Yucaipa-Calimesa board adopts $38 million energy conservation and solar program with guaranteed-savings guarantee

The Yucaipa‑Calimesa Joint Unified School District Board of Education unanimously adopted a resolution on May 7 to move forward with a districtwide energy conservation and solar program financed at roughly $38 million.

Dr. Breeman, the district’s Business Services lead, presented the final proposal, outlining planned measures: interior and exterior LED lighting across sites, upgraded sports lighting, 12 solar arrays at school sites, major central‑plant heating/air‑conditioning replacements at the high school, and several transformer upgrades. "This project would pay for itself," Dr. Breeman told the board, noting projected reductions in utility costs once the work is complete.

Rachel Cheno, the district’s financial advisor, summarized the proposed financing: a roughly $38 million package with a 20‑year interest rate the district reported as locked at 4.373 percent. Cheno said the financing uses and assumptions were verified with multiple lenders; the proposal includes prepayment flexibility so the district can reduce debt if outside funds arrive.

A third‑party consultant, Ecomotion, provided an independent review the board received at the meeting. According to the consultant’s summary read into the record, Ecomotion found the proposal to be a "good‑looking project" and "saw no reason to recommend against the district moving forward." The administration also described measurement and verification procedures and a guaranteed‑savings mechanism; the vendor would issue payments if measured savings fall short of projections.

District staff and advisors discussed a potential federal tax‑credit payment tied to the Inflation Reduction Act (IRA) that the presentation estimated at about $5.2 million. Presenters repeatedly warned the board that the IRA amount is contingent on federal program rules and timing: one consultant said the funding is "likely" but not yet realized for school districts, and staff described a pre‑registration and application process with the IRS that is only now opening to tax‑exempt entities. The board’s discussion noted officials were cautious not to rely on that payment but modeled scenarios with and without it. With the IRA amount applied in the presentation, consultants estimated higher annual savings (the administration summarized an illustrative figure of an average annual savings rising to approximately $651,000); without it, projected annual savings during the repayment period were also presented as positive (consultants summarized roughly $3.8 million in total annual savings during the repayment window in their scenario, presented as a projection based on utility assumptions verified by the third‑party reviewer).

Board members asked about precedent and risk. One member said no K‑12 district had yet received the IRA benefit for a project of this type because the program’s rules for tax‑exempt entities are newly available; staff said a pre‑registration process exists and that districts could apply beginning in the next fiscal cycle but cautioned the board against assuming the credit will arrive.

After opening and closing the public hearing, Board member Sharon Bannister moved to adopt the resolution as presented; the motion passed unanimously. The resolution authorizes the district to proceed with the program and associated financing and directs staff to continue project implementation steps, including community outreach and measurement and verification.

Next steps spelled out by staff included final project scoping at individual sites, design and procurement phases, community Q&A and town halls, and return of final contracts and bid results to the board for authorization before construction begins.