Mandating energy efficiency; learn from Boulder

The city of Boulder, Colorado, is contemplating the creation of a mandatory energy-efficiency program for companies in the commercial and industrial sector. Details, proposals, policy guides, frameworks, action plans, and more are inside.

What Happened

The city of Boulder, Colorado, is contemplating the creation of a mandatory energy-efficiency program for companies in the commercial and industrial sector.

Background

Back in 2002, the Boulder City Council signed a “Kyoto Resolution,” which aimed to reduce community gas emissions to seven percent below 1990. To do so, the city had a three-pronged plan: Increase energy efficiency, switch to renewable energy and vehicle fuels, and reduce vehicle miles traveled. Much of that strategy was codified in Boulder’s Climate Action Plan, which was completed in 2002.

The target date for the improved efficiency was this year (2012), and many of the programs to achieve that efficiency were voluntary. Well, apparently the city is disappointed with reductions achieved through voluntary challenges, like “10 for Change”; the city is now considering mandates.

The Model

According to media reports, the program would be modeled on Boulder’s “SmartRegs” program, which requires energy efficiency upgrades in all existing rental units. Mandates were necessary here because, while renters benefit from the energy efficiency, landlords bear the up-front costs, and often need incentives and rebates to motivate upgrades.

The Process

According to reports, the city would institute a three-step process:

  • Incentives—The city would expand available incentives for businesses that make energy-efficiency upgrades
  • Reporting—Second, the city would institute a rating and reporting mechanism, that would test a building’s energy performance using a standardized process, similar to an “EnergyStar” rating.
  • Objectives—Using information learned through that process, the city would set commercial energy-efficiency goals, as well as a timeline to meet them.

Additional Resources

Myriad resources are available related to energy-efficiency mandates, performance, and benchmarking. For example, the State & Local Energy Efficiency Action Network as published a policy design guide for the benchmarking and disclosure of commercial energy policy. A framework for implementing energy rating and disclosure policy is also available.

The National Council on Electricity Policy published an excellent guide for state officials, which looked at eight approaches to enabling greater energy efficiency.

A one-page state-by-state comparison of building energy rating and disclosure policies in chart form can be downloaded, as can thought leadership on the future of building energy ratings.

Information on California’s mandatory program is available, as is an introduction to the Department of Energy’s federal building energy efficiency mandates.

And finally, on a related note, you can see the legislation in 40 states regarding energy efficiency mandates in state-funded building construction.