Philadelphia Energy Authority (PEA) successfully closed a $30.7 million Green Bond to finance the Quadplex + Community Health Project, marking PEA’s second bond issuance on behalf of the City of Philadelphia and a major milestone toward reducing the City’s energy costs and carbon footprint.
Upgrades across 14 City-owned facilities will pay for themselves through future energy savings, while spurring clean energy jobs and improving quality of care at neighborhood health centers and homeless service facilities. The project is anticipated to reduce municipal carbon emissions by 9,300 metric tons of carbon dioxide equivalent (CO2e), roughly equal to 8% of the City’s greenhouse gas emissions.
The Green Bond will be combined with an additional $4 million capital investment included in the City’s FY27 budget, resulting in a nearly $35 million investment in public infrastructure. Construction will begin in July to bring critical capital improvements and energy conservation measures to City Hall, the Municipal Services Building, One Parkway Building, and the Juanita Kidd Stout Center for Criminal Justice as well as 10 health and homeless service facilities.
The Quadplex + Community Health Project was developed through collaboration between PEA and the City of Philadelphia Office of Sustainability, Department of Public Health, Office of Homeless Services, and Department of Public Property.
“This project invests in the buildings Philadelphians rely on every day, and uses climate action to also improve comfort, efficiency, cost and quality,” said Emily Schapira, President and CEO of the Philadelphia Energy Authority. “These upgrades across 14 City facilities will reduce energy use and greenhouse gas emissions for City government by 8%, while creating healthier spaces where residents receive healthcare, shelter, and other critical services.”
Pennsylvania’s Guaranteed Energy Savings Act (GESA) allows the City to pay for capital upgrades using future energy savings and operational savings. GESA projects bundle planning, design, construction and performance tracking all within one contract, enabling improvements on a more expedited schedule.
“The Quadplex + Community Health Project is an example of an ongoing initiative that goes beyond helping the City reach its goal of carbon neutrality,” said Elizabeth Lankenau, Director of the Philadelphia Office of Sustainability. “It is saving energy and lowering costs while improving the quality of facilities where residents access critical services.”
The bond proceeds will finance a broad range of energy conservation measures from new heating, ventilation, and air conditioning (HVAC) systems to advanced building performance controls and other infrastructure system improvements.
“Healthier communities require integrated solutions,” said Deputy Managing Director Crystal Yates-Gale. “Upgraded heating and cooling systems improve indoor air quality, regulate temperatures more effectively, and create safer, healthier environments for both residents and staff. These are not simply operational upgrades — they directly impact health, safety, dignity, and quality of care.”
Project benefits include:
- More than $1.5 million in utility savings each year
- 300 estimated jobs, with at least 52% of work performed by local and diverse contractors
- Workforce development partnership with PEA’s Green Residential Construction Immersive Training (GRIT), placing up to 15 internships
- 9,300 metric tons of avoided carbon emissions annually
Construction is expected to be completed by late 2027. The project will be delivered through a Guaranteed Energy Savings Contract (GESC) between PEA and Johnson Controls, Inc., ensuring that energy savings support long-term value for residents while reducing municipal energy consumption and greenhouse gas emissions.
Upgrades are planned for the following buildings:
- The Quadplex (City Hall, One Parkway Building, Municipal Services Building, Juanita Kidd StoutCenter for Criminal Justice)
- Health Center #3
- Health Center #4
- Health Center #5
- Health Center #6
- Mattie L. Humphrey Health Center (Health Center #9)
- Health Center #10
- Strawberry Mansion Health Center
- Our Brother’s Place
- Stenton Family Manor
- Woodstock Family Center