SOMERSET, KY – Pulaski County Schools celebrated the receipt of $3,084,013 in state and federal funding as a result of the district’s installation of high-performance geothermal systems at four of the district’s elementary schools. This funding is a strategic combination of $1,838,267 in federal clean energy tax credits and $1,245,746 in Kentucky historic preservation incentives, providing a cost-effective approach for modernizing the district’s infrastructure. As one of the first districts in Kentucky—and nationwide—to receive Elective Pay funding, Pulaski County Schools is leading the way in leveraging clean energy tax credits to support energy efficiency and healthier learning environments.
“The funding achievements that [we received] as part of this project with the historic tax credits and the clean energy tax credits...are going to greatly impact our general fund budget moving forward,” said Patrick Richardson, Superintendent of Pulaski County Schools. “We’re going to be able to put these energy savings back into the district. This project has exceeded our expectations with the multi-faceted ways it’s going to [provide a return on our investment].”
The elementary schools benefiting from these upgrades—Eubank, Nancy, Shopville, and Oak Hill—are now equipped with advanced geothermal systems paired with decoupled outside air systems. These systems improve indoor air quality by delivering fresh, filtered, and pre-conditioned air directly to individual spaces while operating separately from the geothermal units. The result is a significant boost in energy efficiency and healthier, more comfortable learning environments for students and staff alike.
“We're always seeking safe, secure classrooms and breathable air. [This project] gives us security knowing that we have units in our classrooms that are going to provide safe, conditioned air for our students, [creating] a classroom environment that will induce learning. It’s been a positive for the school culture,” said Richardson.
Federal tax credits for clean energy technologies, such as geothermal heat pumps and thermal storage, enable schools to recover costs through Elective Pay incentives. This mechanism converts tax credits into cash reimbursements, creating financial flexibility for school districts. The long-term savings delivered through these energy efficiency upgrades can be redirected towards enhancing student learning opportunities, classroom technology, or supporting budgets for staffing, further enhancing the quality of education.
This work was completed as part of a guaranteed energy savings performance contract with CMTA, a Legence company, based in Louisville, KY. The project aims to reduce energy consumption, modernize infrastructure, and generate substantial utility cost savings for the district — all while improving the learning environment. Encompassing 10 district facilities that span 1,093,749 square feet, the contract included the following upgrades:
- Full HVAC renovations at four facilities and selective HVAC unit upgrades at Southwestern High
- Upgrading Direct Digital Control (DDC) systems
- Retro-commissioning to improve system operation and efficiency
- Installing water-efficient plumbing fixtures at various facilities
- Replacing or retrofitting LED lighting across the district
The geothermal HVAC renovations completed at the four elementary schools reduced the facilities’ energy consumption by 36%. Through the first year and a half following construction, the district has saved over $500,000 in energy and maintenance costs as a result of the system upgrades. Additionally, the district received over $85,000 in rebates from Kentucky Utilities for lighting and HVAC improvements. Pulaski County Schools’ total cost savings and incentives for this project have surpassed $3,700,000 to date – which has repaid the district’s initial investment by 20% in the first year and a half post-construction alone. The energy improvements will continue to save the district utility and maintenance costs through the twenty-year guarantee from CMTA.