This is the second in a series of papers intended to guide states as they embark on the path to Clean Power Plan compliance. This guide discusses some best practices for implementing state lead-by-example (LBE) programs, walking through the steps policymakers and program administrators can take to identify an LBE approach that works best for their city or state. We focus on energy savings targets for public facilities as well as on energy savings performance contracts, and we highlight states that have shown leadership in LBE program design.