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Governor Rendell Announces $31.4 Million for Clean
Energy, Alternative Fuels Development
SOMERSET, Pa., April 10, 2007 /PRNewswire-USNewswire
Governor Edward G. Rendell today brought Pennsylvania one step closer to energy independence by making $31.4 million available in grants to help businesses and organizations develop clean energy and alternative fuel projects. The projects will create jobs, strengthen agriculture and biofuels producers, and promote homeland security by diversifying America's energy production. "These grants will be a substantial, and important, investment to help Pennsylvania put a broader energy strategy in place to protect consumers from soaring electricity costs and to achieve energy independence," Governor Rendell said. "My proposed $850 million Energy Independence Fund will give us the tools we need to increase Pennsylvania's clean energy production capacity and to save electricity consumers up to $10 billion over 10 years." The grants will be funded through Pennsylvania's three innovative alternative energy development programs -- up to $16.4 million through the Alternative Fuels Incentive Grants program, including $10 million through the Pennsylvania Energy Development Authority and $5 million in Energy Harvest grants. Environmental Protection Secretary Kathleen A. McGinty announced the availability of the grants during a tour of a landfill gas-to-energy project by Johnstown Regional Energy LLC in Somerset County. The project, which was partially financed by a previous $250,000 grant from the Pennsylvania Energy Development Authority, captures gas from two landfills and processes it into pipeline-quality methane gas. "Pennsylvania is turning environmental and energy challenges into opportunities for economic development and energy independence," McGinty said. "This landfill gas project captures potent greenhouse gas and turns it into secure sources of affordable energy for Pennsylvania homes and businesses. Alternative energy projects such as this are reducing environmental harm and creating new, domestic energy sources to meet our growing needs." The three alternative energy programs will begin accepting grant applications today. The deadline for receipt of applications for all three programs is June 15. McGinty emphasized that Governor Rendell's Energy Independence Strategy is essential to continuing grant funding for clean energy projects and for maximizing the grants' benefits. "Pennsylvania's current energy investment programs have created over 2,500 jobs in the commonwealth, but since funding dollars are limited, the state is only able to support 10 percent of requests for energy dollars -- losing out on at least $100 million in potential investments every year," McGinty said. The Energy Independence Strategy would accelerate the role that Pennsylvania companies play in the production of clean energy components and systems by making over $100 million available in the form of venture capital, loans and grants so Pennsylvania firms can attract private sector investors and grow their companies. New state resources would target up to $500 million for infrastructure improvements, construction, early project development costs and equipment purchases undertaken to attract private investment in energy-related economic development projects, including solar manufacturing; advanced coal technologies; biofuels; and energy conservation, efficiency, and energy demand management projects. The available energy-development grants announced today are: Alternative Fuels Incentive Grants (AFIG): Governor Rendell is making up to $16.4 million available through the Alternative Fuels Incentive Grants program to finance the production and use of clean-burning fuels in Pennsylvania. By emphasizing investments in ethanol and biodiesel, AFIG supports the PennSecurity Fuels Initiative within the Governor's Energy Independence Strategy. PennSecurity will require the use of 1 billion gallons of domestically produced clean and renewable fuels, approximately the amount of fuel Pennsylvanians are expected to buy from the Persian Gulf in 2017. Instead of sending billions of dollars overseas each year, more of these funds will be spent purchasing fuel from Pennsylvania companies and farmers. AFIG funding awarded over the past two years will result in the use of 1.5 million gallons of B20 (20 percent biodiesel and 80 percent diesel) and the production of 33 million gallons of biodiesel through 2008. Studies show that alternative fuels are cleaner than conventional fuels because they emit little to no particulate matter, less carbon monoxide and fewer of the pollutants that contribute to ground-level ozone, or smog. Grant funds awarded through AFIG can cover the added cost to purchase E85 ethanol-blended fuels or biodiesel and to install related refueling equipment. Pennsylvania producers of ethanol or biodiesel are eligible for a reimbursement of 5 cents a gallon for up to 12.5 million gallons covering a 12-month period. Since its inception in 1992, Pennsylvania has awarded almost $32 million through AFIG for 1,000 projects in almost every county in the commonwealth. AFIG funds have leveraged more than $118 million from public and private fleet operators, fuel providers and the federal government. Pennsylvania Energy Development Authority (PEDA): Governor Rendell is making $10 million in grants available for the fourth round of Pennsylvania Energy Development Authority funding. PEDA was brought back to life by the governor after years of inactivity and it has directed $21 million in grants and loans for 57 clean energy projects that are leveraging another $240 million in private investment. The projects will create 975 permanent and construction jobs. Applicants for PEDA financing can seek grant assistance for capital costs for a variety of innovative, advanced energy projects. Eligible PEDA projects may include solar energy; wind; low-impact hydropower; geothermal; biologically derived methane gas, including landfill gas; biomass; fuel cells; coal-mine methane; waste coal; integrated gasification combined cycle; demand management measures, including recycled energy and energy recovery, energy efficiency and load management; and clean, alternative fuels for transportation. PEDA particularly encourages applicants with projects related to distributed generation for critical public infrastructure to apply. PEDA financing is available to organizations operating in Pennsylvania and to those businesses interested in locating their advanced energy operations in Pennsylvania. Energy Harvest: The Governor also announced the availability of up to $5 million in grants for the fifth round of funding under the Pennsylvania Energy Harvest Grant program. Since Governor Rendell launched the program in May 2003, Energy Harvest has awarded $21 million and leveraged another $51.9 million in private funds. Grants fund projects that promote awareness and build markets for cleaner or renewable energy technologies. Energy Harvest grants will fund innovative energy deployment projects that emphasize protecting Pennsylvania's air or water quality while supporting economic development and enhancing the quality of life in the commonwealth. Eligible proposals include: renewable energy deployment, including biomass energy; waste coal reclamation for energy; deployment of innovative energy efficiency technologies; and distributed generation projects.
The first priority for Governor Rendell's energy initiative is to cut energy costs for Pennsylvania consumers. Electric generation rates can swing wildly during the course of the day and at different times of year. A recent study by PJM Interconnection, the independent electricity grid operator that covers Pennsylvania, showed that cutting power consumption by just 3-5 percent during peak rate periods saves consumers across the state up to $230 million annually. By supporting conservation and the production of renewable energy sources, Governor Rendell's Energy Independence Strategy will save consumers money by lowering demand for electricity from traditional power plants during periods of peak demand and it will help reduce the need to build costly new power plants, or long-distance transmission lines, to meet Pennsylvania's growing energy needs. The governor's initiative helps educate consumers about energy use by providing new tools to empower them and provides $244 million in new funding to help them install state-of-the-art energy technology. The governor's proposal includes rebates to homeowners who replace inefficient home cooling appliances, as well as the Pennsylvania Sunshine Solar Initiative, which will create incentives for solar manufacturers to establish operations in Pennsylvania. The solar initiative offers rebates to cover up to 50 percent of the cost of new solar energy systems for homeowners and small businesses. Pennsylvania Sunshine will also help the commonwealth meet the aggressive clean power goals set by Governor Rendell and his partners in the General Assembly in the Alternative Energy Portfolio Standard. The AEPS contains one of the most ambitious standards for solar power in the nation, requiring that solar energy generate 0.5 percent of all electricity in the commonwealth, an equivalent to powering almost 80,000 typical homes per year in Pennsylvania. For more information on the grants, visit DEP's Web site at http://www.depweb.state.pa.us, DEP Keywords: "Energy." 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 his Web site at: http://www.governor.state.pa.us . SOURCE Pennsylvania Department Of Environmental Protection News Provided By |
