July 28, 2008—Pennsylvania Governor Edward Rendell has approved a bill that establishes a $500 million fund to support alternative energy projects. Special Session House Bill 1authorizes the Commonwealth Financing Authority to borrow $500 million, most of which will be split into six funding sources relating to energy efficiency and renewable energy.
The bill earmarks $80 million in grants and loans for solar energy projects; $100 million in grants, loans, and rebates for up to 35% of the cost of solar energy projects at residences and small businesses; $165 million in grants and loans for alternative energy projects, excluding solar energy, at businesses and local government facilities; $25 million for wind and geothermal energy projects; $40 million to help start-up businesses involved in energy efficiency technologies; and $25 million in grants and loans to improve the energy efficiency of new and existing homes and small business buildings.
An additional $65 million will go toward pollution control technologies and to help low-income families pay their energy bills. The bill places no time limit on the payout of the various funds, and it pays off the debt by drawing $40 million per year from the state’s general fund for the next 30 years.
