Two Presidents, One Economy: Obama and Clinton Amass $4 Billion in Backing for Building Upgrades

Former U.S. President Bill Clinton joined President Barack Obama on December 2 in Washington, D.C., to announce that a total of $4 billion—half, from the public sector; and half, from the private sector— will be used to upgrade the energy efficiency of buildings nationwide over the next two years.

Of the $4 billion in funding, $2 billion will be earmarked, by means of a Presidential Memorandum , to energy retrofits of federal buildings—using long-term energy savings to pay for up-front costs, at no cost to taxpayers.

In a move that the U.S. Chamber of Commerce has recognized as critical to job creation, the Presidential Memorandum calls for fully implementing existing federal authority to utilize Energy Savings Performance Contracts (ESPCs) in order to promote energy efficiency and create tens of thousands of new jobs. Under the ESPC program, new energy efficient equipment is installed at federal facilities at no up-front cost to the government. The cost of the improvements is paid for over time with energy costs saved on utility bills, and the private sector contractors guarantee the energy savings.

In addition, 60 CEOs, mayors, university presidents, and labor leaders have committed nearly $2 billion in private capital to energy efficiency projects—which will upgrade energy performance by a minimum of 20 percent over the next decade, in 1.6 billion square feet of space in office, industrial, municipal, hospital, university, community college, and school buildings—reducing energy costs for American businesses by nearly $40 billion.

This major announcement expands on a commitment made last June by the Obama Administration and 14 partners at the Clinton Global Initiative (CGI)–America conference. As part of a Better Buildings Challenge , they agreed at that time to make energy upgrades across 300 million square feet, and to invest $500 million in private sector financing in energy efficiency projects.

Originally launched in February 2011, by President Obama, the Better Buildings Challenge has been spearheaded on his behalf by former President Clinton, the Clinton Global Initiative, the Clinton Climate Initiative, the William J. Clinton Foundation, and the President’s Council on Jobs and Competitiveness

 In consigning the funds to the public retrofit program, Obama said, “The federal government owns and operates nearly three billion square feet of federal building space. Upgrading the energy performance of buildings is one of the fastest and most effective ways to reduce energy costs, cut pollution, and create jobs in the construction and energy sectors. We have a responsibility to lead by example, reduce our energy use, and operate our buildings efficiently.”

 “Investments in building retrofits and energy efficiency can make a real difference in the American economy, by creating jobs, growing our industries, improving businesses’ bottom lines, reducing our energy bills and consumption, and preserving our planet for future generations,” said President Clinton, who has long championed energy retrofits to create jobs and protect the environment. During his terms in office, he created a multi-year program to capture the economic benefits of energy retrofits in 1993, created a Climate Change Action Plan to stabilize U.S. greenhouse gas emissions in 1993, announced steps to decrease energy use in Federal buildings in 1998, and signed an Executive Order on Greening the Government in 1999.

"The Better Buildings initiative has all the components to make a real difference: It will create profitable investment opportunities for worker pension funds, create badly needed good jobs, increase America's competitiveness around energy savings, and address the dangers of climate change," commented President Richard Trumka, of the AFL-CIO, a federation of U.S. labor organizations.   For a list of the 60 participating organizations and what each has pledged, visit the White House website.