Fourteen percent of all commercial buildings in the United States are owned by federal, state or local government bodies. And that 14 percent is having a major impact on the reduction of energy consumption in this country.
Spurred by a presidential executive order for federal buildings to reduce energy intensity (consumption of energy per square foot) by 2.5 percent each year between 2015 and 2025 and by state and local government laws, policies and goals for new and existing government buildings to improve their energy performance, government entities are far outpacing the private sector in those efforts.
U.S. Energy Information Administration (EIA) figures released last week from its Commercial Building Energy Consumption Survey indicate that energy intensity in public-sector buildings was reduced by 23 percent between 2003 and 2012. The private-sector figure was much lower for the same period – at only 12 percent.
This ongoing endeavor has opened up government contracting opportunities for a variety of private-sector firms offering energy-saving and energy-efficiency solutions.
It is interesting to note that 72 percent of government-owned buildings are local, 24 percent are state and only 4 percent (mostly agency buildings and post offices) are federal. Among the largest number of state- and local government-owned buildings are schools. Each of these segments of public-sector facilities can help reduce their energy intensity through projects such as modernizing and upgrading equipment and installing automating energy-consuming systems such as lighting or heating, ventilation and air conditioning (HVAC).
One reason government is outpacing the private sector in reducing energy intensity, according to the EIA, is that many government buildings generally have an energy management plan in place and commercial facilities do not. These plans establish and monitor energy targets over time. Government entities also are more likely to install automation systems than the private sector. However, both the public and private sectors are making a concerted effort to improve energy efficiency. Both sectors are increasing the use of renewable energy as part of their energy portfolios and building high-performance buildings whose efficiency in operation and use and their resiliency to survive natural disasters such as tornadoes or earthquakes can significantly cut maintenance and rehabilitation costs long-term.
Attention to energy consumption and energy efficiency is not just a trend. It is an ongoing strategy that will affect the public sector at all levels of government for many years to come. Private-sector energy solutions – from energy audits to use of new technology – will be in high demand, meaning countless available government contracting opportunities.