Overcoming Funding Barriers for Infrastructure Upgrades
Public entities in Texas—including school districts, cities, counties, and hospital districts—face a persistent challenge: a growing backlog of deferred maintenance coupled with limited capital budgets. Funding massive mechanical or lighting upgrades typically requires raising taxes, proposing bond elections, or depleting reserve funds.
E3 resolves this barrier by offering complete, turnkey Financing, Auditing, and Procurement solutions. We help you identify energy waste, secure non-taxpayer funding (grants, low-interest state loans, utility rebates), and utilize state-approved cooperative purchasing to deliver facility modernizations with zero upfront capital.
The E3 Procurement Value Propositions
- Self-Funding Projects (ESPC): We bundle mechanical, lighting, and water upgrades under an Energy Savings Performance Contract. The guaranteed utility savings pay for the capital costs, making the project budget-neutral.
- In-House Engineering Stamped Drawings: Many grants require professional stamped engineering drawings. E3 has in-house engineers to prepare these documents, giving our clients a significant advantage in competitive funding programs.
- Pre-Approved Cooperative Contracts: We are pre-approved on major purchasing cooperatives, allowing public boards to contract directly with us and skip the delays and risks of traditional bidding.
Our Turnkey Financing and Auditing Offerings
Energy Auditing and Business Case Analysis (BCA)
Identify energy waste and compile a board-ready investment case. We perform free preliminary facility studies and detailed Investment Grade Audits (IGA) to inventory equipment, analyze utility tariffs, and calculate exact payback periods.
Grant Procurement and Alternative Financing
Secure non-taxpayer funding for your facility. E3’s funding experts navigate the application process for State Energy Conservation Office (SECO) grants, the Texas LoanSTAR program, Qualified Zone Academy Bonds (QZAB), and federal energy tax credits.
Cooperative Purchasing Agreements
Skip the public bidding process legally. E3 is an approved vendor on major Texas cooperatives, including BuyBoard, TIPS, and TASB, allowing you to secure pre-negotiated, transparent pricing and fast-track your project.
Traditional Bidding vs. E3 Funding and Procurement
Texas Project Success
E3 has leveraged alternative financing and grants to modernize public facilities across Texas with zero budget stress:
- Ricardo ISD: Secured ARRA SECO grants and state funding to install new district-wide building controls, 44 new HVAC units, and lighting upgrades.
- Mercedes ISD: Utilized a $9.5M QZAB (Qualified Zone Academy Bond) program to finance a comprehensive LED retrofit and mechanical upgrades, avoiding over $700,000 in annual utility costs.
- Donna ISD: Financed a $7.9M energy conservation program—retrofitting 20 campuses with LEDs and overhauling 9 mechanical plants—entirely funded by guaranteed utility savings.
Frequently Asked Questions
How does an Energy Savings Performance Contract (ESPC) work under Texas law?
An ESPC is a turnkey procurement and financing mechanism governed by Texas Education Code § 44.901 (for school districts) and Texas Local Government Code Chapter 302 (for cities, counties, and hospital districts). It allows public entities to pay for facility energy, water, and operational upgrades using the utility savings generated by the new equipment. Under Texas law, the ESCO (like E3) must contractually guarantee that the savings will meet or exceed the annual finance payments. If there is a savings shortfall, E3 pays the difference, making the project budget-neutral.
Can school districts skip competitive bidding using BuyBoard or TIPS for construction?
Yes. Under Texas Education Code § 44.031 and Government Code § 791 (Interlocal Cooperation Act), public entities can legally satisfy competitive bidding requirements by procuring services through state-approved purchasing cooperatives such as BuyBoard, TIPS, or TASB. Because E3 has already gone through a competitive RFP process to become a pre-approved vendor on these co-ops, school boards and city councils can bypass the traditional 6-to-12-month design-bid-build procurement process and contract directly with E3, saving time and administrative costs.
What is the difference between a free preliminary energy study and an Investment Grade Audit (IGA)?
A Preliminary Energy Study (PES) is a high-level facility walkthrough (similar to an ASHRAE Level 1 audit) that E3 performs at no cost. It reviews utility bills, inventories equipment, and identifies potential conservation measures to determine if an ESPC is feasible. An Investment Grade Audit (IGA) is a comprehensive, engineering-intensive study (ASHRAE Level 3) that details exactly how the upgrades will be executed, the precise equipment models, and the guaranteed energy savings. The IGA forms the baseline for the ESPC’s financial guarantee and is typically funded as part of the overall project once approved.