JCI Guarantees $4.7B in Efficiency Savings for Public Projects

JCI Guarantees $4.7B in Efficiency Savings for Public Projects

Johnson Controls' Building Efficiency business has more than 1,000 public projects in the works with guarantees in place to save government agencies, hospitals, universities and schools more than $4.7 billion in energy, water and operational costs in the next 10 years.

C. David Myers, president of Johnson Controls Building Efficiency, disclosed the information when speaking with state governors at the National Governors Association meeting last week in Washington, D.C.

The type of building efficiency projects Myers described were undertaken in contracts that enable customers to pay for the improvements using savings resulting from efficiencies gained from the retrofits.

Popular with government agencies from local to federal levels, service districts and institutions, such performance contracts allow work to go forward with little or no upfront cost to the entity signing on to the deal.

According to the company, the 1,000-plus projects are relatively recent as the typical lifespan for such contracts is 10 years.

In all, Myers told the gathering in Washington, D.C., Johnson Controls' efficiency projects have resulted in more than $19 billion in savings for public and private sector customers. Those savings were produced by projects completed from the mid 1980s to date,  a company representative later told GreenerBuildings.com. The savings in energy, non-energy and operational costs are expected to continue, according to the representative, even though in many cases the contracts have run their course.

Johnson Controls highlights several extensive building efficiency projects in case studies featured on the company's site. Maryland, the subject of one case study, is working to improve energy and water efficiency at 37 state facilities. So far, the state's Department of General Services, has reduced energy use at the sites by almost 20 percent as a result of lowering use of electricity, natural gas, fuel oil and water, according a company representative.

The company's eight contracts to date with Maryland range from six to 15 years, affect more than 118 government facilities and have generated almost $29 million in savings, the representative said.

Johnson Controls forecast a rebound in energy efficiency spending in its 2010 survey of global market trends. An update on energy efficiency trends and perceptions among business around the globe is expected in May when Johnson Controls is scheduled to begin releasing results of its 2011 Energy Efficiency Indicator survey.

Image of downtown Baltimore CC licensed by Flickr user Dave Hosford.