Federal energy-efficiency spending signals trend

By Kevin Matthews
Vice President, Energy and Environment Sector

A recent report from the Federal Times indicates the ongoing trend in spending and subsequent opportunities that abound for public sector energy efficiency projects will continue.

According to an article from Environmental Leader, federal agencies spent more than $1.7 billion last year on energy-efficiency projects, increasing their environmental spend by more than 80 percent from 2008.

The Federal Times article reports that about two-thirds of the investments were paid for with federally appropriated dollars, primarily from the American Recovery and Reinvestment Act, with the remainder financed by private-sector financing arrangements, such as Energy Savings Performance Contracts (ESPCs) and Utility Energy Services Contracts (UESCs). Under these programs, contractors pay for renovations upfront and are paid back over time with cost savings that result from reduced energy consumption.

Such spending most certainly motivated many state and local governments to reduce or monitor energy consumption. And, for those with mandates, the funding was crucial for meeting specific standards. What’s more, the funding boosted revenues for the innovative businesses behind the projects and, therefore, the green economy. This is one more example of how public-private partnerships are key to our nation’s future economic health.

Kevin Matthews is Vice President of the Energy and Environment Sector for NSI where he runs the day-to-day sector operations and works with clients on sustainable solutions for interfacing with state and local governments.Prior to joining NSI, Mr. Matthews held various positions with the U.S. Environmental Protection Agency in Washington, D.C. where he worked for Administrator Carol M. Browner and served as both Special Assistant and Senior Congressional Liaison. He also worked as an aide to U.S. Senators Dale Bumpers and Joseph Lieberman. Mr. Matthews holds a B.A. in History from Hendrix College in Conway, Arkansas and an MPA from the Lyndon B. Johnson School of Public Affairs at the University of Texas at Austin. He currently serves on the Editorial Advisory Board of Brownfield News and Sustainability Report and is a certified Environmental Risk Manager from Texas State University.