Alternative Fuel Bill Could Generate Many State Benefits
Aug 02 - Eastern Pennsylvania Business Journal
Pennsylvania's General Assembly is considering legislation designed to promote development of alternative fuels and energy sources to help reduce the state's dependence on foreign fuel.
The bill passed in the House on June 21 but still needs approval from the
Senate.
'Wonderful opportunities for investment'
"I think that it offers wonderful opportunities for investment in
renewable energy in alternative and indigenous resources," says Rep. Ellen
M. Bard, R-Montgomery, prime sponsor. "I'm very excited about the economic
development and job opportunities offered by the legislation as well as the
environmental benefits."
If passed, generators of electricity onsite could see tax relief for retail
and wholesale electricity for the first five years.
Another bill, Senate Bill 255, would establish the Alternative Fuels
Incentive Fund and authorize grants and loans to promote the use of alternative
fuels. The bill passed in the Senate and remains under consideration in the
House.
"I am getting the sense that there is some general agreement that we
should diversify our energy portfolio in the Commonwealth using what we have
always used as well as encouraging the development of alternative fuels,"
says Sen. Mary Jo White, R-Venango, chair of the Senate Environmental Resources
and Energy Committee. "We need to look at other options. The idea is to
reduce our dependence on foreign supplies as well as to take the pressure off
fuels such as natural gas."
White anticipates hearings to be held over the summer to determine the best
way to promote the use of the fuels without permanent subsidization. Issues to
address include the distinct needs required for power products and
transportation fuels.
Alternative Fuels Renewable Enemy Council
"It's even a different scenario when you're talking about typical
transportation related fuels as opposed to energy sources for power
plants," says White. "There may be different mechanisms you would use
for different products. We are in the very early stages of looking at this in
finding just what the appropriate state role is in this, what the mix should be
and how you recover the cost."
The Alternative Fuels Renewable Energy Council (AFREC), an entrepreneurial
venture and alliance of companies promoting new economic development and
technology in the alternative fuels and renewable energies industries, supports
the proposed bills.
"It probably is the only bill that we have seen in a long time that has
legislation to actually withstand all the pressures of the House and Senate
amendments and coming together to some type of alternative fuel legislation that
will finally be successful," says Rosemary McAvoy, founder of AFREC.
The new legislative initiatives hold potential not only to develop
alternative fuel renewable energy sources but also to boost the state's
declining manufacturing industry.
"We see an opportunity to actually have a resurgence in
manufacturing," says McAvoy. "Not only are we supportive of SB255
because of the benefits and some of the issues that will benefit our alternative
fuel issues, but we also find there is another arena that we can create a whole
new manufacturing base for alternative fuel."
McAvoy foresees increased demand to purchase viable fuel options created and
manufactured by Pennsylvania businesses.
'Technology of Me future'
"I look at alternative fuels and renewable energy being the technology
of the future," says McAvoy. "We have a whole new opportunity to be
able to stimulate the economy, bring everything back domestically."
AFREC's vision includes the creation of manufacturing jobs that will remain
in Pennsylvania.
"I don't think any vision is too far-fetched," says McAvoy.
"My vision would be for the year 2010 to increase the consumption of
alternative fuels in the Commonwealth from 2 percent to 20 percent."
She says that she believes the alternative fuels industry will fit into a
niche market that will bolster the state's economic development efforts by
creating jobs with an environmental sustaining and profitable technology as well
as decrease dependence on foreign fuels.
"It is the first time we have fiscal conservatives and environmentalists
and people that call themselves liberals to be able to come together in one room
and we all win,") says McAvoy. "I see an opportunity with Senate Bill
255 and House Bill 121 to be able to have them introduce a piece of legislation
that is just not something that functions but also has a direct impact based on
the input that they have received from the people who are really involved in the
industry."
Copyright Eastern Pennsylvania Business Journal Jul 05,
2004