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Pennsylvania's Guaranteed Energy Savings Act

The Pennsylvania Guaranteed Energy Savings Act (GESA) program allows public entities to funds large scale facility capital improvements that are either fully or partially funded from savings.

The early motivation behind utilizing the legislation was in driving energy savings. As the legislation has evolved, many additional benefits have emerged for public entities to use the GESA program in addition to energy savings. The GESA program has become a very effective procurement process for facility capital improvements.

Here are several additional benefits for Public entities utilizing GESA legislation:

  • One Prime Contractor = Single Point of Accountability:

With all of the complexity that comes with a large scale project, having a single point of contact and accountability can be a significant benefit.

  • Project Control:

The GESA program provides the public entity control over most aspects of a project. They are given control over the scope of work to be completed, the vendors chosen to execute the work, and the project timeline. The public entity is able to choose the best solution for them, rather than simply the lowest cost.

  • Guaranteed Cost:

Traditional Capital Improvements typically include the initial project cost, but can also be burdened with many additional costs in the form of Change Orders. GESA projects provide a guaranteed cost with no change orders, unless explicitly requested by the customer.

  • Guaranteed Savings:

Whether the savings fully or partially cover the cost of the project, the proposed savings are guaranteed. The savings target is either met, or a payment is made to the public entity to cover the balance of unmet savings.

  • Avoided Future Capital Expenditure:

There are costs incurred with every new capital project undertaken by a public entity. PA Act 163, the Latest GESA program update, allows anticipated future capital improvements to be included in a project. This provision was included so that costs otherwise incurred in future projects could be avoided, and additional project savings would be realized.

There are many benefits to Public entities utilizing GESA legislation for procurement of capital improvements. While it may not be the best solution for every facility, it is a great solution to consider for many facilities.

CM3 has been successfully completing GESA projects since 2003, and is fully equipped to help you take advantage of this beneficial Pennsylvania legislation.

Contact CM3 today to discuss whether improvements needed at your public facilities may best be handled through the PA GESA program.

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