University Of Oregon joins $1 billion ‘Green Challenge’

EUGENE, Ore. -- (Oct. 14, 2011) - The University of Oregon has joined with 32 other leading institutions to launch the Billion Dollar Green Challenge - an initiative to invest a total of $1 billion in self-managed revolving funds to finance energy efficiency upgrades on campuses across the country.

The UO will satisfy its commitment to the Green Challenge through the Oregon Model for Sustainable Development - a program announced this summer that will cap energy use from new development and result in a net-zero increase in energy use despite continued construction on campus. It will establish a $1 million revolving loan fund to help pay for energy-saving upgrades at older UO buildings.

The Oregon Model draws a line in the sand on purchased energy and requires that every new building must achieve LEED gold standards, be 35 percent more energy efficient than required by state code, and harvest 100 percent of its energy needs from existing buildings. New construction will also trigger upgrades that bring older buildings up to 21st century energy efficiency standards.

"We're creating an energy bank," said Steve Mital, UO director for sustainability. "Our $1 million revolving loan fund will provide much of the financing needed to complete energy efficiency retrofits in existing buildings. Each of these projects then makes two deposits: energy goes into an account that new buildings in need of heat and power can draw on, and the cash savings from the monthly energy bills is returned to our revolving loan fund."

The UO is a "Founding Circle" member of the nationwide Green Challenge effort and one of two Northwest universities involved in the program. Oregon State University is also included in the Founding Circle, whose 33 member institutions have committed to invest a total of more than $65 million in green revolving funds.

Organizers of the Billion Dollar Green Challenge say it is inspired by the exceptional performance of green revolving funds, which have a median annual return on investment of 32 percent, according to "Greening The Bottom Line," a report published by the Sustainable Endowments Institute. The revolving fund investments are helping create green jobs in campus communities, while lowering operating costs on college and university campuses.

"We're transforming energy efficiency upgrades from perceived expenses to high-return investment opportunities," said Mark Orlowski, executive director of the Sustainable Endowments Institute, which is coordinating the Billion Dollar Challenge along with 13 partner organizations. "University of Oregon should be commended for rising to the challenge and investing in energy efficiency improvements on campus."

The Billion Dollar Green Challenge launched this week at the Association for the Advancement of Sustainability in Higher Education conference in Pittsburgh. With more than 2,500 participants, including representatives of the UO, the conference is the largest gathering to date on higher education sustainability.

The Oregon model requires new construction projects to neutralize their energy use by paying for energy-saving measures at older UO buildings. New buildings must also contribute to the treatment of stormwater runoff from streets and parking lots around campus, and must include educational opportunities that encourage environmentally sensitive behaviors by building occupants.

The updated standards are expected to add between 1 percent and 6 percent to capital construction costs. New projects will be responsible for covering a 10 percent share of energy-saving measures in existing buildings, achieving LEED Gold certification and providing educational displays for building users. The remainder of mitigation project costs for the older structures will be financed through a new Central Energy Fund - which is expected to eventually receive much of its funding through energy savings.

"We are just now developing criteria to govern the fund, and expect it to be operational no later than October 2012," said George Hecht, the UO's associate vice president for campus operations.

The Billion Dollar Green Challenge is guided by a 34-member advisory council, which offers technical assistance, best practices sharing, access to a web-based tool for managing green revolving funds, peer institutions' project-specific data and invitations to specialized webinars and conferences.

The program has received financial support from the David Rockefeller Fund, HOK, John Merck Fund, Kresge Foundation, Merck Family Fund, Rockefeller Brothers Fund, Roy A. Hunt Foundation, U.S. Environmental Protection Agency's Green Power Partnership and the Wallace Global Fund.

About the University of Oregon
The University of Oregon is among the 108 institutions chosen from 4,633 U.S. universities for top-tier designation of "Very High Research Activity" in the 2010 Carnegie Classification of Institutions of Higher Education. The UO also is one of two Pacific Northwest members of the Association of American Universities.

MEDIA CONTACT: Joe Mosley, UO media relations, 541-346-3606, jmosley@uoregon.edu

SOURCE: Steve Mital, UO sustainability director, 541-346-0709, smital@uoregon.edu

LINK: www.GreenBillion.org