Leadership
GESPC has enjoyed strong bipartisan support in Kansas because all political persuasions want to operate efficient government at all levels.
The state's enabling legislation (KSA 75-37.125), which conforms with the state's procurement rules, was adopted in 2000 by a vote of 118-0 in the Kansas House, and 40-0 in the Kansas Senate.
Every single one of the state's elected officials understood that the benefits of this procurement method meant more than being just good stewards of the public trust by eliminating waste and saving taxpayer funds. They recognized that this legislation would stimulate economic activity in both urban and rural areas because the need for facility modernization in state and local government facilities is great. To their credit, they also realized that in the absence of capital appropriations, a GESPC can provide the low-cost capital required to replace failing and inefficient equipment and make structural improvements to aging buildings.
Kansas has one state statute that covers GESPC in all four market sectors (state, municipalities, universities, k-12). The statute allows for contracts up to 30 years in length and for all measures that pay for themselves in energy savings, including operational, water and renewables.
The statue does not require a guarantee nor does it have any reporting requirements.
Program
The Kansas program has been recognized in the past by the Western Governors’ Association as a model program. The state has a full-time program manager whose services are extended to all public sectors. The state’s program is self-funding, with a sliding-fee charged on each contract that allows the program manager to serve as a technical resource for the public entity throughout the contract.
The program utilizes a complete set of standardized contract documents for state properties. These documents have been reviewed and approved by the appropriate authorities in the legal, procurement and finance areas.
The state also maintains a website for all program materials and documents.
Kansas boasts dozens of examples of energy contracts paying off. From schools to municipalities, universities and even prisons. Some examples include:
- In 2013, Washburn University implemented a $12.3 million project to reduce energy consumption while making a significant improvement to the learning environment. The project is funded with an energy performance contract authorized by Kansas statute for funding public infrastructure improvement projects. Washburn University is expected to save nearly $618,000 annually in utility expenses. Additionally, by replacing aging infrastructure Washburn will reduce its deferred maintenance backlog while preparing facilities for decades of additional use.
- Emporia public schools’ have achieved or exceeded anticipated energy savings as part of an Energy Savings Performance Contract through the Kansas Energy’s Office Facility Conservation Improvement Program. In the contract’s first year (2012) the improvements to the district buildings exceeded the projected savings of $179,918 by more than a $12,000.
Additional success stories include:
- Buhler School District - was able to replace the failing boiler and chiller systems in the middle school, as well as help the district make other needed energy improvements.
- Wichita State University - 49 buildings measuring 1,976,646 square feet underwent major upgrades that included a new efficient boiler and chiller plant, lighting, expansion and enhancement of the energy management system, and a multitude of other improvements. The GESPC resulted in over a million dollars in annual savings.
- City of Wichita - retrofitted more than 10,000 lighting fixtures in 42 buildings and added building controls at 36 of those sites.
- Hutchinson Correctional Facility - implemented significant infrastructure improvements such as installing new boilers, and improving cellblock ventilation and heating. Even though Hutchinson Correctional Facility is a maximum-security prison, this project was completed in less than six months and under budget.
To date, more than $300 million in projects have been completed throughout Kansas resulting in an estimated $20 million in annual energy costs savings, and the creation of 3,032 job years.
Click here for more Kansas case studies.