People who conserve energy should not be punished with higher taxes; they should be rewarded with tax credits and other incentives. That’s one of the underlying premises behind the tax-free energy plan unveiled this week by the House Republican Energy Task Force.

The plan, known as “Energy for PA,” would lower energy costs for consumers, create good-paying jobs and protect Pennsylvania’s environment.

In his annual budget address in February, Rendell proposed a new tax on consumer electric bills to pay for nearly $1 billion in new debt. The governor proposed spending the money on a series of new government programs, including more than $600 million in new corporate welfare.

“We agree on the destination, but we’ve found a better road to get us there,” said Rep. Stan Saylor (R-York), chairman of the House Republican Energy Task Force.

“Government should not be in the business of punishing people who do right,” Saylor said. “The governor’s proposal would punish all Pennsylvanians – the moms and dads, grandmothers and grandfathers who are already trying to lower their energy bills by conserving energy – with a new tax on their electric bill.”

Energy for PA includes a series of tax credits aimed at encouraging private investment in Pennsylvania’s energy and conservation sectors. The plan also includes investments to develop the next generation of energy technology. Instead of a new tax, Energy for PA relies on existing state revenues.

"Our plan is designed to provide an energy strategy that encourages the free market to design solutions and opportunities to meet our state's energy challenges that lives within our means and does not rely on any new borrowing or new taxes,” said Rep. Mike Turzai (R-Allegheny), chairman of the House Republican Policy Committee, which oversees the House Republican Energy Task Force.

Reacting to the Republican plan, Rep. Bud George (D-Clearfield), chair of the House Environmental Resources and Energy Committee, said, “The Energy for Pa." plan is 90 percent partisan pablum and 10 percent repackaging of strategies already employed or proposed. It is not a serious attempt to help Pennsylvanians and suggests the Energy Task Force suffers from its own energy crisis.

"Tax credits deserve a modest role in energy policies and health-care coverage but they are of limited value to most Pennsylvanians and should not be touted as panaceas to problems that deserve serious attention and resources," Rep. George said. "We can't 'tax-credit' ourselves to energy independence and we shouldn't be trying to delude people that we can."

Conservation and Increased Homegrown Production

“Just as a dollar saved is a dollar earned, the same can be said of energy,” Saylor said. “Every ounce of energy we conserve helps to drive down the cost for ratepayers across the Commonwealth.”

“People who conserve energy should not be punished with higher taxes; they should be rewarded with tax credits and other incentives,” Saylor said. “Under the governor’s proposal, the 75-year-old widow who turns down the air conditioning in the summer and the heating in the winter would be punished with a new tax on her electricity bill. The family that already has an energy-efficient refrigerator would see their tax dollars go toward a rebate for another family. Unlike the governor, most working Pennsylvanians don’t have maids and other staff who can wash their clothes for them at 3 a.m. The governor’s plan is unfair and would fail because it punishes people who are already taking steps to conserve energy.”

That is why Energy for PA includes a series of tax credits, tax exemptions and other incentives in a comprehensive program called “Conserve More, Save More” to empower Pennsylvanians to conserve more energy and save more money. The Conserve More, Save More plan includes:

· A proposal to exempt energy-efficient appliances from the state sales tax;

· A sales tax exemption for home energy-efficiency measures, such as solar paneling, doors and insulation;

· A state income tax deduction of up to $1,500 for energy-efficient upgrades to the taxpayer’s primary residence;

· Tax credits for the construction of high-performance, “green” buildings;

· Additional funding for the state’s existing weatherization program to help families make their homes more energy efficient;

· Employer tax credits for companies that invest in local energy conservation education programs or contribute to energy conservation improvements in homes, community buildings or non-profit organizations;

· Grants of up to $5,000 to help residents pay for the construction of energy-efficient homes;

· A program designed to create incentives for utility companies to promote energy conservation and reduce load demand;

· Investment in an energy efficiency and pollution reduction information campaign; and

· Authorization for the Public Utility Commission to implement energy conservation education programs statewide.

“Our plan will empower Pennsylvanians to conserve more energy and reward them by saving them money on their utility and their tax bills,” said Rep. Scott Hutchinson (R-Venango), Republican chairman of the House Environmental Resources and Energy Committee and a member of the House Republican Energy Task Force.

In addition to these measures, House Republicans are committed to lead by example by making state and local government more energy efficient.

“Telling others to conserve energy while you’re burning it left and right is pure hypocrisy,” Rep. Saylor said. “House Republicans will lead by example by making government more energy efficient.”

To accomplish this, Energy for PA includes a plan called “Leading by Example” to reduce energy consumption throughout government. Leading by Example includes a measure to reduce state government energy use by 10 percent by 2010. It also calls for more hybrid vehicles in the state fleet.

The plan also would ensure that all buildings that receive 50 percent of their funding from the state are built to energy-efficient, “green” standards. Finally, Leading by Example will offer grants to support the installation of energy-efficiency measures in local government buildings, including schools.

Energy for PA also includes a plan to increase Pennsylvania’s homegrown energy supply in an effort to create good-paying jobs and reduce dependence on foreign energy sources. Known as “Self-Reliant PA,” this program would move Pennsylvania toward energy independence.

Self-Reliant PA would increase homegrown energy production through:

· Tax credits for Pennsylvania companies engaged in producing alternative fuels, alternative-fueled vehicles or alternative energy power systems;

· Tax credits to promote the use of clean-coal technology in Pennsylvania;

· A proposal to exempt various energy-efficiency measures, including solar panel installation and geothermal systems, from the state sales tax;

· A measure to promote the planting of energy crops used in the generation of bio-based vehicle fuels on mine reclamation lands;

· Grants of up to $5,000 to help residents pay for the construction of homes with alternative energy gathering systems, including solar panels;

· A plan to encourage energy exploration and harvesting on state lands using the latest environmentally friendly technology; and

· Tripling funding for the existing Small Business Advantage Grant program from $1 million to $3 million.

“We want Pennsylvania to be more self reliant and less dependent on foreign sources of energy,” Rep. Saylor said. “Our plan provides incentives to move our Commonwealth toward true energy independence.”

The final component of Energy for PA that is designed to create jobs is a plan known as “Enhanced Oversight.” This plan would streamline the Department of Environmental Protection permitting process for energy projects, creating new jobs while protecting the Commonwealth’s environment.

“The old and tired debate between more regulation and less regulation has no place in a 21st century debate about meeting our energy needs,” Rep. Saylor said. “What we need is not more or less, but better, more streamlined regulation to expedite projects without endangering our environment.”

Creating New Jobs through Increased Homegrown Production, Investment in Next Generation Technologies and Regulatory Reform

In addition to the job-creating policies included in Self-Reliant PA, House Republicans unveiled two additional programs aimed at creating more good-paying jobs across the Commonwealth. “Energy for Tomorrow” would invest in programs to help Pennsylvania lead the nation in the development of the next generation of energy technologies.

Energy for Tomorrow would include:

· Funding for energy-related research at Pennsylvania colleges and universities;

· Tax credits to promote the use of new clean coal technologies in Pennsylvania;

· Energy exploration and harvesting activities on state-owned landsl and

· A loan-forgiveness program for engineering students who remain in the Commonwealth after graduation. This would help combat the “brain drain” that has occurred as many gifted engineering students – who are vital to the energy sector – leave Pennsylvania each year to find good-paying jobs in other states.

“Our engineering students have the talent, skills and foresight to help develop the next generation of clean energy technologies,” Rep. Saylor said. “Our plan provides an incentive for these students to stay right here in Pennsylvania and help us become a leader in energy technology.”

House Republicans also have a plan to streamline the Department of Environmental Protection permitting process for energy projects to streamline project delivery while enhancing environmental regulatory compliance.

“One of the greatest barriers to new energy projects is the cumbersome and bureaucratic regulatory process,” Rep. Saylor said. “Energy projects – including the cleanest among them – are delayed by bureaucratic red tape. We need to streamline the process to make it more efficient and more effective at protecting our environment without unduly stalling projects.”

Cleaning the Environment

Every aspect of Energy for PA was developed with a concentration on cleaning and protecting Pennsylvania’s environment. From energy conservation measures to help reduce pollution to investment in the next generation of clean, “green” technologies, Energy for PA is a commonsense plan that meets the Commonwealth’s responsibility to protect the environment.

“As a conservative, I firmly support conservation,” Rep. Saylor said. “We have developed a comprehensive plan that will protect our water, land and air. The world we enjoy was given to us by God. It is our responsibility to Him to ensure that we protect it for the next generation to enjoy.”

Funding Energy for PA – No New Cost to Taxpayers

Perhaps the best part of Energy for PA is – unlike the governor’s proposal – there would be no new cost for Pennsylvania taxpayers. Many of the programs use tax credits, which are cost-free for taxpayers. To pay for grant programs and other portions of the plan that do require funding, House Republicans would use existing state revenue sources.

For more information, visit the Energy for PA webpage.

Links: Senate Republicans Introduce Alternative Energy Investment Act

Governor Proposes Energy Independence Initiative

9/22/2007