Conservation program incentives:  Energy, water and drainage, and waste management utilities often encourage resource conservation and may provide financial incentives to promote best practices. Direct financial incentives and rebates not only provide funding to invest in efficiency measures, they can also lead to operational savings that are accrued by the building owner over time.

Local governments can partner with utilities and agencies that offer technical assistance and financial incentives to create a “package” of incentives available to green building customers.

• Like many other utilities, the Playbook’s utilities partners (including Pacific Gas & Electric, Puget Sound Energy, and Seattle City Light) provide technical assistance, incentives and rebates for energy efficiency, renewable energy, green power, and other strategies such as district energy generation.
• The California Energy Commissions’ Flex Your Power Program provides a searchable database for utility company and water agency incentive and rebate programs. The database is searchable by building type and location.

Grants:  A municipal grant program can encourage exemplary green building projects and innovative strategies. Funding often comes from a variety of sources such as state grant programs and conservation funds from utilities. To establish an annual grant program, local governments can review state and municipal programs to find funding resources.

• The Portland Green Investment Fund, launched in 2001, is funded through a collaborative partnership of municipal and state environmental programs. The program was funded for five years with an investment of $2.5 million, which is distributed through a twice- annual competitive process.
• King County, Washington, provides grants to commercial green building projects up $25,000 and grants to residential green building projects up to $15,000 for projects that meet stringent resource conservation criteria.

Reduced fees:  Municipal building and zoning fees are designed typically as cost-recovery fees to fund land use planning, building permitting, and inspections functions. Permits fees can be significant and fee reduction can encourage investment in green building.

Cities can amend the permit fee schedule to allow for a fee reduction for green buildings. Gainesville, Florida, passed a green building ordinance that includes a reduced permit fee incentive. The incentive applies to residential and commercial buildings that gain certification from the Florida Green Building Coalition standard for residential projects or LEED for commercial projects.