This project provides for the design and implementation of energy savings projects in various County facilities and locations using funds obtained through the merger of Exelon Corporation, Pepco Holdings Inc., Potomac Electric Power Company, and Delmarva Power & Light Company ("Exelon/PHI merger"), approved by the Maryland Public Service Commission (PSC) per Order No. 86990 on May 15, 2015. Projects include lighting retrofits, heating, ventilation, and cooling (HVAC) controls upgrades and equipment replacement including chillers, condensing units and air handling units.

Projects are identified and scheduled based on energy savings potential, reduced maintenance costs, overall cost savings, and quantifiable environmental benefits. Schedule is subject to change based on project need. Currently planned projects include:

Completed in FY21: Upper County Community Recreation Center and Pool; Bethesda Chevy Chase Center, Margaret Schweinhaut Senior Center, David F. Bone Equipment Maintenance and Transit Operations Center (EMTOC); Potomac Community Recreation Center; and Fire Station #10 (Cabin John Volunteer Fire Station)

FY22: Scotland Neighborhood Recreation Center; Holiday Park Senior Center; Jane Lawton Community Recreation Center; Rothgeb Workers Center; Strathmore Hall; Bauer Drive Community Recreation Center; Plum Gar Community Recreation Center; HHA- Womens Shelter; Fire Arms Range; Public Safety Headquarters (PSHQ); Veteran's Plaza Civic Center; Gaithersburg Highway Maintenance Facility; Plum Gar Community Recreation Center; Fire and Rescue Maintenance Depot (Southlawn); Police Stations District #1 and 4; Fire station #1, 2, 22 and 34; and Alternate Emergency Communications Center

FY23: Gwendolyn Coffield Community Recreation Center; Potomac Community Recreation Center; Jane Lawton Community Recreation Center; Detention Center (Seven Locks); Fire and Rescue Maintenance Depot (Southlawn)

Cost increase due to the addition of energy saving incentives received from the Pepco C&I Energy Savings for Business Program.

The Exelon/PHI (PHI) merger, approved by the Maryland PSC per Order No. 86990 on May 15, 2015 and Order No. 88128 on April 12, 2017 regarding the Most Favored Nation Provision, resulted in the County receiving over $40 million, of which $8.4 million was designated to establish a Green Sustainability Fund. The County will use $6.7 million of these funds for this project to establish a revolving funding mechanism to implement energy savings projects in public facilities. Generally, projects will pay for themselves over several years. Significant reductions in energy consumption, greenhouse gas emissions, and maintenance are expected.

Staff from the Department of General Services (DGS), Department of Finance (FIN), Office of Management and Budget (OMB), and County Attorney (OCA) are coordinating the development of processes and monitoring of energy savings in order to ensure funds are revolving as intended by the terms of the merger. Energy savings are not expected to be realized until the completion of the first round of projects in FY22 and FY23.

A total of $6.7 million was originally appropriated in the Restricted Donation Fund in FY19. Approximately $500,000 was spent in FY20 from the Restricted Donation Fund to fund the initial round of projects, including Potomac Library, Upper County Community Recreation Center and Pool, Bethesda-Chevy Chase Regional Services Center, and Margaret Schweinhaut Senior Center. The remaining funds of $6.2 million shifted to this new CIP project.

Projects are also expected to be eligible for utility incentives during and after implementation; utility incentives will offset the use of the merger funds. Merger funds cannot be used to supplant existing County funding for projects, including staff charges.

Additional revolving funds that are received will be appropriated through a Supplemental.
FY23 supplemental in Utility Merger Funds for the amount of $636,971.

Department of General Services, Department of Finance, Office of Management and Budget, County Attorney