These are exciting times for energy efficiency in buildings. Policymakers and industry groups now recognize that energy efficiency standards for buildings and appliances are among the easiest and most cost-effective ways to save energy and reduce global warming emissions.

Moreover, momentum is growing among governments, design firms, and financiers to voluntarily adopt energy efficiency measures that go beyond existing federal and state requirements. Many city governments and design groups, including the American Institute of Architecture and the U.S. Conference of Mayors, have set a goal to reduce fossil fuel consumption in all new and renovated buildings by 50 percent by 2010, and be 'carbon neutral' by 2030.

In August 2006, former President Bill Clinton launched the Clinton Climate Initiative (CCI) to make a difference in the fight against climate change in practical, measurable, and significant ways. In its first phase, CCI serves as the exclusive implementing partner of the C40 Large Cities Climate Leadership Group, an association of large cities around the world that have pledged to accelerate their efforts to reduce greenhouse gas emissions. In 2007 CCI launched an Energy Efficiency Building Retrofit Program, bringing together many of the world's largest energy service companies, financial institutions, and cities in a landmark effort to reduce energy consumption in existing buildings across the municipal, private, commercial, educational, and public housing sectors. Retrofitting public and private buildings to incorporate more energy efficient products, technologies, and systems can significantly reduce energy use and pay for itself through energy cost savings.

The United States Green Building Council, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE), and the Illuminating Engineering Society of North America have formed of a committee to develop green building standards and catalyze green building as a mainstream building practice. They expect to finalize the standard this year. Model Code committees are meeting to decide how to improve on building energy codes, and are considering a very significant increase in efficiency requirements for new and renovated buildings.

States continue to lead the way with energy efficient appliance standards and building codes. For example, in Connecticut policymakers adopted a suite of strong appliance and equipment standards, and increased the state's commitment to energy efficiency for electric, gas and home heating oil consumers. Nevada recently adopted a standard for lighting that will phase out incandescent light bulbs, in favor or more efficient florescent and LED lighting technologies.

State action tends to have a catalytic effect on national policy. In late June, the United States Senate approved a bill that will require a set of new appliance efficiency standards (clothes washers, dishwasher, dehumidifiers, boiler motors, refrigerators, furnace fans and incandescent reflector lamps). For the first time, clothes washer and dishwasher standards include water as well as energy efficiency standards. The bill also includes a permanent authorization of Energy Savings Performance Contracts for installation of energy efficiency measures in federal buildings, and a new initiative to improve energy efficiency in commercial buildings. The bill establishes a new procedure by which states can choose to adopt appliance standards that are stricter than federal requirements for furnaces, boilers, and air conditioners.

In the months ahead, there will be significant action on building efficiency at the U.S. Department of Energy, which is under pressure from Congress and state courts to adopt more stringent appliance standards. The U.S. House of Representatives will take up the Senate bill and may add some of its own building efficiency measures, including tax incentives for energy efficiency investments. More and more states and cities will be looking to upgrade their building efficiency codes. Finally, we expect many corporate leaders will re-examine their building management specifications and procurement practices to incorporate more efficient appliances, building materials, and systems to reduce energy waste in commercial buildings.