| Focus Area: |
Climate Change: Business Opportunity, Business Challenge |
| Project: |
Pennsylvania Project to Reduce Greenhouse Gases |
| Commitment By: |
Commonwealth of Pennsylvania |
| Value: |
$90,000,000 (overall value of portfolio) |
Objective: To deploy clean, renewable and efficient technologies to significantly reduce greenhouse gas emissions while strengthening economic and environmental security.
Commitment: Adopt the greenhouse gas tailpipe standards to be implemented in California and the requirements California has established for conventional pollution reduction in autos as well.
Launch an effort to replace aging power plants with new capital plant and equipment, and put in place greenhouse gas limits for the new plants as a binding condition in their operating permits.
Launch a major effort to replace conventional vehicles with hybrid vehicles.
Bring on line the nation’s first coal gasification/liquefaction plant that will produce sulfur-free diesel fuel.
Continue the green building program for new construction and to retrofit and implement energy efficiency in all of our existing buildings.
Undertake a comprehensive effort to bring to fruition our path-breaking solar energy mandate and enable solar power to become a real player in energy markets.
Further expand achievement in wind power by providing financing for wind farms.
Bring on line the nation’s first-ever fuel-injected biofuels station and to build a fully integrated biofuels production capacity.
Background: Pennsylvania is working hard to build and deploy clean energy technologies. The state’s alternative energy portfolio standard, which ensures that in 15 years, 18% of all energy generated comes from clean, efficient sources, will avoid 6.5 million tons of CO2, 50,000 tons of sulfur dioxide, and 14,000 tons of nitrogen oxides each year. Other benefits of the portfolio standard include $10 billion in increased output for Pennsylvania, $3 billion in additional earnings and between 3,500 and 4,000 news jobs for residents over the next 20 years. The Rendell Administration is committing substantial resources to building a clean energy future, including: up to $1 billion in tax-free bond financing to build renewable and efficient power plants and fuel production facilities; up to $60 million in grants, loans and loan guarantees for clean energy and fuel projects; up to $25 million in grants for the purchase of hybrid or alternatively fueled vehicles; and up to $5 million annually for renewable energy projects with special emphasis on farm-based bioenergy initiatives.
Partnership Opportunity: Our objective is to continue to develop partnerships with colleges and universities, industrial partners, and the agricultural sector to facilitate off-take agreements and to develop clean energy projects.
Update:
October 28, 2005:
The East Coast's first biodiesel fuel injection station was opened in Pennsylvania. This station will replace 3.2 million gallons of gasoline on an annual basis.
November 10, 2005:
The Pennsylvania Public Utility Commission put forward a preliminary interconnection/net-metering rule that is among the most progressive in the country.
November 29, 2005:
Governor Rendell announced the Pennsylvania EDGE initiative, which will provide financial incentives, including Commonwealth of Pennsylvania bond volume cap, and regulatory incentives such as expedited permitting to projects that re-power pulverized coal power plants with IGCC.
Additionally, the Commonwealth is purchasing 90,000 Mwhs annually of greenhouse gas free renewable energy which comes from hydroelectric and wind facilities in Pennsylvania, Maryland and Minnesota. Governor Rendell has committed to increasing this purchase by up to 110,000 MWhs annually in future procurement years.
March 2006:
By the end of 2006 we will have completed several critical rulemakings related to net-metering and interconnection, electricity procurement and portfolio standard implementation. These rulemakings will provide additional certainty to Pennsylvania’s energy markets that will encourage investments in alternative energy and distributed generation.