Energy- and water-saving projects underway at two state agencies
The Georgia Environmental Finance Authority (GEFA) today announced the North Georgia Mountains Authority (NGMA) and the Georgia Department of Transportation (GDOT) have entered into energy performance contracts that will provide energy and water savings of approximately $16,628,390.
Each state agency partnered with an energy services company and conducted an Investment Grade Energy Audit to determine the appropriate energy and water conservation measures to implement. The audit is a comprehensive analysis tool that determines the practicality of implementing energy and water conservation measures, and the financial feasibility of entering into an energy performance contract.
The agencies will complete energy and water conservation projects and use the savings from those projects to pay for the work. Energy performance contracting improves facility efficiency, saves taxpayer dollars, and promotes the state’s culture of conservation.
NGMA contracted with Opterra Energy Services to implement energy and water conservation measures at Brasstown Valley Resort & Spa, Amicalola Falls State Park and Lodge, and Unicoi State Park and Lodge. Projects include energy and water utility reductions, building envelope improvements and mechanical system improvements. Guaranteed savings are estimated to be $460,501 in the first year. Over the course of the contract, guaranteed savings are estimated to be $7,936,491. The total project cost is $4,626,014. The project will be financed by U.S. Bank with 4.75 percent interest over 15 years.
GDOT contracted with Honeywell to implement energy and water conservation projects at 10 separate locations across the state. Projects include air conditioning units, boilers, controls, variable frequency drive pumps, chiller replacements, building envelope improvements, water conservation and utility rate optimization. Guaranteed savings are estimated to be $543,754 in the first year. Over the course of the contract, guaranteed savings are estimated to be $8,691,899. The total project cost will be $6,170,000. The project is being funded directly by GDOT.
Energy performance contracting permits state agencies to finance building improvements designed to lower energy and water consumption. The state goes through an open, competitive process to choose an energy service company to implement energy efficiency and water conservation measures at participating state facilities. The energy services company selected must guarantee that the state will save a certain amount of money with the installation of energy-and water-efficient equipment and systems. The state uses the guaranteed savings to pay for the work over a period of years. As a result, state agencies are able to finance energy and water conservation projects. Energy performance contracting also helps the state meet its commitments to the Georgia Energy Challenge and reduce energy consumption by 15 percent in state facilities.