PA Energy Fund
On July 9,2008 Governor Rendell signed $650 million energy fund to support conversation, spur renewable energy development.
“Pennsylvania has established itself as leader in developing and deploying clean renewable energy resources,” said the Governor, citing some of the world’s leading businesses that now call Pennsylvania home, like Conergy, Gamesa and Iberdrola. “However, the $1 billion in private investment that has flowed into Pennsylvania and the 3,000 jobs we’ve created in the renewable energy industry only begin to scratch the surface of our potential.
“This new investment fund will strategically target new resources to leverage as much as $3.5 billion in private investment and create at least 13,000 new, good-paying jobs in an industry that is sure to be to the 21st century what information technology and biosciences were to the later 20th century.”
Included among the new $650 million fund is $500 million that provides:
• $165 million for loans and grants to spur the development of alternative and renewable energy projects (except solar) among businesses and local governments;
• $100 million to provide loans, grants and rebates that cover up to 35 percent of the costs residential consumers and small businesses incur for installing for solar energy technology;
• $80 million in grants and loans for economic development projects in the solar sector;
• $40 million to the Ben Franklin Technology Development Authority to support early stage activities, such as incubator support services, translational and early stage research in startup businesses that develop and implement energy efficiency technologies;
• $25 million for wind energy and geothermal projects;
• $25 million for green buildings. Homeowners and small businesses will benefit from grants and loans to build energy efficient structures or renovate an existing building to improve its energy efficiency;
• $40 million ($10 million annually for four years) to support LIHEAP so the commonwealth can help low-income customers manage higher energy prices, severe weather conditions, or disasters; and
• $25 million for pollution control technology to help energy generators meet state and federal standards.
The law, originally Special Session House Bill 1, will also establish a $150 million consumer energy program for individuals and small businesses that will support projects that conserve energy and use it more efficiently—something that is increasingly important as the costs for electricity, fuels and natural gas continue to increase.
The $150 million will be allocated over eight years, with $20 million annually through 2014-15 and another $10 million in 2015-16 that will include:
• $92.5 million so homeowners and small business owners can cover 25 percent of the cost of purchasing and installing energy conservation tools and weatherize their buildings;
• $50 million in tax credits of up to $1 million a year per project for developing and building alternative energy projects, which will help Pennsylvania companies invest and grow here; and.
• $5 million to support an Energy Efficiency Loan Fund through the Pennsylvania Housing Finance Agency.
