NORESCO to Implement Energy Savings Performance Contract for U.S. Department of Veterans Affairs in Los Angeles


NORESCO, a national leader in energy efficiency and energy infrastructure solutions, is partnering with the U.S. Department of Veterans Affairs (VA) to implement $15 million in self-funding facility upgrades in the greater Los Angeles area. As the VA's first energy savings performance contract (ESPC) under the Department of Energy's newest ESPC Indefinite Delivery Indefinite Quantity (IDIQ) contract, the project will improve energy infrastructure at three Greater Los Angeles Healthcare System (GLA) centers that are part of the VA's Desert Pacific Healthcare network. NORESCO is a part of UTC Climate, Controls & Security, a unit of United Technologies Corp. (UTX), a leading provider to the aerospace and building systems industries worldwide.

GLA's service area includes 1.4 million veterans, many of whom receive services through the centers that will be improved under this ESPC, including West Los Angeles Medical Center, Sepulveda Ambulatory Care Center and Los Angeles Ambulatory Care Center. During its first year, the project is expected to produce nearly $1 million in energy savings for the VA. NORESCO guarantees energy reductions of more than $24 million over the life of the performance contract, with no upfront capital investment required.

As a result of this project, NORESCO will assist the VA in making progress toward mandated energy reduction goals for federal agencies. After the energy conservation measures are implemented, energy consumption for the specific systems and equipment upgraded or replaced is expected to decline by 25 percent compared to baseline consumption. The project is also expected to reduce carbon dioxide emissions by more than 4,000 metric tons.

"GLA is committed to adopting energy efficient systems for VA facilities and we are privileged every day to care for the health needs of veterans who have ensured America's freedom and strength," said Donna Beiter, R.N., M.S.N., director, Greater Los Angeles Healthcare System.

All three centers will benefit from improved light quality, better reliability and reduced maintenance costs after lighting equipment is upgraded to high-efficiency lamps and ballasts.

"Comfortable conditions for patients, families and healthcare staff are integral to the healing environment," said Britta MacIntosh, vice president of business development, NORESCO. "When we pair building solutions and energy efficiency, we contribute to the VA's mission and cut energy use at the same time. Healthcare technology and building technology are coming together for the benefit of our veterans."

About two-thirds of the project's energy savings will come from improving heating, ventilation and air conditioning (HVAC) efficiency in West Los Angeles Medical Center's main hospital and radiation therapy buildings to improve comfort for VA hospital patients, families and staff. The project will convert variable air volume boxes from pneumatic controls to direct digital controls integrated to an energy management and control system. Along with new, more efficient rooftop HVAC equipment for selected buildings, the new systems will also provide VA facilities enhanced control of the indoor environment. Other controls improvements, including better scheduling of decentralized HVAC equipment, will deliver additional savings at West Los Angeles Medical Center and Sepulveda Ambulatory Care Center.

As one of the largest energy services companies in the U.S., NORESCO utilizes design-build, performance-based contracting vehicles and asset monetization solutions to deliver energy and maintenance savings and significant infrastructure upgrades to existing facilities. NORESCO has guaranteed more than $3 billion in energy and operating cost savings at more than 7,000 facilities throughout the U.S. and abroad. NORESCO also offers a full suite of consulting services to integrate sustainable design strategies into new construction and existing buildings. NORESCO is a part of UTC Building & Industrial Systems, a unit of United Technologies, a leading provider to the aerospace and building systems industries worldwide.

About UTC Building & Industrial Systems 
UTC Building & Industrial Systems is the world’s largest provider of building technologies. Its elevator, escalator, fire safety, security, building automation, heating, ventilation, air conditioning and refrigeration systems and services promote integrated, high performance buildings that are safer, smarter and sustainable. UTC Building & Industrial Systems is a unit of United Technologies Corp., a leading provider to the aerospace and building systems industries worldwide.