Successful sustainability programs across U.S. cities increasingly rely on close collaboration between local governments and utilities to deliver measurable energy savings for businesses, commercial properties, and multifamily and mixed-use developments (MUD). These partnerships have led to the creation of comprehensive energy efficiency programs and utility rebate programs that help building owners reduce operating costs, improve asset performance, and meet evolving environmental goals.

One of the most impactful approaches has been the alignment of building codes, appliance standards, and commercial performance requirements. Cities such as Denver have adopted advanced green building policies that require municipal facilities to meet LEED and ENERGY STAR benchmarks, setting a precedent for private-sector development. Utilities like Xcel Energy support these efforts by offering incentives for high-efficiency lighting, HVAC, and controls in office buildings, retail centers, industrial facilities, and multifamily properties. These local government energy programs encourage owners and developers to exceed minimum code requirements while improving long-term energy performance and asset value.

Building labeling and benchmarking policies have also emerged as a powerful driver of commercial sustainability. Washington D.C.’s requirement that large commercial buildings track and disclose energy performance through ENERGY STAR Portfolio Manager has increased transparency across the real estate market. By mandating utility data access and public reporting, the city has created a framework where owners of office towers, hospitals, universities, and multifamily complexes can identify inefficiencies and pursue upgrades supported by utility rebate programs. Benchmarking has become a foundation for capital planning, retrofit prioritization, and participation in performance-based incentive programs.

Financial incentives remain one of the strongest motivators for commercial and multifamily investment. Utility rebate programs for lighting retrofits, networked lighting controls, HVAC upgrades, building automation systems, and envelope improvements significantly reduce project payback periods. In Illinois, coordination between ComEd and Nicor Gas has expanded rebate offerings for air sealing, insulation, and duct sealing, supporting both small businesses and larger commercial portfolios. Similar incentive structures are now common nationwide, with prescriptive and custom rebates helping property owners fund deep energy retrofits and modernization projects.

“Lead by example” initiatives further demonstrate how cities are using their own building portfolios to advance market transformation. Programs such as the Bay Area Energy Watch partnership between local governments and Pacific Gas and Electric have delivered retro-commissioning and operational efficiency improvements in municipal and community facilities. These non-residential programs showcase how continuous commissioning, data analytics, and building optimization can reduce energy use while improving occupant comfort and equipment reliability. The lessons learned often translate directly into best practices for private commercial and multifamily operators.

Direct install and small business efficiency programs also play a critical role, particularly in urban mixed-use and multifamily districts. In New Jersey, Public Service Electric & Gas supports small commercial customers and multifamily common areas with no- or low-cost upgrades, including LED lighting, controls, and high-efficiency equipment, paired with on-bill financing. These programs lower barriers to entry for property owners who may not have immediate capital but want to participate in energy efficiency programs that deliver long-term savings.

While residential initiatives such as appliance recycling and weatherization continue to contribute to overall community sustainability, the greatest energy and emissions reductions are often achieved in the commercial and multifamily sectors. Through coordinated local government energy programs, robust utility rebate programs, and regional efficiency alliances, U.S. cities are building scalable models that support building owners, developers, and facility managers in making cost-effective, future-ready investments. Together, these efforts demonstrate how policy, incentives, and utility partnerships can accelerate the transition to high-performance, energy-efficient commercial and multifamily buildings nationwide.

Click here to read the full article, originally published by The U.S. Environmental Protection Agency.