January 6, 2010

Innovative Partnership Puts People to Work by Improving Energy Efficiency

The Governor announced today a new initiative that could create 375-625 skilled jobs while improving energy efficiency, in partnership with Senator Harris McDowell, co-chair of the Sustainable Energy Utility (SEU).

“Getting people back to work and reducing energy consumption without impacting the state budget is one of the best examples of a win/win that you can find,” said Governor Markel.  “It’s not just more jobs and less energy used, it’s a significant and sustainable change in the way government uses its resources.”

The State of Delaware and the SEU will be retrofitting state buildings, some of which are over 30 years old, to update the systems that provide heat, air conditioning, electricity and water.  Power for these facilities cost $33 million in FY09, but system modernization will significantly reduce energy consumption.   The upgrades for the Carvel Building alone will create 65 jobs and reduce CO2 emissions by 8.1 million pounds, which is equivalent to removing about 860 cars from our roads annually.

The SEU is currently putting together a portfolio of $25-35 million worth of energy efficiency projects in municipal, hospital and school buildings.

“The SEU is offering a timely and innovative approach to reducing the cost of state government. Our state buildings are rife with wasted energy and money," said Senator Harris McDowell, co-chair of the SEU.  “Cutting energy waste will make more money available for state services, employees, streets and infrastructure.  And investments in energy efficiency mean more good-paying jobs and economic development opportunities. In a post-recession economy, it's a no brainer.”

No money from the capital budget will be required for the retrofits.  The SEU, under its bonding authority, will provide the up-front financing.  Energy services companies will guarantee a certain level of cost savings, and bonds will be repaid from those funds.    Additional funding has been committed through the American Recovery and Reinvestment Act.

“We have been working closely with DelTech, the Laborer’s International Union and several nonprofits to ensure that our workers are trained and ready to start,” said Markell.  “The initiative could employ hundreds of people across the state in jobs that cannot be exported.”

In addition to the fiscal benefits and job creation, the retrofits will provide significant environmental benefits through the reduction of pollution from fossil fuels, improved public health due to cleaner air, and a reduced carbon footprint.