Cleaner Air and Lower Costs: How State Investments in School Decarbonization Save Taxpayer Dollars

This report examines how state agencies and local school districts can implement building decarbonization through investments in energy efficiency, electrification, solar energy, and geothermal heat pumps. It helps readers understand the fiscal impact of these initiatives, particularly as states fill the gap left by reduced federal support. States use various tools to support these projects, including grants, low-cost financing such as the Texas LoanSTAR program, and technical assistance to lower barriers for smaller districts.

Key takeaways from the report include the dual benefit of school decarbonization: improving public health and delivering significant fiscal returns. The report argues that by transitioning away from fossil fuel-based systems, schools reduce indoor pollutants such as carbon monoxide and nitrogen oxides, thereby enhancing indoor air quality. More importantly for budget-conscious officials, the report provides data showing that these projects generate substantial recurring operating savings. Case studies detail how energy-focused retrofits and solar installations have saved districts tens of thousands of dollars annually, with some projects reducing utility costs by up to 39.9 percent.

The report also explains how districts use Energy Performance Savings Contracts to partner with energy service companies, ensuring that identified energy savings are realized and used to repay the initial investment. It emphasizes that while some districts prioritize environmental goals, the fiscal case for decarbonization is a compelling driver for adoption.