The Daily Item, Sunbury, PA

News

July 11, 2009

Most 'green' funds won't back ideas

Building repairs account for 55% of Pa.'s stimulus

While the Obama administration touts its goal of creating a green economy, much of the federal stimulus funds targeted for energy independence has been directed toward projects that improve energy efficiency in existing buildings rather than helping entrepreneurs launch alternative energy ventures.

Two Valley weatherization programs will share almost $1 million in stimulus funds, according to Pennsylvania's economic recovery Web site, www.recovery.pa.gov.

Of the $455 million in American Recovery and Reinvestment Act funds Pennsylvania will receive for the promotion of energy independence, $253 million is targeted for the state's Weatherization Assistance Program for home repairs and upgrades that will improve energy efficiency.

SEDA-Council of Governments and Northumberland County officials said they have not been informed how much weatherization money will be provided by the stimulus plan, but the state Recovery Web site suggests the programs are going to receive substantial boosts.

SEDA-COG will receive an additional $574,319 this year in weatherization funds, an almost 20 percent increase to the development agency's $2.7 million budget for work to improve the energy efficiency in homes in Columbia, Juniata, Mifflin, Montour, Perry, Snyder and Union counties.

Northumberland County operates its own weatherization program, which will receive $335,000 in stimulus funds, an almost 60 percent increase over the department's projected budget of $574,725 for the upcoming fiscal year, county officials said.

The president of a local wind and solar company said he hopes the money will begin to flow soon, but neither his company nor Northumberland County's FUTURES program have seen a dime of stimulus funds.

No stimulus funds

for FUTURES yet

Marian Kozak, Northumberland County planning director, recently attended a renewable energy conference in France to market the county's FUTURES program, which includes using the area's abundant coal land to plant switch grass that is converted to biomass energy, and using mine pools of water that can be converted into geothermal energy.

In rolling out the FUTURES program in October, Northumberland County became the first government entity in Pennsylvania to create a five-year plan to develop alternative energy.

At the heart of the program is a plan to sell the county's vast amounts of anthracite coal and use the profits to attract alternative energy businesses to the area for research, development and investment in alternative energy sources.

"Specifically for the green economy, we haven't seen anything at this point," Kozak said.

Two "green" companies

mull offices in Valley park

Two U.S. companies planning to open operations in Mount Carmel Township's SEEDCO Industrial Park are IntelliWatt Renewable Energy, of New Jersey, which is developing a biomass-to-energy project using wood chips and agricultural byproducts; and clean-energy company Northwest BioEnergy, of Harrisburg.

Justin Dunkelberger, CEO of Penn Wind in Sunbury, said since the nation's push for a green economy, interest is high in renewable energy projects.

Though the government has yet to help his company or other area projects, he said there's no reason to give up hope.

"It's a little premature to say there's no money out there," he said, mentioning that legislation was recently passed, programs are being built and applications are being accepted and reviewed. "... We've seen a dozen different Department of Energy programs come out in the last 60 days, and another 60 they will be awarded and others will make way. There's no sense in losing hope."

Dunkelberger said Penn Wind has applied for several grants, but the process is very competitive and he is unsure whether his company will see any money at all.

"It's going to take time for (funds) to hit the street," he said. "But I think (President) Obama is behind it wholeheartedly."

In addition to the weatherization funds, the stimulus money is also being directed toward work to help businesses improve their energy efficiency, including $100 million in Department of Energy funds, said John Repetz, spokesman for the Department of Environmental Protection. So far, only five projects have received money. These projects were awarded at the end of March through the Pennsylvania Energy Development Authority grants.

The closest recipient is Williamsport Hospital, which received a grant for a renovation project involving replacement of burners and heating and air conditioning.

Another round of PEDA grants, bringing the total to $21 million, will be announced the end of this month, Repetz said.

The remaining funds from the original $100 million will be divided among other projects and programs with both renewable energy projects and energy efficiency projects.

"We're opening the programs up and saying this is the amount of money available for these types of projects," Repetz said. "We're moving in the direction of getting money from the federal government."

n E-mail comments to gmorton@dailyitem.com

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