Colleges get millions in energy-efficiency improvements without budget impacts

Newswise — MOUNT VERNON, Iowa - Small colleges and universities are embarking on major infrastructure repairs that lead to more energy-efficient campuses, and it is not costing a penny upfront.

An increasing number of schools are signing up to partner with Johnson Controls, the global leader in developing and implementing smart and secure building solutions, to provide an innovative contingent payment program. The funding model started approximately five years ago and is an alternative to traditional debt financing and does not impact existing debt obligations.

Cornell College in Mount Vernon, Iowa, and Lawrence University in Appleton, Wisconsin, are among the colleges that have recently partnered with Johnson Controls to reduce their carbon footprint, paying for the millions of dollars’ worth of utility and related upgrades with the guaranteed savings that will come from the energy efficiencies.

“Johnson Controls discovered $5.9 million worth of needed upgrades to our beautiful historic campus–the first college campus to be listed in its entirety on the National Register of Historic Places,” said President Jonathan Brand of Cornell College in Mount Vernon, Iowa. “This agreement, which allowed us to update our LED lighting, install new windows, and remove buildings from an aging centralized steam plant, will pay for itself over 18 years.”

Lawrence, meanwhile, has entered into a 20-year contract with Johnson Controls that targets $5.5 million worth of improvements, ranging from LED lighting in 17 buildings across campus to the upgrade of various heating, air conditioning, and steam trap equipment.

“Lowering institutional impact on the environment and replacing aging infrastructure are goals for every college across the country,” said Lawrence President Mark Burstein. “Our partnership with Johnson Controls has allowed Lawrence to accomplish these objectives without limiting financial resources for other essential capital renewal projects. Thanks to this partnership we look forward to lower utility costs for the next 20 years and beyond.”

Here’s how it works: Johnson Controls pinpoints infrastructure needs that would create energy savings. Contractors are hired to carry out those projects and the resulting savings cover the cost of the projects. Johnson Controls monitors the progress, makes equipment adjustments as necessary, and provides a report every year for the term of the agreement.

“Johnson Controls doesn’t get paid unless we produce the mutually agreed-upon result,” said Aaron Rittenhouse, midwest program leader with Johnson Controls. “If there’s a shortfall, we have an obligation to fix the root causes for it, and if we overperform, the college keeps the additional savings. The utility cost avoidance risk is fully transferred to Johnson Controls.”

The company has signed agreements for upgrades using the contingent payment program with several colleges, including Lawrence University, Cornell College, Samford University (Birmingham, Alabama), and others. Colleges selected for this funding and strategic infrastructure improvement approach have steady enrollment, firm endowment fund levels, and good credit ratings.

In an age of COVID-19, the upgrades will also help improve overall indoor air quality in campus buildings by providing greater air circulation through HVAC projects and window upgrades, which, along with LED lighting campus-wide, are common projects identified by Johnson Controls as needed infrastructure improvements.

“In addition to the environmental stewardship that is aligned with multiple campus missions and goals, these projects demonstrate fiscal responsibility as campuses pursue efficiencies in their operating budgets,” said Russ Garcia, director of higher education North America, Johnson Controls.”

The work at both Lawrence University and Cornell College will add up to a 20% reduction in energy usage at each campus. According to the EPA CO2 Equivalency Calculator, implementing these energy conservation measures is comparable to keeping 801 passenger vehicles off the road each year.

“Cornell College students, staff, and faculty will notice the difference as our buildings become more comfortable and energy-efficient in a way that doesn’t impact our bottom line,” said Brand. “Through this innovative program, we expect a savings of nearly $500,000 in the first full year and more than $11 million at the end of 18 years.”

Johnson Controls also agrees to work with sustainability groups on campuses to provide learning opportunities for faculty, students, and staff. 

About Cornell College:

Cornell College, a selective liberal arts college in Mount Vernon, Iowa, has a student population of around 1,000 students. Cornellians have been living, learning, and teaching on the block plan, One Course At A Time, for 40 years. This style of learning allows students to fully immerse themselves in their chosen topic of study, including taking field trips, diving into research, creating an art exhibit, or exploring issues in the local community. With students from nearly 50 states and 20 foreign countries, as well as renowned faculty, speakers, and entertainers, Cornell offers the world from its campus.

About Lawrence University:

Lawrence University is a liberal arts college in Appleton, Wisconsin, with an enrollment of about 1,500 students. Founded in 1847, it integrates a college of liberal arts and sciences with a nationally recognized conservatory of music, both devoted exclusively to undergraduate education.

About Johnson Controls

Johnson Controls transform the environments where people live, work, learn, and play. From optimizing building performance to improving safety and enhancing comfort, it drives the outcomes that matter most. It delivers our promise in industries such as healthcare, education, data centers, and manufacturing. With a global team of 105,000 experts in more than 150 countries and over 130 years of innovation, Johnson Controls is the power behind its customers’ mission. For more information, visit www.johnsoncontrols.com or follow @johnsoncontrols on Twitter.