Leverage energy efficiency funds for better development patterns
Action
Most states provide grants, loans, tax deductions and credits that support energy efficiency measures in homes, businesses and institutions. Investments in energy-saving technologies can yield additional environmental and fiscal savings if the State ensures that those dollars are spent on projects that support the re-use of existing buildings, infill redevelopment and compact, mixed-use new construction.
Energy efficiency benefits usually cover a wide range of improvements, including Energy Star appliances, solar and wind systems, insulation and weather stripping, and energy efficient lighting. If a State revises the criteria used to determine eligibility for state-funded energy efficiency programs to include geographic location and density, it can reap even more energy savings from the investments.
As states increasingly address the issue of global climate change, it will become necessary to reduce the "carbon footprint," or the measurement of carbon-related energy use. Therefore, in addition to changing eligibility criteria for various energy efficiency measures, the State could ask that a project's carbon footprint be calculated and made part of the funding decision-making process. States should provide larger incentives for development projects with lower expected carbon footprints.
Process
State energy efficiency programs typically have basic criteria for participation. Changing the criteria to include geographic location usually can be done administratively as part of the award-making process. In some states, nearly all building types and uses are eligible, while others limit the types of use to commercial, industrial, and public buildings.
Examples
- North Carolina's Energy Improvement Loan Program
North Carolina's Energy Improvement Loan Program provides low cost loans for energy efficiency improvements to industrial and commercial businesses, local governments, schools, and non-profit organizations. One percent and three percent interest-rate loans are available for renewable/recycling energy projects and energy-efficiency projects, respectively. New construction projects may be eligible for the incremental cost of above-code improvements.
— North Carolina's Energy Improvement Loan Program
