September 24, 2007
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Energy Independence Starts with Common Sense
By Senator Mike Folmer

Governor Rendell has called the General Assembly into Special Session to "consider any and all legislation regarding funding for and the making of investments in clean and renewable energy, energy conservation, and economic development."  The Governor would also like the Legislature to establish "requirements regarding the renewable energy content of liquid fuels."

Legislation has been introduced for an "Energy Independence Strategy," including:  tax credits, grants, and loans for alternative energy and conservation; various electric taxes to fund $850 million in additional borrowing; mandates for biodiesel and ethanol fuels; and energy and environmental building standards for projects funded with state dollars.

However, before starting any new programs, imposing new taxes or fees, or incurring more debt, I believe we should ask three common sense questions about each proposed plan:  (1) is it clean, (2) is it affordable, and (3) is it reliable?

While some attempts have been made to promote alternative energies (wind, biodiesel, and corn ethanol), these initiatives have not always proven to be clean, affordable and reliable.  Subsidizing corn ethanol, for instance, could worsen smog while driving up the cost of staples such as milk and cereal. We need to know what works – and what doesn't work – before moving forward with any energy initiative.

Pennsylvania should foster people's good ideas rather than issuing mandates that stifle or otherwise hinder new directions.  We should be clearing the decks for new technologies so as to allow the best and the brightest a better ability to invent, develop, and implement new ideas.  Decisions should be based upon sound science and reasonable risk – not by raising taxes, borrowing more money, or imposing fines and penalties.

Flexibility and creativity in complying with state laws and regulations would go a long way to encourage – rather than discourage – workable energy solutions.  Missed opportunities caused by government red tape have resulted in ever higher energy costs and a lower quality of life – we are now more dependent upon costly foreign gas and oil than ever before.

State government may need to establish incentives (such as Research & Development and other tax credits and better NOL provisions) to encourage new energy initiatives, alternative energy sources, and alternative energy infrastructures.

Pennsylvania can be significantly less dependent on foreign energy supplies while seeing increased employment and employment opportunities.  These would help the Commonwealth garner higher revenues without raising either taxes or fees.

Energy independence starts with some common sense.