Pittsylvania County, Virginia wanted to make its 1930s Moses Building, which houses the county sheriff’s offices, more energy efficient and comfortable for workers. “The building was cooled with over 50 window air conditioning units and heat from the steam boiler. Most of the time, the offices were either too hot or too cold, and the old windows allowed moisture in, causing paint to peel and plaster to fail,” Pittsylvania County Public Works Director Chris Adcock told Smart Cities Dive.
With several other major projects on the horizon, the county didn’t have the funds to build a new building, he said. Instead, he signed one energy saving performance contract with Ameresco, an energy services company. The contract helps the county make cash-flow neutral energy upgrades to its aging buildings while still meeting historic standards and regulations.
Amaresco recommended that Pittsylvania County install new double-glazed windows and a variable refrigerant flow HVAC system, “which worked very well for this project,” Adcock said. “It allowed us to create individually controlled areas without the need for large ducts, which was important because the 1930s building didn’t have a lot of space available for mechanical chases or runs.”
ESPCs, which debuted nearly half a century ago, are becoming an increasingly popular way to modernize aging city buildings, said Peter Christakis, Ameresco’s chief operating officer.
“An ESPC is a wonderful vehicle for cities and towns that don’t have access to capital funds to really upgrade their facilities quickly,” he said.
According to the Environmental Protection Agency, energy service companies, or ESCOs, such as Ameresco, typically work there ESPC projects with 10- to 20-year contracts worth at least $1 million. These contracts usually stipulate that the city or county owns the equipment that the ESCO installs and that the ESCO maintains the equipment for the life of the contract. The ESCO also guarantees a fixed amount of energy savings during the contract period.
Other companies that have implemented ESPC at city and county facilities include the following:
- Infrawho has worked with several colleges and universities.
- Honeywell, which worked with Bemidji, Minn., on a $2.45 million project completed in 2016.
- Johnson Controls, with whom he worked Cobb County, Georgiaand others to improve energy and water performance.
- Opterra Energy Services (formerly Engie Services US), with the citywide project Oceanside, Californiawon an award this year from Smart Cities Connect.
- Schneider Electric, with whom he works Madison County Alabama Schools won a sustainability award from the US Department of Education.
- Siemens, which worked with Orem, Utah, starting in 2016 to replace streetlights and make facility upgrades that are estimated to save $11.5 million over 15 years.
Cities or counties typically generate the money for ESPC upgrades through loans, tax-exempt municipal leases, bond issues, capital funds, rebates, grants or other vehicles, Christakis said.
“Our guarantee for energy savings is ultimately used to pay for whatever funding source is used. So it’s a balance-neutral type of arrangement,” he said.
Pittsylvania County financed its $1.5 million Moses building upgrades as part of a Virginia Resource Authority loan, Adock said. Although the ESPC contract with Ameresco guarantees energy savings, the project, which was completed in March, may still end up costing the county money.
“With the new efficient system and new windows, we’re hoping to get a return on our investment. It may not be enough to pay off the loan, but for a rural county on a tight budget, every savings helps,” Adcock said.
