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Alternative Energy, Carbon Sequestration Network Bill Amended, Referred Back To Committee
House Bill 80 (Vitali-D-Delaware), expanding the Alternative Energy Portfolio Standards and authorizing a carbon sequestration network, was amended significantly by the House Appropriations Committee this week, but during consideration of amendments on the House floor, the bill was referred back to the House Environmental Resources and Energy Committee for further work.

The amendment to the bill created a new Tier III in the Portfolio Standards which added incremental nuclear energy to the list of alternative energy sources that electric utilities would have to provide, in addition to wind, solar, geothermal and other Tier I sources.

Incremental nuclear energy could only come from the expansion of existing nuclear power plants and can not make up more than 50 percent of the credits authorized in the new Tier III.

Incremental nuclear energy could come from anywhere in the PJM Interconnection area, not just from within Pennsylvania.

The overall percentage of alternative energy sources utilities would have to provide by 2024 was expanded significantly from 18 percent to as much as 38 percent of the energy they provide to customers.

The changes also move forward by two years the requirement to provide 3 percent of electricity from solar sources by 2024 rather than 2026, and adds solar thermal energy sources to eligible sources.

On the carbon sequestration side, the changes would authorize the Department of Conservation and Natural Resources to lease State Forest land for carbon dioxide pipelines with the proceeds going into the Environmental Stewardship Fund (Growing Greener Program).

After considering several amendments on the House floor and facing more than 25 other amendments, Rep. Vitali made a motion, adopted overwhelmingly, to have the bill referred back to the House Environmental Resources and Energy Committee for further work.

On amendment considered on the floor was offered by Rep. Steven J. Santarsiero (D-Bucks) and supported by several environmental advocacy groups, including PennEnvironment, Sierra Club Pennsylvania Chapter, Pennsylvania Clean Water Action and Clean Air Council.

The change removed incentives for coal plants that do not store carbon pollution.

"House Bill 80 advances carbon capture and sequestration technologies, but does so in a way that could incentivize the construction of new coal-fired power plants that never end up sequestering their pollution -- a huge threat to our efforts to combat global warming," said Nathan Willcox, energy and clean air advocate for PennEnvironment.

"Rep. Santarsiero is addressing this issue in a way that helps the economy as well as the environment. PennEnvironment applauds the representative for his critical efforts on this legislation," Willcox said.

"Sequestering carbon pollution from coal power plants is a good goal, but we were amazed that legislation was being considered that would result in new coal plants being built, but without requiring sequestration," said Myron Arnowitt, Pennsylvania state director for Clean Water Action. "Representative Santarsiero should be applauded for his efforts to get those requirements into House Bill 80. His leadership has been essential to ensuring that we move to a clean energy economy."

Under the amendment coal plants that do not use CCS would not receive alternative energy tax credits in excess of the cost of the carbon dioxide capture equipment installed at the plants.

"With the language I authored, coal-fired energy plants would not be eligible for certain incentives unless they store the carbon dioxide they generate," Rep. Santarsiero said.

The bill is being opposed by many of the state's electric utilities, environmental groups, the PA Chamber of Business and Industry, the AFL-CIO, the United Mine Workers, the PA Coal Association and others.

The bill is supported by the Rendell Administration. Exelon is supporting the legislation as it was amended by the House Appropriations Committee.

The House Environmental Resources and Enercy Committee has a meeting scheduled for July 8, and although no agenda has been announced, it is a strong possibility the bill will be put on the agenda.

7/3/2009

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