The federal government pays a lot of money for the electricity, natural gas, and other energy sources that power our facilities. We have energy-saving goals, but we don't have the capital necessary to make the up-front investments.
Changing lights, windows, controls, and other equipment can save energy in future years. But, there is a negative impact on the budget in the year the energy-saving change is made. And,
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The federal government pays a lot of money for the electricity, natural gas, and other energy sources that power our facilities. We have energy-saving goals, but we don't have the capital necessary to make the up-front investments.
Changing lights, windows, controls, and other equipment can save energy in future years. But, there is a negative impact on the budget in the year the energy-saving change is made. And, with budgets the way they are today, there's no capital today to invest in something that will provide savings tomorrow.
I propose that the federal government go to the private market to sell bonds (or other instruments) to raise the capital necessary to make those investments today.
These bonds can then be paid back with future energy savings. The repayment could be set up to provide a net positive cashflow -- save some money during the repayment period, save even more when the investment is totally paid off.
This will allow us to cut future energy costs without incurring any upfront cost. Today's budgets will not increase and future budgets will be lower.
In addition, this will spur private market investments in the kinds of projects that are really good for the US. There are investment firms looking for low-risk "green" investments. They would welcome an opportunity like this.
Just think how effective it would be to have an Executive Order encouraging energy efficiency coupled with a no-upfront-cost source of funds. This is truly an idea whose time has come.
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