PA ENERGY FIGHT

Every indication right now (and NewEnergyNews desperately hopes this is wrong) is that the US congress will remain locked in impotence on energy until after the 2008 presidential election.

Meanwhile, the states are hashing it out. Kentucky just got bought by Big Coal. Ohio is in the middle of it. Massachusetts is gearing up. And Pennsylvania’s Governor has apparently been watching Arnold Schwarzenegger movies. (Kathleen McGinty, Rendell's environment secretary and a former Clinton administration player, is also said to have political ambitions.) Rendell's belief reportedly is that his Republican opposition is split over spending but dares not fail to act on energy so must follow his lead and then blame him for taxing and spending. But Rendell's bold plan may generate so much economic growth he will not be vulnerable.

GOP has own PA energy proposal; At the opening of a special session, it floated a plan it said would avoid new taxes and borrowing
Amy Worden, September 18, 2007 (Philadelphia Inquirer)
and
Rendell powers up for session’s tough sell; His energy plan will face opposition when legislators convene tomorrow
Angela Couloumbis, September 15, 2007 (Philadelphia Inquirer)
and
Pa. Governor Raises Spiking Bills in Energy Address to Legislature
Marc Levy, September 24, 2007 (AP via Yahoo Finance)

WHO
Pennsylvania Governor Ed Rendell, Pennsylvania legislators

Does New Energy boost local economies? The blue dots are potential PA solar energy manufacturers. (click to enlarge)

WHAT
Rendell has a strong alternative energy plan for Pennsylvania but faces opposition from legislators with a stern eye on the budget. The strong pushback on new spending is motivated by anxiety over what will happen to the state’s utility rates when price caps, imposed with deregulation, end.

WHEN
The 1996 price caps, imposed with deregulation, end in 2010.

WHERE
Harisburg, Pennsylvania’s capital city.

WHY
- Rendell’s $850 million Energy Independence Fund: from a bond issue at approximately $5/kilowatt-hour/year, cutting state energy bills $10 billion over 10 years; $500 million to clean energy projects: biofuel plants, solar energy, smart meters, advanced coal technologies; $100 million to production and private-sector development. Grants to homes and small businesses for energy installations and efficiency measures.
- Republican $530 million alternative plan: Sponsored by Sens. Robert M. Tomlinson (R., Bucks) and Mary Jo White (R., Venango); $250 million up front + $40 million/year for 7 years to alternative energy projects and home energy efficiency programs from tax revenues.
- More conservative Republicans have a non-tax-based plan. It costs less than $100 million dollars but is widely seen as ineffective.

Does New Energy boost local economies? The green dots are potential PA wind energy manufacturers. (click to enlarge)

QUOTES
- Kathleen A. McGinty, PA secretary of environmental protection: "The bottom line is, we have an economic train wreck heading our way with respect to soaring electricity rates..."
- Rendell: "These policies . . . will not only grow our competitive edge in clean energy even further, but move us dramatically closer to energy independence..."
- Larry Ceisler, Democratic media consultant: "…with this governor you know when he's calling it in and when he's passionate. And when he talks about energy, he's being real. He gets it."
- Senate Majority Leader Dominic Pileggi (R., Delaware): "I don't see any support in our caucus for a new electricity tax - or a need for it."