Despite Legislative Inaction, PA Governor Rendell Advances Energy Conservation Initiatives

Changes in Government Operation Reduce Energy Use, Stimulate Renewable Energy Sector

June 17, 2008 -- HARRISBURG – Pennsylvania Governor Edward G. Rendell today announced a number of strategic initiatives the commonwealth will immediately make to reduce energy use, stimulate the renewable energy sector and cut costs.

“Rising energy prices affect every customer, including state government,” Governor Rendell said. “We need to make immediate, sweeping adjustments to the way state government operates to counter escalating gas prices and rising energy prices.

“The steps I am announcing today will reduce our environmental impact by using less energy, and helping to grow our renewable energy sector by purchasing more clean, renewable energy,” he said.

“I want all residents to have the tools they need to combat rising energy costs,” Governor Rendell said. “That’s why I have been encouraging the General Assembly for 18 months to pass the Energy Independence Strategy to protect consumers from the financial hardships of higher energy costs.”

Standing near the state’s electric substation, Governor Rendell directed Department of General Services Secretary James Creedon to implement across-the-board energy conservation measures, including finding ways to conserve more energy in state-owned buildings, increasing the state’s green energy purchase and changing the vehicles the state buys for its fleet.

An extensive energy reduction and conservation initiative in state office buildings that Governor Rendell called for in 2004 has reduced energy consumption by 10 percent annually.

“My goal is to have the commonwealth reduce its energy consumption by an additional 10 percent by the end of 2010,” Governor Rendell said. “Cutting energy consumption by 20 percent in just eight years is a very ambitious goal, but one that we can achieve by implementing these initiatives.”

Specifically, Governor Rendell has directed DGS to:

ENERGY

· Purchase 50 percent Green Power — Increase the commonwealth’s purchase of green power from the current 30 percent of all electricity to 50 percent by mid 2010. The state will increase its purchase of energy from green sources, including solar, wind, geothermal, low-impact hydropower and biomass sources, such as methane from landfills, wood and energy crops. Green power costs are expected to decline while conventional power rates are expected to increase over the next few years. Pennsylvania already is the largest state purchaser of green power; this initiative will solidify that lead. At 50 percent, the commonwealth’s green power use will exceed 500 million kilowatts; enough electricity to power all the homes in Allentown and Easton (50,000).

· Reduce Energy Use by Another 10 percent — Energy consumption in state buildings was reduced by 10 percent in 2006; the commonwealth will reduce energy use by another 10 percent. Energy reduction initiatives include:

· Increasing Office Temperatures By One Degree. Starting this month, the state will raise office thermostats to 75 degrees in the summer, from 74 degrees. The one degree change will reduce energy use by 5.3 million kilowatt hours annually.

· Reduce Energy Use During Peak Periods. The state will begin to review and implement smart meter and load shedding strategies in state-owned buildings to monitor a building’s energy use throughout the day and automatically turning off certain items, such as central air, lamps or hot water heaters that draw energy during peak use times. This measure will set the foundation for effective load management for the future.

· Convert to Sensor Lighting. Transition lights on manual switches to sensor lighting where economically feasible within the Capitol Complex. Sensor lighting has already been installed in some office upgrade projects. All future projects will incorporate sensors. Light sensors will reduce energy use by about 600 kilowatt hours, or $40 per unit annually.

· Use Compact Florescent Lights. The state annually buys 77,000 incandescent lights. Future state contracts will allow only the purchase of energy-saving compact florescent bulbs. Replacing all incandescent lighting with florescent lighting, once existing incandescent bulbs burn out, will reduce energy use by an estimated 61 million kilowatt hours annually; enough to power 6,100 homes.

VEHICLES

· Reduce Fuel Use by Five Percent (367,000 gallons) — By implementing stricter travel controls, such as encouraging carpooling and conference calling, the commonwealth will reduce fuel consumption by five percent, saving 367,000 gallons of gas annually. For example, the Capitol Police will decrease vehicle patrols and increase foot and bicycle patrols around the Capitol Complex.

· Buy Smaller Vehicles — Downsize the type of new vehicle purchased for the commonwealth fleet to improve fuel efficiency. For example, a Ford Taurus will be replaced by a smaller vehicle, such as a Ford Fusion; a Chevrolet Impala will be replaced by a Chevrolet Malibu. During a typical year, the state purchases between 125 and 150 vehicles.

· Continue Fleet Efficiency Initiatives:

· Downsize Total State Fleet. In 2003, there were 16,715 vehicles; in 2008, there are 16,225 vehicles, a decrease of 490 vehicles.

· Extend Vehicle Use. In 2003, vehicles were turned in for auction at 65,000 miles; in 2008, they are kept in use until after 100,000 miles.

· Increase Use of Hybrids. The state has increased the number of hybrids, from zero in 2003 to 53 in 2008. As long as automakers will be able to meet the demand, the state plans to introduce another 50 hybrids into the vehicle fleet next year.

· Reduce SUVs. The commonwealth has reduced SUV use by 30 percent, or 460 vehicles, from 1,585 in 2003 to 1,125 currently in use today. It has also increased its alternative fuel fleet. In 2003, there were 95 alternative fuel vehicles in the fleet compared to 711 alternative fuel vehicles in use today.

“These initiatives show that the commonwealth is a responsible steward of the taxpayers’ money and that we are working hard and making sacrifices to reduce our spending on energy,” Governor Rendell said. “And, we need to make it easier for our families and businesses to conserve energy and use it more efficiently.”

Governor Rendell unveiled the Energy Independence Strategy in February 2007 to protect consumers from rising energy costs, saving Pennsylvania’s families and businesses $10 billion over the next decade. The plan will also leverage $850 million in new investments to attract $3.5 billion in alternative and renewable energy projects and reduce Pennsylvania’s dependence on foreign oil.

“The legislature has been considering this plan for the past year-and-a-half; the longer we delay, the more difficult it’s going to be for consumers to adjust and start saving,” he said.

The Governor urged prompt action by the General Assembly on the following bills:

· House Bill 2201, which is awaiting a vote in both chambers, will require utilities to provide service to customers at the lowest reasonable rate. The bill will require utility service providers to procure power through a mix of short- and long-term contracts and spot market purchases, and obligate the Public Utility Commission to ensure that the procurement process is free of fraud, collusion or market manipulation.

· Special Session H.B. 1, which was adopted by the House on March 11, will provide funding to develop solar, wind and other advanced energy industries; make it easier for consumers to purchase and install solar panels; continue the state’s leadership in energy-efficient green buildings, and give consumers help in purchasing high-efficiency heating/cooling equipment and appliances.

· H.B. 2200 was passed by the House on Feb. 12 and will help consumers save on their energy bills by conserving electricity and using it more efficiently. Once fully implemented, H.B. 2200 will save consumers $1.3 billion by 2012 on their energy bills through conservation and bringing down the cost of electricity during peak load times — when demand is highest and electricity is most expensive.

· H.B. 1202, the Governor’s PennSecurity Fuels Initiative, has been awaiting action by the Senate since June. It requires nearly 1 billion gallons of biofuels to be produced and consumed in the commonwealth—an amount equal to what the state will import from the Persian Gulf by 2017.

“We need to take steps to reduce our demand for energy to help drive down costs,” said the Governor. “That’s true today with oil, and because electricity rates will soon skyrocket, it’s the case with electricity, too.”

For more information on the Energy Independence Strategy, visit www.depweb.state.pa.us and click on the “Fueling Energy Savings” icon.

Source: Pennsylvania Governor