Governor Brewer Launches Effort to Improve Energy Efficiency at State Buildings

Press Release

Governor Brewer Launches Effort to Improve Energy Efficiency at State Buildings

Investment will Leverage Stimulus Funds, Create Jobs

Governor Jan Brewer today announced the first commitment of funds associated with Arizona's State Energy Plan (SEP) under the American Recovery and Reinvestment Act (ARRA) of 2009. Ten million dollars will be allocated for projects enhancing energy efficiency at State-owned
buildings and facilities.

"We're moving swiftly and wisely to invest Arizona's stimulus dollars into projects that will boost the State's economy and put more Arizonans back to work," said Governor Jan Brewer. "This effort will have lasting impact, providing long-term energy savings for public facilities and agencies,
thereby conserving critical taxpayer dollars.''

The money is a portion of the $55.4 million the State is expected to receive from the U.S. Department of Energy's State Energy Program. Under Arizona's program developed by the Arizona Department of Commerce Energy Office, the ARRA funds will act as a catalyst leveraging private sector investment in proven industry practices to maximize impact. This energy performance contract allows the State to make energy improvements in its buildings and use the guaranteed energy cost savings to pay for the improvements.

"The Arizona State Building Energy Performance Contracting Program envisions leveraging the $10 million of ARRA funds with $40 million or more of private capital to retrofit state buildings," said Jim Arwood, Director of the Energy Office. "This approach significantly increases the number of
jobs and benefits greenhouse gas reduction while creating more productive work environments, eliminating deferred maintenance concerns and lowering the annual operating and maintenance costs for State buildings."

Arizona's SEP aims to advance energy efficiency and renewable energy investments statewide. Programs for Arizona schools and state buildings will utilize energy performance contracting to leverage $30 million in stimulus funding with private capital funding to achieve $150 million in energy efficiency and renewable energy projects. These energy performance contracts are estimated to reduce annual utility costs by $15.5 million for Arizona taxpayers.

The Arizona Department of Administration is in the process of identifying state buildings for energy performance contracts. The energy improvements address elements such as lighting, lighting controls, HVAC and HVAC controls, motors, building automated controls, and insulation. The ARRA
funds will help make significant infrastructure improvements, such as boilers and chillers and solar equipment, more cost effective.

Governor Brewer's Office provides updates on Arizona's ARRA applications and programs at www.azrecovery.gov.

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