Promoting energy efficiency is the quickest, cleanest way to stretch our existing energy resources, the House Environmental Resources and Energy Committee was told this week, but it often gets lost in the mix of promoting renewable and clean energy generation technology.

The Committee heard presentations by Dr. Alan Scaroni, Director of the Energy Institute at Penn State University regarding energy research and development, Rosemary McAvoy of the Renewable Energies Council discussing alternative fuels and Christopher Lynch, Director, Environmental Management Services of the Small Business Development Center at the Wharton School regarding energy efficiency in small businesses.

Lynch, from the Small business Development Centers, noted 74 percent of all commercial electricity consumption is by small businesses, not large industries, and that half of all power used is for commercial lighting.

“If every small business started making just basic lighting technology improvements, the accumulated savings would be staggering,” said Lynch. “What’s more, lighting retrofits are typically quick, easy, and the technologies are well-proven.”

The Environmental Management Assistance Program run by the Centers helps small businesses find energy efficiency ideas that make sense for their clients, and they do it for free.

Recently, the Center helped 39 clients save a total of over $189,000 a year (on average per client $4,800 a year) in energy costs with an average payback period of just 1.6 years.

Lynch made several recommendations: provide more funding for the Small Business Advantage Grants Program that helps finance energy and pollution prevention improvements for businesses and authorize on-bill financing by utilities so small business would not have upfront capital costs and can pay off the energy improvements with their energy savings each month.

“Imagine the economic, environmental and energy security benefits if the Commonwealth invested a greater amount in (the Small Business Advantage Grants Program) so more of Pennsylvania’s 906,000 small business could do what our clients have already done,” said Lynch.

Dr. Alan Scaroni told the Committee energy is the single most important problem facing humanity today as well as being the largest enterprise on Earth, surpassing agriculture and defense.

Penn State has formed the Energy Institute to coordinate energy related research in the University and provide a better platform from which to work with private industry, the U.S. Department of Energy and other public agencies.

“Many of the faculty members affiliated with the Energy Institute have established international reputations, some are earning national reputations, while others are early in their careers in the academy, but all of them are passionate about their discipline,” said Dr. Scaroni.

“The portfolio of energy research at Penn State is extensive and comprehensive,” said Dr. Scaroni. “Penn State is maintaining its strength in traditional topics in fuel science, such as coal, oil and natural gas, and in nuclear engineering, while creating new strength in contemporary energy areas such as hydrogen, fuel cells, biomass, biodiesel, wind, solar and energy efficiency.”

Dr. Scaroni pointed to two examples of research by Dr. Chunshan Song and Dr. Andre Boehman that made major contributions in producing and using biodiesel and hydrogen fuels.

One recommendation made by Dr. Scaroni was to provide additional state funding to match the increasing amount of federal funding available for energy research as a result of the recently adopted federal Energy Policy Act.

Rosemary McAvoy, CEO of the Alternative Fuels Renewable Energies Council, said the lack of adequate fueling infrastructure, volatile pricing of gasoline and diesel fuels and improved vehicle fuel economy all have a major impact on the commercial market for biodiesel and other cleaner burning alternative fuels.

To overcome what she called the “chicken and egg” problems associated with alternative fuels—customers will not buy cleaner fuels unless it is conveniently available and producers will not produce it unless there are customers, McAvoy suggested creating an “alternative fuel corridor” within which refueling infrastructure can be built close to vehicle fleets and other customers.

McAvoy also suggested creating a major consumer education and outreach campaign that promotes alternative fuels, vehicles and engines.

The next Committee information meeting on energy policy will be on February 14 when the Committee will hear remarks from the Energy Association of PA, Energy Coordinating Agency of Philadelphia and the Consumer Advocate to the Public Utility Commission.

Rep. Bill Adolph (R-Delaware) chairs the Committee and Rep. Bud George (D-Clearfield) serves as Democratic Chair.

The testimony for Christopher Lynch, Small Business Development Centers, Dr. Scaroni Penn State Energy Institute and Rosemary McAvoy, Alternative Fuels Renewable Energies Council is available online.

1/27/2006