Pennsylvania Governor Promotes Energy Plan to Cut Oil Imports
Date: 02-Dec-05
Country: USA
Author: Nancy Waitz
Pennsylvania's "American Energy Harvest" plan calls for production of 3.5 million barrels a day of alternative fuel produced in the United States by 2015. The country currently consumes about 20 million barrels a day of crude oil.
Under the plan, Rendell said, 2.5 million barrels per day of fuel will come from 50 new coal gasification plants. One million barrels a day would come from biofuels produced largely from Pennsylvania soybeans.
"By changing how and where we spend energy dollars, we can create more jobs, increase domestic investment and make our nation safer," the governor said in a speech at the National Press Club.
Rendell, a Democrat who oversees a $22 billion state budget, urged the Bush administration to do all it can to address the country's energy needs. In a letter to the president, he said the country should reduce its reliance on oil from the Middle East.
The letter said "execution of this plan does not require new federal revenue and it would not add to our country's deficit."
The plan would also improve energy efficiency for the state government vehicle fleet, cutting out gas-guzzlers and directing fleet managers to purchase smaller and more fuel-efficient cars. It would also mandate 25 percent of the fleet of Sport Utility Vehicles and light trucks be hybrids.
The energy plan would also advocate the yearly replacement of 3.2 million gallons of foreign oil in Pennsylvania's diesel supply with domestically produced biofuel.
Rendell told reporters after the speech that some funding for the plan will come from money already appropriated in an economic stimulus plan that includes grants, loans, tax credits and loan guarantees.
"There is a panoply of things," he said.
Rendell said the Pennsylvania Energy Development Authority has $1 billion that has not been used yet. He said most of the $50 million used so far for the energy program has come directly from the state's economic stimulus program.
Rendell said that stimulus program consists of $2.3 billion of government funding and loan guarantees.
Since taking office, Rendell said he has redirected state funds to provide $45 million in investments in the alternative fuels sector.
He said these funds leveraged another $200 million in private capital which generated a total of nearly $250 million of new research and production capacity in the alternative fuels sector.
"Perhaps the best thing about it is that this plan requires no additional federal dollars," said Rendell whose current term ends in 2007.
