Cape & Islands News

State buildings to reduce energy 20%; U.S. awards state $9M for Children's Health Care

U.S. awards nearly $9 Million to Massachusetts to test Innovations in Children's Health Care

The U.S. Department of Health and Human Services' Centers for Medicare and Medicaid (formerly the Health Care Financing Administration) issued the following news release:
   Health and Human Services Secretary Kathleen Sebelius today announced a grant of nearly $9 million to Massachusetts to improve health care quality and delivery systems for children enrolled in Medicaid and the Children's Health Insurance Program (CHIP).
   The grant is part of $100 million in federal funds awarded to 10 states today as part of the Children's Health Insurance Reauthorization Act of 2009 (CHIPRA). The funds will be awarded over a five-year period. Massachusetts will be awarded $1.5 million in the first year of the five- year grant totaling $8.8 million.
   Massachusetts will work together with leading healthcare institutions based in the state to implement and evaluate recommended healthcare quality measures for children. The state will also promote use of a "medical home" initiative for children. A medical home concept is one that generally features care that is coordinated and monitored by a primary care team that refers for specialty services and focuses on preventive measures.  
   Massachusetts will also develop a multi-stakeholder statewide coalition to utilize learning networks and practice coaches to improve communication among primary care, specialty care, and community-based agency providers. Source.

Patrick-Murray announces Low-Cost Financing to Expand Clean Energy, save costs at state facilities

Governor Deval Patrick today announced a new financing plan that will enable the Commonwealth to launch energy efficiency and renewable energy projects at dozens of state buildings, saving the Commonwealth millions of dollars in energy costs annually while creating jobs and supporting the administration's clean energy goals.

"With this new financing plan, we can move quickly to put workers on job sites across the state," said Governor Patrick. "And the added benefit is that these projects will pay for themselves."

The announcement of the new Commonwealth Clean Energy Investment Program - part of the Patrick-Murray Administration's Commonwealth Energy Solutions initiative - came at North Shore Community College (NSCC) in Danvers, where a comprehensive energy efficiency project will be the program's first beneficiary. NSCC's project will get under way in April thanks to the Governor's plan to use state-backed general obligation bonds to finance projects that pay off the debt through energy savings.

"The Clean Energy Investment Program's new financing plan will have a very positive and effective impact," said Lieutenant Governor Timothy Murray. "As we continue to focus on creating jobs across the Commonwealth, this new plan will put people to work while also creating another cost-saving solution that will benefit our taxpayers and support future investment for energy efficiency."

Complementing NSCC's construction of the first zero net energy facility in the state's building portfolio, which was announced last year, the energy efficiency project spans NSCC campuses in Danvers and Lynn, and includes a full lighting retrofit, an energy management system, new chillers, variable frequency drive motors, water conservation measures, insulation, new rooftop heating/cooling units and conversion of heating from electric to natural gas.

Worth $3.6 million, this upgrade is expected to cut the college's energy use by up to 32 percent and reduce annual energy costs by nearly $400,000. Financing the work with state bonds will lower the Commonwealth's interest payments by more than $800,000 over the life of the project compared with other financing options.

"This new low-cost financing mechanism will allow the Commonwealth to invest more in energy efficiency at its own facilities over the next four years than it has in the past two decades," said Energy and Environmental Affairs Secretary Ian Bowles. "These investments will pay for themselves as they cut energy waste, reduce operating costs, cut greenhouse gas emissions, and strengthen Massachusetts's clean energy economy."

Over the past 25 years, the Commonwealth - through DCAM - has invested $213 million in 56 energy and water efficiency projects at state facilities, producing annual energy savings of approximately $26 million. These projects have been funded through the state's Tax Exempt Lease Program or through contracts with energy service companies (ESCOs) - financing avenues that are more complicated and expensive. The Commonwealth Clean Energy Investment Program will use low-cost general obligation bond financing outside of state government's annual capital spending limit (known as the "bond cap") for energy efficiency projects that save enough money to pay the debt service on bonds that finance them.

Because these changes will be self-supporting and the projects financed with the bonds will more than pay for themselves in energy cost savings, treating these financings outside the state's bond cap is consistent with the Administration's debt affordability policy, which has been favorably reviewed by the rating agencies.

General obligation bonds are the least expensive source of funds for the state, in part due to the Commonwealth's favorable AA bond rating. To ensure the new program's financial integrity and protect the state's bond rating, A&F will review and approve each project, and require independent verification that savings generated will support repayment of the bonds.

DCAM has dozens of energy efficiency and renewable energy projects at state facilities that could be eligible for the new financing program. Once reviewed and confirmed that they are eligible, some of these projects could begin in a matter of months, and all within one to two years. If all are approved and completed, these projects are estimated to save $22 million in energy costs annually, while generating scores of jobs for construction workers, project administrators, analysts and engineers.

Accelerating work on state facility energy projects will also help the Commonwealth comply with Governor Patrick's "Leading By Example" Executive Order on Clean and Efficient Buildings. Adopted in April 2007, the Order calls on the state to reduce overall energy consumption at state-owned buildings by 20 percent and greenhouse gas emissions resulting from state government operations by 25 percent by 2012.

"Governor Patrick has declared energy efficiency the Commonwealth's first fuel, and we have already identified a roster of projects that will cut energy waste across a wide spectrum of state colleges and university campuses, agencies and departments. This important work can now get underway in a cost effective way," said Department of Energy Resources Commissioner Phil Giudice.

The Commonwealth Clean Energy Investment Program is part of Commonwealth Energy Solutions, a Patrick-Murray Administration initiative designed to yield an estimated $6 million in savings in its first year. Other components include:

• Establishing a consolidated procurement process for electricity, natural gas, heating fuels, demand response, efficiency and energy management services; and
• Implementing real-time monitoring and analysis to optimize energy resources across state facilities.

In addition to the NSCC project, several other projects are ready to begin in the coming months. These include installation of two 1.65-megawatt wind turbines each at the Department of Correction's Gardner facility and at Mt. Wachusett Community College; and comprehensive energy efficiency projects at Massasoit Community College, UMass Dartmouth, 17 Trial Court buildings located in Bristol, Plymouth and Suffolk Counties, and the headquarters and training academy of the Massachusetts State Police. Source.