As public facilities managers look for ways to reduce energy consumption in existing buildings, many are upgrading HVAC equipment and control systems, lighting, insulation, plumbing, and integrating renewable energy sources. Instead of installing each system piecemeal, some public facilities managers are using performance contracts with companies that guarantee results.

A performance-contracting model requires no upfront investment by the government agency because the guaranteed energy savings offset the cost of facility improvements over time. After the project has been completed, the agency continues to benefit from ongoing energy and operational savings.

Milwaukee-based Johnson Controls has been upgrading public facilities under performance contracts for several years and guarantees that its current public facilities efficiency projects in the U.S. will save more than $4.7 billion in reduced energy, water and operational costs over the next 10 years.

The company made the announcement in a press release that noted that the firm has produced more than $19 billion in energy savings for both its public and private sector customers.

On average, Johnson Controls' energy efficiency projects result in annual energy savings of 20 to 40 percent.

At a recent National Governors Association meeting in Washington, C. David Myers, president of Johnson Controls Building Efficiency, told state leaders that efficiency projects in public facilities provide energy and budget savings, reduce greenhouse gas emissions and immediately create local jobs.

"Buildings are responsible for 40 percent of the greenhouse gas emissions in the world. Improving their performance represents a large opportunity to save energy and reduce the impact of harmful gases on the environment," Myers said. “Leaders are already achieving substantial savings through building retrofits, and many have said they plan to place a greater emphasis on energy efficiency and sustainability initiatives as they look for ways to reduce spending and create local jobs."

Myers said governors and other state government officials can lead the way in improving the energy and operational performance of public facilities. He said elected officials have an opportunity to help make commercial buildings more efficient and create local jobs by providing financing vehicles and tax credits that encourage investment in private sector commercial building retrofits.

Johnson Controls serves customers in 150 countries. Its 142,000 employees create products, services and solutions to optimize energy and operational efficiencies of buildings. The firm also produces lead-acid automotive batteries and batteries for hybrid and electric vehicles as well as interior systems for automobiles.

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