Obama announces energy-saving proposals at Penn State

STATE COLLEGE, Pa. -- President Obama turned from the turmoil in Egypt to his domestic agenda Thursday, proposing a mix of federal incentives to push investments in improving the energy efficiency of commercial buildings.

The president unveiled a new tax credit, a grant program and loan guarantees to encourage businesses to retrofit their buildings to make them use less power, potentially saving $40 billion a year in energy bills.

" Making our buildings more energy efficient is one of the fastest, easiest and cheapest ways to save money, combat pollution and create jobs, " Obama said during a speech at the university 's Rec Building.

The appearance was a follow-up to last month s State of the Union address, which Obama used to urge winning the future by investing in research and innovation, particularly in clean-energy industries.

It also allowed him to bring his economic pitch to Pennsylvania, a perennial swing state sure to be crucial in his 2012 reelection campaign.

Before he spoke, Obama toured energy-research labs on campus where Penn State researchers are developing new technology. The university is leading a consortium of academic institutions, nonprofits and companies that is developing a high-tech energy research hub in the Philadelphia Navy Yard, with $129 million in grant money from the Department of Energy.

" We need you to be just as proud of what you do in the lab as of what your football team does on the field," Obama told the crowd of about 1,500 dominated by students. " Study and work as if the fate of the country depends on you -- because it does."

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Contact politics writer Thomas Fitzgerald at 215-854-2718 or tfitzgerald@phillynews.com.