With its recent passage, Prop 39 closes a tax loophole and directs approximately $2.5 billion in new revenues over five years to improve the learning environment across California’s schools. Local educational agencies (LEAs), such as yours, now have unprecedented access to an alternate funding mechanism to support energy effciency and alternative energy projects on school campuses. Prop 39 highlights:
- Fund energy effciency projects and clean energy installations at school sites
- Applicable towards all facilities within the LEA
- Savings-to-Investment ratio (SIR) should be 1.05 or greater
- Bundle short- and long-payback measures to meet SIR requirement
Addressing the 8-steps required to secure funding is not easy to self-perform. You need a partner who can take the complex process and simplify it. With over 30 years’ experience in the energy efficiency and sustainability services field, NORESCO can do just that.
Select the right mix of measures
With funds available over a five-year period, Prop 39 presents an opportunity to develop a comprehensive multi-year energy plan for the school district. Deep retrofits to individual schools (or a sub-set of schools) rather than shallow improvements to all schools are likely to yield better bottom-line results. With synergies between the various energy improvements, a combination of short-payback measures, such as lighting and controls, and long-payback measures, such as HVAC and renewable energy, can be used to meet the 1.05+ SIR requirement.
At NORESCO, we view opportunities like Prop 39 as more than a change in legislation. Our goal is to help school leaders make the most of a once-in-a-student’s-career windfall. With over 30 years’ experience in the energy effciency and sustainability services field, NORESCO can provide energy audits and benchmarking services in support of the energy plan and program assistance to secure funding. We can then deliver a custom, turnkey project that is Prop 39 and Title 24 compliant. LEAs can expect up to 30% reduction in energy costs from the retrofits (source: U.S. EPA).
Make Prop 39 funds go further
Using a guaranteed savings program, NORESCO can help you secure additional low-interest, private capital to supplement Prop 39 funds and identify additional grants, incentives and rebates. The resulting ‘multiplier effect‘ enables LEAs to increase the positive impact on energy consumption and learning environment, without taking a single dollar from district general funds.
Ensure sustainability of savings
Guaranteed savings programs require successful delivery of cost savings. NORESCO focuses on this early in project development by helping you craft the right mix of energy measures, developing comprehensive commissioning plans that are verified by in-house experts, training LEA staff and following a field-proven measurement & verification plan. Depending on your priorities, our green operations team can also work with the LEA, school staff and students to extend your curriculum and establish sustained energy conserving behaviors across the district.
For more information, visit the California Energy Commission.