The Senate Special Session Committee on Energy Policies this week reported out Special Session Senate Bill 1 (M.White-R-Venango) to invest $530 million over the next seven years in consumer energy programs, energy conservation, and the development of alternative and renewable energy.

The Alternative Energy Investment Act, introduced by Sen. Mary Jo White (R-Venango) and Sen. Robert M. Tomlinson (R-Bucks), provides funding for grants and loans to projects geared at improving energy supply and efficiency, improved conservation and reduced demand for energy – with no tax increases.

It was reported out of committee by a vote of 13-1 (Sen. Ferlo, D-Allegheny, voted no.).

"Our focus needs to be on helping energy consumers," said Sen. Tomlinson. "Energy costs are going up, and the state should support energy conservation and alternative energy development as a long-term way to reduce the impact those rates have on Pennsylvania families."

"This package is both aggressive and balanced," said Sen. White. "We're providing a fiscally responsible approach to encouraging the development of alternative and renewable energy and energy conservation."

The senators noted that much work lies ahead to reach a consensus on legislation creating a fund to promote energy conservation and alternative energy.

Special Session Senate Bill 1 would provide:

· $20 million annually for consumer/home energy efficiency programs.

· $20 million annually in tax credits for investments in alternative energy production projects; and

· $20 million annually to finance a $250 million bond for alternative and renewable energy development, clean energy and energy conservation, and pollution control technology.

For consumers, $20 million would be available for grants, rebates and reimbursements for:

· Purchasing energy-efficient heating and cooling units and appliances; and

· Residential energy conservation projects, including purchasing and installing:

· Solar or solar photovoltaic panels;

· Energy efficient windows and doors; and

· Insulation, air-sealing and other energy saving projects.

Tax credits totaling $20 million would be available to facilities which:

· Produce or distribute renewable energy by using biofuel, biomass, solar power, wind energy, clean coal technologies, waste coal or other alternative energy sources defined under the Alternative Energy Portfolio Standards Act;

· Manufacture or produce products that provide renewable energy; and

· Are used for the research and development of technology to provide alternative or renewable energy sources.

Bond proceeds would be allocated in the amount of $50 million per year over a five-year period for:

· Development of alternative and renewable energy technologies and venture capital;

· Pollution control technology projects to assist existing electric generating units meet enhanced state and federal pollution emission reduction requirements; and

· Clean energy and energy conservation projects.

Sen. Dinniman (D-Chester) expressed concern the Committee was moving such a complex piece of legislation so quickly without having hearings first, but Sen. Mary Jo White assured the Senator the Committee would have hearings on issues requested by Committee members. She did note, however, the Senate Environmental Resources and Energy Committee had numerous hearings on energy issues over the last year.

Special Session Senate Bill 1 is now on the Senate Calendar for action.

Sen. Mary Jo White (R-Venango) serves as Chair of the Committee and Sen. Ray Musto (D-Luzerne) serves as Minority Chair.

A summary and online video of the meeting are available on the Senate Committee on Energy Policy webpage.

10/19/2007