Leon Johnson Hall, located at Montana State University in Bozeman, is a classroom laboratory facility with fume hoods and constant volume air-handling units. The existing absorption chiller and steam converter (from the University’s central plant) were replaced with a modular heat pump system that can simultaneously produce both chilled and heating water. The source loop for the heat pump plant has a traditional cooling tower for heat rejection and a steam heat exchanger for supplemental heat addition, when required. However, the heat pump system has the ability to utilize heat recovered from the exhaust air and produced in process areas of the building for use in the buildings HVAC system. The exhaust systems in the building are now served by a variable volume fan system with a heat recovery coil; new air-handling systems within the building are also variable volume to meet the demands of the spaces within the building with the least amount of energy. In the future, the heat pump plant is planned to utilize a ground heat exchanger loop to provide supplemental heat and heat rejection for the heat pump source loop.