Bill would help local governments invest in efficiency

Saving energy in public buildings 

Bill would help local governments invest in efficiency

OLYMPIA - If state agencies and local governments didn’t have to pay sales tax on certain energy-efficiency upgrades in public buildings, they could put those dollars into additional energy- and money-saving projects.

That’s the reasoning behind the Promoting Energy Efficiency in Public Buildings bill, sponsored in the current Washington state legislative session by Rep. Timm Ormsby (D-Spokane) and Sen. Craig Pridemore (D-Vancouver).

The bill would provide a sales-tax exemption to state and local governments that engage in “performance-based” contracts for energy efficiency projects. Under a performance-based contract, a single company determines how much energy (and water and solid waste) can be saved in a particular building, finances and installs the efficiency improvements that will achieve those savings, and is paid primarily from the money those improvements save the building owner – in this case a state agency or local government.

Such contracts save taxpayers’ money in two ways: First, the improvements substantially reduce utility costs for an average of 10 years per project. And second, the improvements are made at virtually no cost to the government entities … except for the sales taxes they’re now required to pay to the state.

The exemption will spur additional government investment in energy conservation projects, and more savings for the public. The benefits outweigh the costs many times over.

Agencies and local governments now pay the state around $1.2 million a year in sales taxes on performance-based efficiency improvements. Cost savings from a year’s worth of improvements now average $1.4 million a year – for 10 years. In other words, exempting $1.2 million in state sales tax would save state and local taxpayers $14 million.

“Additional energy-efficiency improvements to our state buildings, schools, libraries, fire stations and public hospitals will create family-wage jobs and reduce the pressure on our utilities to supply ever more power,” said Kim Drury of NW Energy Coalition, one of the broad array of bill supporters.

Endorsers include American Rivers, Audubon Washington, Avista Utilities, Climate Solutions, eFormative Options LLC, Earth Ministry, Environment Washington, Fuse Washington, McKinstry Co., Northwest Energy Efficiency Council, Washington Environmental Council and the Washington Public Utility Districts Asso.

For more information, contact …
Kim Drury, NW Energy Coalition, (206) 621-0094

or

Go to the Washington 2008 Legislative Bills section of NW Energy Coalition's webpage