In his formal address to the General Assembly opening the Special Session on Energy this week Gov. Rendell linked the 189 Pennsylvanians who have died in Iraq and Afghanistan to the need to make our nation energy independent.

“We owe it to the people of Pennsylvania to work together to build an energy policy that works for our citizens and puts more of our citizens to work … a policy that allows us to reduce our dependence on foreign oil and makes our nation safe … and most of all, an energy policy that helps us create a better world for our children by ensuring a supply of energy for generations to come that is clean, reliable and home grown,” said Gov. Rendell.

“With our 189 fallen citizens in mind, we begin our work together in this Special Session to address what Pennsylvania can do to help make our nation safer, and not only safer, but more prosperous,” said Gov. Rendell.

The Governor again laid out the elements of the Energy Independence Strategy he unveiled in February and asked legislators to focus on two specific issues this session: the PennSecurity Fuels Initiative to boost homegrown, renewable fuels; and the $850 million Energy Independence Fund to invest in new technologies, businesses and products that either reduce energy use or produce clean, renewable energy.

“As you consider the specific elements of my Energy Independence Strategy, I hope you will keep in mind these key realities: the opportunity we have to gain economically by becoming an energy leader; the cost we will bear if we don’t diversify our energy supplies; and the escalating price our nation and our fellow citizens are paying for an energy policy that leaves us in the grip of forces beyond our control,” Gov. Rendell said.

“My goal is to ensure that to the greatest degree possible, energy consumed in Pennsylvania is produced in Pennsylvania, by Pennsylvanians,” the Governor said.

“A sound energy policy must include efforts to expand and diversify our energy supply, while encouraging common-sense steps that can reduce demand and increase efficiency, both in our homes and businesses,” said Sen. Mary Jo White, chairman of the Senate Environmental Resources and Energy Committee. “We look forward to working with Gov. Rendell and our colleagues in the General Assembly to adopt a sensible and responsible energy policy for Pennsylvanians.”

Senators Mary Jo White (R-Venango) and Robert Tomlinson (R-Bucks announced their intent to introduce the “Alternative Energy Investment Act.”

Under the legislation, $60 million annually would be allocated out of existing revenues to provide grants and loans to projects geared at improving energy supply and efficiency, improved conservation and reduced demand for energy.

House Republicans announced their tax-free Energy PA Plan plan last week that 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.

The Senate just completed two days of testimony on the Governor’s PennFuels initiative (See separate story this Digest) and the House Environmental Resources and Energy Committee is set to consider Special Session House Bill 2 (Gerger-D-Montgomery) that includes the PennFuels initiative next week. The House already adopted the initiative in the form of House Bill 1202 (Gerber-D-Montgomery) earlier in the year.

Gov. Rendell’s Energy Independence Initiative is included in: Senate Bill 716 (Musto-D-Luzerne) making changes to Title 66 to include the system benefit charge to fund the proposed $850 million bond issue and making other changes to help deal with electric rate caps ending, Senate Bill 661 (Wozniak-D-Cambria) giving additional responsibilities to the PA Energy Development Authority and Senate Bill 789 (Dinniman-D-Chester) establishing the PennFuels Program to require renewable content in transportation fuels.

And in the House, House Bill 1200 (DePasquale-D-York) making changes to the responsibilities of the PA Energy Development Authority and House Bill 1202 (Gerger-D-Montgomery) establishing the PennFuels Program to require renewable content in transportation fuels were given final approval and sent to the Senate, but House Bill 1201 (George-D-Clearfield) making changes to Title 66 to include the system benefit charge to fund the proposed $850 million bond issue and making other changes to help deal with electric rate caps ending has not see a full vote by the House and was referred back to the Rules Committee this week.

Although not related to the Governor’s primary Energy Indpendence Initiative, but connected by rehetoric at times, House Bill 1588 (Evans-D-Philadelphia), authorizing an oil company gross profits tax supported by Gov. Rendell, was recommitted to the House Rules Committee after spending weeks on the House Calendar.

One part of the Governor’s package, House Bill 1203 (Hornaman-D-Erie) amending the Alternative Energy Portfolio Standards Act to provide for some longer term electricity contracts and increasing the share of photovoltalic renewable energy required, was signed into law as Act 35 in July. Sen. Musto (D-Luzerne) sponsored this legislation in the Senate as Senate Bill 715.

NewsClips: Rendell Submits Energy Program to Legislature

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Rendell Calls Energy Independence Key to Jobs, Security

Rendell Links Energy Plan with Defense

Energy Savings Plan May Spare Cash

Editorial: Well-Spent Energy, Rendell Talks Up Progressive Plan

Editorial: Compromise Will Be Necessary on Energy

Editorial: Fast Eddie’s Farce

Op-Ed: Build on Strengths for an Energy Policy, Barr

John Baer: Guv’s Big Speech Suffers an Energy Crisis

Ethanol Demand Raises Corn Prices for Farmers

Biodiesel Fuel Incentives Essential

$15 Million Biodiesel Facility Opens in Beaver County

State Subsidy Would Help Biofuel Compete, Makers Say

Biofuel Options Increase for Home Heating

9/28/2007