Finding funding
Online at www.dsireusa.org, the Database of State Incentives for Renewables & Efficiency (DSIRE) is the most comprehensive source of information on incentives and policies supporting renewables and energy efficiency in the United States. The MIT/IMT report, “Local Governments’ Role in Energy Project Financing: A Guide to Financing Tools for the Commercial Real Estate Sector,” by Brendan McEwen and John Miller, also identifies several energy project financing tools that can support energy upgrades in commercial buildings. They included:
- Energy Performance Contracting (EPCs) With Building-Owner Borrowing;
- Energy Service Agreements (ESAs);
- Managed Energy Service Agreements (MESAs);
- Metered Energy Efficiency: Transaction Structure (MEETS); and
- Energy Efficiency Investment Corporation (EEIC)—this last tool is exemplified by the New York City Energy Efficiency Corporation’s (NYCEEC’s) energy efficiency loan program.
Funding mechanisms were part of the discussion at the Paris COP 21—’green bonds’ were identified by many in the investment community as a possible instrument for financing the transition to a low-carbon economy. The issuer of a green bond pledges to spend the money raised on projects with environmental benefits. The ‘green’ concept generates more investor interest and makes environmentally friendly projects easier for investors to find and support.
The green bond market is growing rapidly, with about $3 billion issued in 2012 and $41.8 billion issued last year. The call is high among investors, but there are not enough green bonds to satisfy this demand.
Twenty-five states are currently implementing energy efficiency resource standards (EERS) policies requiring electricity savings. Of these, seven require utilities or third-party administrators achieve cost-effective energy efficiency. EERS programs can be used to fund building energy efficiency upgrades.
Regional Greenhouse Gas Initiative (RGGI) is the country’s first mandatory market-based program to reduce GHG emissions. A cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont to cap and reduce CO2 emissions from the power sector, RGGI involves states selling nearly all emission allowances through auctions and then investing proceeds in energy efficiency, renewable energy, and other consumer benefit programs.
Conclusion
CSI and building team members might want to be aware of these initiatives, technologies, and trends influencing requirements for high-performance, energy-efficient buildings for a low-carbon world. The role of each team member may vary from that of strategic planning to tactical solutions to operational outcomes. Integrated design strategies should be considered in order to have as much knowledge at the beginning to make more informed decisions to deliver the design intent. Specifiers write the project design intent, and contractors coordinate the construction documents and deliver it. The opportunity to be better informed provides useful knowledge to ensure building construction and operations that help the United States meet its commitments to COP21, Architecture 2030, and itself.
Paul Bertram, FCSI, CDT, CSC, LEED AP, GGP, is the director of environment and sustainability for Kingspan Insulated Panels North America and a past-president of CSI. He represents the company on various U.S. Green Building Council (USGBC), American Society of Heating, Refrigeration, and Air-conditioning Engineers (ASHRAE), ASTM, International Code Council (ICC), and National Institute of Building Science (NIBS) groups. Bertram’s current work includes government affairs where he drives advocacy for resilient and reliable building energy efficiency and related greenhouse gas (GHG) reductions on demand-side energy. He serves on the board of directors for the Business Council of Sustainable Energy and was part of its delegation at the 21st Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change (UNFCCC). In 2016, he was named to the board of the National Institute of Building Sciences (NIBS) as an Industry Member. He can be contacted via e-mail at paul.bertram@kingspan.com.
