The government could help to promote energy efficiency with a number of different policies that support innovation from local communities and utilities. The government could offer, for example, incentives and low-cost loans that can be distributed through local utility companies for retrofitting current structures and applying higher efficiency standards in new construction. Decisions as to the best methods of efficiency are most effective at the local level with attention to geography, availability, and distribution of resources. Capital constraints previously preventing individuals and industry from taking advantage of advanced methods of energy efficiency may be alleviated with access to low-cost loans guaranteed by the government. Although one argument may be that the recovery time is too lengthy to realize any individual benefit of such upgrades, this may be handled by incentivizing the utility to provide the immediate cost benefit recouping its cost over time. Additionally, the government should expand its efforts to ensure easy access to all available energy usage and technology data is accessible.

In order to move this idea forward, I would create a business that will wade through the myriad of tax, regulations, and technology choices and provide a turn-key solution. The business would determine the best efficiency solutions for local industry and individuals while working with local utilities and the community ensuring a holistic approach. This type of business would receive funding through a variety of government (or other more creative) sources and would use all available programs to offset individual investment for provided solutions, where feasible. If the brunt of the capital cost is handled outside of direct investment by individuals, there is a greater chance of acceptance and this is when real progress may be made.

The government has great potential to promote energy efficiency through policies that have a strong emphasis on structural development, transportation, and education efforts. First, the government could create a benchmark for construction on new buildings and renovations to ensure that energy efficient projects are progressing. By enforcing more rigorous mandatory building codes on new buildings and renovation, the life cycle of the building would operate more energy efficiently. The “Unlocking Energy Efficiency in the US Economy Report” by McKinsey and Company displayed the state residential building codes on Exhibit 17. The inconsistency of the outdated residential standards needs to be restructured by new energy intensive policies. There should also be discounted energy audits or assessments for residential energy customers. As for industrial and commercial settings, there should be building codes and regulations concerning the existing building envelope and equipment. Perhaps, companies should be given building certificates or energy labels (such as Energy Star labels) that are to be displayed to the public and consumers. As a result, it could provide the company with an incentive to become more energy efficient. The building code mandate could let’s say equal E, and as the company becomes more energy efficient the letter grade would get closer to the letter A. In addition, there could also be yearly mandatory energy audits and assessments for companies. Next, the transportation sector must be rationalized by creating fuel efficiency mandates and producing tax credit policies that encourage people to buy more efficient vehicles. The government should introduce and regularly strengthen fuel efficiency standards for light-duty and heavy duty vehicles. Nationwide state vehicle emission tests and inspection tests should also be considered to ensure that vehicles are producing minimal amounts of air pollution. Finally, the advancement in education and awareness efforts should be a top priority of policy makers. Residents could receive information from local electricity providers about residential heating and cooling flaws and guides to make your house more energy efficient. There could also be activities in the communities to promote more efficient housing projects and showcase local energy efficient companies and partners. These methods would give the public a hands-on learning approach to reducing their energy costs. Overall, the types of policies that promote energy efficiency can vary; however, the resources and technology are readily available to begin making energy efficient policies in the residential, commercial, and industrial sectors.

If I were to develop a business, it would carry out government policies on structural mandates for new or outdated industrial and commercial buildings in order for them to receive the best energy label. First, I would heavily stress the importance of investing in the triple bottom line: planet, people, and profit. I would develop a business that would help companies start from bottom-up in energy efficiency. As a business, I could improve energy efficiency of existing buildings performing simple tasks such as performing energy audits and assessments, then making recommendations. I could also assist companies planning to construct new buildings and renovations by giving them some sustainable development blueprints dependent on their budget. Largely, if the government did create a building energy label and mandatory building codes; my business would help make other companies sustainability goals become reality.

Granade, Hanna. Jon Creyts. Anton Derkach. Philip Farese. Scott  Nyquist. “Unlocking Energy Efficiency In The US Economy”. 2009 July. Accessed Sept.9 2014 http://www.mckinsey.com/client_service/electric_power_and_natural_gas/latest_thinking/unlocking_energy_efficiency_in_the_us_economy