President Obama signed the bipartisan Energy Savings and Industrial Competitiveness Act (ESICA or Shaheen-Portman) last week that will reduce energy use in commercial buildings and government offices. The law will help make the U.S. more energy efficient, increasing both our economic competitiveness and our energy security. None of the provisions of the bill will force the private sector to become more energy efficient, but will provide incentives and tools to help to help buildings do so.

Buildings

The new law strengthens national model building codes to make new homes and commercial buildings more energy efficient while working with states and private industry to make the code-writing process more transparent. It will also encourage private sector investment in building efficiency upgrades and renovations by creating a Commercial Building Energy Efficiency Financing Initiative to lessen the upfront payments building owners need to make to replace equipment with higher level energy efficient equipment instead of replacing in kind. The law also establishes Building Training and Research Assessment Centers at a number of universities across the nation to train young people in energy efficient technologies, building materials, and construction to enable them to set up their own businesses and help the private sector.

Real Estate

ESICA establishes a voluntary “Tenant Star” program, similar to the Energy Star label for appliances, for commercial buildings that reduce their energy consumption, making available energy information for businesses looking to lease space.

Manufacturers

ESICA directs the DOE to work closely with the private sector to encourage research, development and commercialization of innovative energy efficient technology and processes for industrial applications. It will provide improved means to incentivize manufacturers to reduce energy use and become more competitive through more energy efficient equipment. It establishes a new DOE program, SupplySTAR, to help make companies’ supply chains more efficient.

Federal Government

While the new law does not require a private building to be more efficient, it does require the federal government – the single largest energy user in the country — to adopt energy saving techniques for computers, saving energy and taxpayer dollars. It allows federal agencies to use existing funds to update plans for new federal buildings, using the most current building efficiency standards and it allows federal agencies to use ESCOs and UESCs to install electric and natural gas vehicle charging infrastructure, making it easier for agencies to use these types of vehicles.

Municipalities

The new law will provide guidance and information to municipalities who wish to amend their building codes and laws to encourage or mandate green or more energy efficient new building or renovations.

CCES has the technical and policy experts to help your building become more energy efficient, helping you maximize the financial benefits (direct reduction in energy costs, reduced O&M, smoother operations, etc.) and helping you get the full incentives you are entitled to. Contact us today at 914-584-6720 or at karell@CCESworld.com.