Pennsylvania Chapter

At a Glance

Pennsylvania Guaranteed Energy Savings Performance Contracting

Category Details  

State Program Website

 

 

Applicable Sectors

One state statute covers GESPC in all four sectors (state, municipalities, universities, k-12).

 

Enabling Legislation

Guaranteed Energy Savings Performance Contracting.

 

Statue requires a savings guarantee

The amount of guaranteed actual savings must meet or exceed the total annual contract payments made by the contracting agency for the guaranteed performance contract.​  The guarantee can be satisfied by stipulation.

Yes

Contract Term

Contracts up to 20 years in length.

 

 

Scope of Work enabled by legislation

All measures that pay for themselves in energy savings alone, including water savings, renewables, and operational savings, future cost avoidance. The state allows the use of capital funds to be added to a project as a buydown.

 

Excess Savings Retained by End-user

 

Yes

Executive Order (link)

 

No

State Program Administrator

The state program administrator has other program responsibilities and is supported by a third-party skilled in GESPC support.

Yes

State program provides support to local units of government

Support for local governments may be considered in the future.

No

Reporting Requirements for projects

The governor receives a report of all GESPC completed and ongoing status of projects by agencies.  The State also receives M&V reports on projects in state facilities.  The state uses eProject Builder.

No

ESC Chapter

 

Yes
 

Standardized instruments for use with GESPC

Set of standardized instruments have been pre-approved by the appropriate state authorities and are posted publicly. The instruments are posted on a publicly available website (Click here).

Yes

Pre-qualified providers list

 

Yes

Building energy utilization benchmarking

 

No

Recognition/Awards for Outstanding Projects

 

No

About the Chapter

Updated: September 28, 2017

Leadership

GESPC has enjoyed strong bipartisan support in Pennsylvania. The state's Guaranteed Energy Savings Act (Title 62, Sub-Chapter E, Section 3751 through 3758), conforms with the state's procurement rules and allows for GESPC in state agencies and municipalities, universities, schools and hospitals.

Pennsylvania has one state statute that covers GESPC in all public sectors. The statute allows for contracts up to 20 years in length and for all measures that pay for themselves in energy savings alone, including water savings, renewables, operational savings, future cost avoidance, and for the use of capital funds to be added as a buydown.

Pennsylvania also allows the end-user to retain excess savings in their department budget and provides a requirement for an annual savings guarantee that meets or exceeds the total annual contract payment. The savings guarantee can also be met by stipulation if agreed to in advance.

Program

Pennsylvania’s GESPC Program Administrator has many other responsibilities in addition to oversight and administration of the state’s guaranteed energy performance contracting program; however, the state program is supported by an outside third-party skilled in GESPC project management.

Pennsylvania uses a set of standardized instruments for GESPC projects in state facilities. The standardized instruments were approved by the appropriate legal, finance and procurement authorities in the state. These instruments are posted on a publicly available website.

To date, more than $450 million in energy savings projects have been implemented in Pennsylvania as a result of a GESPC. State highlights include:

  • Under Pennsylvania's Guaranteed Energy Savings Act, or GESA, all Pennsylvania government entities are able to enter into Guaranteed Energy Savings Contracts with a prequalified list of Energy Service Companies, or ESCOs. All projects under the GESA process must also have a return on investment period of less than 20 years, reduce real energy consumption and must be fully funded by the savings generated under the contract.
  • 2016: Chester County completed construction on a GESPC involving the installation of $5.9 million in energy and water conservation measures that is expected to provide $6.7 million in energy and water cost savings over a 15-year period. The conservation measures will save the County an estimated 2.2 million kilowatt-hours in electricity and more than 18 million gallons of water every year.
  • 2014: Montgomery County entered into a $2.4 million GESPC for water and energy conservation measures at the Montgomery County Courthouse. The conservation measures are guaranteed to provide approximately $4.2 million in cost savings through the county's 20-year energy performance contract. Montgomery County is expected to see a complete return on its investment in less than 12 years.

Chapter

The Pennsylvania ESC Chapter, which started in fall of 2010, was at one time one of the more active state chapters. After a change in the state’s program, the chapter became inactive for a few years but has recently started organizing again. In years past the Chapter held membership meetings every quarter and also had its own newsletter. Meetings rotated between the state’s three largest cities, Philadelphia, Pittsburgh and Harrisburg. The Chapter focused on outreach and education and on getting the entire supply-chain involved. From 2010 to 2013, the Chapter held three annual GESPC workshops with attendance in excess of 150 people.