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The Michigan Energy Office (MEO) is committed to assisting state agencies with reducing energy consumption and cost, increasing equipment efficiency and with building energy efficient and sustainable facilities. The MEO is currently working with the departments of

Community Mental Health, Corrections, Environmental Quality and Management and Budget, Military and Veteran Affairs to increase energy efficiency and reduce energy and water costs in their facilities.

Michigan statute PA 122 of 1989 provides the legislative authorization to employ multi-year, performance contracts to purchase and install proven and cost-effective energy efficient technologies in state-owned buildings. The BES and DMB Acquisition Services staff assist state agencies with the performance contracting process. Other technical assistance, training, and project support services are offered based on expressed needs and resource availability.

Programs

State Facility Energy Savings Plan
In November 2007, the MI Department of Management & Budget (DMB) began its implementation of an energy reduction strategy to reduce utility expenditures by 10% by the end of fiscal year 2008 (September 30, 2008); based on 2002 utility expenditures of approximately $16 million on DMB managed and owned buildings.

Energy Cost Avoidance Certification (P.A. 122)
Public Act 122 of 1987 encourages ongoing energy management in state-owned facilities by offering a financial incentive to departments that have taken energy-saving actions and can document the energy cost savings. Departments may retain seventy-five percent (75%) of their certified energy cost avoidance to fund additional energy efficiency projects during the next fiscal year.

Performance Contracting
Performance contracting is a means of procuring energy efficiency improvements based on future savings. It enables dollars saved as a result of installing new energy efficient technologies to be used to offset the cost of financing, installing, commissioning and servicing the technologies. Future cost savings are contractually guaranteed by the selected energy service company (ESCo).

ENERGY STAR Benchmarking in State Owned Facilities
The Energy Office will assist with benchmarking qualifying facilities and provide assistance with obtaining the ENERGY STAR Label.