By Ryan Strandquest, Kory Bush and Michael Metz����

Across the country, K-12 school districts are navigating a tough, familiar equation: aging buildings, rising utility costs and intense pressure to stretch every tax dollar. HVAC systems, particularly central energy plants, often sit at the center of that challenge. They’re essential, expensive to maintain and easy to postpone until problems become emergencies. At the national level, the ��each year on energy, making it the second-largest expense after salaries.����

In Flagler County, Fla., an opportunity arose to treat HVAC modernization not as a one-off capital project, but as a replicable, district-wide strategy that can serve as a blueprint for other districts. By modernizing central energy plants at two high schools (Flagler Palm Coast High School and Matanzas High School), the county is reducing long-term operating costs while securing substantial financial support through utility rebates and available federal incentives.��

The most important takeaway for other districts is that — with the right planning, documentation and collaboration — central-plant modernization can deliver meaningful returns without “breaking the budget.” In many cases, districts could see financial benefits ranging from $500,000 to $1.2 million, depending on project scope, timing, and eligibility for rebates and energy tax credits. Those benefits can scale, but they can also move in the opposite direction if incentive rules change or programs sunset before a project is placed in service.����

Start with a Systemwide Lens ��

Too often, districts are forced into reactive decisions: replace a failing chiller here, patch controls there, and hope the system holds together��for a few more��years. Instead, Flagler Schools and Matern Professional Engineering took a system-wide approach,��starting with feasibility assessments and campus evaluations to��identify��solutions that were both economical and maintenance-friendly.��

At Flagler Palm Coast High School, the modernized central energy plant came online in December 2025 and is projected to save the district more than 213,000 kilowatt-hours annually. Importantly, the project also earned a $293,000��Power Company (FPL)��energy rebate that helps offset costs and accelerate ROI,��bringing the return on investment to under five years when paired with rebates.��

At Matanzas High School, the modernization effort is currently underway and is more complex due to coinciding construction projects on campus. Completion is set for August 2026. Even with that complexity, the district applied the same disciplined planning approach, looking hard at what could be reused, what could be elevated and where targeted expansion would outperform full replacement.��

That��decision of��diligence��mattered.��By��reusing and elevating existing infrastructure at Flagler Palm Coast High School and expanding the plant at Matanzas, the district saved more than $1 million in construction costs.��

Value Engineering Doesn’t Mean Value Cutting��

Budget pressure is real,��especially with the lingering effects of tariffs and COVID-era cost escalations. The lesson��for��any district is that��value engineering works best when��guided by performance goals��and����long��term lifecycle��rational.��

On the Flagler Palm Coast project, the teams made several practical value-engineering decisions to protect the project’s intent while controlling costs. For example, the team cut nonessential elements while pursuing direct equipment purchases and early procurement strategies to reduce exposure to market volatility. The team also carefully worked through “keep vs. replace” decisions to avoid spending money on upgrades that wouldn’t materially improve performance or maintenance outcomes.��

These are the kinds of choices that add up, especially at scale across a district, state and national portfolio.��

Incentives Can Be Transformative

Utility rebates and federal incentives can improve project economics, but they��come��with��documentation��requirements. District leaders should go into modernization projects assuming that documentation is a core workstream.��

For Florida Power & Light (FPL) rebates, documentation��may include��a��8760-load study, a model that accounts for performance every hour��across a span of 12 months, and��commissioning documentation, including a commissioning letter��signed and sealed by a professional engineer.��

For energy tax credits available under programs tied to the��, specifically,��the��Clean Electricity Investment Tax Credit��(26 U.S. Code §48E), documentation and compliance expectations can extend to contractor practices,��such as requirements connected to Davis-Bacon wages and U.S.-made materials thresholds. Those factors influence decisions as early as design and procurement.��In addition, many��IRA-related credits��include��prevailing wage��and apprenticeship requirements;��meeting those labor standards can significantly increase the value of the credit.����

There’s��also a time dimension. Current policy includes a program sunset��in 2035, but districts should be realistic about the uncertainty of future extensions, as��many have seen with the 179D tax credit landscape. The practical message: if incentives are part of the ROI story, districts should move with urgency, not assumption.��The IRA created��new opportunities for tax-exempt entities, including school��districts, through elective pay (also called “direct pay”), which allows eligible entities to receive a payment equal to the value of certain clean energy tax credits if requirements are met.����

A Simple Three-Phase Playbook Other Districts Can Follow��

A three-phase approach can help districts replicate results while minimizing risk.��

First,��conduct a feasibility assessment��with an engineer.��Before committing to major upgrades, districts should verify that the project makes sense financially and operationally,��identify��rebate and incentive pathways, and��establish��an ROI model that stakeholders can stand behind.

Second,��execute with��the contractor and document along the way. Construction success isn’t just installing equipment correctly; it’s also ensuring the right protocols, records, and verification steps are in place to support rebate submissions, commissioning and long-term performance tracking.

Third, bring in��a��qualified tax consultant. If federal incentives are part of the financial plan, districts should engage a licensed CPA or experienced tax professional early enough to ensure that procurement, contracting and documentation align with eligibility requirements. This is especially important because elective pay claims require IRS pre-filing registration and are tied to tax filing timelines.

The Bigger Outcome: Better Learning Environments and Better Stewardship��

Central energy-plant modernization isn’t just an energy story; it’s a stewardship story. The savings and rebates not only reduce utility bills, but they also create flexibility for districts to support staffing, reinvest in capital improvements, and deliver better environments for students and educators. Public school districts everywhere are grappling with the same pressures. The experience of Flagler County shows that with collaboration, disciplined planning, and a strategy that treats incentives as part of the project, HVAC modernization can become a repeatable blueprint for districts across the country.��

Ryan Strandquest, LEED AP, is the President of Matern Professional Engineering. Kory Bush is the Director of Plant Services at Flagler County Public Schools. Michael Metz is a Plant Services Supervisor at Flagler County Public Schools.��

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By Lindsey Coulter

Dorian Maness, GGP, is a Senior Project Manager and Mechanical Engineer for the Education Division of Matern Professional Engineering in Maitland, Fla.��Focusing on��project management and mechanical systems design, Maness��delivers��innovative,��tailored��HVAC systems��that allow��students and educators to focus on learning, while giving school leaders operational peace of mind.��

“School environments are often occupied and require continuous, rapid maintenance,” Maness said. “So, there’s a��balance to be struck between what the owner wants, what mechanical system��success��needs to meet the functionality of the school, and what the maintenance team can maintain to ensure the system operates effectively.”����

Maness joined the ���سԹ� (SCN) Editorial Advisory Board in 2025, bringing valuable��expertise��in��engineering and mechanical systems for��K-12 and higher education.��As school facilities must contend with more extreme temperatures, changing codes, shifting maintenance budgets��and��higher��performance expectations, Maness��spoke with SCN about��what it takes to design and deliver systems that work and last.��

SCN:��What’s��your philosophy on balancing performance and cost in HVAC design?��

Maness:��Each project is��unique��and��it’s��critical we have the right conversations to figure out what works within the framework of the project and the owner.��My philosophy breaks down to “Make it make sense.” There is a fine line between the performance��of��a system and the cost of getting that performance out of the system. Clients often approach a project with the notion that they want the highest performance system. However, there is a��[financial]��tradeoff. As an engineer and project manager,��it’s��my job to understand things like budget and Life Cycle Costs to be able to have conversations with the owners or clients to guide them in a way that makes sense for their needs and the needs of their school. Sometimes��I’m��able to design a��cool��high-performance system and give them the most efficient HVAC system,��which can save money over time or get tax rebates for the district. At other times, due to first costs and budget, we must design a more robust system that is more easily��maintained��and that the district is more familiar with.����

SCN:��What innovations in mechanical system design are most promising for schools?��

Maness:��Schools are becoming more complex.��They’re��constantly��changing and��offering many��new programs��that used to be��available��only in colleges or technical schools. Mechanical equipment has become smaller and more powerful, allowing us to support various programming spaces, such as auditoriums, large gymnasiums, welding labs, automotive��labs��and robotics labs. Along with mechanical equipment, innovations in programming and BAS control have also been crucial to the advancement of how mechanical systems��operate. Adjusting to various school loads, allowing owners to see real-time alarms and failures on the equipment, are all innovations that have allowed us to change the way we design schools and give value back to the owners and clients.��

Additionally, in Florida, high temperatures and high humidity will always drive the mechanical system design in schools. Ensuring that the mechanical system has capacity to cool all spaces as required will become more challenging as the climate increasingly gets warmer or stays warmer longer. However, one trend I’ve seen is mechanical equipment becoming more efficient and better at handling high humidity or high temperatures. Utilizing this equipment in newer designs will be crucial to keeping up with future demands.��

SCN:��What’s��a misconception owners often have about mechanical design?��

Maness:��Owners underestimate the cost and space��required��to house mechanical systems. Most owners care��first and foremost��about how their building looks aesthetically, not about the space inside the building that no one sees. Ironically, this is the space that mechanical engineers care about the most:��the cavity above ceilings, the space on the roof, or mechanical rooms on a floor plan that no one will ever go into or see. These are the areas that house our��ductwork and��air��handlers,��chillers,��exhaust��fans��and many more pieces of mechanical equipment that are crucial to our design. Often, I hear how surprised they are about how many mechanical rooms we need on a floor plan or how much space we need outside for our chillers. This makes it crucial for us to be involved in early talks with the owner and architect when designing the footprint of a new building.��

SCN:��In what��other��ways do you collaborate with architects and planners to��optimize��student comfort?��

Maness:��I collaborate very closely with architects and planners to be sure the overarching designs maximize student comfort. While the architects design the layout of a school in respect to hallways, classrooms, gymnasiums, and more,��it’s��my job to ensure that our mechanical design��maintains��the various spaces and makes them��comfortable��—��no matter what the students are doing. The same type of mechanical system that serves a classroom��wouldn’t��be useful in a gymnasium or a cafeteria. Ensuring that these different areas of a school have the��appropriate mechanical��design is our most important job. Working closely with architects and planners is critical, and we communicate extensively about the spaces we need for all these different areas to ensure we can fit our equipment and have enough space above the ceiling for our larger ductwork.��

SCN: What project taught you the most about energy-smart system design?��

Maness:��Whether��it’s��elementary,��middle��or high school, the first question is always about costs. Since most schools are��supported by taxpayer dollars, cost savings and energy savings are always the first topics with owners.��In my experience, high-school projects present the most opportunity to��utilize��high-energy saving designs because they are larger and have more diverse student programming; kitchens, culinary labs, chemistry labs, auditoriums, and gymnasiums are all high-energy use spaces. These unique spaces create opportunities such as Bi-Polar��Ionization or��Demand Control Ventilation, which are energy-saving designs that help to reduce energy and life cycle costs over time.��

Get more weekly reports and��timely��updates by subscribing for free at��schoolconstructionnews.com/subscribe.��

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Matern Professional Engineering—a Maitland, Fla.-headquartered engineering services company that serves the K-12, higher education, healthcare, government sectors and more—recently promoted Austin Podurgiel to project manager within the company’s commercial sector. ��

Podurgiel has eight years of mechanical experience within diverse sectors, including healthcare, commercial, municipal and community, and has worked on projects for USP and facilities for cGMP manufacturing and vertical farming. Proficient in industry-leading design software and an expert in mechanical systems design, Podurgiel will use his wide skillset and innovative technology knowledge to lead Matern’s commercial teams and deliver exceptional results. ��

“We are excited to promote Austin to project manager,” said Bradley Pascarella, Commercial Division director at Matern Professional Engineering, in a statement. “His proactive project management and communication style, and drive for quality will be invaluable to our clients.”��

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As a Certified Green Globes Professional, Maness is well versed in Leadership in Energy and Environmental Design (LEED) and specializes in energy conservation and cost-effective mechanical solutions. He has designed numerous heating, ventilation and air conditioning (HVAC) systems as well as performed energy load calculations and selected mechanical equipment. Maness graduated from the University of Central Florida with a bachelor’s degree in mechanical engineering with a specialty in mechanical systems and is a member of the Central Florida chapter of the American Society of Heating, Refrigerating, and Air-Conditioning Engineers (ASHRAE) and the Florida Educational Facilities Planners’ Association (FEFPA).��

“Dorian is known for always being up to the challenge of analyzing and designing an efficient and tailored design solution for our clients,” said Ryan Strandquest, Matern Professional Engineering president, in a statement. “We are proud to promote him, and his expertise in project management and mechanical engineering benefits our clients in Florida.”��

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Achieving net zero is not an easy feat. The current state of educational institutions is more aptly described as approaching net zero. Washington, Oregon, and California are much closer to net zero due to statewide incentives and mandates coupled with the increased rates of utilities in these states. Florida and other states are still far behind Washington, Oregon, and California.�� Florida and other states are still far behind. This might seem rather strange, considering that Florida, the Sunshine State, is blessed with ample energy from the sun. However, in 2021 Florida generated from renewable sources such as solar, according to the U.S. Energy Information Administration. But as paltry as that might seem, Florida actually ranks very high out of all states—number four—in renewable energy and solar energy.

Furthermore, Florida has much lower energy costs and has moved more slowly towards net zero because the economics are not in place to encourage more investment to improve power use and thus reduce CO² emissions.�� When facilities look at the costs of wind and solar energy, new technologies around mechanical and lighting systems, and redesign or retrofit of a facility, the return on investment is often many years away. Government incentives can help, especially as energy costs play a major part in operational expenses.

Net zero is defined as carbon neutrality, meaning the amount of greenhouse gases (CO² being most impactful) produced by a facility is brought to zero by reducing emissions or methods to absorb greenhouse gases. Greenhouse gases are the leading cause of our planet’s global warming. Reducing, eliminating, and absorbing greenhouse gases will slow or potentially reverse global warming. Driven by rising energy costs, government mandates, long-term cost savings, and simply doing the right thing for future generations, schools are increasingly turning to engineers and architects to move towards net zero energy consumption using various renewable energy sources and new technologies.

One sector where net zero has received increasing attention is in the educational sphere. Indeed, much of the push toward net zero in school construction focuses specifically on solar energy—perhaps partially pushed by the younger generations’ increasing knowledge about environmental sustainability. Just one example can be seen in a recent deal in which Durham Public Schools in North Carolina is party to a triumvirate of customers of Duke Energy’s Green Source Advantage (GSA) program nearly 35 megawatts (MW) of solar energy in the state. Elsewhere, Maryland’s extensive Prince George’s County Public Schools district, located just outside Washington, D.C., has committed to . The district has already installed some solar panels on some of its schools, yet much more needs to be done at the state level. Accordingly, a bill before the Maryland General Assembly seeks to encourage extensive solar energy usage in future construction. This political tightrope is possible thanks to the bill’s not requiring a mandate from the state government in Annapolis.

However, increasingly, such government mandates are driving more demand for a move toward net zero. But it’s a mix of mandates and incentives that provide schools with dollar-driven initiatives to improve their renewable power generation and reduction of greenhouse gases. Higher education institutions are often in the business of making money and profits will guide their choices to invest in solar technologies that reduce or offset CO² emissions. It is truly a business decision for many of these institutions, and if the numbers are not in their favor, they will often forego such investment. Even a basic 5-kilowatt system costs between $15,000 and $25,000 to install without any government incentives or tax credits, . When that is scaled up, the costs begin to look rather daunting.

Increasing energy costs are driving educational institutions to look toward new sources of power. Heating and cooling costs constitute a substantial portion of operational budgets, with some estimates putting these costs at nearly 50% of all operating expenses. Building envelopes have been a focus when efficient designs are planned and implemented. Substantial heating or cooling loss via a leaky building envelope can exacerbate costs. Engineers must think creatively about ways to solve this problem because rebuilding or remodeling a facility is often not in the cards. Wind and solar can help offset the loss of climate control by providing needed power to run HVAC systems if schools are in areas to take advantage of the fuel these require, wind and sunlight.

Thanks to new motor technologies (ECM motors) and thermal energy storage (TES) technologies, engineers are finding ways to utilize incentives to address HVAC costs with a much more rapid return on investment (ROI). One example in Flagler County, Florida, is the Flagler-Palm Coast HS CEP renovation project which will have a new 1050-ton air-cooled, 36 Calmac ice storage tank central energy plant added to provide chilled water to a multi-building campus totaling 308,300 SF. The solution will provide a 4.3-year ROI, 12,964 metric tons per year of CO²e reduction, a 5,487,065 gallon annual water reduction and an Inflation Reduction Act (IRA) 48 Investment Tax Credit between $200,000 -$400,000. Lighting technologies are helping reduce energy usage for schools as well. LED lighting systems that are controlled and provide automated on/off mechanisms reduce electrical use while also cutting down on heat production, a byproduct of traditional incandescent bulbs.

Many in the education sector talk about net zero. However, it is a long way off for most. Incentives can help drive investment and states providing these continue to be ahead of the curve. Building technologies have advanced and they will continue to do so. Creative solutions can help speed the path to net zero and forward-thinking engineers and architects are leading the charge to offer solutions that make good sense now and sound returns in the future. While it is the right thing to do for the future of our schools, our children, and their children, investment must make sound economic sense for schools to be willing to rebuild or retrofit facilities.

Ryan Strandquest LEED AP is the President of Matern Professional Engineering.

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