UConn seeks authority to sign 30-year energy-savings contracts to meet carbon-neutral goals

University of Connecticut witnesses told the Higher Education and Employment Advancement Committee that House Bill 6444 would allow constituent units of the state system to solicit and enter energy-savings performance contracts (ESPCs) and extend allowable contract terms from 20 to 30 years.

A UConn representative described prior ESPC work that saved the institution about $1,500,000 annually since a 2017 project and said longer contract terms would enable deeper infrastructure projects—replacing aged steam and condensate lines, upgrading building automation and controls, and pursuing renovations with multi-decade lifespans. "This will allow us to do larger scale energy savings projects with an even greater potential to reduce UConn's carbon footprint and enhance sustainability efforts," the witness said.

Witnesses explained the ESCO model: a private energy services company designs and installs measures, guarantees performance, and is paid from the resulting energy savings, which removes or reduces the need for upfront capital. The university said it uses internal funds for lower-cost items but that ESCOs bring national procurement experience, supply-chain access and philanthropic connections useful for larger, longer-term efforts.

Committee members questioned the 30-year payback term. UConn responded that the longer term aligns with the useful life of major infrastructure components (many of which can last 40–100 years) and with emerging federal and regional practices; a third-party audit and contractual guarantees are built into ESCO agreements so the university can recover shortfalls if promised savings are not realized. The university also told the committee it does not plan to add staff solely for these contracts and expects to rely on ESCO personnel during construction phases.

If passed, HB 6444 would broaden the ability of higher-education constituent units to use ESPCs for deeper, longer-lived energy projects, a tool UConn argues is needed to meet carbon-neutrality and efficiency goals by 2030.