Changes May Be Needed To Energy Act Passed Last Year To Accept Stimulus Funds

The House Intergovernmental Affairs Committee held a hearing this week on federal stimulus funds coming to Pennsylvania and state legislation needed to accept the funds. Highlighted in the discussion was the possible need to amend House Bill 2200 (George-D-Clearfield) passed last year to require utilities to reduce electric demand by 10 percent.

 

Also highlight was a guide to the stimulus law published by the Council of State Governments.

The issue revolves around decoupling electric distribution company revenues solely from sales of electricity. Many believe the current system that makes electric companies dependent on electric sales acts as a disincentive to energy conservation.

 

The American Recovery and Reinvestment Act requires Governors to certify their states are taking steps to adopt incentives to promote decoupling before states are allowed to spend energy conservation funding authorized in the recovery program (Section 410 of the federal Act). Pennsylvania is slated to receive about $130 million to promote energy conservation and alternative fuels.

 

States must also certify they have the authority to adopt building codes for residential and commercial buildings that meet or exceed the most recently published International Energy Conservation Code or equivalent, a commercial building code that meets or exceeds the ANSI/ASHREA/IESA Standard 90.1-2007 and a plan for achieving compliance with those codes within eight years, as specified in Section 410 of the Act.

 

Rep. Chris Ross (R-Chester), Minority Chair of the Committee, said he was working with the Public Utility Commission, Sonny Popowsky, Consumer Advocate at the PUC, and Acting DEP Secretary John Hanger to review House Bill 2200 to determine if changes must be made before the Governor can make that certification and spend the new energy conservation funding.

 

Rep. Ross said he believes changes do need to be made to the law.

 

 

Presenters highlighted the resources available through the Council of State Government's State Recovery website, including a list of grants available to states under the Act.

 

Rep. CurtisThomas (D-Philadelphia) serves as Majority Chair of the Committee.