EPA National Vehicle and Fuel Emissions Laboratory Awards $130 Million Contract to NORESCO

Rhea-AI Summary

The U.S. Environmental Protection Agency's National Vehicle and Fuel Emissions Laboratory in Ann Arbor, Michigan, has selected NORESCO to implement a decarbonization program through an energy savings performance contract (ESPC). This $130 million program includes energy efficiency improvements and infrastructure upgrades over a 22-year term. The initiative is projected to reduce the facility's energy consumption by 39%, cutting annual carbon dioxide emissions by 3,150 metric tons. The upgrades will enhance existing systems, with a focus on energy management and HVAC replacements. This partnership supports Carrier Global Corporation's ESG goals to cut carbon footprints significantly.

Positive

• Award of $130 million contract contributes to long-term sustainability.
• Projected 39% reduction in energy consumption and significant CO2 emission cuts.
• Support for Carrier's ESG goals to help reduce carbon footprints.

Negative

• None.

New guaranteed savings program will help decarbonize critical buildings and provide capital improvements while supporting operations and maintenance

WESTBOROUGH, Mass., April 20, 2023 /PRNewswire/ -- The U.S. Environmental Protection Agency's (EPA) National Vehicle and Fuel Emissions Laboratory (NVFEL) in Ann Arbor, Michigan, selected energy and sustainable solutions provider NORESCO to implement a new decarbonization program through an energy savings performance contract (ESPC). NORESCO is part of Carrier Global Corporation (NYSE: CARR), the leading global provider of healthy, safe, sustainable and intelligent building and cold chain solutions.

The new ESPC program includes $130 million of energy efficiency improvements, critical infrastructure upgrades and comprehensive operations and maintenance services over a 22-year term. NORESCO has been partnering with EPA NVFEL for more than 20 years through an ESPC including comprehensive operations, repair and replacement services.

NVFEL is an integral part of EPA's Office of Transportation and Air Quality. It is a state-of-the-art facility that provides emission testing services for motor vehicle, heavy-duty engine and nonroad engine programs in support of rulemakings, enforcement actions and test procedures development.

This ESPC program will help NVFEL make progress toward Executive Order 14057, which sets policy goals for the federal government to lead by example with carbon reduction. The improvements are projected to reduce the facility's energy consumption by 39%, cutting annual emissions of carbon dioxide equivalents by 3,150 metric tons, which equates to the carbon sequestered by 3,700 acres of U.S. forests in one year. They are also projected to reduce the facility's water consumption by 16%.

NVFEL's emissions testing is conducted under precise temperature and humidity conditions that cannot tolerate interruption resulting from systems downtime. NORESCO's work will benefit NVFEL's mission by installing new, more resilient, highly efficient boiler and chiller plants and advanced building energy management control systems. Additionally, the program includes comprehensive replacement of heating, ventilation and air-conditioning systems nearing the end of their service lives and serving laboratories throughout the facility.

"We are thrilled to continue our long-term partnership with the EPA and are eager to implement these energy solutions to meet the Ann Arbor laboratory's requirements while helping the federal government make progress toward its decarbonization goals," said Doug Sattler, Senior Vice President, Federal, NORESCO.

NORESCO's partnership with the EPA supports Carrier's 2030 Environmental, Social & Governance (ESG) goals to help reduce its customers' carbon footprint by more than 1 gigaton.

NORESCO's work is enabled through the U.S. Department of Energy's ESPC Indefinite Delivery Indefinite Quantity (IDIQ) contract. For more information, visit www.noresco.com.

About NORESCO
NORESCO, a part of Carrier Global Corporation, helps clients adapt to and mitigate the impacts of climate change by decarbonizing, modernizing and electrifying aging infrastructure to be more sustainable and resilient. By deploying innovative distributed energy, storage and renewable energy solutions, NORESCO improves the health and efficiency of existing campuses, buildings and communities. To date, NORESCO has guaranteed more than $5 billion in energy and operating cost savings at more than 10,000 facilities while reducing customer CO₂ emissions by more than 25 million metric tons – the equivalent to planting 1.4 million acres of forest. For more information, visit www.noresco.com.

Contact:	Angie Vincoli
	(919) 653-7566
	avincoli@noresco.com

 

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SOURCE NORESCO

FAQ

What is the impact of the $130 million contract awarded to NORESCO on CARR?

The contract significantly enhances Carrier's sustainability initiatives and contributes to its 2030 ESG goals.

How does the new ESPC program affect the carbon footprint of the EPA's Ann Arbor facility?

The program is expected to reduce the facility's carbon emissions by 3,150 metric tons annually.

What are the key improvements included in the ESPC contract awarded to NORESCO?

The contract includes energy efficiency upgrades, infrastructure enhancements, and replacement of outdated HVAC systems.

When was the decarbonization program announced for the EPA's Ann Arbor facility?

The announcement was made on April 20, 2023.

How long is the term for the energy savings performance contract with NORESCO?

The ESPC program has a term of 22 years.