Abilene Christian University Enters EaaS Partnership

2 minute read | November.11.2024

Abilene Christian University has entered into a long-term energy-as-a-service (EaaS) partnership with Bernhard, a leader in energy infrastructure, to enhance the university’s energy efficiency and sustainability.

Orrick advised ACU as bond and special tax counsel.

THE PARTIES

Abilene Christian University serves a diverse student population of about 6,700 with world-class teaching in a Christ-centered community.

Founded in 1906, this national research university offers online and residential undergraduate and graduate programs. Students choose from 87 baccalaureate majors that include more than 171 areas of study, as well as 71 areas of study in master’s degree and specialist programs and four doctoral programs.

ACU’s mission is to educate students for Christian service and leadership throughout the world.

Bernhard is an energy infrastructure firm headquartered in New Orleans, Louisiana. Founded in 1919, Bernhard’s core services span the U.S. and include engineering, fabrication, construction, asset management and energy-as-a-service for customers in health care, higher education, hospitality, industrial and other market segments. Bernhard has 24 U.S. offices and more than 2,200 full-time employees.

THE IMPACT

The partnership allows ACU to better focus on its core mission of student success and academic excellence, the university said.

Over the past several years, ACU has made significant investments in its central plant, with $15 million recently allocated for upgrades. The partnership will free up significant capital resources to accelerate change and tap into Bernhard’s expertise in optimizing energy systems. This agreement ensures the university can complete necessary projects faster and more efficiently, enhancing student comfort and reallocating resources toward academic initiatives.

“Our partnership with Bernhard represents a significant step forward in our commitment to sustainability and operational excellence,” said Dr. Phil Schubert, ACU president.

A key component of the project is the installation of an 18 MWac solar array, designed to offset existing utility costs and provide long-term cost certainty.

Also, critical upgrades to the campus’s central cooling and heating systems will improve resilience to support ACU’s growth. The project also includes operational improvements, such as upgrades to HVAC, building automation and lighting systems, which will enhance energy efficiency and significantly reduce operational costs.

THE TEAM

Charles Cardall led the Orrick team that advised Abilene. The team also included Jerry Kyle. Larry Sobel, Amanda Stephens, Cathleen Chang and Jessica Doherty.

LEARN MORE

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Charles C. Cardall Partner, Tax

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Charles C. Cardall Partner

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He also has legal experience relating to both charter schools and the federal income tax classification of governmental and quasi-governmental entities. He has consulted on thousands of tax-exempt, build America and tax credit bond issues and has developed deep knowledge in almost every tax aspect of municipal finance. Private activity bonds for multifamily housing, solid waste, charter schools and independent schools are areas of particular focus in his practice, as are higher education, short-term and long-term working capital and the various forms of pooled financings. Chas also has advised numerous clients experiencing financial distress or bankruptcy in tax matters relating to their municipal bonds. Representative active clients include the State of California, the University of California, the Bay Area Toll Authority, and Charter School Capital.

As a legal and policy advocate, Chas represents both government and non-government clients in federal tax rulemaking matters and in IRS proceedings, including the various types of tax-exempt bond audits, voluntary compliance (VCAP) requests and requests for private letter rulings. He has successfully closed IRS examinations relating to solid waste, water and wastewater, working capital, healthcare, pooled, multifamily housing, and industrial development bond financings. He has obtained multiple private letter rulings and technical advice memoranda and has been integrally involved in numerous regulation and legislative projects. He has found that a close working relationship with IRS and Treasury Department personnel often is critical to obtaining good results for clients.

Jerry V. Kyle, Jr. Partner, Legislative/Regulatory Participation, Public Finance

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Jerry V. Kyle, Jr. Partner

Austin

Jerry has been active in traditional bond financings for governmental entities such as school districts, cities, counties and special-purpose districts, advising them on general obligation, ad valorem tax-secured financings and special or limited obligation financings, such as utility system revenue-secured financings, conduit financings, financings for state agencies and financings for entities authorized to act on behalf of the State of Texas and its political subdivisions, including tax and revenue anticipation and general obligation and special-purpose facility revenue financings.

Larry Sobel Partner, Tax

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Larry Sobel Partner

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As both bond counsel and underwriter’s counsel, he has been responsible for structuring and analyzing the tax aspects of many tax-exempt financings throughout the country.

Larry has extensive experience in handling IRS audits of bond transactions. He has represented issuers in dozens of audits all of which have ended favorably either with the IRS issuing a “no change” letter or by negotiating a reasonable settlement when needed. Larry also has handled a number of submissions under the IRS’ Voluntary Closing Agreement Program (or VCAP). The two most recent VCAP submissions represented cases of first impression for the IRS; one involving an issue of qualified energy conservation bonds relating to determining the amount of those bonds eligible for the federal subsidy; the other involved the plan to convert a “new money” bond issue into an advance refunding (which did not meet all of the requirements for a tax-exempt advance refunding). Both cases ultimately were resolved on the original terms proposed to the IRS.

Larry has also been instrumental in developing new financing techniques and structures. He first devised the tax structure and analysis for, and has served as tax counsel on, Orrick’s tax exempt tobacco revenue securitizations. He has developed the tax structure on numerous tax-exempt prepayments for natural gas for municipal utilities both within and outside of California.

Amanda Stephens Partner, Public Finance, Banking & Finance

Houston

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Finance Sector
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Banking & Finance
Nonprofit Corporation Financing
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School Finance

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Amanda Stephens Partner

Houston

Amanda has advised on more than $4 billion of both publicly-offered and privately-placed charter school financings. Her work on these financings extends across the country, including Texas, Florida, Tennessee, California, Arizona and New York, among many others. Amanda works with a first-of-its-kind nonprofit social impact fund that leverages private charter loans to the public market. Since their creation in 2018, Amanda has worked on documenting more than $1 billion in loans to high-performing charter schools who do not otherwise have access to long term, low cost financing. Amanda and team are tasked with working with the local borrower’s counsel for each new borrower and each new state to create a financing structure that meets the long term needs of the borrower, while conforming with state charter law and the clients lending requirements. Amanda has also created structures to help with taxable refundings, to finance around existing new market tax credit structures and many other needs of the borrowers.

Amanda also represents banks and other financial institutions in connection with direct purchases of tax-exempt bonds and the issuance of letters of credit and other liquidity facilities in connection with tax-exempt transactions.

Over the course of her career, Amanda has prepared, negotiated and reviewed contracts, loan documents, amendments, closing documents, default letters, demand letters, payoff and buyout agreements, intercreditor subordination agreements, and federal tax lien subordinations. She also has reviewed client contracts and MSA agreements in the oil and gas, construction, medical, retail and transportation industries, and she has addressed regulatory and compliance issues for the finance industry and oil and gas industry. Amanda previously served as an in-house attorney for a national financial services company. She also has served as a staff attorney for Judge Jaclanel McFarland of the 133rd Civil District Court in Harris County, Texas, and as assistant district attorney for the Harris County District Attorney’s office.