Obama, Clinton set to announce $4 billion energy program

The Obama administration is announcing a $4 billion collaboration between the government and private sector to improve energy efficiency in buildings over the next two years.

President Obama and former President Clinton will detail the investments on Friday after touring a building in Washington that will undergo a retrofit. 

The changes are expected to increase efficiency, leading to billions in energy cost-saving and the creation of upward of 50,000 jobs, especially in the hard-hit construction sector, senior administration officials told reporters on Thursday. 

“Upgrading the energy efficiency of America’s buildings is one of the fastest, easiest and cheapest ways to save money, cut down on harmful pollution, and create good jobs right now," Obama said in a statement.  

Gene Sperling, director of the White House National Economic Council, said independent estimates have pegged job creation between 35,000 and 114,000 jobs, although it is more likely that number could come in around 50,000 jobs over two years.

Officials estimate the program will "front-load" job creation and generate long-run energy savings of $40 billion. 

The federal government is committing $2 billion, made through a Presidential Memorandum, coupled with a $2 billion investment from the private sector to make energy upgrades in federal and private-sector buildings.

Firms will bid on the work and get paid back gradually from the energy savings, so there are "no upfront costs for the agencies or for taxpayers," officials said. 

"We can’t wait for Congress to act, so I’m directing all federal agencies to make at least $2 billion worth of energy efficiency upgrades over the next two years," Obama said. 

The aim is to improve energy performance by a minimum of 20 percent by 2020 across 1.6 billion square feet of office, industrial, municipal, hospital, university, community college and school buildings. 

During the past several weeks, the White House has moved forward on programs it argues will provide a boost to the economy and can be done without congressional approval.

The program — the Energy Savings Performance Contracts — is part of the Better Buildings Challenge announced in February and spearheaded by Clinton. More than 60 chief executives, mayors, university presidents and labor leaders are teaming up with the federal government on the program. 

Friday's announcement builds on a commitment made through the Clinton Foundation in June to invest $500 million in private-sector financing and upgrade 300 million square feet. 

“Investments in building retrofits and energy efficiency can make a real difference in the American economy, by creating jobs, growing our industries, improving businesses’ bottom lines, reducing our energy bills and consumption and preserving our planet for future generations," Clinton said in a statement. 

U.S. Chamber of Commerce President Thomas Donohue, a supporter of the program, will join Clinton and Obama on the tour Friday. 

"We have been pushing the ESPC program for more than a decade, because this holds tremendous potential," Donohue said in a statement. "Despite the benefits of ESPCs, the program has been grossly underutilized."