As the IDOC began to explore its options for funding the improvements without the use of taxpayer dollars, the agency issued a request for proposal. In response, the Johnson Controls team designed a plan that would include $64.5 million in energy-efficient upgrades and repairs across the IDOC facilities, without the need for the state of Indiana to provide capital or assume financial risk.
Under an energy savings performance contract, facility improvements would be paid for up front by Johnson Controls or through a 3rd party and guaranteed to generate enough savings to pay for themselves over time. And if the savings were to fall short, Johnson Controls would assume financial liability. “They actually stand behind it,” said Director of Special Projects Michael Callahan. “They write the check if we don’t make the savings, so our taxpayers know we’re watching over their dollars.” As an added bonus, because the funding mechanism doesn’t affect the state’s bond capacity, it frees up capacity for other critical projects.