|
Capital Investments
Carbon emissions on campus can be lowered through behavior change, increasing energy efficiency, or switching to renewable energy sources. No matter which of these strategies is chosen, some capital investment is required to fund them. This capital investment can be relatively small, as in the case of sponsoring an energy-saving contest between college dormitories, or extremely large, like the cost of replacing a coal-burning plant with a co-generation plant. Hiring full or part-time personnel to plan and oversee a climate action plan costs money as well. Within the last few decades, creative strategies for funding emission-lowering opportunities have emerged on campuses around the country, making smart energy solutions easier to implement.
Revolving energy funds are becoming an increasingly popular way to fund carbon emission-lowering projects. These involve using initial start-up money from an endowment or grant to fund energy-saving projects, then paying the fund back witht the energy cost savings realized from the project. Money from the fund is then available for the next project. Experience with these funds at campuses like Harvard University have shown that return on investment can be on the order of 30%.
Many campuses are opting to increase student funds to purchase renewable energy or fund other emission-lowering projects. On campuses with large student populations, a nominal fee assessed per student each year can add up to a sizable amount. At the University of Colorado at Boulder, students approved a $1 per semester increase in student fees to purchase the entire output of a two million kWh/year wind turbine, and later voted to expand the wind purchase to 8.8 million kWh/year, reducing annual carbon dioxide emissions by twelve million pounds. To date, fees have been used to fund projects at over 25 institutions across the country.
Universities and colleges can take advantage of the time, energy, and talents of its studetns by completing labor-intensive projects, like a campus carbon inventory, through student internships or independent study. Students can hone their communication, planning, and management skills while performing important functions for the institution. For example, five graduate students at the Donald Bren School of Environmental Study, as part of an independent project, developed a plan to reduce their campuses' greenhouse gas contributions to 1990 levels by 2020.
State Funding for energy projects is often available for public universities, which enroll 80% of al college students. Public Benefit Funds (PBFs) and bonding initiatives are state-controlled funds generated by levying a small surcharge on consumer electricity use. A wide range of energy-saving projects can be paid for this way, including weatherization efforts, renewable energy research and development, and retrofit incentive programs. Individual state programs vary, so state energy offices should be consulted for details of their programs.
Federal Funds are also available for qualified campuses. For example, Clean Renewable Energy Bonds (CREBs) are available from some electric cooperatives or power systems for state-run schools. CREBs are interest-free loans that can be used for a variety of alternative energy projects including wind, biomass, geothermal, solar, small irrigation power, or hydropower.
Campuses interested in energy efficiency retrofits can opt to contract with an Energy Service Company (ESCO). These companies agree to perform the retrofits, guaranteeing a minimum energy savings to the institution. They shoulder all of the up-front equipment and labor costs, rrecovering them by sharing in the energy cost savings. Once the ESCO re-coups its costs, the institution realizes the remaining energy savings. ESCOs can be a good option for smaller institutions without access to sources of large amounts of cash.
Some universities have found sources of funding for research and development of new energy technologies by entering into corporate ventures. The University of California, Davis, enterd into an agreement with Chevron Technology Ventures, a subsidiary of Chevron Corporation, to receive up to $25 million to fund research developing transportation fuel from cellulosic biomass.
Gifts and Grants can be another source of funds for project start-up costs or for smaller-scale projects, such as education and behavior change programs. Matching funds or money for specific projects are often available through private foundations as well. For example, Macalester College installed a wind turbine on its campus with the help of its local utility. The utility offered to pay for the turbine if Macalaster paid for its installation. The $15,000 installation cost was initially covered by Physical Plant, and then repaid from funds raised for the Senior Class gift. Some places to start:
|
