- Briefing Room
|Project Name||Virginia DOT Highway Lighting Replacement Project|
|Location||State of Virginia|
|Project Sponsor / Borrower||Virginia Department of Transportation|
|Value Capture Techniques||N/A|
|Mode||Other: Highway Lighting|
The Virginia Department of Transportation (VDOT) is replacing more than 9,600 highway lights with light-emitting diode (LED) products. The project will implement a lighting controls system for all proposed LED fixtures. It includes lights located on limited-access highways and associated interchanges, as well as VDOT-owned park-and-ride lots, rest areas, and weigh stations in the Richmond, Fredericksburg, Hampton Roads, and Northern Virginia districts.
VDOT is funding the lighting upgrade project using the Virginia Energy Management Program’s energy performance contract option, which allows VDOT to finance infrastructure improvements using future energy and operational savings. By reducing energy bills and lowering operations and maintenance costs, the State expects the project to help save $4.6 million by 2036.
|Cost||As of 2019, the estimated project cost was approximately $17,399,000 (approximately $1,700 per fixture exclusive of memorandum of understanding, owner-contingency, and VDOT’s internal administration and construction engineering/inspection costs).|
|Funding Sources||Virginia Energy Management Program|
|Project Delivery / Contract Method||
2018 Virginia Energy Plan (issued October 2018 pursuant to Â§67-201 of the Code of Virginia): EPC is a budget neutral, cost-effective tool that allows State agencies and publicly owned facilities to reduce their deferred maintenance backlogs without adding any financial burden to the taxpayer. In addition, EPC is an effective mechanism to finance capital improvements using leveraged energy savings to reduce both energy costs and consumption.
|Private Partner||Trane, Inc.|
|Project Advisors / Consultants||Trane, Inc. (“Trane”)|
|Duration / Status||
Trane is currently auditing the lights to determine the correct fixtures (wattage/brightness, type, color temperature, housing color, etc.). VDOT anticipates actual light replacement to begin in August. The project is on schedule, and is expected to be complete by March 2022.
|Financial Status/Financial Performance||
VDOT has reviewed and concurred with Trane's methodologies for estimating current energy usage, modeled future energy usage, and modeled cash flows during the construction period and 15-year bond amortization period. VDOT budgeted $17,126,000 for the agency’s energy services contractor, Trane Inc., to retrofit 9,627 lighting fixtures to LEDs. VDOT’s team also budgeted $2,273,000 for construction engineering, and inspection, and to address any structural or electrical repair issues not covered by the contract.
Under EPC, contract costs are paid for using funding from the Virginia Energy Leasing Program (VELP) managed by the Department of the Treasury. The VELP enables agencies to obtain consistent and competitive credit terms for financing energy efficiency improvements, providing up-front payment, which is paid back through savings in future energy expenditures. Once approved and finalized, VDOT would be responsible for the lease payments regardless of actual energy savings resulting from the LED Project; however, under the contract, VDOT will have recourse with Trane if savings are insufficient.
|Related Links / Articles|
|Contact||Name||Harold Caples, PE|
|Title||Assistant State Construction Engineer (State Contract Engineer)|
|Phone #||(804) 786-1630|