The City of Houston is the first city in Texas to use qualified energy conservation bonds for their energy efficiency program. The city will expand its municipal energy program to city libraries all over Houston.

“Earlier this month, I committed to reduce the City’s greenhouse gas emissions by ten percent by 2016,” said Mayor Annise Parker. “This project will go a long way toward helping the City reach that goal. Not only will we be saving energy, we will be saving money. It’s a double win for Houston.”

Funding will come from using Qualified Energy Conservation Bonds (QECBs). QECBs are federally-subsidized bonds that enable state, tribal and local government issuers to borrow money to fund a range of energy conservation projects at very low borrowing rates. Qualifying projects include using energy efficiency capital expenditures in public buildings that reduce energy consumption by at least 20%. The City of Houston is the first city in Texas to utilize this financing for energy efficiency, according to the Mayor’s Office.

“Too much energy is wasted through poor insulation, leaky windows, inefficient lighting, heating or cooling systems, and poor construction techniques,” said Luke Metzger, Director of Environment Texas. “We applaud Houston’s innovation in making city buildings more efficient, an important step toward solving our energy problems, reducing pollution and saving the city money.”

The QECBs provide the City of Houston low interest rates and the bonds have been awarded at an interest cost of below one percent.

“Many of the City’s buildings are using older, inefficient lighting, mechanical systems and control systems. This project phase will upgrade systems for 18 library facilities, the Dalton Street Property Maintenance facility and the Houston Emergency Center (HEC),” according to the Mayor’s Office. “Overall, these measures will reduce energy, water consumption and operating costs of City facilities. In addition, the energy savings are guaranteed by the performance contract.”

This is the City’s third phase of an energy savings performance contract for energy conservation measures with Schneider Electric. Numerous energy efficiency measures have been implemented to date including: Hurricane emergency power remediation/hardening of the City IT network at 611 Walker, Critical IT area HVAC replacement, City Hall lighting upgrade, Critical system replacements at SW Water Treatment Plant, Police command center reliability upgrades at 3 locations City-wide HVAC control systems upgrade to improve service response, Central plant upgrades in 8 major facilities.