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State Building Commission OKs TDOT request to use energy-savings contracting method
Summary
The Tennessee State Building Commission unanimously approved the Tennessee Department of Transportation's request to use an energy savings performance contracting delivery method to accelerate projects, supporting private-sector investment to speed delivery and potentially save taxpayer dollars over time.
The Tennessee State Building Commission on a unanimous vote approved the Tennessee Department of Transportation's request to use an energy savings performance contracting delivery method for a TDOT project.
Commissioner Butch Ealy, representing the Department of Transportation, asked the commission "we would very much appreciate the approval of this project utilizing the energy savings performance contracting delivery method that we have been discussing for some time," saying the method provides "another tool in the toolbox" to speed project delivery and permit private-sector investment to accelerate work.
Nut graf: The commission treated the request as an authorization to proceed with the delivery method rather than a discrete contract award. Proponents said the approach can let the state move projects sooner when capital is tight and save taxpayer money over the long term by addressing needs now instead of later.
Ealy told commissioners the delivery method responds to long-standing concerns about delays and inaccurate cost forecasting. "One of the things that this delivery model does is present us an opportunity to have basically another tool in the toolbox," he said, and later added it can "save taxpayer money in the future by being able to do it now versus later." He noted the commission and administration have discussed faster delivery for several years.
Lieutenant Governor McNally asked when the authority to use the method had been granted; a commission member recalled the enabling legislation passed in 2022. The transcript reflects that recollection as a memory of a participant, not a new legal finding by the commission.
After brief discussion, the commission took a roll-call vote. The roll call recorded: Lieutenant Governor McNally — Aye; Secretary Hargett — Aye; Commissioner Jim Bryson — Aye; Treasurer Lillard (participating electronically) — Aye. The motion passed unanimously.
Ending: The action authorizes the use of energy savings performance contracting as a delivery method for the TDOT project before the commission; it does not itself authorize specific contractor awards or project contracts. The Department of Transportation indicated staff from asset management and general services would be available to answer technical questions as the method is implemented.
