Shoreham‑Wading River board hears $9 million energy contract, urgent solar timeline

Shoreham‑Wading River Central School District officials on March 24 heard a detailed presentation on a proposed $9 million energy performance contract (EPC) that would replace the district'9s aging building controls, install rooftop solar arrays at multiple schools and add other energy conservation measures.

The EPC team said the project bundles 15 energy conservation measures — including auditorium lighting upgrades, rooftop solar, HVAC burner replacements and a unified building management system — and is structured so the district borrows against guaranteed energy savings rather than raising taxes. "There's no tax impact to the taxpayers," said Fred, the project finance representative from the audit team, describing how energy savings are intended to repay project financing.

Why it matters: The plan aims to reduce utility and maintenance costs while updating outmoded control systems that staff and contractors have struggled to maintain. The presentation projected about $391,000 in guaranteed energy savings in the first year and substantial cumulative net positive cash flow over the life of the measures, but it depends on several external approvals and incentives.

Key details and sticking points

- Cost and scope: Presenters described a roughly $9,000,000 project covering controls replacements (moving away from Honeywell hardware), new supervisory software (Johnson Controls), solar on multiple buildings, weatherization and mechanical upgrades.

- Savings and incentives: The team projected a first‑year guaranteed savings of $391,000 and described federal tax incentives and other rebates that they estimated would amount to about $1.5 million in total incentives. The contract was presented with an upper limit on blended payback of 18 years, per procurement requirements for EPCs.

- Solar deadline: The board pressed the EPC team on the solar schedule. The lead presenter said the solar component must be completed and obtain permission to operate (PTO) from PSE&G by Dec. 31, 2027, to meet incentive and interconnection timelines. "The solar project has to be built and it has to get permission to operate PTO from PSE&G by 12/31/2027," the presenter told the board, adding that the team was working backward from that deadline and targeting construction completion in September to allow time for utilities to inspect and turn systems on.

- Controls and vendor lock‑in: The proposal would replace the district'9s Honeywell controllers with Johnson Controls equipment and a non‑proprietary supervisory platform, which the presenters said would make future servicing and expansion easier because multiple contractors could be used.

Board concerns and next steps

Board members asked detailed technical and fiscal questions: how year‑to‑year cash flow can go negative (an effect of financing timing), whether negative years would materially affect the operating budget (the team said annual utility savings would cover shortfalls), how construction would affect school operations, and the size and use of contingency funds for unforeseen repairs (the EPC team proposed a contingency budget of $240,000 for items uncovered during installation).

A board member asked for more transparency about common repair items and how contingency dollars would be spent; the presenter agreed to provide estimates for typical repairs so the district could evaluate value and oversight before drawing on the contingency.

On process, the administration said an environmental review would be completed in 7–10 days and that contract approval and formal submission to the New York State Education Department (SED) would be considered at the board'9s April 14 meeting. The presenters warned that SED review time and PSE&G interconnection scheduling are outside the district'9s direct control and could affect the incentive eligibility timeline.

What happens next

The board will receive the environmental review and the administration recommended moving forward to the contract consideration on April 14. If the board approves the contract, the team said it would submit the EPC package to SED and then coordinate construction and the PSE&G interconnection process.

Funding and oversight details that remain to be finalized include formal contract language, the schedule of contingency estimates for likely repairs, and the exact schedule for ordering and staging long‑lead equipment. The presentation materials and the environmental review will be posted with the April materials ahead of any vote.