Commercial Building Energy Efficiency Upgrades for Jobs, Growth, and the Environment
The Energy Future Coalition has undertaken a new project as part of its Rebuilding America initiative to encourage major energy efficiency upgrades in Chicago’s commercial core. In the near term, we are working with local stakeholders to launch a new public-private initiative early in Mayor Emanuel’s new administration to create jobs, spur growth, and curb pollution through efficiency upgrades of downtown commercial buildings. Jump Start Chicago will also pursue long-term market reforms that create a sustained commercial building efficiency retrofit industry in Chicago.
Over the next several months we propose to leverage national expertise and our coalition of local Chicago stakeholders to address key issues in commercial efficiency project development:
- Default and Performance Risk: We will offer building owners a portfolio of financial tools and project structures to mitigate the risk that a building owner will default on a project loan for reasons unrelated to the project itself. Energy service companies and contractors will address the remaining performance risk through a guarantee that the project will deliver sufficient energy savings to cover the cost of the loan.
- Landlord-Tenant Dilemma: The initiative will seek deal structures that overcome the split-incentive barrier – whereby owners are reluctant to invest in efficiency upgrades if tenants receive the energy bill savings.
- Audit Cost: Jump Start Chicago will address the first-cost barrier of energy audits by working with local companies to finance this work.
- Market Aggregation: We will build a large and diverse portfolio of high-quality energy efficiency upgrade projects in Chicago's commercial core.
- Project Development: We will develop an initial set of projects by working with building owners, property management firms, contractors, and others to identify candidates for energy efficiency upgrades.
- Long-Term Market Reform: We will work to establish a self-sustaining market for energy efficiency upgrades in the City of Chicago.
Check this page for periodic updates on our progress, as well as for useful resources.
Meeting Notes
- October 28, 2011: Performance Contracting, Marketing, and Benchmarking
- October 7, 2011: Progress, Barriers, and Next Steps
- August 3, 2011: Metrus Energy Services Agreement
- July 12, 2011: Exploration of Property Assessed Clean Energy (PACE) and Managed Energy Services Agreements (MESA) Financial Models
- June 20, 2011: The Needs of Chicago's Building Owners
- June 7, 2011: Introduction to Jump Start Chicago
Presentations
- October 28, 2011: Schneider Electric - Energy Performance Contracting
- October 28, 2011: Johnson Controls - Energy Performance Contracting
- October 28, 2011: PlaNYC - A Greater, Greener New York
- October 28, 2011: Institute for Market Transformation - Benchmarking and Disclosure
- October 28, 2011: Weidt Group - Benchmarking
- October 7, 2011: Jump Start Chicago Delivery Mechanism Framework
- August 3, 2011: Metrus Energy Services Agreement
- July 12, 2011: Ygrene Energy Fund - Property Assessed Clean Energy (PACE)
- July 12, 2011: Johnson Controls - Property Assessed Clean Energy (PACE)
- July 12, 2011: Transcend Equity Development Corp. - Managed Energy Services Agreements (MESA)
