Session Daze - February 6, 2009

Gas for Green
A coalition of environmental and conservation organizations is urging the state's elected officials to invest a portion of a proposed severance fee on Marcellus Shale gas drilling in Pennsylvania into parks, forests, watersheds, open space and other green infrastructure. Governor Rendell called for the fee in his budget address on Wednesday. The proposed fee is identical to one that West Virginia has charged on natural gas since 1987. Thirty-nine states charge some form of severance fees or taxes on natural resource extraction.

As gas drilling risks our precious natural resources, the proposed fee on drilling provides an opportunity to create green jobs and invest in a lasting green legacy.

Since 1955--and through seven recessions--Pennsylvania's elected leaders have used revenues from oil and gas drilling in state forests for investment in conservation and green infrastructure assets for the benefit of all citizens. The proposed budget diverts $174 million of the $190 million in drilling lease revenue into the General Fund and away from Department of Conservation and Natural Resources projects.

Even before the state budget imploded with our faltering economy, the Environmental Stewardship Fund, created by Growing Greener legislation, had been reduced by 40 percent, or $29 million annually, to pay off bond debt. And $174 million - or 92 percent - of the Oil and Gas Lease Fund is scheduled to pay for general state operations, leaving environmental infrastructure needs unmet.

The natural gas severance fee can create an opportunity to reinvest in our natural resources - to protect our streams, safeguard our drinking water, restore our parks and conserve our productive farms and community open spaces

Code green
Governor Rendell's budget address did feature two green highlights. He saluted and endorsed the landmark clean energy legislation being introduced by Representatives Greg Vitali (D-Delaware) and Chris Ross (R-Chester) as House Bill 80, and Senator Edwin “Ted" Erickson (R-Delaware and Chester) as Senate Bill 92. Rendell also advocated the passage of a “Pennsylvania Green Building Code." Green buildings substantially reduce energy and water usage, cut global warming pollution, reuse materials and generate less waste.

Raising a stink
Earth Justice is representing PennFuture and other parties in the United States Court of Appeals for the District of Columbia Circuit in a challenge to last minute factory farm regulations put in place by the Bush Administration. The regulations exempt these facilities from federal reporting requirements designed to alert the government and public to toxic air emissions that may pose a threat to public health. PennFuture's staff attorney Kimberly Snell-Zarcone is leading our Responsible Farming campaign.

It's not what you think
While some are discussing frightening specters of 4-figure electricity bills and families sitting the dark, the reality of electricity rates post rate caps shows a different picture. While some rates will go up, that hasn't been the experience so far.

This week, the Pennsylvanian Public Utility Commission approved non-capped rates for customers in the Penn Power service territory (western Pennsylvania bordering Ohio) that are lower than the capped rates for every class of customer but those who heat their homes with electricity.

What's even more amazing about this (and the lower non-capped rates in the Duquesne Light territory), is that since the rates were capped on December 31, 1996, consumer price inflation and social security checks are up about 40 percent.

Yesterday PennFuture President and CEO Jan Jarrett discussed the expiration of electricity rate caps and the development of renewable energy before the House Consumer Affairs Committee chaired by Representative Joe Preston (D-Allegheny). Jarrett's testimony was part of the committee's informational meeting on electric utilities.

More good choices
Customers choosing to purchase wind power voluntarily helped get the wind industry off the ground in Pennsylvania, and continue to provide valuable support. Allegheny Power's Pennsylvania customers can now join the party too. The new Winds of Change program allows customers to support wind by purchasing wind energy credits at $2.50 per block.

Podcast of the Week: Exhilarated, exhausted
As a proud member of Steeler Nation, the podcast is still in recovery mode from the Super Bowl win and the amazing parade, suffering from laryngitis from cheering the team on. So look for a new podcast next week.

You can have PennFuture podcasts download automatically to your desktop or iPod. Just download the free software iTunes and follow the directions to subscribe to PennFuture's podcasts.