Newburgh Enlarged City School District to Commence Construction of Energy Performance Contract
60% reduction in greenhouse gases. 60% reduction in energy costs. $13+ million in positive cash flow. 1+ megawatt of solar. Zero taxpayer impact.
Leaders at the Newburgh Enlarged City School District, NY are generating enormous benefits for their community from one simple initiative. The concept is one which any school district can take advantage. Interested to see if you are a candidate? Take this quick survey.
Press Release: April 15, 2019
Related Article published online at Times Herald-Record, May 1, 2019
The Newburgh Enlarged City School District is excited to announce it will soon be breaking ground on the district’s energy performance contract (EPC) project.
Approved by the New York State Education Department in March 2019, the project boasts the following benefits for the community:
- $28.6 million worth of district-wide energy efficient upgrades to be funded 100% out of guaranteed energy savings
- $1.29 million in guaranteed annual energy savings
- $13.56 million in cumulative positive cash flow over the project term
- 60% reduction in energy costs
- 60% reduction in greenhouse gasses
- $1.22 million in utility rebates
- Scope highlights including:
- 100% conversion to district-wide LED lighting
- 100% window replacement at the library/administration building
- Modernization of temperature controls throughout the district to improve the learning environment
- 1+ megawatts of solar across 9 buildings
- Window replacements at Newburgh Free Academy
The U.S. Department of Energy defines energy performance contracting as “a budget-neutral approach to make building improvements that reduce energy and water use and increase operational efficiency.” By partnering with an energy services company, a building owner pays for today’s facility upgrades with tomorrow’s energy savings – and without tapping into capital budgets.
The Newburgh EPC project team consists of Johnson Controls, the energy services company selected through a competitive Request for Proposals to build the project and guarantee the energy savings. Overseeing the project is Energia, a company that specializes in the technical review and overall management of EPC projects throughout New York State.
“The energy performance contract offers tremendous financial, infrastructure, and environmental benefits for the community,” said Dr. Roberto Padilla, former Superintendent of Schools. “Not only are we receiving close to $30 million worth of needed building upgrades with zero taxpayer impact, but we are also modernizing our facilities and reducing long-term operational costs for years to come.”
One unique aspect of the EPC is its strategic use as a funding source for needed repairs at the library/administration building. Due to the fact that this building is not eligible for state building aid because it is non-instructional space, upgrades here would normally have to be paid 100% by taxpayers. The EPC, however, allows needed improvements to be funded by the guaranteed energy savings they produce over time, resulting in extensive renovation of this building that will not require taxpayer contribution. The work being performed at this building includes $4.6 million worth of upgrades, including a new chiller, new windows, LED lighting, new boilers, solar, and several other energy conservation measures.
Construction of the EPC is planned to begin with a groundbreaking at the library/administration building in late May 2019. The entire project is expected to be completed by Summer 2020.
For additional information, please contact:
Kendra McQuilton, CEO, Energia