Phoenix started small, focusing on low-cost projects such as energy audits and the installation of controls on equipment in buildings. In 1984, Phoenix established the Energy Conservation Savings Reinvestment Plan with seed money from state oil overcharge funds. Key Financial Mechanism Energy savings are established by comparing energy consumption before and after a retrofit, for the first year the improvement is in place. For the following ten years, half of this amount goes into the Plan. The rest goes into the City's general fund.
Phoenix also uses the fund to help municipal departments pay for new energy-efficient equipment.
The fund, for example, pays the difference between the price of a more expensive, energy efficient piece of equipment over a standard piece of equipment. While many of the measures funded are considered low technology in nature, such as improved lighting, motors, and chillers, the fund was critical in financing a district cooling system and a thermal storage system for the new Phoenix City Hall, as well as small scale cogeneration, solar, air volume, and waste water systems. Part of the fund goes toward research into new technologies and approaches to energy efficiency. There has been some unanticipated erosion of savings. Some of the energy efficiency measures are no longer in use because of turnovers in building stock and building tenants.