HARRISBURG -- Increasing Pennsylvania's use of energy from "renewable'' sources such as wind, solar, hydro, animal waste, corn and coal ash would benefit both the state's economy and its environment, according to a new study by a foundation based in Johnstown.

Having a "clean energy portfolio'' means that in 10 years, at least 20 percent of the state's energy would come from renewable sources rather being generated by conventional fuels such as oil, natural gas and coal.

Using such new sources to generate electricity would create up to 3,500 new jobs, generate $7 billion more in economic activity and save residential and commercial consumers at least $140 million in fuel costs over the next 20 years, according to the study done for the Community Foundation for the Alleghenies, which was released here yesterday.

"The environmental benefits of renewable energy are well-established, but the study also found that developing clean, reliable energy is an investment that pays tremendous dividends for the economy,'' said Ryan Pletka, who oversaw the study done for the Alleghenies Foundation by Black & Veatch Corp., an engineering/construction firm. The study was partly funded by the Heinz Endowments.

"Energy diversity gives consumers more choices, eases supply strains and lowers costs,'' said Mike Kane, executive director of the foundation.

State Environmental Protection Secretary Kathleen McGinty applauded the study and hoped it will help Gov. Ed Rendell persuade the General Assembly to enact one of his key energy-related proposals.

By 2014, Rendell wants 20 percent of the electricity generated in Pennsylvania to come from "clean energy'' or renewable sources. McGinty said that energy diversification will make Pennsylvania less reliant on oil from the Middle East and will increase the state's energy independence.

This would include "traditional'' renewable sources, such as wind, solar and hydroelectric power, as well as from more advanced sources, such as using piles of waste coal, which are left over from years of coal mining in many Pennsylvania towns, and the use of methane from animal waste and ethanol from corn.

"Many communities in Pennsylvania have mountains of waste coal (ash) surrounding them,'' McGinty said. "We can put these waste coal piles back into productive use.''

There are now bills pending in both the state House and Senate to require electric utilities to increase their use of "clean'' or renewable energy sources. The measures differ on how much time utilities would be given to generate 10 percent of the electricity from renewable sources, either 10 or 15 or 20 years.

State Rep. Chris Ross, R-Chester County, said he hopes for legislative action on one compromise bill before the current session ends Nov. 30. He said 17 states have already enacted laws setting requirements for the use of energy from renewable sources.