|
For Immediate
Release
1/22/08
Contact:
Pat Henderson
(717) 787-9684
A Sensible Plan on
Alternative Energy and Bio-Fuels
By Senator
Mary Jo White
Last July, Senate Republicans agreed to take a close look
at a variety of alternative energy and bio-fuels proposals,
including those put forth by Governor Rendell. But we
insisted that any proposals be evaluated on their own merits
– not under threat of a government shutdown.
As part of this effort, Governor Rendell convened a
special session on energy in September. Several notable
bills, which address investments in alternative energy and
increased production of biodiesel, recently passed the
Senate with strong, bi-partisan input and support.
Senate Bill 1 authorizes spending $650 million over 10
years through a combination of grants, loans and
tax-credits. Up to $250 million may be borrowed through the
Commonwealth Financing Authority – more borrowing than some
members wanted, less than others wanted. There was little
support for borrowing $850 million as proposed by the
Governor – an amount that would be funded with a tax on
consumer’s electric bills and exhausted in just three to
four years.
Under the Senate plan, residents, businesses, schools and
local governments would be eligible for funding for projects
which use alternative and renewable energy sources and
increase energy conservation and efficiency. Consumers
–homeowners, small businesses and larger commercial
enterprises – would finally have access to financial
assistance to install systems using solar, geothermal, wind,
biomass and other renewable energy. Additionally, $130
million in tax credits would be available for businesses
which incorporate renewable energy into their manufacturing
or production processes. With energy costs a major
component of any business’ bottom line, such changes can
lead to significant savings.
We also set aside seed money to assist the Ben Franklin
Technology Development partners. The partners have a proven
track record of turning today’s good ideas into tomorrow’s
realities, and there are a lot of good ideas out there that
could benefit from a little financial encouragement.
Low-income residents would also see an infusion of $100
million into home energy assistance funding, as well as a
revolving loan fund administered by the Housing Finance
Agency to expand energy efficiency and weatherization. As
the saying goes, the cheapest energy is the energy you don’t
use. We have an aging housing stock in Pennsylvania, and
many residents would benefit from new windows and doors, air
ducts, vents, insulation and other energy-efficiency
improvements.
The Senate plan does not include Governor Rendell’s
proposal to enact a new $70 million annual tax on electric
users. Instead, we use the anticipated growth in the
Commonwealth’s gross receipts tax revenue. With energy
costs expected to go up regardless of what plan ultimately
passes, it is imperative that the Commonwealth live within
its means.
There has been some criticism regarding a provision to
assist small power plants meet expensive new federal and
state pollution control upgrades. This criticism is
shortsighted. Coal provides about 60% of the electricity we
use, and will for the foreseeable future. The large
generators have already installed these controls. If the
business decision is made not to retrofit the small marginal
plants we could lose 10% of our generating capacity just as
the rate caps come off, further driving up prices.
The Senate also took a major step forward to develop our
fledgling biodiesel industry. Under Senate Bill 36, all
diesel fuel offered for sale in the Commonwealth will be
required to contain escalating amounts of biodiesel.
To protect consumers the bill requires that engine
warranty protections and adequate infrastructure be in place
before any mandates take effect. Additionally, the
mandated-content triggers are set at more modest levels than
those contained in the House-passed version – ensuring that
we do not inadvertently pass legislation which would require
us to import our biodiesel fuel.
Senate Bill 22 provides up to a 75¢ per gallon incentive
for biodiesel production. It expands the alternative fuels
incentive rebate program to other alternative-fueled
vehicles and increases outreach efforts to make car dealers
and consumers aware of the program.
Energy independence is probably a misnomer – no feasible
plan will entirely reduce our dependence on energy sources
from outside our Commonwealth – but we can do our part to
make Pennsylvania less dependent on unstable foreign sources
while providing incentives for the Commonwealth’s
agricultural community.
Working with the House of Representatives and Governor,
we can ensure that Pennsylvania is guided by a responsible
energy policy that meets the needs of our residents.
Senator Mary Jo White (R-21) is the Chairman of the
Senate Special Session Committee on Energy Policies. Learn
more about the Committee at
www.senatormjwhite.com (choose “Special Session on
Energy”).
Additional Information:
Environment and
Energy
 Print this page
E-mail
this page
Back |
