December 19, 2007
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 Anna Gustafson
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Senate Update
by
Senator James J. Rhoades

With the price of oil hitting record highs and energy prices continuing to rise, it is more important than ever for the General Assembly to address the state's energy policies. The Senate recently passed landmark energy legislation that will help reduce energy consumption and allow Pennsylvania to be a national leader in promoting alternative energies.  

The Alternative Energy Investment Act allocates a total of $650 million over 10 years to help consumers improve energy efficiency, help businesses fund clean-energy projects and pollution prevention measures, and support research and development of alternative energy technologies. The Governor wanted the Legislature to pass a more expensive energy plan that relied heavily on borrowing and would require a new tax on electricity bills, but the legislation crafted by the Senate would invest in alternative energies without the need for a tax increase. 

Under the Senate's plan, $100 million will be allocated for consumer grants, loans, rebates and reimbursements of up to 25 percent of the purchase and installation price for energy conservation projects. In addition, the program will provide $50 million to provide loans, grants and rebates of up to 35 percent of the purchase and installation costs of solar and solar photovoltaic panels. The legislation would also include funding for clean energy projects, pollution control measures, and support for the research and development of alternative energy technologies for businesses, municipalities and school districts.  

Special Session Senate Bill 1 boosts funding of the Low-Income Home Energy Assistance Program (LIHEAP) by $100 million to help ensure that low-income individuals and families have heat during the winter months. The bill would also make a one-time payment of $5 million to the Pennsylvania Housing Finance Agency to set up a revolving low-interest loan fund for weatherization and energy efficiency projects in low-income households.  

Consumers have been hit hard by rising energy costs, and costs will continue to rise with rate caps set to expire in the not-too-distant future. The Alternative Energy Investment Act will allow consumers to find relief from rising energy costs while promoting alternative energies that will keep our state at the forefront of energy innovation.

Senator Rhoades represents the 29th Senatorial District, which includes all of Schuylkill County and parts of Berks, Carbon, Lehigh, Monroe and Northampton Counties.