Gov. Ed Rendell

HARRISBURG — Gov. Ed Rendell on Monday called America's reliance on foreign oil a "prescription for disaster" and said his proposed energy plan will take advantage of the fast-growing alternative energy sector and avert skyrocketing electricity bills.

Rendell's 20-minute address to a joint session of the House and Senate was timed to the week-old special legislative session on energy that he has called in hopes of making electricity cleaner and cheaper.

"In a very real sense, what we do in this special session, the choices we make, will define us as a commonwealth for years to come," the Democrat said.

Republican legislators say they agree with the idea of becoming energy-independent, encouraging alternative energy firms to locate in Pennsylvania and softening the blow of rising electricity bills as decade-old rate caps on electricity expire across most of the state in the next few years.

But they say they will challenge Rendell on the cost of subsidies for the alternative and clean energy industries, as well as who should benefit and how to pay for it.

GOP members have also bristled at the governor's suggestion that his alternative-fuels plan can help wean America off foreign oil and keep it out of wars over energy interests.

"If anybody believes that, I've got an oil well to sell them in Punxsutawney," said Rep. Sam Smith, R-Jefferson.

Rendell's proposal for an $850 million fund to encourage the homegrown production and use of cleaner energy and technology, as well as electricity conservation, is competing with two similar, but less expensive, proposals by the House and Senate GOP.

Rendell wants to require the addition of biodiesel and ethanol to gasoline sold in Pennsylvania if in-state production of those fuels reaches certain levels. He also wants to require utilities to find ways to help customers conserve electricity.

Rendell warned that the cutting-edge alternative-energy companies will go to the states that are willing to offer the biggest incentives. And he said without homegrown alternative fuels, the United States is at the mercy of countries that supply it with oil.

"Common sense tells us this is a prescription for disaster," Rendell said.

Rendell's plan has gained support from farm lobbyists, who say it will spur demand and raise prices for soybeans and corn, but some portions have drawn opposition from the oil and electric industries.

Rolf Hanson, executive director of the Associated Petroleum Industries of Pennsylvania, said the plan would demand a "boutique" fuel that is more expensive to refine. "It sounds great on the surface, but it's not reality," Hanson said.