$5 billion for 'green' buildings

By John Rebchook, Rocky Mountain News (Contact)

Published June 23, 2008 at 10:10 p.m.

Text size

More Real Estate

A nonprofit building management association and the Clinton Climate Initiative on Monday said they have lined up

$5 billion in financing to provide one-stop shopping to make commercial buildings throughout the U.S. and the world more energy efficient.

The Energy Performance Contract Model was unveiled at a press conference by the Building Owners and Manager Association International at its annual meeting at the Colorado Convention Center.

The association, better known as BOMA, and the Clinton Climate Initiative, which was launched last year by the foundation created by former President Clinton, have cut deals with five banks that will each make $1 billion in loans available to retrofit buildings with things such as energy efficient chillers, computerized energy management systems, and even solar and wind power.

"Building owners aren't going to do this for charity," said Arah Schuur, program manager for the Clinton Climate Initiative.

This is how the program works:

An owner gets a loan from the group to retrofit a building. The owner signs a contract for $90,000 with an energy service contractor, who guarantees energy savings of $100,000 per year. If the saving goals aren't met, the company has to write a check to the building owner for the difference.

Tenants are rewarded with lower energy bills and the owner can eventually sell the building for more money because of the state-of-the art equipment.

Two pilot programs are under way on buildings in Richmond, Va., and Sacramento, Calif. And an Asian fast-food chain is interested in using the program for all of its restaurants, Schuur said.

rebchookj@RockyMountainNews.com or 303-954-5207

Subscribe to the Rocky Mountain News