Earth Day is here! In celebration, Climatec is highlighting a handful of school districts that are reducing their carbon footprints and generating savings by making energy efficiency improvements. From HVAC replacements to automated lighting systems to solar panel shade structures, infrastructure improvements are having as much of a positive impact on environmental health as they are on districts’ bottom lines.
San Benito High School District (SBHSD): This Earth Day, PG&E is putting a spotlight on the Hollister High School Haybalers at SBHSD for their environmental stewardship. Since partnering with Climatec in 2017, the District installed brand new rooftop and ground mount Solar PV structures, modernized LED lighting systems, new HVAC units, building automation systems and more. These improvements save 1,626 metric tons of greenhouse gas emissions annually, equivalent to removing362 cars from the road, preserving 26,879 trees from deforestation or powering 316 homes. The solar panel systems alone have generated an estimated 8,100 MWh of electricity to date – providing an estimated $19 million in lifecycle savings to SBHSD’s general fund. The District supplemented funding for these improvements with Proposition 39 funding and federal subsidies through the Inflation Reduction Act (IRA).
San Benito High School District (SBHSD)
Crane Unified School District (Crane ESD): This Yuma City, AZ-based school district has made significant strides towards enhancing energy efficiency since 2019. It performed LED light modernizations and installed new HVAC units complete with Needlepoint Bipolar Ionization technology. These units maximized air quality in classrooms and across facilities during COVID-19, ensuring students could return to school safely. The improvements were funded through utility incentives, tax-exempt lease purchases and District capital, including COVID-related funding.
Crane Unified School District (Crane ESD)
Rowland Unified School District (RUSD): Since 2016, RUSD has implemented improvements, including modernized HVAC systems, building automation systems, interior and exterior LED lights and solar shade and parking structures. Not only do these improvements make buildings safer for students, but they also reduce an astounding 163,342,618 pounds of CO2 emissions. This environmental benefit equates to 16,728 cars being removed from roads, 7,170,113 gallons of gas preserved, 1,223,205 trees prevented from being deforested or 14,637 homes being powered! The District also looks forward to projected savings of $43.7 million over the lifespan of its equipment.
Rowland Unified School District (RUSD)
These sustainability champions are just a few examples of Climatec customers paving the path towards a greener future. Creative funding resources like tax credits and federal subsidies through the IRA make it easier for public agencies to leave a lasting impact.
As this Earth Day kicks off, we will continue supporting and celebrating the public agencies prioritizing environmental sustainability and fiscal solvency for the health of their organizations and communities
With the New Year roaring in with some strong headwinds, many public CEOs and leaders are faced with tough decisions on managing their organizations and budgets amid shifting policies, sustainability mandates, changing laws and unpredictable inflationary pressures. Additionally, new federal policies and state-mandated programs are evolving rapidly, directly impacting municipalities. Below are five key tips to help city managers navigate these challenges effectively.
New State Mandates
The California Energy Commission (CEC) plays a critical role in statewide energy policy, setting efficiency and environmental standards for energy-related products. Recent regulatory changes include the phase-out of specific lighting and refrigerants, requiring city managers to take immediate action.
Transition Municipal Lighting to LED
Tip 1: Assess municipal facilities to identify existing fluorescent lighting and develop a transition plan to other compliant alternatives. Upgrading lighting systems now can help mitigate supply challenges, reduce energy costs and ensure compliance with the new regulations.
Effective January 1, 2025, California will prohibit the sale and distribution of linear fluorescent tube-type lamps (LFLs) and pin-base compact fluorescent lamps (CFLs) for new or replacement lighting systems which can be found in any city facility. This follows the 2024 ban on screw or bayonet-base CFLs.
Evaluate and Upgrade HVAC Systems
Tip 2: Conduct an immediate assessment of municipal HVAC and refrigeration systems to determine current refrigerant use, potential compliance risks and future budget impacts for replacements or retrofits.
Starting January 1, 2025, California will prohibit the sale, distribution or introduction of bulk hydrofluorocarbons (HFCs) with a global warming potential of 2,200 or greater. This regulation primarily impacts cities maintaining HVAC and refrigeration systems that use refrigerants such as R-404A and R-22, which must now be serviced with reclaimed refrigerants (exempt from the ban). New cooling and refrigeration equipment must comply with the updated global warming potential limits or be manufactured and pre-charged with restricted refrigerants outside of California.
Federal Energy and Infrastructure Policy Changes
Tip 3: Stay informed about available funding opportunities and strategically plan infrastructure investments to maximize financial support for your city’s energy and sustainability initiatives.
With a shifting political landscape, there is ongoing debate regarding potential amendments to the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law. Despite political discussions, most experts agree that key funding mechanisms, particularly the investment tax credits available for the installation of clean energy systems (solar, wind and energy storage), will likely remain in place, ensuring continued support for municipal projects. If substantive changes to the IRA are brought forth by the Administration, these would require approval by Congress which will be challenging due to the popularity of the investments and jobs that have been created in both red and blue states.
We don't expect, and I think lots of people out there don't expect, the IRA to completely be blown up and be obliterated. —Marlene Motyka, Deloitte's U.S. renewable energy leader
Based on a plain reading, as well as the subsequent clarification from the OMB, it would appear tax credits under the IRA fall outside the order’s scope as currently drafted.
Tip 4: Invest in energy-efficient infrastructure and explore renewable energy options to reduce dependency on volatile utility rates. Implementing energy efficiency and clean energy programs, leveraging low cost funding options and securing state/federal grants and tax credits will help improve City General Funds and mitigate utility rate increases and other budgetary pressures.
The California Public Utilities Commission (CPUC) oversees statewide utility rates, which have seen significant increases over the past decade due to rising generation costs, increased system maintenance costs, wildfire mitigation efforts and the addition of new renewable energy sources to meet electricity demand. Given that utility expenses represent a significant portion of municipal budgets, energy efficiency upgrades, onsite renewable generation and energy storage can offer long-term budget predictability and cost savings.
The rate of electricity price escalation has increased over the past 5-10 years in California. Depending on where you are located in the state, in the past five (5) years electricity prices have increased by 41.6% in San Diego Gas & Electric’s (SDGE) territory, by 73.1% in Southern California Edison’s region and by 71.3% in Pacific Gas and Electric Company’s (PG&E) territory. (See Table and Chart below). Electrical Rates in CA have been running at 2-3X the rate of core inflation and may well continue into the foreseeable future.
Construction Inflation
Tip 5: Expedite planning and execution of city infrastructure projects to avoid rising costs. Conducting an RFP process & securing agreements early can help lock in lower prices and prevent delays caused by high demand for construction resources.
Due to recent wildfires and supply chain constraints, construction inflation in California is expected to rise. The increased demand for materials and labor to rebuild affected areas will likely drive up costs for municipal infrastructure projects. See below for trends in construction costs since 2010.
Cities in California like San Leandro, Ontario, Clayton, Santa Clarita, Fountain Valley and many others have shown leadership by investing smartly in their Energy Infrastructure which significantly blunted the negative budgetary effects of spiraling utility cost Inflation. Take the opportunity to discuss these topics with your city manager colleagues and find out how they have addressed these difficult challenges and achieved a big win for their city, the environment and citizens.
By proactively addressing these issues, city managers can ensure their municipalities remain compliant, financially stable and well-prepared for the evolving regulatory landscape.
AUTHORS
Thomas Jackson, Corporate Vice President Sales & Major Projects, Climatec LLC a Robert BOSCH Company
Bruce Dickinson, President, Eagle Energy Solutions, LLC
JIG-SAW and Climatec, LLC. have partnered to transform Petco Park, home of the San Diego Padres, into a connected and intelligent venue using JIG-SAW IoT technology. Through this collaboration, JIG-SAW and Climatec will enable complete visibility and control of the stadium to make Petco Park the definitive sports experience for fans and the Padres. The first phase of the project will be complete in mid-August as the Padres unveil interactive signage providing wayfinding directions and showcasing promotions for fans.
Earlier this year, JIG-SAW announced a partnership agreement with the San Diego Padres, an American professional baseball team competing in Major League Baseball (MLB), to provide JIG-SAW IoT technology for creating and managing networks of smart equipment. This technology will help the Padres by reducing operational and maintenance costs, extending the life cycle of equipment, and creating improved amenities for their fans.
To integrate the unique applications enabled by JIG-SAW software, JIG-SAW partnered with Climatec, an industry leader for advanced building and energy solutions. This partnership is set to revolutionize the landscape by seamlessly integrating JIG-SAW's groundbreaking IoT communication software technology into a centralized command center, expertly supported by Climatec in design, deployment, and service.
JIG-SAW’s IoT communication software technology provides an open and scalable foundation to connect and manage any device with any platform. The interactive signage and upcoming solutions will aggregate and analyze data by taking advantage of JIG-SAW IoT integration driver on Tridium’s Niagara, the connected product management platform for stadium operations.
Climatec seeks to leverage the new capabilities that JIG-SAW software offers, integrating ready-to-deploy packages that reduce installation costs, simplify maintenance, and unleash invaluable data insights for data-driven decision making, supercharging operating revenue.
JIG-SAW and Climatec will collaborate to solve the digital transformation challenges of the Padres stadium and promote the solutions as case studies for other residential, commercial, industrial, and institutional facility operators across the nation and beyond.
