U.S. Army awards energy, water savings performance contract to Johnson Controls

The U.S. Army's Fort Irwin, located in California, recently awarded Johnson Controls Government Systems, LLC. one of the first new federal Energy Savings Performance Contracts (ESPC) since Congressional reauthorization of the program after a yearlong lapse in 2004. The project will save Fort Irwin $27 million in energy and water related costs during the 20-year term of the contract.

MILWAUKEE, July 14, 2005 (PRNewswire) -- The U.S. Army's Fort Irwin, located in California, recently awarded Johnson Controls Government Systems, LLC. one of the first new federal Energy Savings Performance Contracts (ESPC) since Congressional reauthorization of the program after a yearlong lapse in 2004. The project will save Fort Irwin $27 million in energy and water related costs during the 20-year term of the contract.

Under the ESPC, Johnson Controls will make $9.4 million in facility improvements for the military base, providing equipment that delivers technologically innovative solutions for energy and water management. The company guarantees that the cost of the new equipment will be more than paid back over time with the money saved on the base's utility costs. Besides energy efficiency, the equipment will also provide a sense of reliability and comfort in the soldiers' work environment.

"The work underway at Fort Irwin by Johnson Controls through the ESPC program will fulfill critical infrastructure requirements that will enhance the quality of life for the soldiers here at Fort Irwin," said Colonel Paul Cramer, director of public works at Ft Irwin.

Specifically, the energy conservation measures to be installed at Fort Irwin include:
-- Twenty-eight new boilers to replace thirteen high pressure, inefficient, and obsolete pieces of equipment
-- Two new chillers to replace old and inefficient models at two central plants
-- Energy efficient and improved lighting conditions in 57 buildings
-- Lighting controls for 270 vending machines
-- Water conservation measures at 193 buildings

The project should reduce the annual amount of electricity the base uses by 2.4 million kWh and 5,393MM BTUs of propane.

"We're proud to help support Fort Irwin's mission by improving the training and living conditions for the soldiers," said Bruno Biasiotta, vice president of solutions, Controls Group, Johnson Controls. "Through this ESPC, Fort Irwin will receive new, efficient equipment and facility improvements and we guarantee that the project's cost will be covered by the utility bill savings."

The ESPC program has been a unique way for federal facilities and military bases to gain new, efficient equipment, save money and reduce energy consumption without providing significant upfront financing. The initial investment in equipment is financed by third party funders and Johnson Controls guarantees energy savings, over time, sufficient to more than repay the original investment.

For fiscal years 2000 - 2003, there were over 260 ESPC projects implemented at federal facilities throughout the country. According to the Department of Energy, since the ESPC program started, all of its projects represent an investment of $1.7 billion and are projected to save the government over $4.7 billion in energy costs. In terms of energy, these projects will save the government 13.6 trillion BTU, an annual equivalent to the energy consumed by 132,000 households.

Authority for ESPC halted in October 2003, and it was not reauthorized by Congress until October 2004. Due to a loss in momentum, it has taken nearly seven months for new projects to be awarded since the authority was reinstated.

Currently Congress has only granted the ESPC program two additional years of authority, extending it until 2006. But both the House and Senate versions of the Energy Bill contain a provision to extend ESPC program authority beyond 2006. The energy legislation is currently in a House-Senate Conference Committee to work out differences between the two versions.

Fort Irwin is located in southern California in the High Mojave Desert, between Las Vegas and Los Angeles. It is home for the Army's National Training Center and is known for providing "World Class Training for The World's Best Army."

Johnson Controls Inc. (www.johnsoncontrols.com), is a global market leader in automotive systems and facility management and control. In the automotive market, it is a major supplier of integrated seating and interior systems, and batteries. For non-residential facilities, Johnson Controls provides control systems and services including comfort, energy and security management. Johnson Controls, founded in 1885, has headquarters in Milwaukee, Wis. Its sales for 2004 totaled $25.4 billion.

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