Honeywell says it supports President Obama’s plans to make $2 billion in efficiency-focused upgrades to federal facilities by 2016. The commitment, which the president unveiled May 9, extends a similar goal set over two years ago, which led to more than a billion in improvements at government buildings and military bases — work financed and implemented with private-sector support.
"America’s business leaders welcome the president’s increased commitment to improving energy efficiency in federal buildings,” said Dave Cote, Honeywell chairman and CEO. “Leveraging private-sector expertise and dollars to improve energy use in federal buildings is smart policy. We stand ready to work with the Administration and Congress to implement a national strategy that ensures abundant supplies of reliable, affordable energy for America’s homes and factories.”
The work is made possible through energy savings performance contracts (ESPCs), a model in which private financing pays for projects upfront and the resulting savings, guaranteed by energy services companies like Honeywell, help repay the loan. With this approach, federal agencies can make critical improvements without additional taxpayer dollars.
The new White House goal will increase the results of the past several years. During that time, the government identified more than 200 potential projects, which could lead to $2.7 billion in ESPCs and annual energy savings in excess of $100 million. According to the National Association of Energy Service Companies, every $10 million in guaranteed upgrades creates or sustains 95 jobs.