Distributed Energy Resources, Energy Efficiency  -  October 28, 2024 - By Better Buildings, U.S. Department of Energy

Bullitt County Public Schools: Energy Savings Performance Contract for Necessary Building Upgrades and Efficiency Improvements

Kentucky's Bullitt County Public Schools (BCPS), in the face of rapidly rising utility rates and failing essential building equipment, engaged with Trane Technologies on two separate Energy Savings Performance Contracts (ESPCs) in 2008 and 2018. The ESPCs provided BCPS with the capital to implement enhanced data tracking procedures and building automation systems, install high-efficiency lighting fixtures, and upgrade HVAC and boiler equipment to reduce utility usage and save money. Since 2006, BCPS has avoided more than $10.9 million in utility costs.  

PROCESS

Challenge: BCPS lacked an internal sustainability champion who could monitor energy usage and recommend projects to reduce utility spending. Additionally, most buildings had outdated control systems with limited functionality and data collection capabilities.

Solution: BCPS started by joining the Kentucky Energy Efficiency Program for Schools (KEEPS) in 2006. This provided them with the funding to hire a district energy manager who created an energy plan, promoted conservation measures, and implemented low- and no-cost changes to reduce energy usage. An in-house energy manager has been a key part of their success. 

Challenge: Utility rates and demand charges were rising rapidly in the early- to mid-2000s and low- and no-cost projects had been exhausted. The district lacked funding to implement district-wide efficiency projects and replace aging HVAC equipment.

Solution: BCPS partnered with Trane Technologies to assist with initial project development and scope, which then led to full project implementation with a savings guarantee. Phase 1 of the project began in 2008 and focused on capital lighting improvements and HVAC upgrades, including HVAC controls, central building automation systems, and domestic water heater and boiler replacements.  

After Phase 1 was completed in 2012, BCPS continued working with Trane via their Intelligent Service Sustainability Program to continue monitoring and improving efficiency. BCPS met with Trane on a quarterly basis to review building performance and additional building optimization opportunities to enhance savings. Through ongoing monitoring, BCPS was able to meet and exceed savings expectations. They learned that being proactive in making improvements yielded more significant results as energy rates rose.  

Challenge: Despite ongoing monitoring following the completion of Phase 1, by 2018, additional building upgrades were needed to maintain efficiency gains and maintain the HVAC equipment installed in Phase 1.

Solution: BCPS once again engaged with Trane Technologies to install LED lighting across the school district and complete critical upkeep for the HVAC equipment that was installed in 2008. Phase 2 was paid off via energy savings in 2021 and the ESPC contract was completed. 

FINANCING

For both Phase 1 and Phase 2, BCPS combined minimal internal funding with an ESPC with Trane Technologies to cover the upfront costs of the equipment upgrades. Phase 1 included $11 million worth of funding. Phase 2 included $9.7 million worth of funding. Since the building upgrades were repaid via the resulting energy savings, the debt was considered “self-liquidating” and did not affect the school district’s debt capacity.  

Benefits to BCPS of using an Energy Savings Performance Contract (ESPC):

• Upfront Financing - Trane Technologies provided the financial investment needed to initiate upgrades across the school district via an ESPC. The ESPC was especially useful for BCPS because they are served by rural electric cooperatives that didn’t provide incentives for energy efficiency upgrades. As the energy service company (ESCO), Trane Technologies guaranteed the energy savings associated with the upgrades.  
• Implementation Guidance - Trane provided the expertise, resources, and management needed to implement energy and sustainability installations across multiple sites, enabling BCPS to accelerate energy reductions, reduce demand charges, and achieve cost-savings goals.
• Ongoing energy and sustainability reporting. In addition to efficiency upgrades, Trane provided capital for building automation systems and enhanced data tracking via cloud-hosted data collection services. The enhanced data tracking allowed BCPS to measure and verify savings, ensure building systems continued to run efficiently, and identify additional efficiency projects to exceed savings goals. Continuous monitoring of their buildings also changed the way maintenance is done in the district and helped alleviate the challenges associated with experienced HVAC staff retiring and hiring new staff.  

TECHNOLOGIES APPLIED

Trane Technologies built off the initial work of the BCPS energy manager to implement large-scale efficiency upgrades across the school district. The upgrades were a mix of necessary updates to replace aging equipment and voluntary upgrades focused solely on reducing utility spend. 

List of Technologies Applied & Equipment Replaced  

• Phase 1
• HVAC Controls  
• Central Building Automation System (BAS) that optimizes scheduling and area controls
• Domestic Water Heater replacement
• High-efficiency condensing boiler replacements
• Capital Lighting upgrades
• Phase 2
• LED Lighting upgrade
• HVAC repairs and upgrades 

PARTNERSHIPS
Trane Technologies provides expertise, funding, and ongoing management of building operating systems to improve efficiency, reduce costs, and optimize performance. The organization guides clients through initial project development, implementation, and performance monitoring while providing a savings guarantee. After project completion, Trane can also help clients maintain efficiency gains via their Intelligent Sustainability Services, which focuses on 3 pillars of energy management. These are Energy performance monitoring, building performance monitoring, and remote support to monitor critical systems and identify issues before they escalate.  

OUTCOMES

BCPS earned the ENERGY STAR® Partner of the Year award in 2016 and 2019 for building a sustainable energy program with ENERGY STAR and creating an optimal learning environment for students.  

In 2019, the district was recognized by the U.S. Department of Energy as a Better Buildings Challenge Goal Achiever eight years ahead of schedule. BCPS recently announced a new goal of a 50% reduction in GHG emissions by 2027 over a 2017 baseline and a 20% reduction in energy intensity, demonstrating its continual dedication to a cleaner and healthier environment for its students.

Since the start of the BCPS energy program, and as of the 2021/2022 school year, the district has avoided over $10.9 million in utility costs.  

Lessons learned from the ESPC process by BCPS include the importance of having an in-house energy manager, being proactive with building upgrades and efficiency projects, the importance of data collection and visualization, and the effectiveness of building automation systems to maintain high-performance. 

This column originally appeared on the Better Buildings website.

The Better Buildings Solution Center houses over 3,000 resources shared by Better Buildings partners and other stakeholders. These replicable solutions help organizations bolster their bottom line, advance technology innovation, create jobs, and spur energy efficiency investments.

Share this valuable information with your colleagues using the buttons below: