Pennsylvania Office of the Governor News

New Budget Makes Major New Investments in Environment, Energy, Pennsylvania Governor Rendell Says

HARRISBURG, Pa., July 4 PRNewswire-USNewswire — Governor Edward G. Rendell said today that issues critical to continuing the commonwealth's economic progress and protecting its citizens will be addressed as part of the state's 2008-09 budget.

The Governor said new state resources will promote clean and renewable energy alternatives; measures that will improve the quality of life for all Pennsylvanians and build on the economic gains of the past five years.

"These new energy programs will save Pennsylvanians money and put our state in the forefront of the fast-growing alternative energy economy, which will result in thousands of new jobs," the Governor said.

"This is a first step in addressing these issues. We're making an unprecedented investment to spur development of advanced energy resources that will offer new options to consumers at a time when gasoline, diesel fuel, electricity and natural gas prices are going through the roof."

The Governor added that he intends to sign bills addressing these issues in the following days. In total, these measures will invest $665.9 million in alternative energy, of which $237.5 million will go to consumers to lower their energy costs and help them join the new energy economy, and $428.4 million will go to create jobs and expand the alternative energy sector in Pennsylvania.

This will occur in the following ways: — Invest $650 million in alternative and renewable energy deployment, conservation and efficiency, and innovative research and development. Special Session House Bill 1 will include: - $180 million for solar energy; - $165 million to encourage alternative energy projects; - $25 million for green buildings; - $25 million to for pollution control; - $40 million for emergency energy assistance; - $40 million to support early stage activities; and - $25 million for wind and geothermal. - Another $150 million will be available over seven years to help consumers and small businesses weatherize their homes and adopt conservation tools and offer tax credits to businesses developing and building alternative energy projects in the commonwealth. — Increase the use of biofuels in retail gasoline and diesel fuel. House Bill 1202 will require that every gallon of diesel fuel use an increasing percentage of biodiesel as in-state production levels increase and reach defined thresholds. Additionally, gasoline must include at least 10 percent cellulosic ethanol once production reaches 350 million gallons annually. New investments will also be made in Pennsylvania's biofuel producers; up to $5.3 million will be available annually through June 2011 to encourage the production of ethanol and biodiesel. — Invest up to $1.2 billion in the state's water and wastewater facilities, dams and flood control projects. Senate Bill 2 will provide $800 million over 10 years to address the funding needs for critical water, sewer and stormwater projects, as well as flood control and high hazard dam repairs in areas outside of Philadelphia and Pittsburgh. Voters will also have the opportunity to expand the amount of resources available for water and wastewater projects under a bond referendum provided for in Senate Bill 1341. If approved, SB 1341 would allow the commonwealth to borrow an additional $400 million to support these infrastructure components.

Despite these positives steps, Governor Rendell stressed that action must be taken to address rising energy costs.

"Making alternative and clean, renewable energy resources more readily available is an important step, but we cannot lose sight of the need to conserve energy and improve Pennsylvania's flawed public policy when it comes to electricity," Governor Rendell said. "Families are losing their homes and businesses are closing their doors because of rising energy costs. Gasoline and diesel fuel are at $4- and $5-per-gallon, respectively, and the cost of natural gas has more than doubled in the past year alone.

"We need to ensure our citizens and businesses have choices, are protected from the volatility of the open market, and have the tools they need to conserve energy to cut costs. I'm committed to working with the legislature throughout the summer to reach agreement on improvements to our current energy policy so that rather than shelling out billions of dollars more in higher electricity bills, we can help consumers save billions of dollars over the next decade."

Graphics, budget highlights and additional details about the 2008-09 state budget are online at www.budget.state.pa.us.

The Rendell administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit www.governor.state.pa.us.

CONTACT: Chuck Ardo 717-783-1116

SOURCE Pennsylvania Office of the Governor

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