OSHA filter mandate turns into cash-flow positive energy project

ONSITE Utility Services says a CNC machining manufacturer turned a $265,000 OSHA-required filter upgrade into $215,968 in net savings by bundling the mandate with condenser cleaning and power optimization. The project also avoided $375,077 in capital expense and is projected to deliver more than $1.1 million in electric savings over 10 years.

Why it matters: - The project shows how a required safety upgrade can become a cost-saving energy play when a facility looks at the whole system instead of one compliance item. - The manufacturer avoided an unplanned cash hit and shifted the work into a service model with no upfront capital or debt. - The deal also reduced the risk of OSHA penalties by covering the filter requirement and related maintenance needs.

What happened: - A CNC machining manufacturer needed a $265,000 OSHA-mandated filter upgrade for 24 large rooftop units. - ONSITE Utility Services packaged the filter work as-a-service and added energy measures to help fund the mandate through savings. - The company delivered the project through its Energy-as-a-Service platform at zero capital and zero debt to the client. - The service term runs five years and includes maintenance on the rooftop units, including filter changes and cleaning.

The details: - ONSITE and its contractor completed a full energy study of the rooftop units. - The team reviewed 12 months of utility bills. - The team also performed an ASHRAE Level II audit of the units and the facility’s electrical system. - The filter project alone carried a net cost. - ONSITE added condenser cleaning with BioCLEAN, an engineered bacteria that breaks down organic matter, mold and oil. - The cleaning restored the coils’ ability to reject heat and allowed less outside air to be pulled into the building year-round. - Testing with a Dent meter found low power factor and harmonics that were wasting electricity. - ONSITE designed a power optimization system to correct those losses. - The combined scope moved the project into positive cash flow. - ONSITE says the project produced $375,077 in avoided capital expense. - ONSITE projects $1,090,801 in electric savings over 10 years. - ONSITE projects $72,393 in maintenance savings over 10 years. - ONSITE says the client ends up with $215,968 in net savings cash flow. - ONSITE says the project avoids regulatory audits or OSHA fines. - ONSITE says customers pay a single monthly service fee that is lower than their prior combined energy and maintenance costs. - ONSITE says customers retain 100% of the ongoing savings after the service term ends. - More information is available in the company’s announcement.

Between the lines: - The pitch here is not just compliance. The message is that mandated equipment upgrades can surface broader efficiency problems in HVAC and electrical systems. - Bundling maintenance, cleaning and power-quality fixes can change a project from a cost center into a financed savings plan. - The model depends on finding enough hidden waste to offset the original mandate.

What's next: - The manufacturer will operate under the five-year service agreement with filter changes, condenser cleaning and maintenance included. - ONSITE expects the client to continue benefiting from lower operating costs during the term. - Once the service term ends, ONSITE says the customer keeps the ongoing savings.

The bottom line: - A required OSHA upgrade became a funded efficiency project because ONSITE found savings across the full facility system instead of treating the filter replacement as a standalone cost.