The Senate Environmental Resources and Energy Committee amended and reported out without discussion Senate Bill 1030 (Erickson-R- Delaware) setting an Advanced Energy Portfolio Standard requiring electric suppliers in Pennsylvania to have a percentage of their power generated from renewable sources.

The amended bill requires at least 15.2 percent of electric energy sold by a distribution company or generation supplier to a retail customer to be from alternative energy sources in 15 years.

Ultimately, 12 percent of the alternative energy must come from Tier I sources—solar, wind, low-impact hydro, geothermal, biologically derived methane, coal mine methane or fuel cells in 15 years.

3.20 percent must come from Tier II sources—waste coal, energy efficiency, load management technologies, distributed generation systems or demand side management.

The amendment also creates an alternative energy tradable credits program to allow energy generators to develop alternative energy sources and sell those credits to generators or distribution companies to meet their portfolio standard.

Generators and distribution companies can also opt to comply with the portfolio standard requirement by making compliance payments equal to $60 for each alternative energy credit needed to bring them into compliance paid into the Sustainable Energy Development Fund.

In addition, rural electric cooperatives are required to establish a voluntary program of energy efficiency and demand side management to satisfy compliance with the portfolio standard.

The bill was re-referred to the Senate Appropriations Committee for consideration and pressure is being brought to bring the bill to a vote in the full Senate before adjournment. (See following story on expected House committee action.)

On Monday, the Community Foundation of the Alleghenies released a report looking at how a power shift to renewable resources with a two-tiered system would affect the price and supply of electricity. The study found that building renewable energy power plants would create 3,500 more jobs and an economic impact of $7 billion.

Also on the agenda were these bills which were reported out of Committee, many with changes—

· House Bill 148 (Solobay-D-Washington) Mine Subsidence Assistance for building owners was amended to include water supply replacement coverage;

· House Bill 2029 (Cruz-D-Philadelphia) penalties for illegal dumping in Philadelphia was amended to include a penalty of six month suspension of driving privileges;

· House Bill 2035 (McIlhinney-R-Bucks) Energy Efficiency Standards Act covering applicances was amended to give the Public Utility Commission until June 1, 2005 to adopt standards for certain products;

· House Bill 2227 (Rubley-R-Chester) Forest Lands Beautification funding was amended to include two other sources of funding—Solid Waste Abatement and Keystone Recreation, Park and Conservation Fund;

· House Bill 2289 (Yudichak-D-Luzerne) waste tire recycling was amended to clarify the lien provisions;

· Senate Bill 983 (Rafferty-R-Montgomery),amending the Solid Waste Management Act to make sure environmental violations are considered in the permit review process, was amended to authorize penalties to be paid in the form of community projects and was re-referred to Senate Appropriations;

· Senate Bill 1170 (Mowery-R-Cumberland) – providing homeowners financial assistance with repair or replacement of water and sewer laterals was reported as committed and re- referred to Senate Appropriations; and

· Senate Resolution 298 (Greenleaf-R-Montgomery) – Resolution urging Congress to adopt a national energy policy with emphasis on natural gas supply and energy conservation was reported as committed.

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Study Promotes Renewable Energy

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11/12/2004