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SOUTH CAROLINA PASSES LEGISLATION ENABLING PUBLIC SCHOOLS TO SAVE AN ESTIMATED $25 MILLION EACH YEAR ON ENERGY AND OPERATING COSTS

SOUTH CAROLINA PASSES LEGISLATION ENABLING PUBLIC SCHOOLS TO SAVE AN
 ESTIMATED $25 MILLION EACH YEAR ON ENERGY AND OPERATING COSTS
 Legislation Promotes More Energy-Efficient Schools
 MINNEAPOLIS, Sept. 22 /PRNewswire/ -- South Carolina has passed new procurement legislation that will allow public schools and other government agencies to take advantage of unique financing to upgrade energy-management equipment. South Carolina's K-12 public schools can save an estimated $25 million(a) each year in energy and operating costs if school districts take advantage of the new contracting procedure and contract to install energy-management equipment, Honeywell announced today.
 The $25 million in savings would cover all the costs of equipment upgrades and ongoing service. School budgets would no longer be strained by costly deferred maintenance. In as little as five years, the annual savings can be redirected to academic budgets to fund more than 650 teacher salaries, 600 new computers and books and supplies for 200 schools -- with enough money left over to provide an additional 20,000 meals(a).
 The new legislation allows schools to take advantage of a special form of performance contracting that pays for needed improvements through energy and operating savings from energy equipment upgrades. Previously, South Carolina public schools were unable to take advantage of this type of performance-based contracting due to inflexible public contracting laws. Now, through performance contracting, companies like Honeywell guarantee that energy and operating savings will at least offset the needed equipment investment over a specific contract period. At the end of the contract, the improvements are in place at the school and the savings continue.
 "Historically, maintaining school buildings becomes a 'catch 22' situation," said Russell Long, inaugural chair of the Association of South Carolina Energy Managers and chair of the subcommittee that authored the governmental portion of the legislation. "Many school districts could not afford to properly maintain heating, ventilating, air-conditioning and electrical equipment because of the high energy costs. The improperly maintained equipment resulted in higher and higher energy costs, creating a vicious cycle."
 "We are very pleased that South Carolina now has the opportunity to save taxpayer dollars and apply those savings to needed programs that will enhance our children's educational achievement -- while at the same time improving the learning environment in classrooms," said Michael Bonsignore, Honeywell executive vice president and chief operating officer for International, and Home and Building Control. "This legislation is critical because resources are too scarce to see funds needlessly wasted through inefficient heating and cooling equipment."
 The new South Carolina legislation allows school districts to enter into guaranteed energy and operating saving contracts if savings from energy conservation measures are guaranteed in writing and meet or exceed the cost of the energy conservation measures. The contract must provide that all payments be made over time and the energy and operating savings be used to pay for the energy conservation systems.
 The chief sponsors of the South Carolina Energy Conservation and Efficiency Act containing the guaranteed energy savings provisions were Sen. Phil P. Leventis, D-Sumter; and Rep. Harriet H. Keyserling, D- Beaufort. The bill was signed into law on July 1, 1992, by Gov. Carroll A. Campbell, Jr.
 In addition to South Carolina, nine other states around the country are now taking advantage of contracting that guarantees energy and operational savings. The use of performance contracting in schools across the United States has doubled since 1988.
 In South Carolina, approximately 26 percent of the state budget goes to education. Moreover, the state faced a budget shortfall in 1991, which puts additional pressure on public school budgets.
 Many schools today face a fiscal crisis, which includes old school buildings, old equipment and constant maintenance that eats up school funds. Tight budgets mean that public schools frequently cannot afford the kinds of system remodeling and upgrading necessary for state-of-the- art energy efficiency, which in turn promotes a better learning environment. This often means wasted energy and wasted tax dollars. Nearly half of U.S. K-12 public schools have no energy management program. U.S. public schools could recover more than $1.85 billion each year through improved energy efficiency; that is nearly one-sixth of the money spent by the federal government each year for the nation's public schools.
 Honeywell is a global controls company that provides products, systems and services for homes and buildings, industry, and aviation and space. The company employs 58,000 people worldwide and had 1991 sales of $6.2 billion.
 (a) See following energy and operational savings formula and average cost figures.
 ENERGY AND OPERATING SAVINGS FORMULA FOR SOUTH CAROLINA SCHOOLS
 Factual Information:
 -- 622,618 students in South Carolina public schools, K-12 (1990-91)
 -- National average energy cost per student for school year 1991 according to the Education Research Service in Arlington, Va.: $163
 -- Potential energy savings in public schools: 25 percent (from Schoolhouse in the Red Research for the American Association of School Administrators)
 Calculation:
 -- $163 (national average energy cost per student) multiplied by 622,618 (students) equals $101,486,734 (total school energy cost)
 -- $101,486,734 multiplied by 0.25 (savings potential) equals: $25,371,683 (South Carolina's potential savings if all K-12 installed energy efficient systems)(b)
 Estimated Average School Cost Figures
 -- Average South Carolina teacher salary: $29,041 (South Carolina Department of Education)
 -- Average computer cost: $1,500 to $2,000 (Apple Computers and IBM)
 -- Average annual cost of books and supplies per school: $18,182 (South Carolina Department of Education)
 -- Average cost per meal: $1.55 (Greenville County School District)
 (b) This calculation is accurate to the extent that the national average represents per-student energy costs in South Carolina.
 -0- 9/22/92
 /CONTACT: Lynne Warne of Honeywell, 612-870-2072, or Patrick Milan of Tunheim Santrizos, 612-851-1677, for Honeywell/ CO: Honeywell Inc. ST: Minnesota, South Carolina IN: CST SU:


AL -- MN003 -- 2141 09/22/92 11:37 EDT
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