The Institutional Conservation Program: A Funding Option for Energy Retrofits

Abstract

The Institutional Conservation Program (ICP) provides matching grants to K-12 schools, colleges/universities, and hospitals for energy-related retrofit studies and the implementation of capital projects identified, analyzed, and recommended by these studies. Although grant dollars for the program are still appropriated at the federal level, Petroleum Violation Escrow (PVE) monies returned to the states now provide the largest source of ICP funds for most states. The program is administered at the federal level by the Department of Energy and at the state level in Texas by the Governor's Energy Management Center. The purpose of the ICP is to assist eligible institutions in reducing energy consumption and its attendant costs. More specifically, the program gives an institution the financial incentive to hire a professional engineer to identify and analyze the most attractive package of energy retrofits for a given building. Matching financial assistance is then available for implementing part or all of the recommended measures. Typical projects funded through the program include computerized energy management systems, lighting system change-outs, boiler modifications, and HVAC change-outs and modifications. Funded projects must have a payback of 2-10 years and must be installed in buildings completed and occupied before April 20, 1977. All applications submitted for funding consideration are subject to a programmatic and technical review. Applications compete for available monies according to specific criteria set for Technical Assistance Grants (study grants) and Energy Conservation Measures Grants (retrofit implementation grants). Since 1979 ten ICP funding cycles have been held in Texas, and a program cycle funded by PVE dollars returned to the state is currently in progress. An eleventh funding cycle, using federally appropriated dollars, and a second "oil overcharge" cycle are anticipated for FY 89.