Pennsylvania to consider Governor’s energy plan; $850 million Energy Independence Fund, 1 billion gallon production target proposed

Gov. Rendell reintroduced the Pennsylvania energy plan to a joint session of the state legislature. The centerpiece is a $850 million Energy Independence Fund, funded by a bond issue. $500 million would be invested in clean-energy projects such as biofuel plants and solar and advanced coal technologies, $100 million granted to Pennsylvania firms expanding clean-energy production, and money for grants to partly reimburse homeowners and small businesses for installation of solar panels, energy-efficient air-conditioners, refrigerators, and smart electricity meters. The bond would be paid off with a new energy utility tax.

The Pennsylvania plan sets a 1 billion gallon per year production target for 2017. Recently, Pennsylvania has seen biofuels plants in Lancaster experience resident protests and seen the state biodiesel business collapse through an inability to compete with Indiana subsidies.

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