Legislative Update - October 2007

October 18, 2007

Pennsylvania Special Session Committee on Energy Policies Approves Legislation to Promote Conservation and Clean Energy

The Senate Special Session Committee on Energy Policies voted in support of the "Alternative Energy Investment Act," Special Session Senate Bill 1, sponsored by Senator Mary Jo White (R-21) and Senator Tommy Tomlinson (R-6). The bill would provide grants and loans to projects geared at improving energy supply and efficiency, improved conservation, and reduced demand. The measure now goes to the full Senate for consideration.

Specifically, the Act authorizes the Commonwealth Financing Authority (CFA) to borrow up to $250 million for energy conservation projects, clean energy projects, and pollution control technology. It also provides funding for the Ben Franklin Technology Development Authority to be used for commercialization and acceleration of development of emerging alternative or renewable energy technologies. The measure also provides grants, reimbursements and rebates to homeowners for the purchase of energy efficient heating and cooling units and Energy Star energy efficient appliances.

Bond proceeds would be allocated in equal annual installments over a five-year period as follows:

1) $12.5 million ($62.5 million total) to the Ben Franklin Technology Development Authority for commercialization and acceleration of development of emerging alternative or renewable energy technologies.

2) $15 million ($75 million total) to DEP for pollution control technology projects for electric generating or cogeneration units for compliance with new mercury, nitrogen oxide, and sulfur dioxide pollution reduction requirements.

3) $14 million ($70 million total) to CFA for clean energy projects providing low-interest loans to businesses and loans or grants to political subdivisions for clean energy projects and energy conservation projects.

4) $8.5 million ($42.5 million total) to CFA for energy conservation projects for reimbursements or grants to homeowners for the purchase of energy efficient heating and cooling units and Energy Star energy efficient appliances within their primary residence. The homeowner shall be eligible for up to 20% of purchase and installation price

Finally, the bill creates an Alternative Energy Development Program to provide alternative energy production projects such as a facility that utilizes waste coal, biofuel, biomass, solar power, wind energy, geothermal technologies, clean coal technologies, or other alternative energy sources. This program also authorizes $20 million annually in tax credits for alternative energy production tax credits. Eligible taxpayers may receive up to 75% of the total amount of all capital, operation, and maintenance costs paid for alternative energy technologies in the taxable year to be applied against the taxpayer's qualified tax liability.

EPA Creates a Farm, Ranch and Rural Communities Federal Advisory Committee

EPA Administrator Stephen L. Johnson announced the establishment of the first-ever Farm, Ranch and Rural Communities Federal Advisory Committee to better protect human health and the environment. The Committee is being formed under the auspices of the National Strategy for Agriculture that Johnson established in May 2006. The Strategy sets forth an EPA vision for agriculture that looks at the industry as a producer of environmental solutions engaged through collaboration, innovation and voluntary programs, in addition to the traditional regulatory approaches the Agency uses.

The Committee will advise Johnson on environmental policy issues impacting farms, ranches, and rural communities, and will operate under the rules of the Federal Advisory Committee Act (FACA). It will meet approximately twice yearly and is intended to consist of approximately 25 members representing: (1) large and small farmers, ranchers, and rural communities; (2) rural suppliers, marketers, and processors;(3) academics and researchers who study environmental issues impacting agriculture; (4) tribal agricultural groups; and (5) environmental and conservation groups. EPA's request for member nominations will appear soon in the Federal Register. The US Dept. of Agriculture and other federal agencies will also be invited to nominate members.

Initially, EPA will ask the Committee to focus on the following three issues:

--Impact of EPA policies and regulations on climate change and renewable energy. The agricultural industry -- through development of renewable energy sources -- can play a significant role in our nation's ability to reduce its dependence on oil imports, and is also a source and repository of greenhouse gas emissions. These issues are intertwined and their potential impact on our nation's food production is significant.

--An environmental strategy for livestock operations that considers regulatory and voluntary incentive approaches and provides tools for producers to attain superior environmental performance.

--Development of a constructive approach to advancing sustainable agriculture and protection of the environment, addressing communication between environmental and agricultural interests, and urban encroachment in rural areas.

Senate Environmental Resources and Energy Committee Meets

The Senate Environmental Resources and Energy Committee met to consider several pieces of legislation. SB 305, introduced by Senator John Rafferty amends the Solid Waste Management Act stating any licensee requesting an increase in daily waste volume or disposal capacity certify that they do not have outstanding violations. Furthermore the bill increases the penalties for multiple violations. SB 1017, introduced by Senator Mike Brubaker, amends the Phosphate Detergent Act allowing commercial or institutional dishwashing machines to use a cleaning agent that contains up to 8.7% phosphorus by weight. SB 1086, sponsored by Robert Regola amends the Flood Control Law increasing the threshold for expenditures before a bidding process must take place from $4,000 to $25,000. Finally, HB 43, introduced by Carole Rubley, provides for uniform environmental covenants and stating that an environmental covenant must: (1) state that the instrument is an environmental covenant, (2) contain a legally sufficient description of the real property subject to the environmental covenant, (3) contain a brief narrative description of the contamination and the remedy, (4) describe the activity and use limitations on the real property, (5) identify every holder, (6) be signed, with the formalities required for a deed, and identify the name and location of any administrative record for the environmental response project reflected in the environmental covenant.

For additional information on any of these bills go to www.legis.state.pa.us.

Previous Legislative Updates

• August 2007
• July 2007
• June 2007
• May 2007
• April 2007
• March 2007
• February 2007
• January 2007