The Legislature reduced Gov. Ed Rendell's 16-month-old, $850 million Energy Independence Strategy nearly 25 percent during state budget negotiations, state officials said Monday.
Energy strategy proponents yesterday were trying to determine what's in and what's out, under a handshake budget deal reached by the Rendell administration and legislative leaders, and what in the governor's proposal could be delayed until fall.
In a statement, the governor's office said the budget agreement contains $650 million for Rendell's energy program, down from his $850 million proposal.
"Staff right now is working with the Legislature trying to firm things up," said Michael Smith, a spokesman for the Department of Environmental Protection, which administers energy-related programs. Smith said $500 million would be financed with debt and $150 million would come from state appropriations.
"We're still working out the specific details, but the budget includes $650 million, as the state Senate passed in December," said Patrick Henderson, spokesman for state Sen. Mary Jo White, R-Venango County, who chairs the Senate's Environmental Resources & Energy Committee.
"Specific allocations for things like wind and solar are still being ironed out at the staff level, but we are hopeful to have a product in the next day or two," Henderson said. "We also have agreement on a biodiesel and cellulosic ethanol bill, which would trigger mandated content of biodiesel and cellulosic ethanol based on in-state production levels.
"We hope to have specific details soon."
PennFuture, an environmental watchdog group in Harrisburg, said $180 million of the energy fund would be dedicated to solar-related projects.
PennFuture CEO John Hanger said in a statement that portions of the governor's proposal would be delayed for legislative action until fall, and possibly later -- including energy conservation, so-called smart metering and energy pricing plans, along with House Bill 2200, which deals with energy efficiency and customer response to high prices.
House Bill 2200, once fully implemented, would save consumers $1.3 billion on energy bills by 2012 through conservation and bringing down electricity costs during peak usage times, according to Department of Environmental Protection data. The House passed the bill Feb. 12. It was referred to the Senate's Consumer Protection and Professional Licensure Committee on Feb. 20.
"Conservation is the only practical step that can cut electric or energy bills now. Everything else is five, 10 or 15 years off," Hanger said.
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