SAVES in the Commonwealth of Virigina
Introduction
The VirginiaSAVES Green Community Program, originally announced by Governor Terry McAuliffe in 2015, represented a significant stride towards sustainable energy solutions in the Commonwealth of Virginia. Administered and designed as an extension of the SAVES Green Community Program Platform and funded through Qualified Energy Conservation Bonds (QECBs), this program played a pivotal role in promoting energy efficiency, renewable energy generation, and alternative fuels. This blog explores the legacy and impact of the VirginiaSAVES Program on local governments, institutions, and commercial and industrial sectors across Virginia.
Objectives and Initial Funding
The VirginiaSAVES Program was established to support the objectives outlined in the 2014 Virginia Energy Plan. The Program aimed to expand and improve energy infrastructure, stimulate local economic activity, create jobs, and leverage private funding. Initially funded with $20 million through an allocation of QECBs by the Department of Mines, Minerals, and Energy (DMME), the program grew significantly, demonstrating its effectiveness and the need for such initiatives.
Qualified Energy Conservation Bonds (QECBs)
QECBs are a cornerstone of the VirginiaSAVES Program. These bonds provide a federal subsidy to offset interest rates on private financing, making energy projects more affordable. QECBs were originally authorized under the federal Energy Improvement and Extension Act of 2008, and further expanded by the federal American Recovery and Reinvestment Act of 2009. Virginia received an $80.6 million allocation of QECBs for use to state and local agencies across the Commonwealth. The bonds were instrumental in funding a wide range of energy efficiency measures, from lighting upgrades to alternative fuel infrastructure.
Before the retirement of QECB at the end of 2017, the ViriginaSAVES Program deployed $57.5MM of QECBs supporting 13 public and private projects.
Eligible Projects and Economic Impact
The VirginiaSAVES Program has financed numerous types of energy efficiency and renewable energy projects, including HVAC maintenance, insulation, solar and wind energy systems, and distributed generation infrastructure. These projects not only reduce energy consumption and greenhouse gas emissions but also generate significant economic benefits. Each $1 million invested is estimated to have created 20 direct jobs and 17 indirect jobs, boosting local economies and improving the quality of life for Virginia residents.
Environmental Benefits
The environmental impact of the VirginiaSAVES Program is also substantial. For every $1 million invested, an estimated 1,500 MWh of energy was saved, and greenhouse gas emissions were reduced by approximately 1,000 metric tons. These achievements align with Virginia's broader environmental goals and underscore the importance of continuing to support and expand such initiatives. Across 13 projects, the installed energy efficiency measures reduce greenhouse gas emissions by 27,000 metric tons annually.
Legacy and Future Prospects
The VirginiaSAVES Program has set a high standard for energy efficiency and renewable energy financing in the Commonwealth. Its success demonstrates the potential for public-private partnerships to drive sustainable development. The VirginiaSAVES Green Community Program has left a lasting legacy in Virginia. By providing innovative financing solutions and fostering collaboration between public and private entities, the program made significant strides in improving energy infrastructure, creating jobs, and reducing environmental impact. As the SAVES Platform looks to the future, the principles and successes of the VirginiaSAVES Program will continue to inspire and guide efforts towards a more sustainable and prosperous green energy transition.
