The Flagstaff Unified School District (FUSD) Governing Board has approved a resolution authorizing a new phase of energy conservation improvements across district facilities through a partnership with Veregy, a national leader in sustainable energy solutions. The agreement represents a continued investment in operational efficiency, cost savings, and alignment with FUSD’s Climate Action Plan goals.

Under the resolution adopted on October 14, 2025, the District will enter into a Tax-Exempt Equipment Lease Purchase Agreement with Banc of America Public Capital Corp to finance energy conservation measures designed and implemented by Veregy. This project—known as Phase 2 of the Guaranteed Savings Agreement—will deliver long-term sustainability upgrades across multiple campuses.

Building on Proven Results

FUSD first partnered with Veregy (formerly Midstate Energy) in 2019 to complete a district-wide Guaranteed Savings Agreement (GSA). That initial phase, completed in 2021, introduced major energy efficiency upgrades such as LED lighting, boiler replacements, data management tools, and building energy management systems.

Over the four performance years following completion, FUSD achieved $2,154,786 in actual utility savings, exceeding the guaranteed savings of $2,091,302 by more than $63,000. This strong performance demonstrated the value of FUSD’s energy efficiency investments and set the stage for continued sustainability progress.

Phase 2: Expanding Renewable and Efficient Infrastructure

Following a comprehensive district-wide energy audit conducted in summer and fall 2025, FUSD identified additional opportunities to enhance efficiency and sustainability. The new phase, with an estimated project cost of $15.7 million, includes:

• Solar energy installations at ten district sites, providing renewable power generation, student shade canopies, and access to federal investment tax credits totaling nearly $3 million.
• HVAC replacements and upgrades at nine schools, addressing 61 aging units to improve indoor air quality and climate control.
• Building Automation System (BAS) service and modernization to ensure district-wide connectivity and efficient control.
• Water conservation improvements, including the replacement of over 1,100 fixtures with low-flow toilets, urinals, faucet flow adapters, and showerheads.

The Bond Oversight Committee recommended contributing up to $2 million in 2022 Bond funds toward the project, while the remaining estimated balance of $13.7 million will be financed over a 20-year term using guaranteed energy savings and available rebates. The committee also requested that FUSD and Veregy evaluate an alternative to replace certain gas-powered HVAC units with electric systems featuring gas backup, supporting the district’s transition toward more sustainable infrastructure.

Phase 2 is projected to achieve lifetime savings of approximately $39.6 million through energy and water conservation, rebates, and operational efficiencies—providing lasting benefits to both the environment and district finances.

Long-Term Environmental Impact

When fully implemented, the Phase 2 project is expected to save an estimated 119,406,312 kilowatt-hours of energy over its lifetime. The environmental impact of these savings is equivalent to:

• 6.7 million gallons of gasoline saved,
• 76 million pounds of coal not burned,
• 15,156 homes’ electricity use for one year,
• 1.13 million tree seedlings grown for ten years, and
• 3,461 tons of waste recycled instead of sent to landfills.

These improvements not only reduce environmental impact but also create more comfortable, efficient learning environments for students and staff.

“Our partnership with Veregy demonstrates how FUSD continues to invest in the future of our students and community,” said FUSD Superintendent Michael Penca. “By improving the efficiency and sustainability of our schools, we’re ensuring safe, healthy learning environments today while being responsible stewards of public resources for years to come.”

Additional Resources

For more information about FUSD’s partnership with Veregy and the District’s ongoing sustainability efforts, please visit:

• View the Flagstaff USD 2025 ECM Lease Authorizing Resolution
• View the Veregy FUSD Governing Board Presentation – October 14, 2025
• Learn more about FUSD’s Climate Action Plan

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