Board approves $3.88 million LED lighting retrofit with financing contingent on terms

Battle Ground School District Board of Directors on June 23 approved an energy savings performance contract (ESPC) to replace fluorescent lighting across district buildings with LED fixtures, authorizing staff to secure financing and return term sheets to the board.

The project contract amount presented to the board, including Washington sales tax, was $3,884,000. District staff said the work is intended to reduce energy use intensity, align buildings with Clean Buildings Performance Standards and address an upcoming restriction on fluorescent lighting that the presentation identified as "House Bill 1185," effective Jan. 1, 2029. The board vote passed with four yes votes and one abstention; the abstaining director said they work for a company mentioned in the contract and recused themselves to avoid any appearance of conflict.

District staff and the ESCO (energy service company) Amaresco told the board the retrofit is designed to be self-funding: energy savings would be used to pay debt service on the financing. Staff presented two financing paths under consideration—a capital bank term and a potential loan from the state Department of Energy Services—saying the district would seek formal term sheets before finalizing financing. Amaresco estimated a full payback horizon in the order of mid‑teens of years (the discussion referenced a 16‑year total return on one example term), after which the savings would remain in the district's operating budget.

Board members asked for clarity about salvage or reuse of upgraded fixtures if a building is later replaced; staff said salvaging would be possible in some cases but had not committed to a specific reuse or surplus plan. The contract includes post‑installation measurement and verification of guaranteed savings; Amaresco guaranteed that if the measured savings fall short, the contractor will cover the shortfall per the contract terms.

The board motion, read aloud by a director, recommended approval of the ESPC contingent on financing, and authorized the chief financial officer to prepare financing documents for future consideration. The vote tally recorded by board staff was yes 4, no 0, abstain 1. The motion passed.

The board did not yet select a financing partner; staff said they will return with term sheets for the Department of Energy Services loan and the commercial bank option for the board's consideration at a subsequent meeting.

Board directions and next steps: staff will request formal loan term sheets, finalize the ESCO contract documents, and bring financing documents back to the board. No construction work will begin until the board approves financing terms and the contractual documents are executed.

Notes: The board discussion referenced the Clean Buildings Performance Standards and a state bill identified in the meeting transcript as "House Bill 11 85." Staff presentations indicated state policy changes and a requirement to reduce energy intensity were part of the project's justification.