What are ESSER Funds?

In 2020 and 2021, Congress passed three stimulus bills that provided close to $190.5 billion to the Elementary and Secondary Emergency Education Relief (ESSER) Fund.

ESSER Fund Availability

The funding from the three bills is available to State Education Agencies (SEAs) through September 2023. The application process varies by state, but usually requires a LEA (Local Education Agency) to submit a budget for approval to their SEA. The last chance to receive any funding from the first bill is approaching in September 2021, which means the time to apply is now.

What Qualifies for ESSER Fund Spending

ESSER funds can be put toward many initiatives aimed at improving indoor air quality. These permanent upgrades to the building can include:

• Filtration, ventilation, purification, and other air cleaning systems

• Inspections, testing, maintenance, repair, and replacement of aging building controls and HVAC systems

• Technologies related to temperature scanning, occupancy counting, access control, and security systems

• Outdoor learning infrastructure

• Energy performance contracting and modernization services that increase financial flexibility for upgrades

• Any other improvements that “enable operation of schools to reduce risk of virus transmission and exposure to environmental health

ESSER Funds and Indoor Air Quality

Even before the impact of COVID-19 in schools, poor IAQ has long been costing schools more in the long run by accelerating deterioration of physical plants and equipment. This inevitably leads to expensive repairs on systems that are already among the largest energy users in schools.  New requirements for increased IAschools and higher education institutions spend a combined $14 billion on utility costs annually.

Effective ventilation requires both bringing in oxygenated air from outdoors and removing stale indoor air. To adjust ventilation within school buildings:

• Increase the number of air exchanges per hour to provide fresh air to closed spaces. This can be achieved through natural or mechanical ventilation.
• Fresh air intake should also be increased to 100% or the maximum amount possible.
• Relative humidity is an important factor in maintaining optimal air quality and comfort, and IAQ sensors can provide a real-time understanding of this as occupancy increases. IAQ sensors that determine a building’s environmental state and air quality status offer an effective, automated solution to monitor the presence of a range of pollutants as well as humidity and temperature. Integrating these sensors into an HVAC system allows the system to detect contaminants and then automatically clean the air and adjust ventilation as needed.

Utilizing ESSER Funds for IAQ Improvement 

Analyzing air distribution systems to improve indoor air quality and minimize the spread of viruses and other pollutants in the classroom is critical.  One of the smartest investments schools can make toward this goal is ESSER-funded HVAC improvement. ESSER-funded HVAC initiatives are an extremely effective way to protect your district’s students and staff from the dangers of COVID-19 and can include upgrades or repairs to existing HVAC systems.

Using ESSER Funds to Offset IAQ Budget Expenses

Revised IAQ requirements due to COVID are increasing cooling needs and energy costs. As facility teams work together with school administrators to recommend the best improvements for their individual buildings, there are ways to ensure that you are not using more energy than needed.

Implementing changes in the way these facilities are operated, schools can more efficiently use taxpayer dollars and resources, conserve energy, and increase student and staff comfort and productivity. Most  importantly, the resulting cost reductions can be used to support other budget areas.

How tekWorx Can Help

ESSER funds can be used on systems and solutions that improve Indoor Air Quality, including optimizing existing HVAC systems

tekWorx solutions connect school HVAC systems to Xpress® optimization software and analytics tools that give facilities team real-time visibility into asset health and performance. Facility managers can pinpoint faulty equipment, track energy use, and shift from reactive to proactive maintenance all while significantly reducing energy consumption and associated expenses.

Optimizing cooling equipment requires the appropriate hydronic and control design to permanently improve overall HVAC efficiency.

The U.S. Environmental Protection Agency (EPA) estimates that 25 percent of energy use in schools is wasted and significant opportunities exist to reduce these energy costs. Although new school buildings are now constructed to meet higher efficiency standards, the average age of schools in the United States is 45–50 years. In many cities, school buildings are even older and the older the building, the less likely it is to be energy efficient. A focus for many administrators, then, is tapping into opportunities to save energy to free up funding for educational resources that would otherwise be used on utility bills. Financing K-12 energy projects can take on many forms.

Well-designed energy efficiency and renewable energy improvements can stabilize or reduce operating costs – in fact, the Department of Energy states that the most efficient schools use three times less energy than the least efficient schools. Clean energy-related improvements in K-12 schools often include upgrades such as replacing lighting, adding insulation, replacing heating and cooling equipment, installing energy management systems and controls, adding solar photovoltaic systems, and replacing windows, doors and roofs. But how to do you finance such energy projects?

Schools that can accommodate projects with internal funding pay vendors directly with cash drawn from the school district’s operating or capital budget. The school retains all energy cost savings and often speeds project implementation time by avoiding contract negotiations that may accompany third party-financed projects. Internal financing is the simplest, most flexible and most direct way to pay for energy-related improvements. However, the availability of internal funds is constrained by budget limitations and competing operating and capital investment needs. Budget constraints, competition among alternative investments, and the need for high rates of return can significantly limit the number of internally financed energy-related improvements.

Fortunately, thousands of U.S. schools have utilized alternate ways to invest in energy efficiency and renewable energy improvements. Here are a few of the most common routes.

• Energy Savings Performance Contracts (ESPC): An ESPC is an agreement between a district and an energy services company (ESCO) that identifies, designs, and installs energy-related improvements and arranges the necessary financing. The ESCO guarantees that the improvements will generate energy cost savings sufficient to pay for the project over the term of the contract. After the contract ends, all additional cost savings accrue to the ESCO. If the actual savings from a project under-perform the guaranteed savings level, the ESCO pays for the difference between the actual and guaranteed savings.

• Grants: Grants offer external sources of capital that neither schools nor their taxpayers need to re-pay as long as the school to perform the actions specified in the grant agreement. While grants are an attractive source of funds, they are not always readily available and can require a time-intensive application process. Grant monies come from a range of entities including federal, state and regional governments, utility ratepayer supported programs, and philanthropic organizations. School grants are typically specific to investments in maintenance, infrastructure, and renovations.

• Utility rebates: Utilities, states and sometimes regions sometimes have funds available for pursuing energy efficiency or renewable energy projects.  Utilities also often assign account managers to school districts – these individuals can help school district staff navigate the sometimes-complex world of utility programs and identify incentives for which the school’s planned improvements qualify. Utilities or state programs may also offer technical assistance. The Database of State Incentives for Renewables and Efficiency (DSIRE) at www.dsireusa.org is a resource for the rebates available in your area. Click on your state, and then scroll down the list of incentives. Schools are usually included under the “business” incentives.

• Bonds: Municipal bonds are long-term debt obligations and are commonly issued to finance large-scale construction projects and major improvements to infrastructure. Bonds for school projects are very similar to a mortgage on a home. To finance construction projects, the district sells bonds to investors who will be paid principal and interest.

There are also a range of less capital-intensive energy efficiency endeavors that schools can pursue to save energy that require less capital and still offer a quick return on the investment.  Education and behavior change, better scheduling of equipment and systems, and dedicating a staff member to manage energy usage more closely can also have dramatic results.

Behavior Change: Raising awareness among faculty, staff and students about energy-saving opportunities can have a significant impact on electricity consumption. Turning off lights when unneeded, turning off equipment when not in use and reducing standby power are accessible measures that can produce significant saving. Standby power, also called vampire power or phantom load, refers to equipment that draws electricity even when turned off like digital displays, televisions, DVD players and speakers.

Equipment and Systems: Chilled water optimization is a significant energy savings opportunity that often goes overlooked yet is easily financed through internal funding. Because cooling costs are typically around 25% of a school’s utility bill, savings here can significantly cut energy bills, allowing these savings to be reinvested in other projects.

Dedicated Energy Staff: Energy programs need a strong and official advocate. This individual, whether an Energy Manager or an appointed member of the maintenance and facilities team, should report directly to the school board or superintendent and provide regular reports to administration. The goal is to have a point person per school or district that “owns” accountability for the energy plan, tracking progress, and promoting the energy management program.

Successful implementation of clean energy upgrades in schools is a matter of understanding the opportunity, making the commitment, and creatively tapping into available financing. Smart energy choices can have lasting benefits for their students, their communities, and the environment.

Newer to the scene, however, are increased K-12 ventilation requirements. Good ventilation is always important for keeping toxins and airborne pathogens from building up inside, and never more so than now. Aerosols remain airborne for hours and can be inhaled by nearby people or transferred through a building’s HVAC system.

As life in the US returns to normal, HVAC systems – particularly ventilation and balanced air circulation – will play a significant role in public health and confidence. However, these systems affect the amount of air that must be heated or cooled in the first place, thereby directly increasing energy costs.

So, what can be done to mitigate these increases in operating outflow? The major opportunities lie with variable volume ventilation systems and optimizing the associated heating and cooling cooling equipment.

The Cost of K-12 Ventilation Requirements

Bringing more fresh air into buildings is an effective first step to kill airborne pathogens like COVID19, but typical school ventilation designs may not support increased volume.  And fresh air takes more energy—and is, thus, more costly—to heat or cool fresh air—compared to recirculated air. This is particularly true in overly warm or cold climates.

In a typical school building, space heating, cooling, and lighting together account for over 30% of  energy use. The cost of ventilation implementation varies with the complexity, flexibility, and age of HVAC equipment, systems, controls and Building Automation Systems (BAS). Newer schools with systems built in the last few years might just need to upgrade filtration systems at a relatively modest expense. Older school buildings that require more efficient ventilation will incur significant costs both due to implementation costs (new duct work, electrical requirements, etc.) and the increased cost of moving more air.  

According to NYSERDA, a New York state-based agency which promotes energy efficiency and the use of renewable energy sources, increasing the outdoor air ventilation rates to ASHRAE standards would increase the total annual energy cost (gas and electricity) by an estimated 6% or $10.25 per occupant per year. For districts that might be consolidating or losing population, it can be hard to justify putting that kind of money into a building.  

Choosing Efficient Ventilation Systems

One way to ensure requirements are met without overspending is selecting the right type of ventilation system. Ventilation systems can be classified into constant air volume (CAV) and variable air volume (VAV) systems, each with the underlying effort to increase outside air to the spaces and treat return air.  CAV systems supply a constant airflow at variable temperature and are best suited to manufacturing sites, warehouse, and sites with 24/7 operations.  CAV systems are less expensive and simpler to design and install.

VAV systems supply a variable airflow at constant temperature and are best suited to schools where occupant load is constantly changing. Variable systems typically offer energy savings above 30% compared with CAV systems by controlling the amount of outside air being supplied based on occupancy. Less energy is consumed because the fans only run when outside air is needed.

Investigating Rebates

In addition to more efficient operation, VAV systems offer additional savings by qualifying for various utility rebates which help lower the initial project cost of the energy-saving measures and shorten the payback period. Many utility companies provide rebate and incentive programs for customers who install energy efficient lighting, HVAC systems, refrigeration and other high-efficiency equipment or systems. 

Most utility companies have two types of rebates and incentives: prescriptive and custom. Prescriptive rebates typically consist of one-for-one replacement incentives such as a flat rebate for each T8 fluorescent bulb replaced with an LED. Schools can typically expect prescriptive rebates for lighting, steam traps and valve and fitting insulation. A Custom Rebate program is designed to incentivize unusual equipment or process changes that will reduce energy consumption and energy demand but on equipment that doesn’t meet the requirements of the utility’s prescriptive rebate program. Instead of having specific guidelines about what energy-saving upgrades to perform, the customer must instead prove that a project will save energy and the rebate value varies depending on the amount of kWh and KW saved.  Schools can earn significant custom rebates for system-level VAV projects involving control strategies, duct and expansions and new terminal units.

Optimizing Cooling to Reduce Ventilation Costs

Although ventilation systems consume less energy than space heating or air conditioning equipment, they affect the amount of air that must be heated or cooled in the first place. Therefore, any upgrade that optimizes airflow also leads to heating and cooling savings.

Cooling optimization solutions can offset the rise in energy consumption caused by increased ventilation. Specifically, adaptive control solutions, like tekWorx Xpress®, use the least amount of energy possible to meet necessary comfort cooling and space conditions. Using real-time data, the most efficient pieces of equipment and control sequences are always in operation, drastically reducing energy costs and lowering overall energy budgets.

K–12 school districts in the US spend about $8 billion on energy each year. Although energy costs account for only 2% to 4% of school district expenditures, it is one of the few expenses that can be decreased without negatively affecting classroom instruction. By implementing energy-efficient measures, along with operations and maintenance strategies, school districts can generate substantial energy cost savings while improving the physical environment of school facilities.