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FOR IMMEDIATE RELEASE |
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State Rep.
Frank Dermody |
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Dermody measure promoting energy conservation signed into law
HARRISBURG, July 2 – Public housing authorities, municipalities, school districts and state agencies will soon be able to realize greater financial benefits from using proven energy conservation measures, thanks to a new law sponsored by Rep. Frank Dermody.
State law already lets governmental entities enter into a guaranteed energy-savings contract with an energy services company to make improvements to their facilities that result in lower energy use. The contract has no up-front cost and it guarantees that the energy savings achieved will pay for the project during the life of the agreement.
Dermody’s measure (Act 39 of 2010) will increase the maximum contract length from 15 years to 20 years, mirroring federal law to allow lengthier payback periods. It 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.
"Guaranteed energy-savings contracts are a great tool to help public entities stretch their limited resources further. This law makes these contracts more valuable," Dermody said.
"Housing authorities and other public agencies that pay less for energy will have more money to invest in making other improvements to their facilities," he said.
The law will take effect on Aug. 31.
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