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Environment, energy programs part of state budget
Tuesday, July 01, 2008

Part of yesterday's budget deal included a rough agreement to spend $650 million on environment- and energy-related programs, $500 million of which will come from new borrowing over two years.

From the pot of $500 million, $180 million will be spent on solar power -- $100 million to help residents and businesses install solar power equipment, and $80 million for capital projects relating to recruiting solar energy companies and jobs.

An additional $165 million over two years is earmarked for alternative energy projects, distributed through the Commonwealth Financing Authority, an agency that administers a variety of economic stimulus packages. On top of that, $40 million goes to the Ben Franklin Technology Partnership (a risk-capital investor attached with the state); $25 million goes toward the construction of "green" buildings; and $25 million more goes to help coal companies reduce their mercury emissions.

The Low Income Home Energy Assistance Program, which helps people pay heating and electric bills, is to receive $40 million over two years.

The remaining $25 million goes to small-scale renewable energy projects.

The $150 million that doesn't come from new borrowing is to be spent over seven or eight years -- $90 million for home weatherization, which promotes energy efficiency and conservation; another $50 million for alternative energy tax credits, plus $5 million each for new home weatherization and for tax rebates for hybrid car buyers.

The budget deal also includes a piece of legislation that would invest in, and try to increase production and use of, alternative fuels, which would then be added to gasoline and diesel fuel. But those investments, as of last night, weren't expected to come out of the $650 million pot.

Pennsylvania Legislative Correspondents Association intern Christopher Wink contributed to this report. Bill Toland can be reached at btoland@post-gazette.com or 412-263-2625.
First published on July 1, 2008 at 12:00 am
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