Texas Legislature Passes Bill, Not Buck, for Commercial Energy Conservation Projects

Commercial and industrial building owners in Texas who want to conserve energy (and save money) got a thumbs-up from the Texas legislature last month when both Houses unanimously passed a bill that will allow them to obtain low-cost, long-term private sector financing for water conservation and energy-efficiency improvements. Governor Perry signed the bill (S.B. 385) into law June 14.

The program, known nationally as Property Assessed Clean Energy (PACE) and spearheaded statewide by Keeping PACE in Texas, allows commercial and industrial  owners to access tax exempt, low interest financing for efficiency projects – something that has traditionally only been available to public schools, universities, and state and local governments. It may not seem like such a big deal, but the implications are huge.

Unlike public bodies such as schools and municipalities, commercial and industrial businesses exist to make a profit.  As such, they have typically been the early adopters of technologies that save money, because a penny saved is a penny earned. Yet when we look beyond the technologies that have a quick “payback," like certain types of lighting and digital HVAC control, we find that medium and long payback items don’t get done. Why? Because the returns generated by those capital intensive investments aren’t commensurate with the companies’ typical growth investments. In other words, if a company can make more money with their capital doing other things, they will.

Now, with PACE opening up and commercial and industrial business getting access to low interest financing, traditional investment hurdles go away. Major projects like combined heat and power (CHP) plants or replacement of central chilled and hot water systems don’t have to be evaluated by their return on investment (ROI), because no capital dollars are used. As long as the savings generated every year will cover the financing payment, these projects become neutral cash flow propositions.

This type of scenario has been in play for decades in the public sector, with much success, and we applaud the Texas Legislature for making this available to the private sector. The PACE statute will not only will boost the Texas economy, but it will reduce demand on the state's energy and water resources. As a member of Keeping PACE in Texas and one of the fastest growing energy efficiency and conservation design build contractor in Texas, we are once again proud to call the Lone Star State home.

School Facilities Need a Summer Vacation, Too!

Ah, summer…that time of year when students rejoice and teachers breathe a sigh of relief. While classrooms are empty, hallways dark, and playgrounds quiet, this is also an ideal time to give your school facilities a much needed break. Although there is still a lot going on during the summer months, there is no doubt these are the best months for operational and energy cost reductions.

It should come as no surprise the biggest energy users on school campuses are HVAC equipment and lighting, which account for approximately 70%. Coming in third place is energy consumed by computers, appliances, office equipment and other plug-in devices.

Therefore, it makes complete sense that with much less staff and students on campus, summer is the optimum time to save energy -- and money!

For example, the New York City Department of Energy introduced the Summer Kitchen Energy Conservation pilot program in 2009 in 57 schools citywide. The program was designed to unplug (if feasible) school cafeteria refrigerators and freezers during summer break. As a result, the City reduced energy use by 100,000 kilowatt-hours and saved thousands of dollars in electrical bills. Since then, the program has been expanded to more than 600 schools.

To help you get an A+ in energy conservation this summer, here is a summer shutdown checklist for your school facilities:

Summer School Shutdown Checklist:

1. Turn off all lights not needed for security and ensure all outside and security lights are correctly timed so that they only illuminate at night. Summer break is a good time to change lamps and clean light fixtures to improve efficiency, or to install efficient LED exit signs.
   
2. Turn off and unplug computers and monitors, and any personal appliances in classrooms: Even if all appliances at your school are turned off, they are still drawing a small amount of energy. This "phantom load" is small (usually around 1-5 watts) for each individual appliance, but can quickly add up.
   
3. Maintenance, Repairs and Installation of Timers and Other Energy Saving Devices: Summer break is the perfect opportunity to do a comprehensive cleaning and maintenance of school facilities. Cleaning fans, lights and refrigerator coils may seem inconsequential, but can have a significant effect on the efficiency and life of the device.
   
4. Turn up the HVAC: After those floors are waxed and deep cleaning is done, shut all the blinds and set the thermostat up to 85.  
5. Which campus uses the least energy? Pick that one for summer school programs and shut down the other ones.
6. Schedule cleaning crews early morning or late evening when the temperature is lowest; not during the hottest hours of the day.
   

Even school facilities and equipment deserve a summer vacation. This may sound like a cliché, but it's true: Take care of your school buildings and they will take care of you!

 

Sending Supplies and Prayers to Moore, Oklahoma

Like everyone else in the country, we watched with wide eyes and heavy hearts the horrific damage caused by the tornado in Moore, Oklahoma, on May 20. With 24 deaths and entire neighborhoods and schools demolished, it was painfully obvious recovery would take a long time. And, like many other organizations, our immediate response was, "What can we do to help?" As fate would have it, the opportunity to take action came to us via an employee at the Texas Association of School Boards in Austin. He was helping to collect supplies and donations that would be delivered to the residents of Moore. As word spread throughout Austin and beyond, bottled water, toiletries, non-perishable food, gift cards and more poured into the Hula Hut on Lake Austin, which was serving as the drop off location -- click here to watch the story that aired on the local ABC station. What began as an effort to fill a pick-up truck turned into a moving van full of much need supplies. This makes us proud to be Texans!

When we got the call to donate to this effort, we couldn't write the check fast enough. While we realize $1000 is a drop in the bucket, we sure hope it provided a meal and a ray of hope to families left with nothing.

Call it paying it forward, good karma, or just doing the right thing, this is one of those times when human nature should be to give and not look the other way. While we may not agree with his politics, we wholeheartedly agree with this quote from Bill Clinton: "…when we give what we can, and give it with joy, we don't just renew the American tradition of giving, but we also renew ourselves."