through the master lease-purchase agreement, the school
   district has invested $9.5 million in energy efficiency. The
   investments produced savings of $3.5 million after just
   three years.

   Sources: U.S. EPA, 2003c; U.S. EPA, 2004.
Public bonds. Bonds are well-suited for energy effi-
ciency projects. Since bonds allow amortization of
capital costs over a multi-year repayment term, they
recover their costs through energy savings over the life
of the project.
        Alexandria, Virginia, for example, uses
        public bonds to supplement its capital
        budget allocation for its Energy
   Conservation Fund (U.S. Mayors, 2007). This fund
   is being used to achieve a goal of reducing energy
   consumption in local government facilities  by
   three percent per year by 2015, for an overall
   reduction of 20 percent from 2007 levels
   (Alexandria, 2008).
State government loans, rebates, and other assis-
tance. Some states, such as Oregon and Maryland,
have loan programs to help local governments finance
energy efficiency activities (Oregon, 2006; Maryland
Energy Administration, 2006). These programs often
provide financial assistance to local governments via
low-interest loans that can be paid off using energy
cost savings. Other states, such as Kansas, help local
governments with energy performance contracting and
provide financing guidance to local agencies (Kansas
Corporation Commission, 2003).
   MICHIGAN INCENTIVE FOR ENERGY STAR LABELING

   The Michigan Department of Labor & Economic Growth
   offers an incentive to any public school, college,
   university, local government, or state or federal agency
   that has applied for the ENERGY STAR building label. The
   incentive covers 50 percent of the professional engineer's
   verification fee for the statement of energy performance,
   with a maximum incentive of $1,000 for a building's first
   year of labeling, and a maximum of $500 for a building
   that renews its label.

   Source: Michigan DLEG, undated.
        The town of Johnsburg, New York, received
        technical assistance and a $94,000 incentive
        from the New York State Energy Research
   and Development Authority to help pay for energy
   efficiency improvements in its new community
   center. The investment has saved the town $24,000
   in annual energy costs (NYSERDA, 2007).
For more information on state financial assistance,
see Table 4, Examples of States Providing Technical
and Financial Assistance to Local Governments,
on page 43.
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   Utility rebates and other incentives. A number of
   local governments have used rebates or other financial
   assistance from utilities to offset the cost of improving
   energy efficiency in their facilities. The Database of
   State Incentives for Renewables and Efficiency provides
   information on utility incentives available in each state
   (http:/'/www. dsireusa.org/).
            The New Jersey Clean Energy Program,
            funded by the state's seven electric and
            natural gas investor-owned utilities, offers
      local governments the chance to have a compre-
      hensive energy audit at low or no cost. Once the
      audit is complete, a list of cost-effective energy effi-
      ciency recommendations will be generated. Local
      governments are eligible for any of the incentives
      offered to commercial property owners through
      the Smart Start Buildings* program, including
      product rebates and custom incentives. A multiple
      measure bonus is available, as well as design and
      technical assistance, depending on the size of the
      project (NJ CEP, 2009).
   FUNDING SOURCES

   Numerous funding sources can support local govern-
   ment energy efficiency investments, including capital
   and operating budgets, revolving loan funds, public
   benefits funds (PBF), private foundations, and federal
   tax incentives. These sources can be accessed through
   the financial vehicles described above to provide the
   capital for energy efficiency upgrades. For example,
   a revolving loan fund or a state-run PBF can provide
   funding to a state agency via a financial vehicle such as
   a loan or a grant. This subsection describes how local
   governments have used different funding sources.
      IOWA ENERGY BANK

      The Iowa Energy Bank combines private and public funds
      to finance energy efficiency improvements in public
      schools and local governments. The bank conducts energy
      audits and engineering analyses, negotiates financing
      terms with private lenders, and uses energy cost savings
      from previous projects to provide upfront funding.

      Source: Iowa, 2006.
Capital budgets and operating budgets. Using capital
or operating budgets funds has many advantages:
funding is already on hand, there is no need to nego-
tiate financing arrangements, and there are no interest
payments. Using life-cycle cost accounting to quantify
the lower net capital and future operating costs can
help local governments improve the chances of incor-
porating energy efficiency into their limited capital
budgets (Zobler and Hatcher, 2008).

Many local governments have used a "paid from
savings" approach to fund purchases of energy-efficient
products that have cost premiums by reserving energy
cost savings generated from their energy efficiency
activities to pay for energy-efficient products.
        In 1984, Phoenix, Arizona, established an
        energy conservation savings reinvestment
        plan. A reinvestment fund was created using
   money collected from a state oil overcharge. Under
   the reinvestment plan, half the city's annual energy
   cost savings from energy efficiency improvements
   funded through the plan are reinvested in the fund
   to provide for future improvements. The fund has
   been used to offset the costs of new energy-effi-
   cient equipment in city buildings (ICLEI, 2007).
   ANN ARBOR, MICHIGAN-MUNICIPAL ENERGY FUND

   The Ann Arbor, Michigan, Municipal Energy Fund is an
   excellent example of how energy efficiency can pay for
   itself in the long term. The fund started with an initial
   payment of $100,000 per year over five years, capturing
   80 percent of the resulting savings for reinvestment back
   into new energy-saving projects. As these new saving
   projects grow, their energy and cost savings increase. By
   year five, future investment is based solely on payment
   of past projects to finance new ones. Annual cost savings
   enabled by the fund total $142,000 across 60 facilities.

   Sources: Ann Arbor, 2007; C40 Cities, 2008.
40
       7. INVESTMENT AND FINANCING
                                             Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

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 Revolving loan funds. Revolving loan funds are capital
 funds that make loans, collect payments, and re-lend
 these payments to fund new projects. The original
 capitalization can come from many sources, including
 legal settlements, billing corrections, or extended bond
 payments after the end of the bond term. Revolving
 loan funds typically offer below-market rates and long-
 term loans for energy efficiency or renewable energy
 projects.
         The St. Paul, Minnesota, Energy
         Conservation Investment Fund was created
         in 2007 using existing sewer fund balances
    and energy cost savings from past energy effi-
    ciency improvements. The revolving loan fund will
    be used to invest $1 million in energy efficiency
    upgrades with a payback of less than 10 years for
    city-owned buildings (St. Paul, 2009).
1 Public benefits funds (PBFs). Public benefits funds
 are state-mandated funds that can be used to support
 energy efficiency activities. These funds are collected
 through a small required per-kWh surcharge on
 customer electricity bills. States sometimes allow local
 governments to use these funds for local energy effi-
 ciency activities.
         In Wisconsin, for example, Focus on Energy,
         a PBF-funded program sustained by a state
         system benefits charge, provides technical
    and financial assistance to local governments for
    implementing qualifying energy efficiency
    measures (Focus on Energy, 2008). Oshkosh,
    Wisconsin, used Focus on Energy-issued rebates to
    install 2,900 LED traffic signals that collectively
    save the city $40,000 in energy costs annually
    (Focus on Energy, 2003).
 Private foundations (grants). Foundations are
 nonprofit corporations or charitable trusts that can
 help fund local government energy efficiency activities.
 The most common types of funding include grants and
 program-related investments (which are usually set up
 with a repayment schedule).
        The Illinois Clean Energy Community
        Foundation, for example, administers seven
        indoor lighting programs that provide grants
   to local government entities, including schools,
   county courthouses, and public safety facilities, to
   assist in purchasing and installing energy-efficient
   lighting systems (ICECF, 2007).
Federal tax incentives. The Internal Revenue Service
Code includes a number of tax incentives for energy
efficiency investments. For example, the Energy
Policy Act (EPAct) of 2005 authorizes several financial
incentives to support local government energy effi-
ciency activities, including tax deductions for energy
efficiency upgrades in commercial (including public)
facilities at the local level. For buildings that achieve
annual energy cost reductions of 50 percent or greater,
EPAct provides for tax deductions of up to $1.80 per
square foot off the cost of installing energy-efficient
HVAC systems, building envelope components, and
lighting systems. EPAct allows for the tax savings to be
passed  on to private designers and developers in lieu of
the public entity. EPAct also created the Low Income
Community Energy Efficiency Pilot Program, which
authorized $20 million in DOE grants to fund energy
efficiency activities in low-income areas.13


8.  FEDERAL, STATE,
AND OTHER PROGRAM
RESOURCES

Many local governments work with federal, state, and
regional agencies and organizations when planning
and developing programs for improving energy effi-
ciency in their facilities and operations. These entities
can also provide information resources and financial
and technical assistance, as described below.

Federal Programs

U.S. EPA State and Local Climate and Energy Program.
This program assists state, local, and tribal govern-
ments in meeting their climate change and clean
energy efforts by providing technical assistance,
analytical tools, and outreach support. It includes two
programs:
                                                            13 See http://www.energystar.gov/index.cfm?c=products.pr tax credits#s8
                                                            for more information on federal tax incentives for energy efficiency
                                                            investments.
 Energy Efficiency in Local Government Operations | Local Government Climate and Energy Strategy Series
                                                                                              8. RESOURCES
                                                                                                              41

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    The Local Climate and Energy Program helps
    local and tribal governments meet multiple
    sustainability goals with cost-effective climate
    change mitigation and clean energy strategies.
    EPA provides local and tribal governments with
    peer exchange training opportunities and financial
    assistance along with planning, policy, technical,
    and analytical information that support reduction
    of greenhouse gas emissions.

    The State Climate and Energy Program helps
    states develop policies and programs that can
    reduce greenhouse gas emissions, lower energy
    costs, improve air quality and public health, and
    help achieve economic development goals. EPA
    provides states with and advises them on proven,
    cost-effective best practices, peer exchange oppor-
    tunities, and analytical tools.

Web site: http://www.epa.gov/statelocalclimate/

ENERGY STAR. The ENERGY STAR program helps
building owners and occupants achieve superior
energy management and realize the cost savings
and environmental benefits that can result.  The
ENERGY STAR staff and Web site provide targeted
information resources, technical assistance, tools, and
communications and outreach support to help state
and local governments improve energy efficiency in
facilities throughout the community. (More informa-
tion on ENERGY STAR tools and resources for local
governments can be found in Table 1, ENERGY STAR
Program Resources, on page 6.)

Web site: http://www.energystar.gov/

DOE Building Technologies Program. The Building
Technologies Program partners with private and
public sector organizations to improve building energy
efficiency. This program supports research and devel-
opment and provides assistance to those interested in
building efficiency through its Web site, which contains
tools, guidelines, training information, and informa-
tion about accessing financial resources.
Web site: http://www.eere.energy.gov/buildings/

Whole-Building Design Guide (WBDG). This
National Institute of Building Sciences project provides
information on building design, project management,
and O&M to designers and administrators. The WBDG
Web site provides information on a broad range of
building types and offers numerous case studies, tools,
and guidance documents. A number of federal agen-
cies, including EPA and DOE, are represented on the
WBDG Advisory Committee.

Web site: http://www.wbdg.org/

State Programs

Many states have programs that provide technical and
financial assistance for energy efficiency activities to
local governments. This assistance enables state and
local agencies to share information about energy effi-
ciency improvements and help develop consistent clean
energy activities across the state.

Table 4, Examples of States Providing Technical and
Financial Assistance to Local Governments, provides
examples of state programs that support local govern-
ment energy efficiency activities.
                                                                   8. RESOURCES | Assessing The Multiple Benefits Of Clean Energy  42

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TABLE 4.   EXAMPLES OF STATES PROVIDING TECHNICAL AND FINANCIAL ASSISTANCE TO LOCAL
          GOVERNMENTS
State Description URL
Technical Assistance
California
Massachusetts
Oregon
Pennsylvania
Texas
West Virginia
The California Energy Commission's (CEC) Energy Partnership Program offers
technical assistance to cities, counties, hospitals, and colleges and universities.
The program helps these local groups identify energy efficiency improvements in
existing buildings and energy-efficient options in new construction. The CEC also
helps these groups identify state loans and other financing sources for project
installation.
In the Executive Office of Environmental Affairs, the Commonwealth of
Massachusetts has created a Green Communities Division that focuses on
providing technical and financial assistance to local governments and school
districts. Areas of particular focus include energy audits, energy information
reporting, energy management systems, and energy management committee
formation. Funding for the program comes from a variety of sources, including
emissions allowance trading programs, utility efficiency charges, alternative
compliance payments generated by the state's renewable portfolio standard, and
the state Renewable Energy Trust Fund.
http://www.energy.ca.gov/
efficiency/partnership/index.
html
http://www.mass.gov/7pagelD
=eoeeasubtopicfrL=3&LO=Hom
e&Ll=Energy%2C+UtiUties+%2
6+Clean+TechnologiesfrL2=Gr
een+Communitiesfrsid=Eoeea
Oregon's Department of Energy provides assistance to public entities through http://www.oregon.gov/
multiple programs, including the Building Commissioning Program, which ENERCY/CONS/COV/govhme.
helps building managers perform evaluations and implement energy cost-saving shtml
strategies.
The Pennsylvania Department of Environmental Protection maintains a Web page,
Local Government and Municipal Energy Assistance, to assist local governments
in improving energy efficiency through developing energy management plans.
The Schools/Local Government Energy Program provides services to assist in
setting up and maintaining effective energy efficiency programs.
The Building Professionals Energy Training Program offers building code
seminars to educate local government officials about the latest codes and
building technologies.
http://www.portaistate.pa.us/
portal/server.pt?open=
S14&objlD=SS2379amode=2
http://www.seco.cpa.state.
tx.us/sch-gov.htm
http://www.wvcommerce.org/
info/aboutcommerce/energy/
programs.aspx
Financial Assistance
California
Iowa
Kansas
Maryland
Missouri
The CEC's Energy Efficiency Financing Program provides low-interest loans for
public schools, public hospitals, and local governments to fund energy audits and
install energy efficiency measures.
Iowa's Building Energy Management Program is an energy management program
for public and nonprofit entities that provides technical and financial assistance
for building energy efficiency upgrades.
The Kansas Facility Conservation Improvement Program provides low-interest,
tax-exempt energy performance contracting agreements to state and local public
agencies.
The Jane E. Lawton Conservation Loan Program provides Maryland local
governments with financial assistance to reduce energy costs. The program
allows energy savings generated by efficiency upgrades to be the major source of
loan repayment.
Through its Energy Revolving Fund, the Missouri Energy Center offers low-
interest loans for energy efficiency improvements in public schools, local
government, public hospitals, and public water treatment facilities. The loans are
paid back using the energy savings generated from the project.
http://www.energy.ca.gov/
efficiency/financing/index.html
http://www.energy.iowa.gov/
Energy%20Efficiency/BEST.
html
http://www.kcc.state.ks.us/
en ergy/fcip/financing. h tm
http://energy.maryland.gov/
govt/janeelawton.html
http://www.dnr.mo.gov/
energy/financial/loan. htm
                                                                       8. RESOURCES
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  TABLE 4.   ENERGY STAR SPECIFICATION OVERVIEWS: ENERGY SAVINGS AND PAYBACK PERIODS3 (cont.)
     New Jersey      The New Jersey Clean Energy Program offers financial incentives and low-
                    interest financing to schools and local governments. The program combines
                    the traditional rebate program with incentives and financing, giving schools and
                    local governments the flexibility to implement cost-effective energy efficiency
                    activities immediately.
                                                                     http://www.njcleanenergy.
                                                                     com/commercial-industrial/
                                                                     home/home
     North
     Carolina
The North Carolina Division of Pollution Prevention and Environmental
Assistance administers Local Government Assistance, providing technical and
financial assistance to local governments on implementing energy-related and
environmental activities.
http://www.p2pays.org/
localgov/
    Tennessee       Through its Local Government Energy Loan Program, the Tennessee Department
                    of Economic and Community Development provides low-interest loans to
                    municipal and county governments for energy efficiency improvements.
                                                                     http://www. tennessee.gov/
                                                                     ecd/CD_local_gov_energy_
                                                                     loan.html
   Other Programs

   ICLEI Local Governments for Sustainability.
   ICLEI—Local Governments for Sustainability
   (ICLEI)—is a membership association of local govern-
   ments that have committed to adopting sustainable
   approaches to addressing climate change and other
   environmental threats through a range of activities,
   including energy efficiency. ICLEI members receive
   access to a suite of tools and resources that they can
   use to plan and implement their energy efficiency
   programs, including software with training, technical
   and communications assistance, information sharing,
   best practices, and opportunities for recognition.

   Web site: http://www.icleiusa.org/
      LOCAL ASSOCIATIONS: INTEGRATING ENERGY
      EFFICIENCY AND CLIMATE CHANGE

      The U.S. Conference of Mayors (USCM) and the National
      Association of Counties (NACo) have both passed
      resolutions supporting EPA's ENERGY STAR Challenge to
      reduce energy consumption in public and private buildings
      by 10 percent or more. They promote ENERGY STAR tools
      and resources to members working to meet their climate
      protection and energy efficiency goals.

      Sources: NACo, 2005b; U.S. Mayors, 2008.
                                            • U.S. Conference of Mayors. The USCM Climate
                                             Protection Agreement commits mayors to reduce GHG
                                             emissions in their cities to at least 7 percent below 1990
                                             levels by 2012. The Climate Protection Center provides
                                             guidance to mayors on leading their cities' efforts to
                                             reduce GHG emissions linked to climate change and
                                             publishes best practices, including examples of cities
                                             that are taking the lead in this effort by improving
                                             energy efficiency in their buildings and operations.

                                             Web site: http://www.usmayors.org/dimateprotection/

                                             National Association of Counties (NACo). The
                                             NACo Green Government Initiative provides local
                                             governments with resources on energy and other
                                             environmental issues related to government facili-
                                             ties and operations. Through the initiative, NACo
                                             facilitates information sharing between governments
                                             and promotes collaboration with the private sector.
                                             In addition to other publications and information
                                             resources, NACo administers a Green Government
                                             Database that enables local governments to search for
                                             case studies on specific topics. Through the ENERGY
                                             STAR Courthouse Campaign, NACo provides assis-
                                             tance to county governments in improving energy
                                             efficiency in county courthouses and other buildings
                                             by assisting them in joining EPA's ENERGY STAR
                                             program. In addition to saving energy costs, improving
                                             energy efficiency in county courthouses can be a way
                                             of increasing public awareness of local clean energy
                                             activities (NACo, 2008).

                                             Web site: http://www.naco.org/programs/csd/pages/
                                             greengovernmentinitiative.aspx
44
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Playbook for Green Buildings and Neighborhoods.
The Playbook is an online resource developed by a
team of local government, non-profit organizations,
and federal government agencies that provides local
governments with information, strategies, and tools
for building green buildings, neighborhoods, and
infrastructure. For each of these three subject areas, the
Playbook provides information to assist local govern-
ments in the information gathering, planning, and
implementation stages of their activities.

Web site: http://www.greenplaybook.org/

Regional programs. Local governments can often
obtain information and assistance from numerous
other regional programs and initiatives, such as the
Rocky Mountain Climate Organizations Colorado
Climate Agenda (RMCO, 2006), which provide
resources to local governments for implementing
energy efficiency activities. In Monterey County,
California, several municipalities—as part of the
Association of Bay Area Governments—have part-
nered with an investor-owned utility to create an
energy watch program that administers energy effi-
ciency services to local residents and businesses. The
program also offers technical consultation for local
government buildings (ABAC, 2007).

Web sites: http://www.coloradoclimate.org/
http://www. atnbag. org/progratns/EnergyWatch/
municipal.html
   ASSOCIATION OF WASHINGTON CITIES LOCAL
   GOVERNMENT ENERGY PROJECT

   The Association of Washington Cities' Local Government
   Energy Project provides assistance to local governments
   on energy efficiency and energy policy matters. The
   association monitors regional and state energy policy
   issues and represents its constituent cities in state and
   federal energy policy development.

   Source: AWC, 2006a.
9.  CASE STUDIES

The following case studies describe two local govern-
ments' comprehensive programs for improving energy
efficiency in their facilities and operations.
Arlington County, Virginia-
County Energy Manager and
the Fresh AIRE Program

Arlington County, Virginia, has a long-standing
commitment to sustainability and has been investing
in energy efficiency since the mid-1990s. The county's
efforts to improve efficiency in municipal facilities and
operations were institutionalized under the Fresh AIRE
(Arlington Initiative to Reduce Emissions) program,
which seeks to reduce county GHG emissions through
a comprehensive suite of actions that also includes
investing in renewable energy, using alternative
fuels and high-efficiency vehicles, and planting trees
to capture and sequester carbon. The Fresh AIRE
program strives to not only to change government
practices directly, but to also work to modify practices
of residents and businesses by providing incentives and
leading by example (Arlington 2007b; Arlington, 2008;
Arlington, 2010a.)

PROGRAM INITIATION

The Fresh AIRE program was launched in January
2007 under the guidance of the county's energy
manager. The initiative aims to reduce GHG emissions
in county buildings and operations by 10 percent from
2000 to 2012 through  several efforts, but focusing
primarily on energy efficiency improvements. The
county has since expanded the program by endorsing
the Cool Counties Climate Stabilization Declaration
and committing to halt growth in community-wide
greenhouse gas emissions by 2010 and pursue aggres-
sive reductions thereafter (Arlington, 2008; Arlington,
2010).

PROGRAM FEATURES

To help achieve the goal of reducing GHG emis-
sions from county facilities and operations, a major
component of the Fresh AIRE program has focused
on improving municipal energy efficiency. Projects
have ranged from low-cost/no-cost measures, such as
turning off lights and lowering thermostat settings,
to longer-term durable investments in more efficient
technology. Table 5, Municipal Energy Efficiency
Investments and Savings for Arlington County, VA,
illustrates the range of projects the county has
undertaken and many of the energy reductions that
have been achieved or that are expected in the near
future once projects are completed. All of the county's
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                                                                                            9. CASE STUDIES
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   improvements to date have payback periods of no
   more than five years, providing a 20 percent return on
   investment each year, with expected savings every year
   after (Arlington 2007b).

   Arlington County has also partnered with ENERGY
   STAR and is using Portfolio Manager to benchmark
   and assess the energy performance of its buildings. To
   demonstrate the progress the county is making under
   the Fresh AIRE program and to increase the transpar-
   ency of the energy usage and cost of county facilities
   and operations, the county is publicly disclosing this
   information in Building Energy Report Cards for all
   67 of its buildings. The first report cards were released
   in March 2009 and made available on the Fresh AIRE
   Web site (http://www.arlingtonva.us/Departments/
   Communications/PressReleases/page69193.aspx).
Since the county government's facilities and opera-
tions account for less than 4 percent of the carbon
emissions in Arlington, the county has recognized
the need to engage the community in order to make
a larger impact and to achieve broader emissions
reduction goals. Through the Fresh AIRE program,
the county has assisted local business and residents in
improving energy efficiency by offering free energy
audits, providing information on ENERGY STAR
tools and resources, helping to identify alternative and
fuel-efficient transportation options, and encouraging
recycling and water conservation practices (Arlington,
2010a).
  TABLE 5.     MUNICIPAL ENERGY EFFICIENCY INVESTMENTS AND SAVINGS FOR
                ARLINGTON COUNTY, VIRGINIA
Activity Cost Savings
Activity
Central Library: Improvements to operations and
maintenance procedures and building controls;
investments in more efficient lighting and
equipment.
Assistance
Not available.
Madison Community Center: Reinsulated hot water Not available.
pipes, improved temperature controls
Department of Public Works: Upgraded thermostats
in former garage bays.
Assistance
Reduced electricity use by 25%, saving more
than $30,000 per year, a
Reduced natural gas use over 20%, enough to
heat six homes for the winter, a
Not available. Reduced natural gas use by about 50%, saving
over $10,000 per year, b
Teen Detention Center: Lighting retrofit. $6,000 Reduced electricity use by 30%, saving $4,000
per year, a
Justice Center (Courthouse & Detention Center):
Efficiency improvements to electrical, heating,
cooling, and plumbing systems. Project expected to
be completed summer 2009.
Traffic Lights: Retrofitting all signalized intersections
with light-emitting diode (LED) lights. Project
expected to be completed by 2010.
No upfront cost— county's
first energy saving
performance contract for
$5.3 million.
Not available.
Expected to save $480,000 per year by
reducing electricity use by 14%, natural gas
use by 35%, and water consumption by 32%. b
Expected to reduce electricity use by 25%,
enough to power 250 homes. Longer life
expectancy of LED bulbs than incandescent
bulbs also expected to reduce maintenance
costs, a
"Arlington, 2007b.
"Arlington, 2010a.
46
       9. CASE STUDIES
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    Profile: Arlington County, Virginia
    Area: 26 square miles
    Population: 206,800 (2008)
    Structure: Residents elect a county board, which
    consists of five members, each serving four-year
    terms. The county also has five constitutional
    officers: a sheriff, court clerk, attorney, treasurer,
    and commissioner of revenue. The Fresh AIRE
    (Arlington Initiative to Reduce Emissions)
    Program is administered by the county's energy
    manager under the Department of Environmental
    Services.
    Program Scope: The program is a collaborative
    between county government, businesses,
    organizations, and individuals to improve energy
    efficiency and reduce GHG emissions throughout
    the community. Program activities include
    energy-saving retrofits to county buildings,
    installation of LED traffic lights, providing free
    energy audits to residents and businesses,
    distributing energy-efficient light bulbs, and
    providing tips and resources for promoting
    energy efficiency.
    Program Creation: Fresh AIRE was launched in
    2007 with the initial goal of reducing the county
    government's greenhouse gas emissions by 10
    percent from 2000 levels by 2012. The program
    later expanded to include businesses and
    residents.
    Program Results: From 2000 to 2005, Arlington
    County reduced its GHG emissions 2.6 percent, in
    part by reducing its energy use per square foot in
    county buildings and facilities by 6 percent over
    the same period. The County Energy Manager
    received an EPA Climate Protection Award in
    2008 for his success in working toward efficiency.
PROGRAM RESULTS

From 2000 to 2005, Arlington County reduced its
GHG emissions 2.6 percent, in part by reducing its
energy intensity (energy use per square foot) in county
buildings and facilities by 6 percent over the same
period (Arlington, 2007a). The first series of Building
Energy Report Cards compares energy consumption
in buildings in 2007 with energy consumption in
the same buildings in 2009 and indicates that energy
intensity fell a further 4 percent during that time. The
report cards also reveal that Arlington's efficiency
efforts under the Fresh AIRE program reduced energy
consumption by more than 3,000,000 kWh of elec-
tricity and more than 20,000 therms of natural gas,
saving the county approximately $300,000 even though
the winter months were colder in 2009 than in 2007.
As a result, total energy use in all county buildings
declined by 4 percent, even though the county added
several new buildings and performed renovations to
others (Arlington, 201 Ob).

Web site: http://www.arlingtonva.us/portals/Topics/
Climate.aspx


Phoenix, Arizona—Energy
Conservation Program

Initiated during the oil shortage of the late 1970s, the
Phoenix Energy Conservation Program has been tied
into a broader sustainability program that includes
activities in environmental leadership, land use, recy-
cling, transportation, water conservation, and historic
preservation in addition to energy efficiency. Overall,
the Energy Conservation Program has saved the city
approximately $75 million from the beginning of the
program through 2006.

PROGRAM INITIATION

The Energy Conservation Program was initiated when
the city hired an energy manager in 1978 to oversee
energy use in municipal buildings and to identify
energy waste. Within one year, the energy manager's
efforts saved the city $150,000. In 1984, the city
established an energy conservation savings reinvest-
ment plan, under which half of all energy savings
are reinvested into a fund to finance future energy
efficiency upgrades. By 1986, the city was achieving
annual energy cost savings in excess of $1 million. In
2002, a general plan was established to guide land use,
environmental, and community planning decisions.  As
a supplement to this plan, the city produced a sustain-
ability program, of which the Energy Conservation
Program is a component (Phoenix, 2007a; ICLEI,
2007).
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PROGRAM FEATURES

The city Energy Conservation Program has evolved
over the past two decades. Today, the program includes
the following features:

Energy efficiency retrofits for HVAC and lighting
systems. Phoenix has conducted many retrofits in
municipal buildings, most often including installa-
tion  of energy-efficient air conditioning and lighting
systems. Other projects have included installing
variable speed drives on air and water distribution
systems and energy management systems (ICLEI, 2007;
Phoenix, 2007a).

Building standards for municipal facilities. In 2006,
the city revised its policy requiring that all new city
buildings be constructed to meet LEED certification
to include that buildings must now be designed to
improve energy performance by 30 percent compared
to conventional buildings (based on ASHRAE Standard
90.1). The policy also includes criteria for landscape
and exterior design, water-efficient landscaping,
water use, construction material waste management,
and LEED accreditation for design team members
(Phoenix, 2007a).

Energy Management Task Force. In 2001, the city
formed an Energy Management Task Force comprised
of representatives from each municipal department.
The task force is responsible for identifying reason-
able ways to reduce energy needs in city buildings,
especially during peak summer demand. One of the
task forces accomplishments was the initiation of an
ENERGY STAR purchasing pilot program for city
departments that has since developed into a permanent
program (Phoenix, 2007a).

Energy Conservation Savings Reinvestment Fund.
Phoenix created this fund in 1984 using funds
collected from a state oil surcharge. Half of all savings
from energy conservation upgrades in local govern-
ment facilities and operations are returned to this fund
to be reinvested in additional upgrades. The fund has
often been used to install energy-efficient air condi-
tioning and lighting systems (ICLEI, 2007).
     Profile: Phoenix, Arizona

     Area: 515 square miles

     Population: 1.5 million

     Structure: Residents elect a mayor and eight
     city council representatives to four-year terms.
     The Phoenix Energy Conservation Program is
     a component of the Planning Department's
     broader Sustainability Program.

     Program Scope: Energy Conservation Program
     activities involve lighting and  HVAC retrofits
     to existing facilities, design standards for new
     facilities, and energy efficiency improvements in
     local government operations, including traffic
     signal upgrades and energy-efficient water pump
     installations in public parks.

     Program Creation: The program was created in
     1978, when  the city hired an energy manager to
     reduce energy costs in the wake of a national oil
     shortage.

     Program Results: The Energy Conservation
     Program has saved the city approximately $75
     million in energy costs from 1978 to 2006.

     Source: Phoenix, 2007b.
PROGRAM RESULTS

The Energy Conservation Program has saved the city
approximately $75 million in energy costs from 1978
to 2006. The new building standards, which apply to all
city buildings, require buildings to meet LEED require-
ments. For certain criteria, the standards require
city buildings to exceed LEED requirements. For
example, city buildings must be designed to achieve
a 50 percent reduction in water used for landscaping,
a 20 percent reduction in indoor water consumption,
and energy cost savings 30 percent greater than the
savings achieved by a building that meets the ASHRAE
Standard 90.1-2004 (this exceeds the LEED-required
minimum of 14 percent) (Phoenix,  2007a).

Web site: http://phoenix.gov/sustainability

   9. CASE STUDIES
                                         Energy Efficiency in Local Government Operations  | Local Government Climate and Energy Strategy Series

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  10.  ADDITIONAL EXAMPLES  AND INFORMATION RESOURCES
                           Title/Description
Energy Efficiency in Local Government Operations
                  Web Site
Ada County, Idaho. Ada County, Idaho, began commissioning its new county
courthouse/administration building early in the design stage and identified
350 energy efficiency upgrades that could be implemented before the building
became operational. The building now uses approximately 40 percent less
energy that the average county office building.
http://www.naco.org/programs/csd/Creen%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
Ann Arbor, Michigan. Ann Arbor established a municipal energy fund that has
been used to finance energy efficiency improvements in 60 local government
facilities since 1998.
http://www.c40cities.org/bestpractices/energy/
annarbor_ fund.jsp
Annapolis, Maryland. The Annapolis city council adopted an energy policy in
2006.
http://www.ci.annapolis.md.us/Covernment/
Departments/DNEP/documents/Emissions.pdf
Arlington County, Virginia. The county installed energy-efficient lighting in its
courthouse in 2005. The measure has reduced energy consumption by 8 percent
and has a payback period of less than five years.
http://www.arlingtonva.us/portals/topics/
documents/9768 Returnlnvestment.pdf
Athens County, Georgia. The county is saving 50,000 kWh annually as a result of
replacing 175-watt metal halide lights with 150-watt high-pressure sodium lights
in the parking lot at the county courthouse.
http://www.naco.org/programs/csd/Creen%20
Covernment%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
Atlanta, Georgia. The city's chief operating officer developed a set of energy
conservation policies and procedures.
http://www.atlantaga.gov/client_resources/
forms/energy%20conservation/energy%20
conservation%20policies%20and%20procedures.
doc
Baltimore, Maryland. The mayor established a goal for all city departments to
reduce energy consumption by 5 to 10 percent.
http://www.baltimorecity.gov/Government/
AgenciesDepartments/Planning/
OfficeofSustainability.aspx
Baltimore, Maryland. Energy conservation efforts in Baltimore have reduced the
city's annual energy costs by $500,000. An investment of $7 million for energy
efficiency measures (including installations of energy-efficient lighting systems,
variable speed drives, and automated energy management systems) in 2.3 million
square feet of public building space is expected to increase annual savings to
approximately $1 million. Three city buildings have earned  the ENERGY STAR
label for their performance.
http://www.baltimorecity.gov/Government/
AgenciesDepartments/Planning/
OfficeofSustainability.aspx
Barnstable County, Massachusetts. Barnstable County, Massachusetts, retrofitted
the lighting systems in 10 county buildings in 2003. This measure, which cost
$119,000, has produced annual energy cost savings of $19,000.
http://www.naco.org/programs/csd/Creen%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
Berkeley, California. Berkeley developed a comprehensive program for
implementing clean energy practices in municipal government operations.
http://www.ci.berkeley.ca.us/ContentDisplay.
aspx?id=33182
Blue Earth County, Minnesota. The county has received the ENERGY STAR label
on its 120-year old courthouse and has recently begun building a new LEED-
certified justice center.
http://www.naco.org/programs/csd/Green%20
Covernment%20Documents/EE_Article%20-%20
Blue%20Earth%20County%20courthouse%20
'goes%20green,'%20earns%20coveted%20
ENERGY%20STAR%20rating.pdf
Broward County, Florida. $8 million in energy efficiency investments in county
facilities has produced annual energy savings of $1.5 million and reduced annual
GHG emissions by over 19,000 metric tons of CO2.
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
                                                                                          10. ADDITIONAL RESOURCES
                                                                                                                        49

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10    ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
                              Title/Description
  Bullhead City, Arizona. The city has installed energy-efficient chillers, lighting
  systems, and traffic signals, which are saving approximately $100,000 annually in
  energy costs.
                   Web Site
http://appsl.eere.energy.gov/state_energy_
program/project_brief_detaiicfm/pb_id=437
  Burlington, Vermont. The Burlington Municipal Development Plan includes
  descriptions and goals for reducing energy consumption in municipal buildings
  and operations.
http://www.ci.burlington.vt.us/planning/
mdp/2006/mdp_2006_energy.pdf
  Chicago, Illinois. As part of its "Conserve Chicago Together" initiative, the city
  of Chicago has made energy efficiency improvements to more than 15 million
  square feet of public facilities, saving 3,360,995 kWh annually. These investments
  have resulted in estimated cost savings of $6 million annually.
http://www.chicagoclimateaction.org/pages/
where_we_have_been/60.php#Energy
  Chicago, Illinois. Chicago, Illinois has performed tune-ups to 50 boilers in city
  facilities, improving the energy efficiency of some boilers by as much as 12%.
  These tune-ups, which cost approximately $12,500 each, have collectively
  reduced the city's natural gas consumption by 5 percent, which is expected to
  save nearly $1.65 million in annual energy costs.
http://c40cities.org/bestpractices/energy/
chicago_boiler.jsp
  Cincinnati, Ohio. The mayor of Cincinnati established a goal for the city to
  reduce electricity consumption by 1 percent within one year and 10 percent
  within four years.
http://www.cincinnati-oh.gov/mayor/downloads/
mayor_pdfl7104.pdf
  Dakota County, Minnesota. In 2002 Dakota County, Minnesota, used the county
  Sustainable Design and Construction Standards for the new Northern Service
  Center, which has achieved annual energy cost savings in excess of $50,000.
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
  Dallas, Texas. Dallas has initiated an energy efficiency program as part of its
  environmental management plan.
http://www.dallascityhall.com/html/energy_
efficency.html
  Denver, Colorado. Denver, Colorado, has retrofitted windows in several
  municipal fire stations, resulting in a 10-fold increase in energy efficiency.
http://usmayors.org/uscm/best_practices/
EnergySummitBP06.pdf
  Durham County, North Carolina. Durham County, North Carolina, is saving
  nearly $25,000 in annual energy costs from installing variable speed motors on
  HVAC equipment in its buildings
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
  Erie County, New York. Erie County is constructing a new courthouse in the
  city of Buffalo that will incorporate approximately $100,000 in energy efficiency
  upgrades. The building is expected to achieve energy cost savings of nearly
  $39,000 annually, resulting in a payback period of less than four years.
http://www.nyserda.org/programs/New_
Construction/Case_Studies/ErieCountyCourt.pdf
  Grand Rapids, Michigan. In 2006, the city council of Grand Rapids adopted a
  resolution requiring that new construction and major renovations of buildings
  over 10,000 square feet and costing more than $1 million or more meet LEED
  standards.
http://www.dsireusa.org/documents/lncentives/
Mll2R.pdf
  Green Bay, Wisconsin. The Sustainable Greater Green Bay initiative has
  established three principal goals for community energy consumption: make
  energy more affordable through increasing energy efficiency; make energy
  cleaner; and  increase the local benefits.
http://sustainablegreenbay.wordpress.com/
  Hillsborough County, Florida. The Hillsborough County Court Facilities
  Improvement Project, which involved constructing a new energy-efficient court
  building and central chilled water plant and utilizing the services of an ESCO, is
  expected to save nearly $700,000 annually.
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
     10. ADDITIONAL RESOURCES
                                              Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

-------
10  ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
Title/Description
Hopkinton, New Hampshire. Hopkinton is participating in EPA's New England
Community Energy Challenge, a regional extension of the ENERGY STAR
Challenge. Hopkinton is evaluating energy consumption in its town hall, library,
clerk's office, and fire station, and using Portfolio Manager to track energy
consumption reductions.
Jackson County, Missouri. The county entered into a performance contract with
an ESCO to improve energy efficiency in four public facilities. The project, which
involved lighting retrofits, plumbing upgrades, and installation of an energy
management system, was implemented with no upfront costs and is being paid
for using energy cost savings, which total approximately $430,000.
Lansing, Michigan. The mayor required that energy efficiency upgrades be
implemented at the city hall.
Las Vegas, Nevada. In 2008, the city council of Las Vegas adopted a resolution
committing the city to a sustainable energy strategy. Among other things,
the strategy lays out several goals for improving energy efficiency in local
government facilities and operations.
Web Site
http://cs.newhampshire.com/blogs/hopkinton_
news/archive/2008/01/23/Town_2COO_-schools-
take-energy_2DOO_efficiency-pledge.aspx
http://www.johnsoncontrols.com/publish/etc/
medialib/jci/be/case_studies.Par.0510.File.tmp/
JacksonCounty.pdf
http://apps.cityoflansingmi.com:8000/
newsevents/releases/EO_2_pressl2565.pdf
http://www.lasvegasnevada.gov/
sustaininglasvegas/energy.htm#sustainable
Lawton, Oklahoma. Lawton passed a local administrative law that requires http://www.cityof.lawton.ok.us/CityCode/
specific energy conservation upgrades in government buildings, including setting Administrative_Policies/Section_9/l.html
thermostats at a maximum of 65o during cold weather and a minimum of 78o in
warm weather.
Lewiston, Maine. Lewiston is replacing the ceiling at its city hall to reduce energy http://www.nrcm.org/news_detail.asp?news=2602
costs. The initial investment cost the city approximately $190,000.
Los Angeles County, California. Energy efficiency improvements in the Long
Beach courthouse, which have included lighting system and HVAC system
retrofits, have produced annual energy savings of 34 percent (24 percent
due to energy-efficient lighting and 10 percent due to energy-efficient HVAC
operations).
Lowell, Massachusetts. Lowell has passed a resolution committing to participate
in the U.S. Conference of Mayors' Climate Protection Agreement and to become
an EPA ENERGY STAR partner. In addition, the city has committed to reducing
energy consumption in government buildings by 10 percent.
Madison, Wisconsin. Madison adopted sustainability guidelines that include a
mandate for training facility managers in commissioning and re-commissioning.
McHenry County, Illinois. The county has used Portfolio Manager to benchmark
its administration building. The building, which incorporates a number of energy
efficiency improvements, has achieved a score of 81.
Medford, Massachusetts. This presentation provides an overview of how Medford
developed its energy efficiency program and the activities it is implementing.
Milwaukee, Wisconsin. Milwaukee entered into a five-year performance contract
with an ESCO to improve energy efficiency in its city hall. The ESCO worked with
the city to install a Metsys building energy control system.
Minneapolis, Minnesota. In his 2007 budget, the mayor established a plan for
increasing the city's investment in energy efficiency and renewable energy.
http://www.naco.org/programs/csd/Creen%20
Covernment%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
https://secure.lowellma.gov/depts/dpd/
CBC-minutes-agendas/minutes.2008-06-
02.3905772756/?searchterm=CUmate%20
Protection%20Agreement
http://www.cityofmadison.com/sustainable_
design/ and http://www.cityofmadison.com/
Sustainability/City/energyProjects/lighting.cfm
http://www.naco.org/programs/csd/Creen%20
Covernment%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
http://www.cleanairinfo.com/airinnovations/2004/
Presentations/Reducing%20Energy%20
Consumption/KimLundgrenLEDs.ppt
http://www.johnsoncontrols.com/publish/etc/
medialib/jci/be/case_studies.Par.l5414.File.tmp/
milwaukeecityhall.pdf
http://www.ci.minneapolis.mn.us/mayor/news/20
060928newsmayorbudgetenergyenivron.asp
                                                                           10. ADDITIONAL RESOURCES
                                                                                                   51

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   10   ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
                                 Title/Description
     New Haven, Connecticut. New Haven's Energy Conservation Program, initiated
     in 1994, has saved the city over $29 million through 2006.
                   Web Site
http://www.cityofnewhaven.com/Finance/pdfs/
EnergyConserReport8-30-2005.pdf
     New York City, New York. New York City established the ENCORE program to
     assist government agencies in improving energy efficiency and reducing energy
     consumption. Several of the city's agencies participate in the New York Power
     Authority Peak Load Management Program.
http://www.nyc. gov/html/om/pdf/energy_task_
force.pdf
     New York City, New York. In October 2007, the mayor issued an executive order
     directing city government agencies to reduce energy consumption by 30 percent
     by 2017. The order also calls for the creation of an energy savings steering
     committee and short-term and long-term energy savings plans.
http://www.nyc.gov/html/om/pdf/2007/pr383-
07_eo_109.pdf
     Northampton, Massachusetts. The Northampton Energy Resources Commission
     adopted policies and procedures for reducing the city's energy consumption.
http://www.northamptonma.gov/
energyresources/
     Oakland, California. Oakland's City Facilities Energy Improvement Program is
     focused on continuously improving energy efficiency in municipal buildings,
     traffic signals, and street lights. The City has retrofitted 102 of its 115 largest
     facilities (representing more than 60 percent of total building area), creating
     energy  cost savings of over $1 million per year to the City's budget.
http://www2.oaklandnet.eom/Covernment/o/
PWA/o/FE/s/EECE/index.htm#Business
     Ocean City, New Jersey. Ocean City has established a goal to reduce energy
     consumption in government buildings by between 5 and 10 percent through its
     energy conservation program.
http://services.ocnj.us/Environment/tabid/114/
mid/556/dnnprintmode/true/Default.
aspx?SkinSrc=%5bC%5dSkins%2f_default%2fN
o+Skin&ContainerSrc=%5bG%5dContainers%
2f_default%2fNo+Container
     Philadelphia, Pennsylvania. Philadelphia established an energy conservation
     initiative that combines the efforts of the Municipal Energy Office and the
     Capital Program Office. The city produced its own High Performance Building
     Renovation Guidelines.
http://www.phila.gov/pdfs/
PhiladelphiaGreenGuidelines.pdf
     Phoenix, Arizona. Phoenix developed an environmental sustainability program
     to complement the city General Plan. The city's Energy Conservation Program is
     part of this initiative.
http://phoenix.gov/sustainability/sustaincity.pdf
     Pitt County, North Carolina. The county has entered into an energy performance
     contract with a goal of reducing energy costs by $3.7 million from 2006 to 2017.
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
NACo%20ENERGY%20STAR%20Courthouse%20
Campaign%20County%20Spotlights.pdf
     Redondo Beach, California. Between 2000 and 2001, Redondo Beach, California,
     installed an energy management system to improve the energy efficiency of air
     conditioner compressors on rooftop air-handling units in several buildings. This
     measure, which costs approximately $500 per installed unit, resulted in energy
     savings of about 18 percent for each unit.
http://www.fypower.org/pd f/RES171161_BPG_
LGovl_ Conserv.pdf
     Saco, Maine. The Saco Energy Committee initiated energy conservation efforts
     that include installing compact fluorescent light bulbs (CFL) and high efficiency
     refrigerators and computers in city department buildings.
http://www.sacomaine.org/news/energy.shtml
     San Diego, California. San Diego committed to reducing 5 MW of energy demand
     through energy efficiency improvements.
http://www.sandiego.gov/environmental-services/
geninfo/news/pdf/060512_energy.pdf
     Southlake, Texas. The city council adopted a comprehensive energy policy
     in 2002 that directs city departments to reduce energy consumption in their
     facilities by 5 percent annually over five years.
http://www.seco. cpa.state.tx.us/zzz_sb5-tep/
sb5southlake.pdf
52
       10. ADDITIONAL RESOURCES
                                                 Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

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10  ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
Title/Description
Stamford, Connecticut. Stamford has been administering an energy
management program since 1998. In 2005, the city committed to reducing
energy consumption from fossil fuels by 20 percent by 2010. Through 2009, the
city has reduced its energy consumption by 19 percent.
Syracuse, New York. To help reduce CO2 emissions by 20 percent by 2010,
Syracuse has upgraded 10,000 traffic signals with LEDs and is performing
comprehensive energy audits on government facilities. These efforts helped
reduce the city's energy consumption by 20 percent between 2000 and 2006.
Toledo, Ohio. The Municipal Energy Management Program was established to
improve energy efficiency in local government facilities. The program began with
a $930,000 lighting system retrofit in seven buildings, paid for through the city's
capital improvement program and public bonds.
Wilson County, North Carolina. Wilson County, North Carolina, has reduced
annual energy costs by $107,000 by improving energy efficiency in 10 county
buildings. The majority of the savings are the result of an integrated building
energy management system, which was installed under a performance
contract to control all county buildings. Along with additional energy efficiency
improvements, the energy management system is helping the county to reduce
overall energy use by 15 percent.
Web Site
http://www.cityofstamford.org/
content/2S/SO/10S109/1091S6.aspx
http://www.syracuse.ny.us/mayorDocs/l/
Nyserda.L28.04.pdf
http://www.usmayors.org/uscm/best_practices/
bp_volume_2/toledo.htm
http://yestoamendment4.com/downloads/TAC_
Wilson_County.pdf
Local Government Green Buildings Programs
Arlington, Massachusetts. Arlington passed a resolution in 2003 requiring LEED
Silver certification for all new and renovated town-owned buildings.
Arlington County, Virginia. Arlington County passed a city green building
ordinance that requires new buildings to be designed to comply with LEED
standards.
Atlanta, Georgia. Atlanta passed a city ordinance requiring that city buildings be
designed to meet LEED criteria.
Boston, Massachusetts. Boston passed a city ordinance requiring all new local
government buildings to be designed to meet LEED-Silver standards.
Chicago, Illinois. The Chicago Standard for municipal buildings was developed
based on LEED criteria, and is applicable to private sector development.
Costa Mesa, California. Costa Mesa has adopted a sustainable municipal green
policy that includes a requirement that all new municipal facilities be constructed
to meet LEED-Gold standards.
Denver, Colorado. In 2007, the mayor issued an executive order requiring new
city building construction and major renovations to meet LEED-Silver energy and
environmental criteria and achieve ENERGY STAR qualification.
Frisco, Texas. Frisco has developed a green building program that includes a
public facilities initiative that requires all new public facilities to meet LEED-Silver
certification.
Los Angeles. Los Angeles has developed a green building program that promotes
green building practices in the private sector. The city has proposed adopting a
policy to require public facilities to meet energy and environmental criteria.
http://www.cleanair-coolplanet.org/ 'for_
communities/LEED_links/ArlingtonLEEDbylaw.doc
http://www.arlingtonva.us/Departments/CPHD/
planning/zoning/pdfs/zoa_leeds.pdf#search
http://www.atlantaga.gov/mayor/
energyconservation_sustainabledesign.aspx
http://www.cityofboston.gov/
environmentalandenergy/buildings/
http://www.buildings.com/ArticleDetails/
tabid/3321/ArticlelD/247S/Default.aspx
http://www.ci.costa-mesa.ca.us/departments/
green-building/green-bldg.htm
http://www.greenprintdenver.org/green-building-
industry/greenprint-goals/
http://en.openei.org/wiki/Frisco_-_Municipal_
Green_ Building_ Program_ (Texas)
http://cityplanning.lacity.org/Code_Studies/
GreenLA/Brochure.pdf
                                                                           10. ADDITIONAL RESOURCES
                                                                                                   53

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   10   ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
Title/Description
Miami-Dade County, Florida. The county adopted an ordinance in 2005 to
expedite permitting for commercial, industrial, and residential buildings that
meet green building standards.
New York City Long-Term Plan to Reduce Energy Consumption and Greenhouse
Gas Emissions from Municipal Buildings and Operations. In response to the
mayor's directive to reduce local government GHG emissions by 30 percent by
2017 through energy efficiency, a city steering committee developed this long-
term plan that outlines recommendations, expected costs, and implementation
strategies.
Orinda, California. Orinda is attempting to become the first municipality in
California to design and construct a LEED-Gold-certified city hall.
Piano, Texas. Piano has adopted a policy to make new facilities and major
renovations meet LEED-Platinum energy and environmental criteria.
Portland, Oregon. The city of Portland has adopted a green building policy for
municipal buildings.
San Antonio, Texas. San Antonio requires new municipal facilities to meet the
LEED-Silver rating.
San Diego, California. San Diego has established a number of incentive programs
to encourage green building and energy efficiency in the private sector.
San Francisco, California. San Francisco has adopted LEED-Silver criteria for new
construction and major renovation of public facilities. In addition, effective in
November 2008 the city adopted green building requirements for private sector
facilities.
Scottsdale, Arizona. In 2005, Scottsdale became the first city in the nation to
require local government buildings to be designed to meet LEED-Gold standards.
Somerset County, New Jersey. Somerset County is encouraging new public
facilities to meet LEED energy and environmental criteria. The county has
developed a technical toolkit for municipal engineers.
Washington, D.C. In 2006, Washington, D.C., passed legislation requiring new
non-residential buildings greater than 10,000 square feet to be designed to
achieve 75 points on the Target Finder energy performance scale and to be
verified as achieving LEED-Silver standards within two years of occupancy.
Web Site
http://www.co.miami-dade.fl.us/govaction/matter.
asp?matter=OS222Same=false&yearFolder=Y200S
http://www.nyc.gov/html/planyc2030/html/plan/
energy_reduce-consumption.shtml
http://www.sfgate.com/cgi-bin/article.cgi?f=/
c/a/2007/09/OS/BAF7RT883.DTL
http://www.plano.gov/SiteCollectionDocuments/
Volunteer Program/SES_Overview.doc
http://www.portlandonline.com/shared/cfm/
image, cfm ?id=112689
http://www.sanantonio.gov/oep/
SustainabilityPlan/Appendices/lnitiative%2010/
COSA%20Sustainability%20lnventory.pdf
http://www.sdcounty.ca.gov/dplu/greenbuildings.
html
http://www.sfenvironment.org/our_programs/
topics.html?ssi=8&ti=19
http://www.scottsdaleaz.gov/greenbuilding/LEED
http://www.scbp.org/member/documents/
thetoolkitpdf
http://www. dccouncil. Washington, dc. us/
images/00001/200612181S2322.pdf
Incentives for Energy Efficiency in Residential and Commercial Facilities
Riverhead, New York. Riverhead has decided to reduce the permitting fees
associated with installing certain energy conservation devices on residential and
commercial buildings.
Springfield, Missouri. The Springfield municipal utility offers numerous rebates
for energy efficiency investments in residential and commercial buildings. The
utility also offers low-cost energy audits for residential customers.
http://www.dsireusa.org/incentives/incentive.
cfm?lncentive_Code=NY42F(tre=l(tee=l
http://www.cityutilities.net/conserve/res_pgms.
htm (residential) and http://www.cityutilities.net/
conserve/com_pgms.htm (commercial)
54
       10. ADDITIONAL RESOURCES
                                              Energy Efficiency in Local Government Operations  | Local Government Climate and Energy Strategy Series

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10  ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
Title/Description
Web Site
Information Resources for Energy Efficiency in Local Government Operations
Building Investment Decision Support. This document provides an overview of
the qualitative and quantitative benefits of high-performance buildings.
Clean Air, Cool Planet. Clean Air, Cool Planet is a partnership that works with
communities in the Northeast to adopt policies that reduce climate change
impacts. The Web site offers a community toolkit that includes case studies of
several communities that have implemented energy efficiency improvements.
Community Jobs in the Green Economy. The Apollo Alliance developed this
report to outline the community economic benefits of investing in energy
efficiency and renewable energy.
Counties and Residential Green Building Standards. This NACo fact sheet
provides information on the benefits of a number of county and residential green
building programs.
Energy and Environment Best Practices. The U.S. Conference of Mayors
produces this report each year to highlight local government initiatives.
Energy Conservation Tips for Local Governments. This list of conservation
strategies was developed by the Idaho Department of Environmental Quality.
Energy Guide: Achieving Energy Efficiency in County Facilities. Th is NACo
guidance document provides information to local government on steps they can
take to improve energy efficiency in their facilities.
ENERGY STAR Building Upgrade Manual. This document serves as a guide for
planning and implementing facility upgrades. The manual provides assistance in
developing a comprehensive energy management strategy.
ENERGY STAR Challenge Training for Local Governments. ENERGY STAR offers
free online training sessions for local governments participating in the ENERGY
STAR Challenge.
ENERGY STAR Performance Contracting Best Practices. This primer identifies
best practices for using ENERGY STAR tools and resources in the field of energy
performance contracting.
ENERGY STAR: State and Local Legislation Leveraging ENERGY STAR. This Web
site provides descriptions of several state and local governments that have
adopted ENERGY STAR policies for public facilities.
Energy-Aware Planning Guide. This guide, developed by the California Energy
Commission with the assistance of representatives from 49 local governments,
identifies energy-related planning opportunities in land use, transportation,
buildings, water use, and waste management.
Fast Facts on Energy Use. EPA's ENERGY STAR Challenge program has developed
a fact sheet on national energy consumption and the benefits of participating in
the ENERGY STAR Challenge.
Financing Energy Efficiency Projects. This ENERGY STAR article describes how
energy cost savings can be used to finance energy-efficiency investments.
http://www.aia.org/aiaucmp/groups/ek_public/
documents/pdf/aiap080050.pdf
http://www.cleanair-coolplanet.org/for_
communities/index.php
http://apolloalliance.org/downloads/resources_
Community_Jobs_in_the_Green_Economy.pdf
http://www.naco.org/programs/csd/Green%20
Government%20Documents/GB_Factsheet_
Counties%20and%20Residential%20Green%20
Buildings%20Standards.pdf
http://usmayors.org/uscm/best_practices/
EandEBP07.pdf
http://www.deq. state.id.us/multimedia_assistance/
p2/gov_energy_conserve_fs.pdf
http://www.naco.org/programs/csd/Green%20
Government%20Documents/EE_Report_
Energy%20Guide_Achieving%20Energy%20
Efficiency%20in%20County%20Facilities.pdf
http://www.energystar.gov/index.cfm?c=business.
bus_upgrade_manual
http://www.energystar.gov/ia/business/
government/traini ng_sessions.pdf
http://www.naesco.org/resources/industry/
documents/2008-OS.pdf
http://www.energystar.gov/ia/business/
government/State_and_Local_Legislation.pdf
http://www.energy.ca.gov/energy_aware_guide/
index.html
http://www.energystar.gov/ia/business/challenge/
learn_more/FastFacts.pdf
http://www.energystar.gov/ia/business/
government/Financial_Energy_Efficiency_Projects.
pdf
                                                                           10. ADDITIONAL RESOURCES
                                                                                                   55

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   10   ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
                                 Title/Description
     Flex Your Power Municipal Best Practices Guide. This guide provides assistance
     to local governments on improving energy efficiency and energy conservation. A
     number of case studies are available through this Web site.
                   Web Site
http://www.fypower.org/bpg/index.html7b =
institutional
     Florida Green Local Government Standard. A collection of local governments
     joined with the Florida Solar Energy Center to develop this standard, which
     encompasses community-wide criteria as well as "in-house" practices.
http://www.floridagreenbuilding.org/
db/?q=node/S7Sl
     Green Purchasing in County Offices. This brochure, produced by the National
     Association of Counties, provides a number of strategies for local governments
     looking to adopt environmentally preferable purchasing policies.
http://www.naco.org/programs/csd/Green%20
Government%20Documents/Green%20
Purchasing%20in%20County%20Offices%20
tFactsheetl.pdf
     A Guide to Greening Your Bottom Line Through a Resource-Efficient Office
     Environment. This City of Portland Office of Sustainable Development guidebook
     includes helpful information on behavioral adjustments local governments can
     make to reduce building and operations energy consumption.
http://www.oregon.gov/ENERGY/CONS/BUS/
docs/Green_Office_Guide.pdf
     Guide to Preparing Feasibility Studies. This California Energy Commission report
     provides guidance to local governments in assessing the feasibility of potential
     energy efficiency activities.
http://www.energy.ca.gov/
reports/2000-03-20_400-00-002.PDF
     High Performance Cities. This Apollo Alliance document serves as a guide to
     energy-saving policies for local governments and provides multiple case studies.
http://www.cows.org/pdf/econdev/apollo/rp-
high_perform_cities.pdf
     Historic Building Energy Efficiency Guide. Boulder, Colorado, has developed this
     guide for implementing energy efficiency improvements in historic buildings.
     Energy efficiency improvements can be implemented without compromising
     historic authenticity and architectural or aesthetic integrity.
http://www.bouldercolorado.gov/index.
php?option=com_contentfrtask=viewfrid=8217frl
temid=22
     Jobs from Renewable Energy and Energy Efficiency. This fact sheet provides
     statistics on the economic and jobs impacts of investing in renewable energy and
     energy efficiency in the U.S.
http://www.globalurban.org/Environmental%20
and%20Energy%20Study%20lnstitute%20Fact%20
Sheet%20on%20Jobs%20from%20Renewable%20
Energy%20and%20Energy%20Efficiency.pdf
     Leading by Example: Streamlining EE in the Local Government Sector. This
     ACEEE Summer Study paper describes the Association of Bay Area Government
     Energy Watch programs. The paper provides information on energy efficiency
     barriers that the programs have encountered and addressed.
http://eceee.torped.se/conference_proceedings/
ACEEE_buildings/2008/Panel_8/8_414/Paper
     LEED Initiatives in Governments and Schools. This U.S. Green Building Council
     Web site provides a list of LEED requirements in governments and schools,
     including a number of local government initiatives.
h ttps://www. usgbc. org/ShowFile.
aspx?DocumentlD=691
     Local Governments: An Overview of Energy Use and Energy Efficiency
     Opportunities. EPA has developed this fact sheet to provide local governments
     with an overview of resources available for improving energy efficiency in their
     facilities and operations.
http://www.energystar.gov/ia/business/challenge/
learn_more/LocalGovernment.pdf
     Municipal Green Building Policies: Strategies for Transforming Building
     Practices in the Private Sector. This report provides descriptions of local
     government policies for advancing green building in the private sector by
     establishing mandatory green building criteria, providing expedited review, and
     offering financial incentives.
http://www.elistore.org/reports_detail.
asp? ID =11295
     National Association of Counties ENERGY STAR Courthouse Campaign. Through
     this program, NACo provides assistance to county governments in improving
     energy performance in county courthouses by using the ENERGY STAR
     framework.
http://www.naseo.org/taskforces/energystar/
news/NACo_ENERGY_STAR_Courthouse_
Campaign.pdf
56
       10. ADDITIONAL RESOURCES
                                                 Energy Efficiency in Local Government Operations |  Local Government Climate and Energy Strategy Series

-------
10    ADDITIONAL EXAMPLES AND INFORMATION RESOURCES (cont.)
                              Title/Description
  New Energy for Cities. This report by the Apollo Alliance lays out a four-part
  plan for how cities can develop clean energy technologies. The report includes a
  number of case studies.
                   Web Site
http://apoUoalliance.org/downloads/resources_
new_energy_cities.pdf
  New Hampshire Handbook for Energy Efficiency and Climate Change. This
  handbook was developed to provide local planners with information and
  resources on improving energy efficiency and addressing climate change at the
  local level through the planning process.
http://www.carboncoalition.org/Conference/
ConferenceDVD/NH%20Handbook%20on%20
Energy%20Efficiency%20and%20Climate%20
Change%20Volume%201.pdf
  Office Building Energy Use Profile. The National Action Plan for Energy Efficiency
  has developed a profile of office buildings in the U.S. that provides information
  on average energy consumption, cost, and end-use figures.
http://www.iluvtrees.org/wp-content/
uploads/2009/05/iltofficebuildingprofile.pdf
  Philadelphia High Performance Building Renovation Guidelines. This document
  provides guidance on 12 major project types. Each guideline includes an
  overview of project materials, implementation strategies, and benefits.
http://www.phila.gov/pdfs/
PhiladelphiaCreenCuidelines.pdf
  Reduce Energy Use in Local Government Facilities Through Conservation
  Improvements. This Flex Your Power best practices guide uses examples from
  various California local governments to highlight strategies for improving energy
  conservation.
http://www.fypower.org/bpg/index.html?b=offices
  Reduce Energy Use in Local Government Facilities Through Efficiency
  Improvements. This Flex Your Power best practices guide highlights strategies for
  improving energy efficiency in municipal buildings. It draws from the experiences
  of selected California local governments.
http://www.fypower.org/bpg/index.
html?b=institutional
  San Francisco Green Building Task Force Report. The city and county of San
  Francisco convened a task force to develop recommendations for green building
  standards in residential and commercial buildings.
http://www.fypower.org/pdt7SF_
GreenBuildingTFReport.pdf
  San Francisco Municipal Green Building Compliance Guide. This document
  provides guidance for the design and construction of new buildings in San
  Francisco.
http://www.sfenvironment.org/downloads/library/
gbcomplianceguide.pdf
  Selected Best Practices for Successful City Energy Initiatives. Prepared for
  the U.S. Conference of Mayors, this report provides case studies of 14 local
  governments. The report highlights diverse approaches to energy-related
  initiatives.
http://usmayors.org/pressreleases/documents/
bestenergy2001.pdf
  A Study of Green Building Programs in Our Nation's Communities. The American
  Institute of Architecture has developed this study on local green building
  programs. The study includes several case studies of local programs.
http://www.aia.org/advocacy/local/programs/
AIAS075254
  Summary of the Financial Benefits of ENERGY STAR Labeled Office Buildings.
  This report provides detailed information on the direct and ancillary financial
  benefits of earning the ENERGY STAR label for office buildings.
http://www.energystar.gov/ia/partners/
publications/pubdocs/Summary_of_the_
Financial_Benefits_23June06_FINAL.pdf
  Sustainable Cities: Best Practices for Renewable Energy & Energy Efficiency. This
  Sierra Club report highlights the achievements of Austin, Chicago, Fort Collins,
  and Portland as leaders in implementing clean energy initiatives in the public and
  private local sectors.
http://rmc.sierraclub.org/energy/library/
sustainablecities.pdf
  U.S. General Services Administration Sustainable Design Program. The U.S. GSA
  administers a sustainable design program that works to incorporate energy
  efficiency and environmental features into GSA building designs. The program
  Web site includes a number of resources on sustainable design as well as a set of
  facilities standards for GSA-designed buildings.
http://www.gsa.gov/portal/content/104462
                                                                                                 10. ADDITIONAL RESOURCES
                                                                                                                                57

-------
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                                                                                                                59

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