Lead Organization: City of Ann Arbor, Michigan

The Municipal Energy Fund was established in 1998 to be a self-sustaining source of funds for investment in energy-efficient retrofits at city facilities, so the City could continually reduce its operating costs over time. The Energy Fund demonstrates that energy efficiency can pay for itself in the long term. By providing the difficult up-front costs and then capturing 80% of the resulting savings, the Fund not only motivates facility managers to move forward with energy efficient projects but has the ability to become sustainable in 3-5 years requiring no additional annual appropriations. The Energy Fund projects not only save facilities/departments operating dollars but also improve the comfort and appearance of City facilities. Savings estimates for projects completed in 10 years (1998-2008) demonstrate that these projects have cumulatively resulted in almost $860,000 in energy cost reductions, 10.7 GWh in energy savings, and approximately 8,000 tons of carbon emissions reductions.

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