OutdoorLightingProgram

StreetLightingRetrofitProjects: ImprovingPerformance,whileReducingCostsandGreenhouseGasEmissions

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EXECUTIVESUMMARY

Streetlightingcanconstituteasignificantportionofamunicipalgovernmentselectricitycostsandgreenhouse gasemissions.Theincreasingconcernaboutgreenhousegasemissionsandthecostofenergyisleadingmany municipalitiestotakemeasurestoreduceemissionsincosteffective,practicalways.Retrofittingstreetlighting systemsreplacingexistingequipmentwithmoreefficientandfunctionalnewtechnologypresentsa compellingopportunityformunicipalitiestoreduceenergybillsandmaintenancecosts,avoidgreenhousegas emissions,andenhancetheoverallperformanceandefficiencyoftheirlightingsystems. Globallystreetlightingisbelievedtoaccountfor159TWhofelectricityuseperyear,ormorethantheannual powerproducedby36powerplantsof500MWcapacity.Reducingthisconsumptionby50percentan achievablegoalwouldeliminatealmost80TWhofelectricityconsumptionandover40MTonnesofCO2 emissionsannually.i Newandemergingtechnologieshavebroughtattentiontoretrofitprojects,enablingmunicipalitiestotake actiontodayandachievetheneartermbenefitscitesabove. Thiswhitepaperexaminesthepotentialofenergyefficientstreetlightretrofitsinmunicipalities,andprovidesa blueprintforasuccessfulretrofitprogram,usingtheexperienceofleadingcitiesprojectsandtheClinton ClimateInitiatives(CCI)assessmentofthemarket.Whilethewhitepaperfocusesprimarilyonmunicipalities, theopportunitytosavemoneyandreduceemissionscanberealizedbyanyownerofstreetlightingequipment. Thecostsavingsandemissionsavoidedextendbeyondstreetlightingaswell:parklighting,pathwaylighting, parkinglotlightingandparkinggaragelightingcanallbetargetedusingasimilarstrategyandtechnologies. Thefollowingobservationsandprojectplanningrecommendationsareexplored: EnergyUseandPublicLighting Streetlightingcanrepresentfrom5%toover60%ofamunicipalgovernmentselectricbill,depending onthemunicipalityssize,theservicesitoffers,andtheefficiencyofitspubliclighting.Byimproving publiclightingefficiency,manymunicipalitieswillbeabletohelpmeettheirclimategoalsandcuttheir spending.Duetothetypicallycentralizedownershipstructureofstreetlightingsystems,many municipalitiesareabletoactdirectlyandswiftly. NewTechnologiesEnableRetrofitProjects Emergingtechnologiessuchaslightemittingdiodes(LEDs)andinductionlighting,alongwithimproved controlandmonitoringsystems,havepresentedmunicipalitieswithanarrayofnewoptionsforhigh qualitycosteffectivelighting.Thesetechnologiescanoffersuperiorefficiencyandmoreappealinglight thanincumbenttechnologiessuchasmercuryvaporandhighpressuresodiumvapor(HPS).While theseemergingtechnologiesbeardiversebenefits,itiscriticalthatmunicipalgovernmentstakecaution toselectqualityproductsgiventhemarketsemergingstate. TheRetrofitOpportunity Intelligentplanninganddeploymentofstreetlightingretrofitprojectscanenablemunicipalitiesand utilitiestosavemoney,reduceemissions,andimprovethequalityofstreetlightingtoday,evenwiththe evolvingproductmarketandconstrainedmunicipalbudgets.Projectscanprovideanattractivereturn oninvestment,withsimplepaybackcommonlyachievedinseventotenyearsand,insomecases,witha

OutdoorLightingProgram

positiveprojectcashflowstartinginYear1.RecentandcurrentprojectsinAnchorage,Alaska,andLos Angeles,California,demonstratetheefficacyoftheseprojects.Yetadoptionbeyondthesecitieshas beennegligible. BarrierstoAdoption Thenegligibleadoptioncanbeattributedtofourkeybarriers: Concernsabouttheperformanceandreliabilityofnewtechnologies Concernsabouttheperformanceandreliabilityofnewequipmentproviders Productselectionmadedifficultbyrapidinnovation Perceivedscarcityofaffordableandappropriatefinancetocoverprojectswithlonger(610) yearpaybackperiods Concernsaboutproductandmanufacturerperformanceandreliabilitycanbemollifiedthrough reviewingbestpractices,stringentproductevaluation,andcomprehensivewarrantyterms.Rapid innovationcanbeaddressedbycontinuouslyevaluatingnewproductsduringamultiyearconversion project.Perceivedscarcityoffinancecanbeaddressedthroughavarietyofprojectfinanceoptions; theseoptionsarebestexploredinthecontextofaprojectcashflowanalysis. Finance Projectfinanceoptionsthatmunicipalitiesmightconsiderinclude:governmentfunds;utilitycompany financing,rebatesandincentives;internalmunicipalfunds;debtarrangements;thirdpartyequity investments;andcarbonfinancing. RetrofitRoadmap Byfollowingaseriesofrecommendedretrofitprocesssteps,municipalitiesandutilitiescanmount successfulretrofitprojectsthatconverttheirstreetlightingsystemstothenewenergyefficientand costefficienttechnologies. CCIisaprogramoftheWilliamJ.ClintonFoundation,aninternationalnonprofitorganization.Throughthe OutdoorLightingProgram,CCIaimstohelpcitiesaroundtheworldimprovetheenergyefficiencyofstreetlight systemsandreducecarbonemissionsworldwide.CCIservicesavailabletomunicipalitiesandutilitiesinclude advisingonprojectmanagement,purchasing,financing,andtechnology.CCIworksdirectlywithcitiestoinitiate newprojectsandtomoveexistingprojectsforwardmorequicklyandcosteffectively.OutdoorLightingProgram assistancetocitiesforstreetlightprojectswillvarybasedonthecitystechnicalexpertise,staffingand experience.(SeeAppendixAforadditionalinformation.)

OutdoorLightingProgram

INTRODUCTION
Theconfluenceofrisingenergypricesandmountingconcernovertheadverseimpactsofclimatechangehasled municipalgovernmentsandutilitycompaniestoassesshowtheymightreducetheirgreenhousegasemissions incosteffectiveandexpedientways.Indeed,manymunicipalitiesandutilitieshavepledgedtomarkedlyreduce theirgreenhousegasemissionsonaggressivetimescales,necessitatingsignificantmeasurestoreduce emissionsinordertomeetthosepoliticalandcorporatecommitmentsii. Todate,thesefactorshavemotivatedafewproactivemunicipalitiesandutilitiestofocusattentionontheir energyintensivepubliclightingsystems,wherebothnewandexistingtechnologiespresentopportunitiesto saveenergyiii.Throughthoughtfullyimplementedretrofitprojects,municipalitieshavefoundvastlyenhanced performance,significantenergyandothercostsavings,andimpressivegreenhousegasemissionreductions. Thesemunicipalitiesandutilitieshavelookedtobroadspectrum(white)lightsources,includingLEDand induction,matedtonovelcontrolandmonitoringsystems. StartinginSeptember2008,thefirstcommerciallyviableLEDlightingprojectforaroadwaylightingapplication wasdeployedatscalebytheCityofAnchorage,Alaskaiv.Todate,4,650LEDfixtureshavebeeninstalledbythe AnchorageDepartmentofPublicWorks;energyusehasdroppedby45%58%,accordingtomeasurements takenfrommeteredcircuits,surpassingthemunicipalitysinitialprojections.Withuncommonlyhighelectricity prices12centsperkilowatthourthemunicipalityanticipatesachievingafullpaybackin6.5years. ShortlyafterAnchoragedeployeditsfirstfixtures,onFebruary16th,2009,theCityofLosAngeles,California, announcedthatoverthenextfiveyearsitwouldconvert140,000ofitsresidentialstreetlightstoLED.Through adeftactofforesight,theLosAngelesMayorsOfficeandtheBureauofStreetLightingwhichmanagesthe municipalitys209,000fixturepubliclightingsystemavoidedfuturebudgetshortfallsduetorisingelectricity pricesbyplanningandimplementingtheretrofitproject.Debtservicetoday,theyfound,waslessburdensome thanenergycoststomorrow.Thefixtureswillreduceelectricityusebygreaterthan50%;throughenergy savings,maintenancesavingsandagenerousrebateprovidedbytheLosAngelesDepartmentofWater&Power themunicipallyownedutilitycompanytheprojectisexpectedtoachieveasimplepaybackinsevenyearsv. Reducedenergybillsandavoidedgreenhousegasemissionsaretwoincontrovertiblebenefitsofthesecities publiclightingprojects.Buttheseareonlytwoofthenumerousbenefitstomunicipalitieswhenpubliclighting projectsarewellplannedanduseappropriateequipment.Otherbenefitsinclude:reducedmaintenancecosts, decreasedlightpollution,decreasedlighttrespass,and,mostimportantly,enhancedvisibilityand performancevi. Thiswhitepaperwillreviewthesebenefitsandexplainhowmunicipalitiesandutilitiescanachievethem.The paperfirstwillconsidertheenergyconsumptionandemissionsofmunicipalpubliclighting.Next,itassessesthe newfixtureandcontrolstechnologiesthatmakeretrofitprojectsprofitabletoday,whileidentifyingobstaclesto successfulproductselectionsuchasconcernsaboutproductandmanufacturerreliability,andrapidproduct innovation.Itwillthenreviewvariousfinancestrategiesthatgovernmentscanutilizeaspotentiallyaffordable sourcesofprojectfinance.Finally,thewhitepaperdescribesaprocessforretrofittingpubliclightingsystems withincurrentstandards,inthenearterm,tohelpmunicipalitiesandutilitiesseizeaprodigioussavings opportunity. EnergyUseofPublicLighting

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Inareviewofregionalmarketassessments,CCIobservesthatpubliclightingconsumesapproximately1.3%of E.U.and0.9%ofUnitedStatesenduseelectricity,accountingfor66,000,000megawatthoursofelectricityuse and36,000,000tonsofCO2eemissionsvii.ExtrapolatingfromtheseregionalmarketassessmentsaswellasUN dataonpubliclightingenergyuse,CCIestimatesthatpubliclightingonaglobalscaleconsumes159,000,000 megawatthoursofelectricityannually,generating80,745,000tonsofCO2eemissions. Table1.1:StreetLightingAnnualElectricityUseandEmissions Region ShareofEndUse MagnitudeofEndUse EstimatedGHG EstimatedNumber ElectricityConsumed ElectricityConsumed Emissionsfrom ofStreetLights byStreetLighting byStreetLighting StreetLighting Installed Europe[EU25]viii 1.3% 35TWh 14MT 56.2million UnitedStatesix 0.9% 31TWh 22MT 37.9million Global 0.9% 159TWh 81MT 219.8million
*1TWh=1,000,000MWh;1MT=1,000,000tonnes

Taking50%asaconservativepresentdaybenchmarkforenergysavingspotentialx,thissuggeststhatinthe UnitedStatesandEuropealone,33,000,000megawatthoursofelectricityuseand18,000,000tonsofCO2 emissionscouldbeavoidedannuallythroughnearterminterventionbystreetlightingequipmentownersxi Globally,79,000,000megawatthoursofelectricityuseand20,250,000tonsofCO2emissionscouldbeavoided annuallythroughneartermintervention Streetlightingsshareofamunicipalgovernmentselectricbillrangeswidelydependingonthesizeofthe municipality,thescopeofservicesitoffers,andtheefficiencyofitspubliclighting.Forlargemunicipalitieswith comprehensivemunicipalservicesincludingwasteandwastewatertreatment,publictransitandmore,street lightingcanrepresentapproximately5%ofthemunicipalgovernmentselectricbill.Forsmallermunicipalities withlesscomprehensivemunicipalservices,streetlightingcansurpass60%oftheelectricbill. City ShareofMunicipal MagnitudeofMunicipal GovernmentsGHGEmissionsfrom GovernmentsGHGEmissionsfrom StreetLighting StreetLighting xii 136,621metrictons/year NewYorkCity 3.2%* xiii Houston 4.5% 90,542metrictons/year Bostonxiv 17.8% 36,737metrictons/year Sydneyxv 37.0% 14,023metrictons/year Melbourne 53.1% 5,309metrictons/year
*IncludesTrafficSignals

Sincemanymunicipalitiesdirectlyownandoverseeoperationoftheirpubliclightingsystems,publiclighting representsanassetwithcentralizedownershipthatcanbestrategicallytargetedbymunicipalgovernmentsto reducemunicipalgreenhousegasemissions.Municipalgovernmentscanactdirectlyandswiftlytoreduce emissionsandutilitybills.

NEWTECHNOLOGIESENABLERETROFITPROJECTS

OutdoorLightingProgram

Therecent,rapiddevelopmentofsolidstatelightingdevices,chieflylightemittingdiodes(LEDs),forgeneral illuminationhassubstantiallydisruptedthetraditionalpubliclightingmarket,elevatingthedialogueonwhether newbroadspectrumlightsourcesmightbemoreeffective,moreaestheticallyappealing,andsaferalternatives topreviouspubliclightingtechnologies.TheemergenceofLEDstreetlightinghasalsorenewedfocuson anotherbroadspectrumlightsourceinduction.Additionally,thearrivalofbettercontrolandmonitoring systems(CMS)allowsmunicipalitiestooptimizetheirmaintenanceserviceand,insomescenarios,dimpublic lightingduringlatenighthourswhenvehicularandpedestriantrafficislow.Eachofthesetechnologiesaswell astheincumbentalternatives,principallymercuryvaporandhighpressuresodium,willbeconsideredbelow. Beforeconsideringthesenewtechnologies,however,areviewoftheincumbentstreetlightingtechnologiesis needed.Thetablebelowoutlinesvarioustechnologiescurrentlyusedforstreetlightingxvi.Thedatasuggest thatbothlampandfixtureefficiencyarecriticaldriversofpotentialenergysavings,andnewtechnologiescan improvesystemefficiency.UndertheheadingPerformanceProfile,severalparametersareconsidered.Typical LampEfficacyreferstotheluminousefficacyorlumensgeneratedperwattofelectricityofvariousstreet lighttechnologies.TypicalFixtureEfficiencystipulatestheefficiencywithwhichstreetlightfixturesdirectlamp lumenstowardthetargetsurface,i.e.roadwayorsidewalk.TypicalNetEfficacyreflectstheefficiencyofthe system,includinglampandfixture. %MarketShare PerformanceProfile United Statesxvii HighPressureSodium LowPressureSodium MercuryVapor MetalHalide** CompactFluorescent Incandescent LED Induction 59% 10% 20% 5% 2% 4% 0% 0% Europe [EU25]xviii 47% 9% 32% 3% 8% 0% 0% 0%
xix

TypicalLamp Efficacy (lm/w) 70150 68177 3458 6185 5070 1017 50100 6080

Typical Fixture Efficiency 45% 25% 30% 3540% 60% 60% 6090% 6080%

TypicalNet Efficacy (lm/w) 3268 1744 1017 2134 3042 610 3090 3664

Currently Dimmable withCMS* Yes No No Yes Yes Yes Yes Yes

xx

DataforHPS,LPS,MVandMHPerformancefromEurelectric2004 ;FluorescentandIncandescentdatafromUSDOEandEfficiencyVermont . *Dimmableballastsordriversarerequiredfordimmingfunctionality. **MetalHalideexcludesCosmoPolissystem,whichmeritstreatmentseparatefromotherMetalHalideproducts.SeeAppendixBformoreinformation.

WhiletherangeofHPSlampefficacyreachesupto150lumensperwatt,mostHPSlampsusedforstreetlighting typicallyoperateatapeakefficacyof120lumensperwatt.Whenfixtureefficiencyisconsidered,thisreduces thenetefficacyforHPSstreetlightingto54lumensperwattsuperiortomercuryvaporlighting,butlower thanLEDorinductionproductswithhighfixtureefficiencies.ThewiderangeinLEDnetefficacyfromapoor 30lumensperwatttoanimpressive90lumensperwattreflectsalackofconsistencyinLEDproductquality acrossmanufacturers.Itiscriticaltoidentifyreliableproductsbyreviewingbestpracticesfromothercities. Inductionproductswithhighlyefficientfixtureopticsalsocanoutperformincumbenttechnologies,ascan CosmoPolisproductswithhighlyefficientfixtures.Allproductsbenefitincrementallyfromtheutilizationof electronicballastsandCMSsystems. Foradditionalanalysisofincumbentandnewtechnologies,refertoAppendixB.

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RETROFITOPPORTUNITIESANDCHALLENGES
Municipalitiesandutilitiescansavesignificantoperatingexpensesandmeaningfullyreducegreenhousegas emissionsbyimplementingretrofitprojectsthatenhancethequalityofstreetlightingservice.Suchprojects canbeplannedtoday,evenwithanevolvingproductmarketandaconstrainedprojectbudget.When plannedanddeployedintelligently,streetlightingretrofitprojectscanprovideanattractivereturnon investmentsimplepaybackiscommonlyachievedinseventotenyears.Insomecases,suchaprojectcanbe cashflowpositivestartinginYear1. Large,coordinatedretrofitprojectsarefarmoreeconomicalthansmallscale,piecemealprojects.Conversion throughattritionleavesvaluableenergysavingsonthetable:79%ofahighpressuresodiumfixtureslifecycle costiselectricity,withtheremaining21%beingcomprisedofmaintenanceandinstallationcostsxxi. ExampleProjects Todemonstratetheefficacyoftheseprojects,considertwoexamplesofmunicipalitiesthathavemovedforward withlargescaleretrofitprojectsinthepast18months: Anchorage,Alaska,followingaMarch2008pilottestcomparingLEDandinductionfixtureswithexisting highpressuresodiumvaporfixtures,movedforwardinSeptember2008witharetrofitof4,400150W and250Whighpressuresodiumvaporfixturesonresidentialstreetsto82Wand111WLEDfixtures respectively.Theprojectwillachievesimplepaybackinsevenyears;theenergysavingsis45%58%. Enablingitsretrofitproject,theCityofAnchoragerewroteitsmunicipallightingordinancestoaccount fornewluminaireclassificationsystem,BUG(Backlight,Uplight,Glare)ratings,perIESNATM15,and integratedaLumenEffectivenessMultiplier(LEM)tabletoguidedesignersintheuseofbroadspectrum lightsources.Inthepilottest,AnchorageresidentsvastlypreferredthebroadspectrumLEDand inductionlighttothenarrowspectrumhighpressuresodiumlight.xxii LosAngeles,California,aftertestingbothLEDandinductionfixturestoreplacehighpressuresodium vaporfixtures,beganaretrofitof140,000residentialstreetlightstoLEDtechnologyduringthenext5 years.Theprojectwilladditionallyequipeverynewfixturewitharemotemonitoringsystem,enabling twowaycommunicationwithfixturestooptimizemaintenancedeliveryandverifyenergysavings.The projectwill,uponfullimplementation,reduce68,640,000kilowatthoursperyearofdemandandavoid 40,500tonsofCO2eemissions.TheprojectwillbefinancedthrougharebateprovidedbytheLos AngelesDepartmentofWaterandPowerandasevenyear$40Mloanatarateof5.25%itwillbe repaidthroughenergyandmaintenancesavings.xxiii Finance Overview Oneofthemostcommonlycitedobstaclestoretrofitprojectsisfinance:municipalitiesoftenhaveseveral projectscompetingforinternalfunds,mayberestrictedfromincreasingindebtednessormaynotbeawareof therangeofexternalsourcesthatmaybeavailable.

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Nosinglesilverbulletfinancesolutionexists,yetthereareanumberoffinanceoptionsthatmunicipalitiesmight consider.Theseoptionscan,insomecases,standaloneorcanalsobeblendedtogethertocreateafinancing planfortheproject. Abroadoutlineofpotentialfinanceoptionsisprovidedbelow;however,itisimportanttonotethatfinance optionsmayvarysignificantlybygeographyandaccordingtoprojectdetails. Source Description Government Stimulusfunds,state/provincialprograms,municipalprograms UtilityCompany Utilitybasedrebates,incentives,andonbillfinanceprograms Internal Municipalgovernmentfunds/budgetallocations;couldbestructuredasintercityloan Debt EquipmentLeases,including CapitalLeases OperatingLeases TaxExemptLeasePurchases(TELP) Bonds TaxExempt StructuredFinance Mediumtermstructuredloansfromcommercialbanksorotherthirdparty financiers ThirdPartyEquity InstitutionalInvestorsorPrivateEquityFundslookingformediumtermstablereturns CarbonFinance PotentialtofundaportionoftheprojectwithCERsorVERsviathetechnologyprovider oraCarbonFund. DetailedinformationoneachsourceoffundingcanbefoundinAppendixC RetrofitRoadmap AnchorageandLosAngelesdefinedsuccessfulprojectplansonwhichotherentitiescanbuild.Byfollowing severalcommonretrofitprocesssteps,municipalitiesandutilitiescancapitalizeonsignificantenergyand maintenancesavings,whileavoidinganymisstepscausedbyaconversiontonewtechnologies. RetrofitRoadmap Step Activity Timeline 1 Definehighlevelprojectgoals.Reviewthesegoalswithinthecontextofothermunicipal 2weeks goals/priorities.Committotimeline.Surveystaffresources;ifnecessary,considerhiring aconsultantwhoisexperiencedwithstreetlightingimprovementprojects. Samplegoals:reducelightingrelatedcosts,GHGemissions;improvevisibility,safety; improveequityofmunicipalstreetlightingservice. 2 Evaluateexistingequipment,anddefineopportunitiesforsystemimprovement. 2weeks 3 Choosereplacementfixturetechnologiestoconsider:LED,induction,etc.Choosecontrol systemstoconsider:WiFi,PLC,etc.Reviewprojectsthathavetestedanddeployedthese technologies,andsolicittheirevaluationresults,specifications,etc. 2weeks

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4* Ifnoothermunicipalitiestestexperiencescanbeleveraged,plananddeployasmallscale 36months pilottesttoevaluatetechnologiesselectedinStep3.Pilottestsshouldincludeobjective andsubjectiveevaluations.Utilizelightingengineersinobjectiveevaluation;engagelocal residentsinsubjectiveevaluation.Developstreetlightingstandardsincorporatingresults ofpilottests. 36months 5 ConcurrentwithStep4,conductdetailedeconomicanalysistoassesswhetherfullscale deploymentisfinanciallyfeasible.Duringeconomicanalysis,conductassessmentoflocal (concurrent) financeoptionsavailabletoyourmunicipalityorutility. 6 7 WithresultsfromSteps4and5,craftbusinesscaseforfullscaleimplementation. Navigatelocalapprovalsprocess;finalizefinanceplan. 1month 1month

*NOTE:ifyourmunicipalityorutilityhasalreadybegunorcompletedpilottesting,thenyoucanproceedwith draftingadetailedeconomicanalysisandbusinesscase.

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APPENDIXA:TheClintonClimateInitiative
Climatechangeisadefiningchallengeofthe21stcentury.Unlesswereducegreenhousegasemissions drasticallyinthenext10years,risingtemperaturesandchangingweatherpatternswillhaveadevastating impactournaturalandeconomicsystems.Ourfuturedependsonswiftactionwithsignificantimpact. TheWilliamJ.ClintonFoundationlaunchedtheClintonClimateInitiative(CCI)tocreateandadvancesolutions tothecoreissuesdrivingclimatechange.Wetakeaholisticapproach,addressingthemajorsourcesof greenhousegasemissionsandthepeople,policies,andpracticesthatimpactthem.Workingwithgovernments andbusinessesaroundtheworld,CCIfocusesonthreestrategicprogramareas:increasingenergyefficiencyin cities,catalyzingthelargescalesupplyofcleanenergy,andworkingtomeasureandvaluethecarbonabsorbed byforests. CCIseffectivenessdrawsfromseveralcorestrengths. Weoperateatthenexusofbusiness,politics,andenvironmentalgroups,wherethereistremendous opportunityforbridgingunderstanding. Wetakeananalyticalapproachtocomplexproblemsandproduceviablebusinesssolutions. Wehaveglobalscaleandreach,andtheabilitytoconveneleadingexpertsfromtheprivate,publicand academicsectorsaroundongoingpartnershipsorspecificprojects. Alargepartofourworkisaimedathelpinggovernmentsturnpledgestoreducecarbonemissionsintoaction throughreplicableandscalableprojectsthatcanbetailoredtolocalconditions.Thisapproachisuniqueand servesseveralimportantfunctions,includingdemonstratinghowtargetscanbemetinpractice,informing furtherpolicydecisions,andcompressingthetimeframeofachievingrealemissionsreductions.Itisnolonger anoptiontowaitforaninternationallyagreeduponroadmapbeforedevisingandimplementingprojectsthat couldbedeliveredtoday OutdoorLightingProgram CCIhelpscitiesaroundtheworld improvetheenergyefficiencyofstreet andtrafficlightsystemsbyadvisingon projectmanagement,purchasing, financing,andtechnology.CCIworks directlywithcitiestoinitiatenew projectsandtomoveexistingprojects forwardmorequicklyandcost effectively.Thecoreservicesof TechnicalAssistance,FinancialAdvisory, andProjectAssistanceareprovidedto CCIspartnersatnocost.

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APPENDIXB:ReviewofTechnologies IncumbentTechnologies Thispaperfocusesonmercuryvaporandhighpressuresodiumthetwomostabundantincumbent technologiesaswellasthenewertechnologies,LEDandinduction MercuryVapor In1938,thefirstmercuryvapor(MV)lampswereusedforstreetlightingapplications.Mercuryvaporlamps agasdischargelightsourceofferrelativelylonglamplifeofupto28,000hoursatalowinitialcost. Unfortunately,theselimitedbenefitscomeatthepriceoflowlampefficacy(<60lumens/watt)andcolor rendition(CRI<60).Inaddition,lightoutputoverthelifeoflamp(lumendepreciation)isextremelypoor resultinginlampsthatusethesameamountofenergyforverylittlelightoutput.Forthepasttwodecades, municipalitiesandutilitieshaveregularlyandsuccessfullyconvertedoldmercuryvaporstreetlightstohigh pressuresodiumstreetlights. HighPressureSodium Highpressuresodium(HPS)lampswerefirstcommercializedin1970;thetechnologywastoutedasanenergy efficientalternativetoincandescentandmercuryvaporlamps,theprevailingstreetlightingtechnologies.It deliveredthisvalue,doingsoatalowinitialcostandwithacomparativelyhighlampefficacy.Thetechnology graduallyachievedbroadglobalmarketpenetrationthroughthe1970sand1980sduetoitsrelativeenergy efficiencyandsignificantlumenoutput,inspiteoflowcolorrendition.RelativetoLEDandinduction technologies,HPSoffersshorterlife,withratedlamplifeof20,00024,000hours. Avastmajorityofmunicipalitiesandutilitiesstillregardthefamiliarhighpressuresodiumasthemost inexpensiveandenergyefficientlightingtechnologyavailable.Somegloballightingmanufacturersreinforcethis perceptionofhighpressuresodiumanddismissnewtechnologiesasineffectualandwithexaggeratedclaims. Thebenefitsofhighpressuresodiumlampefficaciesoftypically70120lumen/wattareunfortunately diminishedbytheirtypicalinstallationintocobraheadandshoeboxstreetlightfixturesthatachieveonly4050% opticalefficiency,reducingnetfixtureefficacyto3560lumens/wattxxiv.Further,relativetowiderspectrumlight sources,thetechnologyspoorcolorrendition(CRIof22)maycompromisevisibilityand,accordingtosomecity residents,castanaestheticallydispleasinglightontocitystreets.Whenfixtureefficacyandcoloroflightare takenintoconsideration,highpressuresodiumlookslessfavorable. NewTechnologies LightEmittingDiodes(LEDs) AnLEDisasolidstatelightingdevicethatgeneratesanarrowbandemissionwhendirectcurrentisapplied. FirstdevelopedbyNationalAeronauticandSpaceAgency(NASA)scientistsin1962,andinitiallyutilizedas indicatorlights,LEDshaverecentlybeenusedingeneralilluminationapplications,includingstreetandarea lighting,parkinglotlighting,andparkinggaragelighting.Whenproperlyutilizedinstreetlightingfixtures,LED technologyofferspotentialadvantages,including:

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Energysavings,withpotentialfor>50%savingsoverhighpressuresodium; Longfixturelife,withfixturesratedat>50,000hoursoperationuntilendoflife,definedaslessthan 70%oforiginallumenoutput; Instanton/off; Abilitytointegratedynamiccontrols; Directionallightemissionthatallows,withtheproperoptics,highlyefficientfixtures; Improvedcolorrendition,oftenover70CRI;and, Potentialforenhancedvisibilityduetoitsbroaderspectraldistribution(whitelight).

However,whiletheLEDdeviceitselfisrapidlyevolving,theuseofLEDsfortheaforementionedapplicationsis stillrelativelynewearlyadoptersmustthereforetakeprecautionstoensurethattheyselectquality products.xxvWithsomemanufacturersmakingunrealisticclaimsaboutproductqualityandperformance,the precautionsmustbeevenmoredeliberate.Criticaltechnologicalpitfallstobewareofinclude: Improperthermalmanagement,leadingtoundesirablyhighjunctiontemperaturesanddriveroperating temperaturesthatcauseprematureproductfailure; PoorlybinnedLEDs,causingpoorcoloruniformityand,overtime,colorshift; Highbluelightcontentinhighercolortemperatureproducts,raisingenvironmentalandaesthetic concerns; Deficientfixtureoptics,causingpooropticalperformance,includingglare;and, Variablefixturewarranties,potentiallyexposingearlyadopterstoundueriskoffailure. Thesepitfallscanallbeavoidedthroughresponsibleprojectplanningandspecifications. LEDfixtureefficacieshavebeenimprovingandcostshavebeendecliningsharply.Onemultiphasestudyin Oakland,California,founda36%decreaseinLEDfixturecostoverthecourseof11months,oroneproduct generation.Whilepriceswilllikelynotfallatanequivalentlysteeprateinyearstocome,thedeclinewillindeed continue,perhapsontheorderof515%peryear.LEDchipinnovationandincreasedfixturemanufacturing volumearethetwomostsignificantdriversofthiscostdecline.Volumepurchasingisanotherdriverforretrofit projects,50fixtureswillbesignificantlymorecostlyperunitthan5,000fixtures. Duetodecliningprices,aquestionaboutcostofdelaybecomesrelevant:Couldmunicipalitiessavemoreby delayingimplementationfor12yearstoallowpricestofallfurther?Theeconomicsofthisdecisionwilldepend oneachmunicipality,butanalysissuggeststhatpriceswouldneedtofallnearly15%annuallyformunicipalities torecovertheenergyandmaintenancesavingslostbydelay.Municipalitiescannotrecovertheadditional greenhousegasemissionsfromaoneyeardelay,eveniffixtureefficiencyimprovesbyupto15percentduring thattime.xxvi InductionLighting Inductionlightingisanelectrodelessfluorescentlightsourcethat,byexcitinggasenclosedinthelampvia electromagneticinductioninsteadofacurrentappliedthroughanelectrode,reliablyproducesbroadspectrum light.Inductionfixtureshavebeencommerciallyavailableforovertwodecades;witharatedlifeof100,000 hours,manyinductionlightsourcesarestillilluminatingroadwaysaftermorethan10yearsofoperationxxvii.The benefitsofferedbyinductiontechnologyaremanifoldandsimilartomanybenefitsofLED:

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Excellentenergysavings,frequentlywith>50%savingsoverhighpressuresodiumvapor,and>70% savingsovermercuryvapor; Longfixturelife,withfixturesratedat>100,000hoursoperationuntilendoflife,atwhichpoint50%of fixturesarestillinoperation; Instanton/off; Abilitytointegratedynamiccontrols; Improvedcolorrendition,oftenover70CRI;and, Potentiallyenhancedvisibilityduetoabroaderspectraldistribution.

AswithLEDs,pitfallsexistforinductionlightingaswell: Inadequateorimproperthermalmanagement,leadingtoanundesirablyhighoperatingtemperaturein thegeneratorthatcausesprematureproductfailure;and, Lessefficientfixtureoptics,withpoorerfixtureefficiencythanLED. Witheffectiveprojectplanning,thesetechnologypitfallscanbeovercome. UnlikeLEDtechnology,inductiontechnologyhasnearedaplateauinfixtureefficacy.Evenso,decreasesincost withvolumepurchasingcanbesignificant. OtherEnergyEfficientOptions LEDandinductionarebynomeansthebestoronlyenergyefficientlightsourcesthatmunicipalitiescanusefor retrofitprojects.Anotherpopularoption,anewgenerationofhighefficacyceramicmetalhalideproduct, CosmoPolis,hasemergedasaviable,costeffectivealternativeinthepastfiveyears. Metalhalideisanotherformofgasdischargelightsourcethatuseseitheraquartz(older)orceramic(newer) arctubecontainingmercury,argonandmetalhalidestogeneratebroadspectrumlight.Whileolderquartzand ceramicmetalhalidelampsofferedshorterlamplifeof14,000hoursandlowerlampefficaciesof61to85 lumensperwatt,thenewgenerationofproductcanachievelampefficaciesofupto117lumensperwatt,with lamplifeof24,000to30,000hours.Smallerlampsofferimprovedfixtureopticalefficiency,andelectronic ballastsminimizeballastloss,preservingthehighlampefficacy.Savingsoverhighpressuresodiumcanspan30 50%,dependingontheapplication.Withintegrateddynamiccontrols,thesavingsgrowevenlarger.xxviiiThe technologyisproprietary,limitingthepooloffixturesuppliers. ControlSystems Whilecontroltechnologiesprovidingbasicon/offfunctionalitysuchasphotocellsandtimershavelongbeen available,twonewclassesofcontrolsystemshaveenteredtheoutdoorlightingmarketinthepastfiveyears: dimmingcontrolsandon/offcontrols.Bothcontrolsystemsoffertwowaycommunicationwithfixturesby radiofrequency(RF),wirelessmeshnetwork(WiFi),existingpowerlines(PLC),orsomecombinationofthese channels.Controlsystemsarecompatiblewithmanylightingtechnologieshighpressuresodiumvapor, ceramicmetalhalide,incandescent,inductionandLEDcanallbedimmedwiththeappropriatesystem. However,sometechnologieslendthemselvesmorenaturallytodimmingthanothers.

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InEurope,over80,000controllablefixtureshavebeendeployedandareoperatingsuccessfullytoday,allowing municipalitiestomonitorfixtureperformanceinordertocloselymanagefixtureoutagesandtodimfixtures duringoffpeakhoursinaccordancewithCIEadaptivestandardsxxix. Standards Presentlytwobodiesareresponsibleforsettingbaselineroadwaylightingstandardsinternationally:the InternationalLightingCommittee(CIE),andtheIlluminatingEngineeringSocietyofNorthAmerica(IESNA).CIE standardsaremoreprevalentthroughEurope,Africa,theMiddleEastandAsia.IESNArecommendedpractices arecitedthroughoutNorthandSouthAmerica.Whilethisbroadregionalbreakdownissomewhat representative,itisbynomeansprecise.Individualnations,statesandmunicipalitiesmaycraftfromCIEor IESNAstandardsamodifiedsetofstandardsalltheirown;othersmayadopttheirownstandardsaltogether. Manymunicipalitiesareunderstandablycautiousaboutdeviatingfromlocalrecommendedpracticesfor roadwaylighting.However,amunicipalitycaneasilymitigateanyliabilityriskstemmingfromtheintroduction ofanewfixturetechnologyorcontrolsystembydevelopingitsownspecificmunicipallightingcodexxx. Moststandardstodayunfortunatelydonotcapturethefullbenefitofbroadspectrumlightforvisibility.Asa researchconsensushasbeguntoemergearoundimprovedvisionunderbroadspectrumlightfirstfor peripheralvision,morerecentlyforfovealvisionCIEandIESNAarerevisingtheirstandardstoallowforthe benefitsofwhitelighttobeaccountedforinlightingsystemdesignsxxxi.BritishStandardsnowrequirehigher lightlevelsonresidentialroadwayswhenusingnarrowspectrumfixtureslikehighpressuresodium,thanfor broadspectrum,fixtureslikeLEDorinduction.

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APPENDIXC:DetailedReviewofFundingSources Government Governmentsatthenational,state/provincialandlocallevelinmanycasesprovidefunding,oftenatloworno costofcapital,forenergysavingprojectsthroughavarietyofprograms.Nointernationalcompendiumof governmentfinancingprogramsforenergyefficiencyprojectscurrentlyexists.However,intheUnitedStates, theDSIREdatabase,availableatwww.desireusa.org,providesacomprehensiveandsearchablelistof governmentandutilityprogramsatthestateandfederallevel. Examplesofgovernmentprogramsusedtofundlightingretrofitprojectsinclude: EnergyEfficiencyandConservationBlockGrant(EECBG),aUSfederalprogramfundedbytheAmerican RecoveryandReinvestmentAct(ARRA),representsasourceofflexiblefundsprovidedbythefederal DepartmentofEnergydirectlytomunicipalitiesofover35,000people.Municipalitiescanusethese fundstopaydownalloraportionofastreetlightingretrofitproject. CaliforniaEnergyCommissionsEnergyConservationAssistanceAccountrevolvingloanprogramand theAnnArborMunicipalEnergyFundrevolvingloanprogramrepresentastateandlocalprogram, respectively,thatoffermunicipalitiesundertakingenergysavinglightingretrofitprojectsaccesstolow ornocostloans.InCalifornia,theCECloanprogramoffersCaliforniamunicipalities1%interestloans fortermsof15yearswithamaximumof$3millionperloan.xxxiiInAnnArbor,Michigan,theMunicipal EnergyFundrevolvingloanprogramprovidesmunicipalfacilitieswith0%interestfinancingforenergy savingprojectsforupto80%oftheestimatedenergysavings.xxxiii UtilitySourcesofFunds Utilitiesareanothercommonsourceoffinanceforenergysavingprojects.Typically,utilitiesprovidefundingfor energyefficiencyprojects,includingoutdoorlightingprojects,intheformofrebates.Forlightingretrofit projects,therebatesareoftenprovidedonthebasisofkWhsaved.Forexample,inLosAngelestheLosAngeles DepartmentofWaterandPower,thelocalutility,providedarebateof$0.24centsperkWhreducedbythe municipalitysLEDretrofitproject.Thisprovidedfinancingfor29%ofthetotalprojectcost. Anothertypeofutilityfinancing,althoughlesscommonlyavailableinlargescale,isonbillfinancing.Onbill financingprogramsareutilityloanprogramsinwhichtheborrowerrepaysthecostoftheprojectviaalineitem chargeontheirutilitybill.Inmanycasestheutilitywillprovidefundsat0%interestrates.Onbillprograms typicallyseektoensurethattheenergysavingsmatchorexceedtheloanpayments,withtheoveralleffectof theutilitybilldroppingorremainingstable,energypricesbeingequal.Onbillprogramsareoftenusedto financeenergyefficiencybuildingretrofitprojectssponsoredbysmallbusinesses,residentialhomeownersand municipalities.Insomecases,theyarealsousedtofinancemunicipalstreetlightretrofitprojects.Onbill programscanbefoundthroughouttheUSandinCanada.xxxiv InternalSourcesofCapital Internalsourcesofcapital,whenavailable,mayrepresentthefastestandmostcosteffectivewayfora municipalitytofinanceaprojectgiventhatthefundsmaybedeployedquickly,minimizingthecostofdelay,and mayoftenbedeployedwithoutfinancingortransactioncosts.Thestrongandstablepaybackprofileofthese

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projectsalsoprovidesacompellingargumentwhenthereiscompetitionforinternalfunds.InthecaseofLos Angeles,themunicipalitychosetoselffinanceitsLEDretrofitprojectthroughinternalstructuredloansand usingfundsprovidedbythemunicipallyownedutility,LosAngelesDepartmentofWaterandPowerduetoease ofexecutionandabilitytostructuretheinternalloanaroundtheprojectedenergysavings,therebynot constrainingcityresources.Furthermore,municipalitiescanachievehighreturnsontheirinvestmentinenergy efficiencylightingretrofitprojects,withenergysavingsproducedbytheprojectservingasthesourceof repayment.Forinstance,theLosAngelesLEDretrofitprojectisprojectedtoprovidea23.4%InternalRateof Returnover10years. Debt Theabilityofmunicipalitiestoborrowdirectlyandthetypesofproductsthatmightbeavailablemayvary significantlyacrosstheglobe.IntheUnitedStates,municipalitiestypicallyhaveaccesstotaxexemptfinance, whichlowerstheoverallcostofborrowing.Taxexemptsourcesofdebtinclude: TaxExemptLeasePurchase(TELP)agreementsareapopularformoffinancingoutdoorlighting projects.UnderaTELP,amunicipalitypurchasestheequipmentthroughscheduledleasepaymentsto thelessor.TELPsareavailableinmoststatesintheUnitedStates.TELPsareoftentreatedasoff balancesheettransactionsgiventhepresenceofnonappropriationsorabatementlanguageinthe leaseitself. Bondsmaybeissuedbymunicipalitiesdirectlytofinanceenergyefficiencyprojectseitherasstand aloneprojectsorinconjunctionwithothercapitalimprovements. StructuredDebtmayprovidemediumtermdebt,withamortizationstructuredaroundtimingofenergyand othersavingsassociatedwiththeproject.Thismaybetaxexemptormaybestructuredinothermarkets. ThirdPartyEquity ThereisanemerginggroupofinvestorsinterestedinplacingequityinEnergyEfficiencyprojects,recognizing potentialforstrongandsolidreturnsoninvestment.Thoughnascentinitsapplicationtopubliclighting projects,thisappearstobeagrowingareaofpromise.Equityinvestmentmaycomeintheformofdirect upfrontcapitalinvestmentintheprojectforaportionoftotalprojectcosts,deployingasharedsavingsmodel wheretheequityprovidermayalsoprovidedebtfinancingandreceivesbothequityanddebtreturnsonthe project,orthroughstructuresinvolvingdirectthirdpartyownershipofthefixtures.Inthelattercase,theequity partywouldseektomaximizevalueofthelightinginfrastructureassetsbymakingenergyefficiency improvements.Applicabilityandappropriatenessoftheseandotherequityoptionswillvaryfromcitytocity dependingontheownershipandmaintenancestructurecurrentlyinplaceandontheinvestmentobjectivesof thecityitself. CarbonFinance CarbonFinancehasbeenexploredextensivelyforlargerprojectsinIndiaandotherlocationswherethereis possibilitytoconsolidateprojectsinmultiplecities.Thoughtheprocesshasprovenchallenging,severalfirms continuetoexplorethepossibilityofcarbonfinanceforpublicoutdoorlightingprojectsonaprogrammatic basis.

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Endnotes

iAssumingIEA2007globalaverageemissionfactorof0.5067kgC02/kWh. iiFormoreinformation,see:

C40Cities:http://www.c40cities.org/ USConferenceofMayorsClimateProtectionAgreement: http://www.usmayors.org/climateprotection/agreement.htm iiiCertaininvestorownedandmunicipalutilitycompaniesparticularlythoseinCaliforniahavebeenhighlysupportive ofnewtechnologies.Byprovidingratesandincentivesfornewstreetlightingtechnologies,theyhaveempowered municipalitiestopursueretrofitprojects. PacificGas&ElectrichasissuedratesforLEDequipment,andhavebeenapprovedbytheCaliforniaPublicUtilities Commission:http://www.pge.com/tariffs/tm2/pdf/ELEC_SCHEDS_LS2.pdf PacificGas&ElectrichasalsogeneratedrebatesforLEDequipmentinstalledbyitscustomers: http://www.pge.com/mybusiness/energysavingsrebates/rebatesincentives/ref/lighting/lightemittingdiodes/incent ives/index.shtml ivFormoreinformation,seeprojectpressrelease: http://www.muni.org/Departments/Mayor/PressReleases/Pages/CITYINSTALLSFIRSTOF16,000LEDSTREETLIGHTS.aspx vFormoreinformation,seeCCILosAngelesLEDRetrofitProgramReport viFormoreinformation,seeAnchorageanalysisconductedbyDr.RonGibbons,VirginiaTechTransportationInstitute: http://www.vtti.vt.edu/PDF/TRBVS_presentations/Gibbons_Visibility%20Performance%20Under%20New%20Lighting%20T echnologies.pdf viiAssumingEU2007emissionfactorof0.410kgCO /kWh(Eurelectric2007PRIMESModel),andU.S.emissionfactorof 2 0.718kgCO2/kWh(USEPAeGRID2007Model). viiiVanTichelen,P.,etal.FinalReportLot9:PublicStreetLighting.Vito,2007. ixNavigantConsulting.USLightingMarketCharacterization,Volume1:NationalLightingInventoryandEnergyConsumption Estimate.2002. xCiteafewcitieshere xiEmissionsfromstreetlightingarecalculatedbasedontheelectricityuseofequipment;thecontributionofmaintenance toemissionsandspecificallymaintenancetruckoperationisnotconsideredhere.DuetothelongevityofLEDand inductionfixturetechnologies,aswellascontrolsystems,maintenanceassociatedemissionsshouldfallaswell. xiiCityofNewYork.InventoryofNewYorkCityGreenhouseGasEmissions.September2008. xiiiCityofHouston.EmissionsReductionPlan.August2008. xivCityofBoston.FY2006MunicipalGreenhouseGasInventory.December2008. xvhttp://cityofsydney.nsw.gov.au/Environment/images/emissions2.gif xvi DataforstreetlightingmarketshareareaggregatedfrommarketreportspreparedfortheUnitedStatesDepartmentof EnergyandtheEuropeanCommission.Thesedatareflecttheexistinginstalledbaseofstreetlightingequipment xviiNavigantConsulting.USLightingMarketCharacterization,Volume1:NationalLightingInventoryandEnergy ConsumptionEstimate.2002. xviii VanTichelen,P.,etal.FinalReportLot9:PublicStreetLighting.Vito,2007. xix http://www.uie.org/library/REPORT_FINAL_July_2004.pdf xx http://www.state.vt.us/psb/document/StreetlightingTariffs/EVTLEDStreetlightingFinal52409.pdf xxiLightsLaborsLost:PoliciesforEnergyefficientLighting.Paris:InternationalEnergyAgency,2006. xxiiFormoreinformation,seeAnchorageanalysisconductedbyDr.RonGibbons,VirginiaTechTransportationInstitute: http://www.vtti.vt.edu/PDF/TRBVS_presentations/Gibbons_Visibility%20Performance%20Under%20New%20Lighting%20T echnologies.pdf xxiiiFormoreinformation,seeLosAngelesBureauofStreetLightingwebsite:http://www.lacity.org/BSL/ xxiv LightsLaborsLost:PoliciesforEnergyefficientLighting.Paris:InternationalEnergyAgency,2006. xxv Formoreinformation,seefollowingsite:http://www1.eere.energy.gov/buildings/ssl/outdoor.html http://www1.eere.energy.gov/buildings/ssl/outdoor.html xxviAssumingatenyearprojectperiod.

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xxvii

Formoreinformation,seePhilipscasestudyontheSanDiegoGasLampQuarter: http://www.greenerfacilities.org/admin/data/case_studies/San_Diego_Gas_Lamp_QuarterLighting.pdf xxviii FormoreinformationonCMH,seevarioussources: http://www.iclei.org/index.php?id=6624#c27565 http://www.iclei.org/fileadmin/user_upload/documents/South_Asia/Thane_Workshop/opportunities_in_lighting_ systems.pdf http://www.maygurney.co.uk/customers/14.html http://www.eib.org/attachments/general/events/forum2007_19_verhaar.pdf xxixFormoreinformationonintelligentcontrols,seeEStreetlightprojectsite: http://ec.europa.eu/energy/intelligent/projects/doc/factsheets/estreet.pdf xxxSuchaprocessofrevisitingandrevisingmunicipallightingcodeshasbeenundertakenin2008byAnchorage,Alaska;and in2009inSanDiegoandSanJose,California. xxxiSeeCIETC158VisualPerformanceintheMesopicRangeandIESNATM12SpectralEffectsofLightingonVisual PerformanceatMesopicLightLevels xxxiiFormoreinformation,see:www.energy.ca.gov/efficiency/financing/index.html#amounts xxxiiiFormoreinformation,see: www.a2gov.org/government/publicservices/systems_planning/energy/Pages/EnergyFund.aspx xxxivForacomprehensivereviewofonbillprograms,see:Brown,Matthew,Brief#3:PayingforEnergyUpgradesThrough UtilityBills,AlliancetoSaveEnergy:http://ase.org/content/article/detail/5476