Pennsylvania Governor Rendell Hails House Approval of Energy Bill; Urges Senate to Act

Swift Concurrence in Senate Will Make Pennsylvania National Leader

HARRISBURG, Pa., March 11 /PRNewswire-USNewswire/ -- Governor Edward G. Rendell today said the House's passage of Special Session House Bill 1 moves Pennsylvania closer to energy independence at a time when rising gas and energy prices threaten economic growth.

The House-approved bill would invest $850 million to create 13,000 new jobs by leveraging $3.5 billion in new economic development in Pennsylvania's advanced energy sector.

"With double-digit rate increases for electricity service pending for millions of Pennsylvanians and gasoline prices expected to reach $4 a gallon, we need to move toward energy independence now," Governor Rendell said. "Energy is one of the most promising sectors of the economy, and investing in new technology and innovative ideas makes perfect sense because it will attract $3.5 billion in new private capital that will create thousands of good jobs."

"We have the opportunity now to keep Pennsylvania competitive with other states and nations as we vie for new business development projects that will create jobs for our people, keep our economy strong, diversify our energy supply, and protect our environment," the Governor said.

"If the Senate acts quickly and acknowledges the value of this wise investment in our future, we can ensure Pennsylvania will continue to be a major player in the alternative fuels sector.

"The Energy Independence Strategy will equip consumers with the tools and information they need to make better informed decisions about their electricity consumption, so they can avoid the full brunt of these increases. Additionally, we need to ensure utilities are providing a diverse and reliable supply of power to their consumers at the lowest possible cost."

The Energy Independence Fund created in Special Session HB 1 differs from Governor Rendell's plan in that it is funded by expected increases in gross receipts revenue instead of a small systems benefit charge on electricity use.

Of the $850 million Energy Independence Fund, $600 million would be managed by Pennsylvania Energy Development Authority (PEDA), while $250 million would be directed to the Commonwealth Finance Authority. Of the $600 million:

-- Up to 9 percent, but no more than $56 million, would be directed to the Ben Franklin Technology Partners to support early-stage clean tech development;

-- Up to 8 percent, but no more than $44 million, would create a rebate program for energy efficient appliances;

i) Of this, up to $5 million shall be directed to the Treasury Department to support the Keystone Help revolving loan program which will provide assistance to homeowners to purchase energy efficient appliances and undertake other energy efficiency measures.

-- Up to 33 percent, but no more than $200 million, for rebates and grants for solar panels, solar thermal projects and solar production incentives;

-- Up to 45 percent, but no more than $270 million, for grants and loans for alternative energy projects, alternative fuels and demand side management projects for all customer classes;

i) $25 million will be for grants for high performance energy efficient building projects.

-- Up to 5 percent, but no less than $30 million, for grants and loans for wind projects and the development of wind energy manufacturing facilities, and to provide grants to municipalities that host wind energy facilities; and

-- $25 million for pollution control.

For more information on the Energy Independence Strategy, visit www.depweb.state.pa.us, and click on the "Fueling Energy Savings" icon.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit: www.governor.state.pa.us

CONTACT: Chuck Ardo 717-783-1116

Neil Weaver (DEP) 717-787-1323

First Call Analyst:
FCMN Contact:

Source: Pennsylvania Office of the Governor

CONTACT: Chuck Ardo of the Pennsylvania Office of the Governor,
+1-717-783-1116; or Neil Weaver of the Pennsylvania Department of
Environmental Protection, +1-717-787-1323

Web Site: http://www.governor.state.pa.us/

2008-03-11 17:24:43 0310136 PRNEWSWIRE