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Delray Beach staff outlines energy-savings performance contracting as a way to fund building upgrades without upfront capital
Summary
City sustainability staff presented energy savings performance contracting (ESPC) as a financing option that uses guaranteed energy-cost savings to pay project costs; commissioners asked staff to continue research and return with a more detailed plan for municipal buildings, including the water-treatment plant.
Delray Beach sustainability staff on Jan. 7 described energy savings performance contracting (ESPC) as a tool the city can use to implement large-scale energy-efficiency and systems upgrades without an upfront capital appropriation.
The presentation: Ken Edwards, sustainability officer, and Chris Chaddister, sustainability coordinator, explained that ESPC partners a public agency with an energy services company (ESCO). The ESCO conducts an investment-grade audit, proposes upgrades, and guarantees energy-cost savings; if savings fall short, the ESCO is contractually obligated to make up the difference. Florida law allows repayment terms of up to 20 years for ESPC agreements, staff said.
Why it matters: ESPC can allow multiple municipal facilities to be upgraded at once, reduce maintenance and operating costs, and support climate goals by lowering energy use and greenhouse-gas emissions. Staff highlighted examples from Florida and said Leon County is on its fifth ESPC iteration.
Commission response and next steps: Commissioners asked whether the approach could be applied to the city's aging water-treatment plant; staff said yes, facilities such as water plants can be audited and included, subject to equipment lifespans and contract term considerations. Commissioners asked staff to continue vetting ESCOs and to return with a more detailed proposal, including which facilities to include and projected financing terms.
Ending: Staff will continue research, consult with peer jurisdictions and specialists, and bring a more detailed plan and cost/benefit analysis to the commission for consideration.
