Authorizing City Council's Committee on the Environment to hold public hearings on Pennsylvania's Guaranteed Energy Savings Program, its potential to finance energy-saving capital program projects, Philadelphia's current participation in the program and what additional opportunities may exist for both the City and the School District.

WHEREAS,

Guaranteed Energy Savings Agreements (GESAs) are offered by Energy Service Companies (ESCOs) as a financing option to fund large-scale, energy-saving capital improvements. The guaranteed energy cost savings pay for the project’s costs over the life of the contract. No additional funding is needed and therefore monetary resources can be utilized for other needs; and,

WHEREAS,

In 1998, Pennsylvania’s General Assembly provided legislative authority to executive agencies, school districts, universities, local government agencies and school districts the ability to use GESAs to implement large capital-investment energy projects for a contract term of 10 years. In 2004, the Assembly amended the law to extend the contract term to 15 years as well as to allow non-energy improvements to be included in the project if there is an economic benefit to their inclusion and if those improvements do not exceed more than 15% of the total project; and,

WHEREAS,

Eligible capital improvements could include windows, heating and cooling systems, electrical systems, hot water heaters and other projects that will save substantial amounts of energy; and,

WHEREAS,

Philadelphia currently manages a 10-year capital program of approximately $2.65 billion and the School District manages a 10-year program of approximately $2 billion. However, despite these plans as well as current and planned expenditures, city-owned facilities including office buildings, maintenance facilities, recreation centers, fire houses and police stations still face several capital needs related to health, safety and comfort for both employees and the general public; and,

WHEREAS,

Despite these needs and rising energy costs, Philadelphia has never participated in the Pennsylvania’s Guaranteed Energy Savings Program; now therefore be it

RESOLVED, BY THE COUNCIL OF THE CITY OF PHILADELPHIA,

Authorizes City Council’s Committee on the Environment to hold public hearings on Pennsylvania’s Guaranteed Energy Savings Program, its potential to finance energy-saving capital program projects, Philadelphia’s current participation in the program and what additional opportunities may exist for both the City and the School District.

End