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Opportunities for reducing energy costs for municipal buildings

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July 24, 2006

With energy costs expected to be increasingly volatile, municipalities can benefit from designing new buildings or renovating existing ones with an eye toward reducing ongoing energy, water and maintenance costs.

This starts with a clear understanding of energy efficiency opportunities and the incentives and rebates offered by utilities, manufacturers and the state to offset incremental costs. It’s also important to understand the savings that can be expected as well as potential financing mechanisms.

In 2002, the Green Schools Initiative, a program of the Massachusetts Technology Collaborative, joined with the Department of Education to fund 18 pilot project green schools. (The Initiative also developed resources to help school districts design and build high-performance, resource- and energy-efficient green schools.) Data from the pilot project schools show average projected energy savings of 30 percent above state code requirements, with some projects anticipating savings of more than 40 percent.

A study conducted for the Massachusetts Technology Collaborative last December found that the average incremental cost of energy- and water-efficiency features was 3 percent of total construction cost – and just 1 percent when all state and utility incentives and rebates were included. Over the lifetime of the building, savings from reduced energy and water use were projected to be eight times the incremental costs, with these costs recouped in just three years. After that time, all savings accrue to the community.

While the best return on investment can be found in new construction, experts estimate that municipalities can also realize savings of 20 percent to 30 percent by modernizing and retro-fitting existing buildings. The decision to renovate or build new requires careful deliberation about the costs associated with new construction versus those of renovation and the cost-benefit of reduced operating costs over the lifetime of the building.

In either new construction or retrofits, the process starts with setting specific performance (energy usage) objectives and then seeing the building and its mechanical and electrical systems as inter-related components. Such an integrated process will need to involve architects, engineers, maintenance staff and the owner representatives. It’s also important to keep the building occupants in mind at all stages. Brainstorming sessions, teamwork, and ongoing communication will make a significant difference in the outcome.

Buildings are very complex, and their constituent elements are highly interactive. To take a simple example, lighting and heating systems interact with one another. If a building is designed with an inefficient lighting system that generates high levels of waste heat, then developers will need to oversize the air conditioning to compensate. Similarly, skylights and dimmable ballasts can reduce electricity consumption dedicated to lighting. Building materials and the proper location of windows should be carefully considered.

While these considerations are not simple, municipalities don’t have to go it alone, as many resources exist to help in this area. These include the Leadership in Energy and Environmental Design Green Building Rating System of the U.S. Green Building Council, the Environmental Protection Agency’s Energy Star program, and the Advanced Buildings Benchmark, which can be used to design energy-efficient public buildings. The Massachusetts Technology Collaborative offers information and assistance on adding renewable technologies to offset energy use.

The MTC recently paired up with the Collaborative for High Performance Schools to develop Massachusetts High Performance Green Schools Guidelines. This document provides specific criteria for best practices in high-performance green construction. The recently published Massachusetts School Building Authority guidelines for school construction set educational program space standards and include meeting Collaborative for High Performance Schools criteria as a way to qualify for an additional 2 percent reimbursement of total construction cost.

The Northeast Energy Efficiency Partnerships has a High Performance Schools Exchange program that offers broad and comprehensive information to support the design of highly efficient and cost-effective new school buildings. Resources include design guidelines, case studies, information on state regulations, and many other valuable resources.

“The Massachusetts School Building Authority has made a major statement on behalf of students and municipalities by supporting school buildings that enhance learning, reduce operating costs, and reduce building impact on our environment,” says Donald Fudge of the Northeast High Performance Schools Exchange. “Massachusetts is now a leader in the high-performance schools movement.”

As the endorsed supplier for the MMA’s MunEnergy program, Constellation NewEnergy can be a resource for municipalities in the preliminary stages of construction. Given the large number of new municipal buildings that are being considered, a seminar on the topic is being planned for this fall.

For more information on MunEnergy offerings, contact MunEnergy Program Manager Erik Everton at (617) 772-7530 or This e-mail address is being protected from spambots. You need JavaScript enabled to view it .