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FOR IMMEDIATE RELEASE |
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State Rep.
Frank Dermody |
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Bill promoting energy conservation poised to become law
HARRISBURG, June 23 – Legislation designed to make it easier for state agencies, municipalities, school districts and public authorities to make energy conservation improvements to their facilities passed the House unanimously today and is on its way to the governor’s desk.
"This bill would allow greater use of guaranteed energy savings contracts by government entities, especially public housing authorities, by broadening what is considered a conservation measure under the law, and extending the time for which improvements can be paid," said state Rep. Frank Dermody, the bill’s sponsor.
Under a 1998 law, governmental entities may enter into a guaranteed energy-savings contract with an energy services company to make improvements to their facilities. The contract has no up-front cost and guarantees that the energy savings from the contracted project will pay for the project during the life of the agreement.
Dermody's bill (H.B. 687) would increase the maximum contract length from 15 years to 20 years, mirroring federal law to allow lengthier payback periods. The bill also expands the list of allowable energy-saving measures to include technology upgrades; water and sewer conservation measures; upgrades that improve the accuracy of billable revenue-generating systems; and automated or remotely controlled systems that reduce costs.
To keep the law current in the future, the bill adds a "catch-all" clause to include technologies yet to be developed, as long as they provide measurable, long-term reductions in operational costs or increases in billable revenues.
"Authorities that operate public housing complexes can see big benefits with guaranteed energy-savings contracts," Dermody said. "By bringing state law into line with a similar federal statute, we will allow housing authorities to better serve their clients by reducing operational costs so that they can use more of the limited federal funds they receive for other improvements and property management."
The provisions of the bill would take effect 60 days after the governor signs the measure.
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