New Investments in Energy Efficiency Will Help Small Businesses Control Energy Costs,...

New Investments in Energy Efficiency Will Help Small Businesses Control Energy
Costs, Solidify Financial Foundation

First Investments through $650 Million Alternative Energy Investment Fund Now
Available

YORK HAVEN, Pa., Jan. 12 /PRNewswire-USNewswire/ -- Pennsylvania's small
businesses can cut costs by improving their energy efficiency through the
state's recently created Alternative Energy Investment Fund, acting
Environmental Protection Secretary John Hanger said today.

Hanger announced the opening of the $3 million Small Business Energy
Efficiency Grant Program -- the first program available through the $650
million fund signed into law by Governor Edward G. Rendell last July.

Hanger noted that small businesses that work to improve energy efficiency
today will be better positioned to compete down the road.

"Small businesses need to cut their costs now more than ever," said Hanger.
"Firms that commit to using energy wisely will be able to weather the current
economic uncertainty, enhance their competitiveness, and be better prepared to
manage rising electric rates.

"The Small Business Energy Efficiency Grants, and other programs through the
Alternative Energy Investment Fund that will be announced in coming months,
are part of Governor Rendell's commitment to create good jobs, secure our
energy independence, and foster a cleaner environment."

Hanger unveiled the new grant program at Die-Tech Inc., a precision metal
stamping company that is evaluating energy-efficiency upgrades to its heating
and cooling system.

To qualify for a Small Business Energy Efficiency grant, projects must save at
least 20 percent of the applicant's annual energy costs and at least $1,000 a
year in energy costs. The grants will provide up to 25 percent of project
costs, with a maximum grant of $25,000.

Beginning today, applications are available at www.depweb.state.pa.us,
keyword: Small Business Energy Efficiency Grant Program. Applications will
also be available by contacting the Department of Environmental Protection,
Office of Energy and Technology Deployment, 15th Floor, Rachel Carson State
Office Building, 400 Market St., P. O. Box 8772, Harrisburg, PA 17105-8772.
Applications can also be obtained by calling (717) 783-8411 or e-mailing
ra-sbgrants@state.pa.us.

Applications must be received by May 1. Grants will be awarded to eligible
applicants on a first-come, first-served basis until the $3 million in
available funds are depleted.

Grants will apply to energy efficiency improvements on systems such as
lighting, heating, cooling, refrigeration and process machinery, as well as
building insulation and weatherization improvement projects.

Only project costs incurred today and in the future are eligible for funding.

An eligible applicant must be an independent, for-profit small business with
100 employees or fewer whose business or facility is located within
Pennsylvania. Examples of small businesses in Pennsylvania that are eligible
include manufacturers, retailers, service providers, mining businesses and
agricultural operations.

The Alternative Energy Investment Fund will make $650 million in new capital
available to enable Pennsylvania to compete more effectively in the global
clean energy economy, with more than $237 million targeted toward helping
families and small businesses conserve electricity and manage higher energy
prices.

Other Alternative Energy Investment Fund programs are now in development. Of
the $650 million fund, $500 million will be provided through bond financing
through the Commonwealth Financing Authority. The highly anticipated
Pennsylvania Sunshine Program that will provide up to 35 percent of the costs
for residential and small business solar energy projects will be available
once the bond is issued.

A Residential Energy Efficiency Loan and Rebate Program is expected to be
available in the near future. The residential and small business energy
efficiency programs will work in conjunction with energy conservation measures
that are part of Act 129, another cornerstone of Governor Rendell's original
Energy Independence Strategy.

Act 129, signed by Governor Rendell in October, requires utilities to adopt
and implement cost-effective plans to cut electricity use 1 percent by 2011
and 3 percent by 2013. Utilities must also implement plans to cut energy use
4.5 percent during peak demand periods when market prices are highest --
typically the hottest days of summer and the coldest days of winter-- by 2013.

"By reducing demand for electricity through energy efficiency and
conservation, and by increasing the supply of clean energy, we will be able to
help hold down the market prices for electricity," Hanger said. "Act 129 alone
will save energy consumers $500 million over the next five years and up to
$800 million annually beginning in 2013. These savings, along with recent
declines in fuel costs, if sustained, will likely moderate the expected cost
increases when rate caps expire statewide at the end of 2010.

"However, we must do more to alleviate what will be a significant hardship for
our businesses and families," said Hanger. "Policies to mitigate further rate
increases remain necessary and Governor Rendell has repeatedly urged members
of the General Assembly to make this one of their first orders of business in
2009."

For more information, visit www.state.pa.us, keyword: Small Business Energy
Efficiency Grants Program.

CONTACT: Teresa Candori
(717) 787-1323

SOURCE Pennsylvania Department of Environmental Protection

Teresa Candori of PA Department of Environmental Protection, +1-717-787-1323