In a recent blog post, “Arlington Goes Green,” I highlighted Arlington County’s push to reduce greenhouse gas emissions. While I applauded the county’s commitment to energy efficiency, I was concerned about what appeared to be a lack of Return on Investment analysis on the investment of taxpayer dollars. If there was any such analysis, it did not appear in any of the county’s materials detailing the initiative.
As it turns out, Arlington has conducted an ROI analysis of past conservation investments, which have generated a very positive return on taxpayer dollars: Overall, Arlington County has reaped 20 cents in operating savings for every dollar invested in conservation.
For example, says Diana Sun, communications director for the county, the County spent $130,000 on energy-efficient lighting for its courthouse in 2005. That is saving $22,000 a year in electricity and maintenance costs currently. The savings will mount when the cap on Dominion electric rates comes off and charges start rising again.
Sun cites other examples:
- Energy-efficient lighting and improvements to the steam heating plant at the Justice Center (courthouse and jail) cost $200,000 to install and are saving more than $70,000 in annual utility bills.
- The County reduced electricity use at Central Library by 25 percent, saving more than $30,000 a year, with improved operation and maintenance, and investments in new lighting, efficient equipment, and improved controls.
- Reinsulated hot water pipes and improved temperature controls at the Madison Community Center have reduced natural gas use over 20 percent.
- A lighting retrofit at a teen detention facility cost $6,000 in 2002, and has cut electricity use by 30 percent, saving $4,000 a year.
- Arlington County has retrofitted more than half of its signalized traffic intersections with light-emitting diode (LED) traffic lights. These LED traffic lights are brighter, use 25 percent as much electricity as traditional signals, and last 10 times longer. By 2010, all traffic signals will be LED lights.
State and local government across Virginia should be pursuing these kinds of investments. They generate savings for taxpayers and conserve energy, thus reducing pollution and reducing greenhouse gases. While I’m not sold on the Al Gore-style scaremongering regarding global warming, I do support energy conservation. Conservation reduces the need for intrusive electric infrastructure like power plants and transmission lines. It also reduces types of pollution that have a very real, well documented impact on Virginia’s environment. Energy conservation is a win-win for everyone but the power company.
Will Arlington generate comparable ROI on the $5 million it plans to spend on its Fresh AIRE initiative? If new investments are as well conceived as past investments, then the prognosis is positive. If the new investments are driven by environmental zeal, then maybe not. Let us hope that Arlington is as as forthcoming with the numbers for Fresh AIRE investments as it has been for its past efforts.
Meanwhile, there is a take-away for other Virginia governments: If you haven’t explored energy conservation as a tool for controlling costs, you need to. You cannot limit yourself to investments that pay for themselves within the time horizon of an annual budget. You need to conduct life-cycle analysis and look for investments that pay themselves back over five or six years. If you don’t do it to be “green,” then do it for the taxpayers.
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