FOR IMMEDIATE RELEASE
February 4, 2008
CONTACT: Erik Arneson
earneson@pasen.gov
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Bringing Renewable and Alternative Energy to Pennsylvania 

By Senate Majority Leader Dominic Pileggi (R-9)

Energy costs are increasing across the country, but here in Pennsylvania we are working to encourage energy conservation and develop renewable energy sources, such as solar and wind power. The General Assembly is in the midst of a Special Session on Energy, during which the Senate has approved four major bills with strong bipartisan support. 

The most significant of the four is the Alternative Energy Investment Act,  Special Session Senate Bill 1. This bill, which I co-sponsored, would invest $650 million over the next 10 years in programs to conserve energy in homes and businesses, and to develop renewable and alternative energy. 

This bill would provide funding for grants and loans to projects which would improve energy supply and efficiency, improve conservation and reduce demand for energy – and it would do it with no tax increases. By using existing revenue, we can meet Pennsylvania's energy needs in a fiscally responsible manner. 

As energy costs go up, the state needs to support energy conservation and renewable energy development as a long-term way to reduce the impact on Pennsylvania families. 

Special Session SB 1, approved by the Senate last month, would provide $100 million for residential energy conservation projects, including energy efficient windows, energy efficient doors, solar panels, geothermal pumps, insulation, air-sealing and other energy saving projects approved by the Department of Environmental Protection. The state money would be used to provide grants, loans, rebates and reimbursements of up to 25 percent of the purchase and installation price. 

Another $100 million would be allocated to the Low-Income Home Energy Assistance Program (LIHEAP), which provides assistance to those who cannot afford their heating bills. 

$70 million would be set aside to provide rebates of up to 35 percent of the purchase and installation cost of solar panels, rebates of up to $750 for purchasing a hybrid vehicle, and to assist with home-based energy efficiency projects for low-income Pennsylvanians. 

$250 million would be made available in loans and grants for political subdivisions and businesses to be used on clean energy projects, alternative energy production projects, venture capital for alternative energy, and pollution control technologies. 

This legislation would also provide $130 million in tax credits for alternative energy production projects, including facilities which use waste coal, biofuel, biomass, solar power, wind energy, geothermal technologies, clean coal technologies, or other alternative energy sources to produce renewable energy, facilities manufacturing or producing products which provide renewable energy, and facilities used for the research and development of technology to provide renewable energy sources. 

Three other Special Session bills have been approved by the Senate, including one which would increase the number of energy sources allowed to be used to meet existing alternative energy requirements in Pennsylvania. 

Two other bills passed by the Senate would increase the use of biodiesel fuel in Pennsylvania. We are focusing on biodiesel in Pennsylvania because recent federal legislation has already mandated a large increase in the production of ethanol, up to 36 billion gallons per year by 2020. Ethanol, made from crops such as corn, can be blended with gasoline to reduce U.S. consumption of foreign oil. 

Biodiesel is a biodegradable, non-toxic fuel that can be used to power any engine which runs on diesel fuel today. Made from products such as soybean oil, animal fats and waste grease, biodiesel creates less exhaust than regular diesel and helps to reduce global warming gas emissions. 

Senate Bill 36 would establish a mandate for the use of biodiesel fuel in Pennsylvania, so that when certain in-state production thresholds are met, a specific percentage of diesel sold in the commonwealth must be biodiesel. For example, when 150 million gallons of biodiesel fuel are produced here, all diesel fuel sold must include at least five percent biodiesel. 

A companion bill, Senate Bill 22, would provide a 75-cent per gallon incentive to produce biodiesel in Pennsylvania until 2010. Many of the top biodiesel producing states, such as Iowa, Indiana and Kentucky, are providing similar incentives. To help Pennsylvania biodiesel companies compete while the industry matures, these incentives are necessary. 

All four bills are now being considered in the House of Representatives. It is my hope that they are sent to the governor for his signature in the very near future. 

Senator Dominic Pileggi (R-9) is the Majority Leader in the Pennsylvania state Senate. He was first elected to the Senate in 2002. More information about state issues can be found on his web site, www.senatorpileggi.com.