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The products and expertise to deliver long term, sustainable energy solutions.

Climatec is a leading provider of turnkey modernization and funding solutions for agencies looking to remedy aging energy and water infrastructure. Serving the needs of public sector market segments, like special districts, K-12, higher education and state, county, local and federal government, our team of highly credentialed experts specializes in making your facilities smarter, safer & more efficient while providing significant relief for general fund and capital budgets.

Our expertise includes energy efficiency, renewables, indoor air quality, building automation, power resiliency, electrification, high-efficiency lighting, water conservation and more.


• Price Certainty
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• Reduced Operating Costs
• Increased Staff Efficiency
• State Mandates Achieved

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HVAC Modernization & Indoor air quality
Building automation systems
Interior & Exterior Lighting
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street lighting
renewable energy
energy storage & resiliency
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Student achievement starts with high performing learning environments; in fact, well-maintained facilities can improve student scores up to 10% on standardized tests. Our team helps remove the barriers many districts face in providing comfortable, safe, 21st century learning environments and meet the growing public pressures that surround sustainability. Whether your schools are in need of modernization, deferred maintenance relief, or simply looking to reduce operating cost pressures on your budget, Climatec has unsurpassed expertise in helping K-12 leaders develop and implement customized, impactful facilities programs in less time and with fewer resources.

The help we got from Climatec allowed us to make an ambitious move towards more efficient, reliable, and sustainable infrastructure. The impact of these changes is reflected in reduced utility costs and increased sustainability, but also in the quality of learning of our students.”
lynn novak | project manager | castro valley Unified School District


Smart cities start with smart infrastructure. As operating expenditures rise and revenues decline, local government leaders are looking for innovative solutions to spur economic development while improving services for residents and local businesses. Addressing aging infrastructure is one of the most impactful decisions you can make to improve the operational efficiency of your organization and reinvest savings into additional capital improvements or community services that drive revenue for your bottom line. Climatec offers comprehensive design/build solutions and budget-neutral funding plans to modernize your infrastructure in a fraction of the time without adding extra workload for your Staff.

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Climatec's in-house credentials encompass grant-writing and funding application experts, engineers, building technologists and indoor air quality specialists. Our team can give you a realistic look of what you can expect with your unique challenges.

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Climatec and its entire team has fully demonstrated their design-build capability, professionalism and expertise in successfully delivering capital improvement projects.”
elizabeth valenzuela  | Chief financial officer |  yuma elementary sd

in the news

The Inflation Reduction Act – What Every Public Entity Needs to Know

With the passage of the Inflation Reduction Act (IRA) of 2022, the federal government has signed up for an unprecedented, long-term investment in the clean energy sector here in the USA. The high-level objectives of the IRA are to: cut inflation, create jobs and spur domestic manufacturing–all while investing in the much-needed renewal of public infrastructure. Investments in electrification and clean energy production–plus the funding to motivate public entities to act–are noteworthy given the political stalemate in Congress for the past few years. 

Public sector entities (cities, counties, schools, colleges, universities and water districts, to name a few) now have access to significant federal funding (30% to 60%+) to help offset the costs of eligible clean energy and electrification projects. Funding via other grants, such as Energy Efficiency Conservation Block Grants (EECBG), adds to the pool of monies available to fund these investments, and ultimately, address failing or inefficient infrastructure.


As is typical with the federal government’s grant and funding programs, the devil is in the details. In this case, the Department of Energy, the Treasury Department (yes, the IRS), the Transportation Administration and others, have a hand in creating the programs and regulations that disperse IRA funds. More importantly, as non-tax payers, local governments, schools and special districts historically have not benefited from the traditional Investment Tax Credits (ITC) of 30%. In the past, public entities had to rely on private investors with tax equity to fund these projects using complex third-party power purchase agreements (PPAs). That changes now. 

From 2024 through 2033, the IRA authorizes direct-pay, investment tax credits to public entities who build long-term clean energy assets, such as solar photovoltaic and energy storage systems; small wind systems; geothermal-powered heating and cooling systems; electric vehicle charging stations; and related infrastructure. Even though you don’t pay taxes, you now receive these tax incentives as a direct payment in the form of a rebate towards your energy project.


The IRA provides tax credit funds for an unlimited number of qualifying energy projects across the U.S. over the next 10 years. 

The base tax credit under the IRA starts at 30% of eligible system costs. For typical systems under 1 Megawatt (MW) in size (per tax year), it may increase with entitlements of 10% for designated low-income areas, 10% for labor compliance requirements, 10% for community solar projects, plus up to 20% for systems located in designated Energy Communities. Systems exceeding 1 MW in size must comply with strict labor compliance and domestic content regulations to receive the tax credit subsidies. 

Keep in mind that federal tax credit will be reduced by 15% if tax-exempt funds (e.g. municipal leases, tax-exempt bonds, etc.) are combined to pay for eligible systems.

A chart from Statista showing how the Inflation Reduction Act will affect U.S. emissions
Source: Martin Armstrong, Statista


Since fiscal public officials will be required to review, approve and file tax forms, you’re strongly recommended to consult your municipal financial advisor or tax professional regarding your IRA application strategy.

A public entity must first pay the cost of installing the eligible system, place the system into service, file a pre-registration form with the IRS and then wait for the IRS to respond with a system registration number.  Once the public entity has the registration number, the special tax forms for your tax credit application are filed with your annual tax filing.


As the saying goes, “Rome wasn’t built in a day.” The federal government has set aside a huge amount of funding for eligible public sector entities, and you may only capitalize on these funds if you take ACTION.  

Form a working group of stakeholders, create a realistic energy modernization plan, then issue an RFP to procure an experienced, full-service energy services firm. After the project is developed, implemented and placed in service, your municipal financial advisor will work with your energy services company to maximize the federal tax credit subsidies for your particular community. Not to mention, the program as a whole will allow you to check major boxes for your Climate Action Plan (CAP) and meet State mandates for greenhouse gas emission reductions before 2030. 

California ratepayers saw utility expenditures double in the last 5 years as public utilities posed double-digit year-over-year rate increases. These trends are expected to continue. Many public agencies are finding traditional, piecemeal approaches fall short in today’s construction economy due to staff bandwidth constraints, cost escalations, labor shortages and supply chain disturbances. As operating and capital budgets tighten across the board, it’s incumbent upon public sector leaders to get smart on streamlined project delivery methods and creative funding solutions. With more funding available than ever before, now is the time to implement your climate action initiatives if you haven’t already. 

Learn more about why public agencies should invest in energy infrastructure now.


  • Thomas Jackson, Corporate Vice President Major Projects, Climatec LLC a Robert BOSCH Company
  • Bruce Dickinson, President, Eagle Energy Solutions, LLC
Top reasons cities need comprehensive energy infrastructure investments–now

Inflation and spiraling costs have impacted us all. The price of gasoline, the cost of eggs, bacon and most other basic needs for food and transportation have exploded in the last few years. To combat these inflationary pressures, employees, unions and workers across all industries are expecting needed salary increases just to commute to work and put food on the table. Combined with all the negative hangover effects from the COVID pandemic, many municipalities are wondering, “What can we focus on in 2023 to make some positive impacts and get a WIN?”

One of the major budget line items for most municipal governments (often just behind salaries and pensions) are their electricity and natural gas payments. Not a surprise to any CFO: utility increases in California have shot up dramatically in the last few years. All Investor-Owned Utilities (IOUs), such as Southern California Edison (SCE), Pacific Gas and Electric (PG&E) and San Diego Gas & Electric (SDGE) have seen commercial electricity rate increases skyrocket. In 2022, SCE increased by 40% and PG&E increased by 24% while SDGE increased by 27% in 2021 and another 4.3% in 2022. The chart below shows residential rate increases from 2016-2022, with commercial rates, having had a similar trajectory.

Source: Jennifer Dowdell of TURN (The Utility Reform Network) at the California Public Utilities Commission (CPUC), 2022

Most recently, electricity rates at IOUs have risen far faster than inflation. Many experts believe that with the mandated transition to more renewable energy production, plus the move to the “electrification” of vehicles and HVAC equipment, the significant upward trend in utility rate increases will continue well into the future. Even as current rates rise by five times more than average growth, IOUs are slated to continue the upward trajectory on costs. Imagine your total utility bill doubling in the next three years.

PG&E has already proposed additional rate increases of up to 25% starting in 2023 for commercial, industrial and agricultural customers. Sempra Energy, the parent company of SDGE, is paying its investors the highest profits recorded, funded by ratepayers who face one of the highest per-unit electricity prices in the county. These are just the facts.

It is easy to simply just focus on electric price increases, but with current US energy policies and global market dynamics, natural gas prices have risen at an even faster pace than electricity with SoCal Gas customers experiencing an increase of more than 300% since January 2022.

Source: US Energy Information Administration, 2022

If you are a city manager or city council member, what can you do to blunt these massive utility cost increases? Doing nothing or hoping the problem will go away is not a strategy. Some of the leading cities across California, including the City of Ontario, the City of Santa Clarita, the City of San Leandro and the City of Fountain Valley, offer excellent examples of how to proactively combat the impact of rising utility costs with investments in modernization, efficiency and sustainability.

The City of Santa Clarita, for example, recently approved a citywide program to promote building and infrastructure efficiency, renewable energy generation and park revitalization. The program will generate over $46.6 million in savings for the City’s operating and capital budgets–including $5.2 million in inflation savings for capital projects–while reducing greenhouse gas emissions (GHG) by 3,322 metric tons per year. Countless other examples exist of cities embarking on comprehensive programs like Santa Clarita’s, with the same notable and documented positive outcomes for other cities:

  • Fountain Valley boasts program lifecycle savings of approximately $13.2 million and a reduction of GHG emissions by about 1,833 metric tons
  • Ontario’s savings approach approximately $75 million while GHG emissions drop 8,878 metric tons
  • San Leandro shows $37.3 million in general fund relief with a reduction of a whopping 25,033 metric tons
Solar Installation Rendering in the City of Santa Clarita

Most municipalities have contemplated energy and sustainability initiatives for years, but the required upfront capital, staff resource constraints, stakeholder coordination and complex analysis makes it hard to get projects off the ground. Cities may take several approaches, but there is one approach that is proven to be the most effective for getting projects completed in less time, with fewer resources and with lower risk.

Compared to “piecemealing” projects one at a time or waiting for equipment to break down, a design/build energy services approach allows a city to look at energy holistically and through the lens of the long term. Bundling all pieces of the puzzle together, rather than implementing one or two at a time, addresses deferred maintenance needs, as well as resiliency and sustainability goals. What’s more, is the legislative availability of streamlined procurement options available, which make it easy to competitively procure a single point of accountability without hiring multiple consulting firms and incurring all the incremental costs and delays associated with a traditional 4-5 year+ construction/retrofit process.

If energy efficiency and sustainability (plus blunting budget-busting utility increases) are on your to-do list and you are looking for some reasons to prioritize energy infrastructure projects in 2023, read on:



According to CBRE, construction cost escalations have seen double digit increases for the last two years and are anticipated to escalate at higher than pre-pandemic norms into 2023. If your city has constructed any facilities or has done any significant construction projects recently, you know firsthand the risks, delays, budget overruns, litigation, etc., that can result.

Not to mention the other delays created by supply chain disturbances, with many components often taking up to 12 months to arrive. The combined impact of inflation and delays are costing billions, forcing many cities to defer decision making or cancel projects altogether. By the time projects are ready to be pursued, it’s common for cities to see projects costing 1.5-2 times more than was originally budgeted in years prior.

Acting NOW, with a streamlined design/build approach, puts you in the driver’s seat and ensures you can lock down–and stand behind–the budgets and timelines you promise to stakeholders.


More funding is available today from grants, incentives and rebates than ever before. Ranging from federal, state, local and private sector programs, municipalities have a chance to free up or stretch the impact of capital funds without taking on any debt. Finding a partner who has deep expertise in helping your city secure incremental funds is imperative. The money is out there.

In addition to the billions in ARPA stimulus cities must obligate before December 2024, you can now also tap into an additional $370 billion from the Inflation Reduction Act (IRA) for clean energy generation, efficiency measures, improvements to water/wastewater facilities and EV charging infrastructure. IRA funds can help fund approximately one-third of the cost of solar for your city with direct payment tax incentives. Lighting, HVAC, battery storage and many other types of “electrification” also qualify for potential grants.


It’s common for cities to think they’ve done all the low-hanging fruit there is to do if you have completed a few efficiency upgrades over the last decade. Even in relatively new facilities or buildings that meet LEED standards, run times and automation settings often get modified or overridden with time. Plus, technology improvements and Title 24 building code standards have changed drastically in just the last few years, particularly when it comes to ventilation standards or the electrification of natural gas-consuming equipment.

By optimizing your current infrastructure to run more efficiently and replacing outdated equipment with technology that meets today’s standards by investing in smart building technology, you can reduce the utility consumption of your existing facilities by anywhere from 30%-40% or more.


When it comes to energy, piecemeal approaches or waiting for things to break leads to unintended consequences with a variety of negative impacts, including staff resource strain, comfort and productivity issues, emergency repair cost, etc. Furthermore, the stacking order for pursuing building efficiency and renewable energy projects is critically important to avoid alternative energy system oversizing, another common pitfall of a piecemeal approach.

Having a single point of accountability for the energy analysis, design, implementation and overall savings assurance gets your projects off the ground without the risks of budget overruns and delays. A comprehensive approach also allows you to reduce the load of your facilities first and then properly size solar energy and storage solutions to precisely meet the needs of your now more efficient facilities. The technology to achieve Zero-Net Energy and Carbon Neutrality is available today, however, these ambitious goals can only be achieved with a well-planned, comprehensive perspective.

With all the diverse and long-term challenges pressing down on city managers today (homelessness, crime, traffic congestion, worker/labor shortages, affordable housing and other state mandates), it would be easy to become overwhelmed and discouraged. Luckily, you don’t have to reinvent the wheel or take ten years when it comes to pursuing energy efficiency, sustainability and infrastructure investments.

Find a city that has had success with a comprehensive energy program and ask them about their process. Ask for a sample RFP and adapt the document for your needs. Once you drive a competitive process, select a design/build partner and conduct a citywide assessment. You will then have the tools and data to align a scope of work and funding plan specifically targeting your stakeholder and city needs. Before proceeding with program implementation, you’ll be equipped with a whole picture perspective to make intelligent long-term decisions that best serve your city’s interest today, tomorrow and for the next twenty years. Act NOW, and you can capture a big WIN in the next year or two for your city, while striving to address the numerous other longer term challenges city leaders face today.

Author: Thomas Jackson is Corporate Vice President for Sales & Major Projects for Climatec Energy Services.  He holds a degree in Energy Resource Management & currently serves on the Board of Advisors for Sustainability & Technology at Eastern Illinois University.  Climatec is a wholly owned LLC as part of the Robert BOSCH family of companies.

Alvord Unified School District Improves Indoor Air Quality to Prepare for Safe Reopening

Riverside, CA – In a move toward greater environmental sustainability and fiscal resiliency, Alvord Unified School District’s (AUSD) Board of Trustees approved a second phase of energy infrastructure improvements with a strong focus on improving indoor air quality.

“Our initial phase of improvements in 2015 helped us tackle the rising costs of utilities and relieve a portion of our deferred maintenance liability,” commented Kevin Emenaker, executive director of administrative services at the District. “Now, as we do our part to stop the spread of COVID-19, our number one priority is implementing the right equipment, technology and sanitation practices to keep our students and staff healthy when they return.”

Modernizing antiquated heating & cooling (HVAC) equipment will help ensure that clean air is supplied to the learning environment. According to the World Health Organization, the COVID-19 virus primarily spreads through small liquid particles from coughing and sneezing. AUSD’s new HVAC technology directly combats the transmission of disease by removing contaminated airborne droplets from a space. The HVAC equipment features ventilation and filtration systems that meet the Centers for Disease Controls’ health guidelines, making this possible. To take things a step further, the District also purchased air scrubbers that deactivate viruses, kill bacteria and remove other air pathogens for areas that have yet to receive new HVAC.

The improvements AUSD is making at its high school gyms will drastically improve indoor air quality in spaces that typically host large amounts of students and their families through sports and other community events. La Sierra High School and Norte Vista High School had obsolete heating-only equipment in their gyms, leaving them stuffy from a lack of cooling and poor ventilation. The new high-efficiency HVAC brings fresh air from outside into the space, filtering and conditioning it for optimal comfort.

“Although we don’t know how or when social distancing guidelines will allow us to use the gym, it’s assuring for our community to know we will be ready to safely reopen when the time comes,” shared Dr. Tania Cabeza, principal for La Sierra. “We are thankful to the Board of Trustees for making this sound investment to improve air quality in an area that needs it the most.”

Norte Vista High School shares a similar sentiment after years of receiving complaints about the gym’s lack of comfort. “The addition of air conditioning in the gym is going to make a world of a difference as we see our local climate get warmer each year,” shares Jason Marquez, principal for Norte Vista. “Through Phases I and II of our infrastructure upgrade, we have replaced nearly all HVAC with modern equipment that improves indoor air quality.”

Aside from enhancing the comfort and safety of facilities, AUSD’s infrastructure update will also help relieve the District’s budget. The sheer efficiency of the new equipment will cut energy and former maintenance and operations costs enough to pay for the improvements and provide positive net cash flow for the District’s budget. Along with the District’s HVAC upgrade, it secured new building automation systems, districtwide interior and exterior LED lighting modernizations and a carport solar shade structure at Villegas Middle School.

Rather than diving headfirst into solar, AUSD administrators made a conscious decision to do a pilot solar program at one school first. Their intent is to expand to other sites only after the performance of the first of the solar arrays are vetted. Villegas Middle School was chosen because it has some of the highest energy rates in the District. The savings generated by the new solar structure is helping to pay for the comprehensive program while supporting the Board of Trustees’ vision to move toward zero net energy.

“It feels good to know we’re doing all we can in a situation we don’t have a lot of control over,” Emenaker continued. “Beyond just responding to current safety needs for COVID-19, the work we are doing to renew our infrastructure will benefit our facilities and the health of our community for decades.”

According to the District’s partner, Climatec, construction is well underway and projected for completion this fall. Once complete, the infrastructure modernizations will drastically reduce the District’s greenhouse gas emissions and cut electric consumption by approximately 3.9 million kilowatt hours per year–the equivalent of powering 400 Riverside homes per year.