HARRISBURG -- Increasing Pennsylvania's use of energy from renewable sources like wind, solar and hydroelectric -- as well as from more exotic sources like waste coal and animal excrement -- can benefit the state's economy as well as the environment.

That's according to a new study, done for a Johnstown-based foundation and released this week at the state Capitol.

Within 10 years, switching to a "clean energy portfolio" could mean that 20 percent of the state's electricity would come from renewable sources rather than conventional fossil fuels like oil, natural gas and coal, the study says.

Using such new sources for the state's electricity could create up to 3,500 jobs in private industry, 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, which was done for the Community Foundation for the Alleghenies, based in Cambria County.

"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 would 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. Currently it stands at only 1 percent, state environmental officials said.

McGinty said diversifying the state's energy sources will increase Pennsylvania's energy independence and make it less reliant on oil from the Middle East.

This would include traditional renewable sources, like wind, solar and hydroelectric power, as well as more advanced sources. These include using piles of waste coal, left over from years of mining, methane from animal excrement and ethanol generated from corn.

"Many communities in Pennsylvania have mountains of waste coal 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 power companies to increase their use of "clean" or renewable energy sources. The measures differ on how much time those companies would be given to generate 10 percent of the electricity from renewable sources -- 10, 15 or 20 years.

State Rep. Chris Ross, R-Chester, 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.