An energy-efficient option for replacing HVAC systems at three schools may end up costing Springfield Public Schools less money than traditional systems, thanks to federal rebates.
The Springfield Board of Education during its study session on Nov. 14 evaluated a proposal to replace aging HVAC systems at Carver Middle School and Disney and Sequiota elementary schools.
After a longer-than-usual bidding procedure — according to Deputy Superintendent Travis Shaw — school district staffers recommend the acceptance of geothermal systems from Veregy.
The guaranteed maximum price called for in the proposal is $14,088,085, according to documentation provided to school board members. However, recently announced rebates from the federal Inflation Reduction Act would reduce the overall price to $8,652,851, Shaw said. Springfield Public Schools would qualify for $5,435,234 in rebates.
“That cost fits within our budget,” Shaw said. “There is well over $245 billion available for public entities who take advantage of them.”
A more energy-efficient system
Officials with Veregy spoke during a November board meeting about the geothermal systems the company offered to build at the three Springfield schools.
Geothermal heating and cooling systems are considered one of the most energy efficient options available, according to the federal Office of Energy Efficiency and Renewable Energy.
Such systems take advantage of consistent temperatures that can be found about 30 feet below the ground. Using a series of underground pipes referred to as a “loop,” a geothermal heat pump delivers a fluid that can either absorb or transfer heat, depending on the season.
During warmer months, the heat pump removes heat from the building and sends it underground via the loop. In colder months, the fluid direction is reversed so that warmth can be brought above ground, into the building.
The use of ground temperatures require less energy and refrigerant to either heat or cool, said Jason Brushwood, a spokesperson for the company who spoke to the school board. That means it can take advantage of rebates referred to as investment tax credits in 2022’s Inflation and Reduction Act, he said, and the entire project would qualify.
“This project would qualify for a 30% rebate for just doing geothermal,” Brushwood said. “It would also qualify for an additional 10% for using […] American-made products.”
Veregy, based in Phoenix, has kept an office in Springfield for more than 15 years, Brushwood said. Through offices also in Kansas City, St. Louis and Jefferson City, the company has worked on more than 230 projects in Missouri schools, including Lebanon, Marshfield, Branson, Mount Vernon and Lamar.
Systems at end of their service
Shaw said the HVAC systems at the three schools are at the end of their life cycles, and are failing — the system at Carver, for example, is the same one installed for the school’s opening in 1994. It was one of several schools identified in an air quality study that indicated poor air quality.
“They have met their capacity, and they need to be replaced,” Shaw said. “That’s what was discovered in the indoor air quality assessment we had done, and there were seven or eight schools mentioned, that … the only way we are going to fix this problem was to do a complete replacement.”
Shaw said replacements have already been done at Field, McGregor and Wilder elementary schools. Once Carver, Disney and Sequiota are done, the only remaining school with poor air quality will be Pipkin Middle School, according to that study. Springfield Public Schools is planning to build a new Pipkin Middle School at an as yet undetermined site.
This project would be the school district’s first geothermal HVAC systems, Shaw said. In addition to the federal rebates, the systems show promise for reducing energy costs.
During the meeting, board members asked questions ranging from the company’s dedication to using all American-made components to how easy it would be for teachers to independently adjust the temperature in their classrooms. They will consider approving the contract during the board’s upcoming meeting, set for Nov. 28.
Using a performance-based contract, Veregy is offering a turnkey project that encompasses all phases of design and construction, from drawing up the plans to installing them, Brushwood said. The guaranteed maximum price also includes energy audits to ensure SPS sees lower costs on its power bills, and assisting with efforts to get the rebates.
Shaw said six other companies expressed interest in bidding for the HVAC project when bidding opened in July. Only two companies responded, however, and the other company presented a bid of about $12 million for traditional HVAC replacements.
