Bill > HB1724

This bill establishes a new legal framework for Sustainable Capital Improvement Project Contracts in Pennsylvania, allowing governmental units to enter into comprehensive agreements with qualified providers for designing, constructing, financing, and maintaining infrastructure projects focused on energy efficiency, sustainability, and resilience. The legislation defines key terms like "qualified provider" (a capable business that can evaluate, design, and implement efficiency projects) and "sustainable capital improvement project" (infrastructure projects addressing energy, water, environmental, and sustainability needs). Governmental units can use competitive sealed proposals to select providers, with provisions requiring public notice, performance bonds, and prevailing wage compliance. The contracts can extend up to 35 years and include provisions for performance-based payments, with key performance indicators determining compensation. Importantly, the bill allows governmental units to use various funding sources, including operating and capital expenditure funds, and ensures that state grants will not be reduced due to these contracts. The contracts must include termination clauses allowing governmental units to end the agreement if sufficient annual appropriations are not available, providing financial flexibility. The bill aims to facilitate innovative, long-term infrastructure improvements by creating a standardized, transparent process for public-private partnerships focused on sustainable development.

Budget and Finance

https://www.legis.state.pa.us/cfdocs/billinfo/bill_history.cfm?syear=2025&sind=0&body=H&type=B&bn=1724