Loan will provide energy efficient improvements and upgrades for three existing learning facilities
LOUISVILLE, Ky. – First Lady Jane Beshear congratulated the Kentucky Department of Education (KDE) today as the first recipient of a loan from the Green Bank of Kentucky program. KDE will use the loan of nearly $1.3 million to make improvements and implement Energy Conservation Measures (ECM) to three of its facilities.
This project will reduce energy consumption by employing advanced technologies to improve energy efficiency at the Kentucky School for the Blind in Louisville, the Kentucky School for the Deaf in Danville and the Future Farmers of America (FFA) Leadership Training Center in Hardinsburg. These technologies include lighting system improvements, equipment control systems, mechanical system improvements and more efficient dishwashing systems.
“The Kentucky Department of Education is setting a great example for other state or publicly owned entities in our Commonwealth,” said Mrs. Beshear. “The improvements that will be funded through this loan will benefit the learning facilities and the environment at no cost to taxpayers.”
She added, “Over the last couple of years, the Commonwealth of Kentucky has made great strides to make state-owned facilities more energy efficient and environmentally conscientious.”
The Green Bank emerged from the Governor’s comprehensive energy plan, “Intelligent Energy Choices for Kentucky’s Future,” which established the goal of reducing projected statewide energy demand by 25 percent by 2025 through multiple strategies, including energy-efficiency measures.
KDE has enlisted the services of Energy Systems Group (ESG) for this construction through an Energy Savings Performance Contract (ESPC). An ESPC is an agreement between a state government facility and an Energy Services Company (ESCO) in which energy-efficiency improvement projects are financed through the savings these projects are guaranteed to produce.
After the energy conservation measures are in place, KDE will realize savings of nearly $140,000 annually from a reduction in utility costs and operating and maintenance fees. Once the Green Bank loan has been repaid, all further savings will generate revenue for the three learning facilities and KDE indefinitely.
“This is a wonderful opportunity for the Kentucky School for the Blind, the Kentucky School for the Deaf and the FFA Leadership Training Center in Hardinsburg to serve as models for others in our P-12 community,” said Education Commissioner Terry Holliday. “With the support of the Green Bank loan, the energy efficiency projects on these three campuses can be fully realized, and those projects will spur our school systems to develop their own energy-saving enterprises.”
Gov. Steve Beshear announced the launch of the Green Bank of Kentucky in September 2009. Administered by the Finance and Administration Cabinet, the program’s mission is to promote energy efficiency in state buildings through competition for low-interest loans to reduce operating costs, energy use, protect the environment, save taxpayer dollars, promote economic development and create new green collar jobs.
“The Green Bank of Kentucky offers state buildings the ability to implement energy efficient improvements at no initial cost to the taxpayer and a long-term savings of tax dollars,” said Jonathan Miller, secretary of the Finance and Administration Cabinet. “More importantly, in this difficult economy, is the creation of jobs through Green Bank projects by means of education, engineering analyses and building improvements. KDE is setting a great example for the students who will benefit from these energy conservation measures.”
The Green Bank is funded by federal stimulus dollars through the American Recovery and Reinvestment Act (ARRA). Kentucky’s Energy and Environment Cabinet (EEC) administers the funds it receives from the federal Department of Energy to operate the program The Green Bank files monthly fiscal reports and quarterly programmatic reports with EEC.
“We are now beginning to see results of Recovery funding. These projects will retain jobs, save energy and reduce harmful emissions,” said Len Peters, secretary of the Energy and Environment Cabinet. “The Green Bank of Kentucky enables state agencies to improve the condition and operation of their buildings in a smart and effective manner.”
By modernizing existing equipment, these projects will reduce energy consumption and, in turn, operating costs by utilizing technologies that have a proven record of energy efficiency.
Energy Systems Group operates out of Newburgh, Ind., with offices in 18 states, including an office in Louisville, Ky. Since 2003, ESG has developed more than $22.7 million in ESPC projects for Kentucky colleges and universities, healthcare facilities and other state agencies.
ESG’s quality energy efficiency and building modernization projects have resulted in numerous building upgrades and more than $27.3 million in guaranteed energy savings and have significantly reduced the state’s carbon footprint.
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