States Use Incentives To Advance Clean Energy Production

Amid the growing interest in clean energy, some states are creating large economic incentive packages -- tying green goals to job creation and increased state revenue -- to promote and develop the fledgling industry.

"We're just at the beginning, the dawn of energy independence," said Steve Frenkel, senior policy adviser for Illinois Democratic Gov. Rod Blagojevich, who proposed an extensive energy program in August.

"We've got the technology right in our own backyard."

Blagojevich's plan totals $1.2 billion over the next 10 years, to develop the renewable fuels industry and replace 50 percent of the state's energy supply with homegrown fuels by 2017. The program establishes financial incentives and invests $200 million to build over 20 new ethanol and biodiesel plants.

Frenkel describes the program, projected to create 30,000 new jobs and generate $1.7 billion from business investment, as a "win-win for clean air, for jobs, for the environment and for the state as a whole."

Pennsylvania Democratic Gov. Ed Rendell proposed a similar initiative in February, and this month announced an additional $31.4 million in grants to businesses, organizations and individuals who help develop and use clean energy technology.

"We want to save over $1 billion over the next 10 years in energy costs," said Susan Woods, director of communications for Pennsylvania's Department of Environmental Protection. "We want to expand our energy production sector."

According to Glen Andersen, researcher at the National Conference of State Legislatures, developing the clean energy industry is seen as a broad economic measure for states, which also hope to benefit from reducing reliance on imported energy and stabilizing energy prices.

The economic and environmental combination is "certainly one of the most popular" when promoting clean energy, Andersen said.

Wisconsin and Iowa have also proposed initiatives to promote energy efficiency and expand the clean energy business sector, each through the creation of an energy independence office.

Late last week, the Iowa Senate approved the creation of a $100 million Iowa Power Fund, which will work with the energy independence office to help research, develop and commercialize renewable energy.

By Jessica Arriens