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FOR IMMEDIATE RELEASE |
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CONTACT: Mike
Storm |
State Rep. Greg Vitali |
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To: Editorial page editors
From: State Representative Greg Vitali, D-Delaware
Subject: Energy independence legislation & special session
Please consider the following commentary for your Editorial/Op-Ed section. If you have any questions, please contact Mike Storm at 717-787-7895 or at mstorm@pahouse.net.
Energy Independence Strategy: Time to power up
By state Rep. Greg Vitali, D-Delaware
Governor Rendell’s Energy Independence Strategy (EIS), a far-reaching plan for the promotion of renewable energy and conservation, was short-circuited by an intensive lobbying effort as the Pennsylvania General Assembly broke for summer recess in July. With a special session on energy just getting under way, it’s time for citizens to power up.
Unveiled in February, EIS would: establish an $850 million energy independence fund to promote energy efficient appliances, solar panels and renewable energy projects; direct utility companies to use conservation measures to meet increased demand for electricity; require utilities to provide “smart meters” to their customers and oblige Pennsylvania to grow and use more biofuels.
The enactment of EIS would provide many benefits to the Commonwealth including: a lessening of our dependence on foreign oil, the creation of new jobs in the renewable energy sector of our economy, a savings on consumers’ utility bills and decreased greenhouse gas emissions.
EIS was set out in a four-bill legislative package (H.B.s 1200 through 1203) introduced in May. These four bills met with stiff opposition, in particular, from the utility industry, whose lobbyists swarmed the Pennsylvania capitol in the final days of session prior to the summer recess. The chief legislative opponent was Sen. Mary Jo White, R-Venango, a former vice president at Quaker State Oil Company. As part of a deal to break the budget impasse, a special session on energy was set for September to consider EIS.
Although bill numbers will change in the special energy session, it is important that the legislature pass four key components of EIS: the energy independence fund, the energy conservation requirement, smart metering and the biofuels legislation.
The energy independence fund as originally conceived was an $850 million bond for things like rebates on energy-efficient air conditioners and refrigerators; grants for solar panels on homes and businesses; venture capital, grants and loans for clean energy companies; and clean energy economic development projects. The bond was to be funded by a surcharge on utility bills. Political fear that the 45-cent surcharge would be viewed by voters as a tax increase sunk the fund component of EIS. Alternative funding sources will be considered in the special session.
A key component of EIS is the requirement that utility companies meet new demands for electricity by cost-effective conservation measures. Consumer demand in the Commonwealth has been rising at a rate of about 1 to 2 percent per year. A reduction in demand would not only help keep utility bills down but would also have other benefits such as lessening greenhouse gas emissions. The conservation component, contained in H.B. 1201, was opposed by utility companies that feared reduced demand for electricity would mean reduced profits for them.
Another important component of EIS is the requirement that utility companies replace existing electric meters on all Pennsylvanian homes with “smart meters” within the next six years. This would allow customers, if they chose, to be billed for electricity at its actual cost based on the time of day they use it. Electricity is much more expensive during times of peak demand (e.g. two o’clock on a hot August afternoon). With smart metering, consumers could save money and conserve energy by using less electricity during these peak times and deferring some electricity usage to a less expensive time of day.
The final component of EIS would establish biofuel content standards for gasoline and diesel fuel sold in Pennsylvania. The legislation would eventually require that every gallon of gas contain 10 percent ethanol (a corn-derived fuel) and every gallon of diesel contain 20 percent soy or other renewable oil. The goal is to grow and use 900,000 gallons of biofuel per year - enough to entirely replace the amount Pennsylvania currently imports from the Middle East. The biofuels bill (H.B. 1202) passed the House but stalled in the Senate. It was opposed by the American Petroleum Institute and Sen. White.
As the special session on energy begins, you can be sure the lobbyists for the utility and oil industries will be in Harrisburg in full force. That’s why it is crucial that the citizens of Pennsylvania contact their state representatives and state senators and make sure their views are known, too. It’s time to restore our power.
Rep. Greg Vitali (www.pahouse.com/Vitali) represents the 166th Legislative District.
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