Trane outlines $15 million energy retrofit for East Stroudsburg Area SD; committee agrees to take recommendation to board
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Summary
Trane presented a district-wide energy performance contract that uses energy savings, rebates and grants to fund upgrades. Staff and trustees discussed solar timing tied to tax credits and DCED grant deadlines; committee voted to forward the recommendation to the full board.
Trane representatives told the East Stroudsburg Area School District Properties & Facilities Committee on Feb. 11 that an energy-performance contract could fund widespread building upgrades using guaranteed energy savings, utility rebates and potential grants.
"We're looking at energy savings, and we're using all those savings to fund the work that we're proposing to do," Trane representative Andrew O'Dell said, describing a model that pairs equipment upgrades, controls recommissioning and incentives to create positive cash flow for capital projects.
Trane presented a needs matrix ranking district buildings by energy intensity and identified priority "red" items such as LED lighting retrofits, building automation system updates, end-of-life HVAC equipment and emergency-generator replacements. Using a sample pro forma, the firm estimated roughly $600,000 in immediate annual energy savings and showed a scenario in which a $15 million portfolio of work could deliver net positive cash flow over the financing term.
Committee members pressed for financial clarity. Speaker 4 explained the district must commit a 25% local match to be eligible for upcoming DCED infrastructure grants, and that the DCED application window requires action before March 13. Trane cautioned that the federal solar investment tax credit and utility interconnection processes impose timelines: the investment credit phases down beginning in 2027 and interconnection with the distribution utility (FirstEnergy) can add 6--12 months of review, making early approvals necessary if the district wants to capture specific solar incentives.
School staff raised operational concerns tied to existing equipment failures from the recent cold spell: Speaker 4 confirmed boilers at Resica and JM Hill failed in late January/early February, requiring repairs and temporary remote instruction at South High while a motor was replaced. Those events underscored committee members' interest in prioritizing end-of-life HVAC assets.
Trane said it can deliver project scopes and assist with grant applications and financing analysis, and recommended a project development agreement as the next step to begin engineering and final pricing. The committee voted to forward the superintendent's recommendation and Trane's proposal to the full board for consideration and possible approval of a development agreement.
The committee also asked Trane to return in March with comparative pro formas: one that includes solar and one without, to show the fiscal difference and to avoid committing the district to a rushed solar timeline without a clear financial delta. The board will review the recommended scope, the development agreement and any grant applications at an upcoming meeting.
Next procedural step: the P&F committee recommended moving Trane's recommendations to the March board agenda for formal action.