Sustainable Building Technical Manual - Etn-presco.net

CHAPTER 24Local Gove r n m e n tF i n a n c i n gDeciding to use green building methods and selecting energy- and resource-efficientbuilding materials are only the first steps in the green building process. As with any capitalinvestment project, local governments must also secure the funds necessary for astate-of-the-art green building—often without drawing from already sparse budgets. Thissection highlights local government financing issues, suggested options, and local governmentexamples.EditorsDaniel J. Goldbergerand Philip Jessup.I M P L E M E N TATION ISSUES.Political and Institutional SupportLocal government leadership is essential for a successful sustainability project. If electedofficials and city or county managers are willing to support potentially larger up-frontproject costs and the use of innovative technologies and products, the return can bereaped through future economic and environmental savings.Yet, many institutional barriers exist. For example, in the area of energy use, the extentof consumption may not be apparent if each department, agency, or district is responsiblefor its own energy bills. Expenditures for energy use may represent only a smallamount of each department’s budget (usually one to two percent). However, if the energycosts for an entire municipality are taken into account, this can be a sizable expenditure(for example, a $358 million electric utility bill in New York City). Having oneperson or office coordinate all energy use and track the cost-effectiveness of new measures,such as retrofits of energy-efficient lighting or heating and cooling systems, is aproven way to increase efficiency and profitability.Another barrier to implementing energy conservation programs occurs when a department’scost savings lead to a reduction in its operating budget for the next year. An alternativeis to return part of the savings to the operating or capital budget and apply therest to programs in the department that implemented the energy-saving measures.