by Jen Quinn
House Bill 1100 (huge tax credit to subsidize the development of the petrochemical industry)
After passing the House last September, this bill had been idling in the Senate Appropriations Committee until late January. On February 3rd ,it was amended and the amendment actually makes it easier for facilities to qualify for the tax credit by lowering the needed capital investment from $1 billion to $450 million and reducing the workforce hiring requirements from 1,000 to 800.
The amendment also changed the unit of measure for the tax credit from gallons of methane used to Mcf (1,000 cubic feet) of methane used during production. This change has reduced the tax credit from $26 million per year per facility to $6 million per year per facility, which is still quite a significant amount considering the tax credit extends all the way to 2050, and given this discrepancy there’s concern as to what the actual fiscal impact of this bill could be.
After being amended in the Senate, Hb 1100 passed the Senate 39-11. Yes, you read that correctly. Only eleven Senators voted against this bill. Since it was amended in the Senate, the bill had to go back to the House for a concurrence vote where it passed by another shocking margin: 157-35.
You might be asking yourself, 'why would so many elected officials vote for such a terrible bill?' Well, some unions are very supportive of this bill and they have been putting a lot of pressure on elected officials to vote for this bill and clearly, that pressure worked.
The Governor has said he will veto this bill, but we're not sure when that will happen. Both chambers of the legislature have recessed until March 16 without sending the bill to the Governor's desk so we're not sure how long they're going to hold onto it. If the Governor vetoes this bill, there’s a chance that Republicans will push for a vote to override the veto. Keep in mind they would need a 2/3rds majority in both chambers. If this bill is vetoed and the vote to override the veto isn’t successful, there’s a good chance this tax credit will be included in the 2020-21 fiscal year budget which the General Assembly should be finalizing this Summer.
Governor's Budget Proposal
For the first time in a decade, the FY 2020-21 General Fund budget for DEP is proposed to be funded above 1994-95 levels. The proposal provides $171.6 million in General Fund support for DEP, above where it was in 1994-95-- $165.6 million. Keep in mind, if the General Fund appropriation from 1994-95 had just kept up with inflation with no other increase, the appropriation to DEP would now be $285.67 million.
Some specifics:
$1.5 million for 15 new Air Quality Program staff
$1 million million for 10 new staff to implement Chesapeake Bay Clean Water Plan
$1/ton increase in the municipal waste tipping fee to provide $22.6 million to fund Hazardous Sites Cleanup Fund
$2.5 million for 25 new staff members at DCNR
Changes in Republican Leadership
There are some big changes coming in Republican leadership in the General Assembly. In January, Speaker Turzai announced that he will not be seeking re-election, and then in February, Senate President Pro Tempore Joe Scarnati announced he also won’t be seeking re-election.
We're wondering how this announcement will impact the upcoming budget battle? Will the rumored replacements for the Speaker (Rep.Stan Saylor, Rep.Kerry Benninghoff) be better or worse? And we can ask the same about the possible replacements for Senate President Pro Tempore, rumored to be Sen.Camera Bartolatto or Sen. Lisa Baker. This shake up in leadership doesn’t change the make-up of the Republican Caucus, but it will be interesting to see how the Caucus operates without the influence of Speaker Turzai and Sen. Scarnati.
Community Solar
Community solar bills with strong bipartisan support were introduced in both the House and Senate last year. The House version, HB 531 has over 87 cosponsors and the Senate bill, SB 705, has 22 cosponsors.
Community solar allows customers, whether they’re residential, businesses, farms, churches, etc., to subscribe to a portion of an offsite solar project and receive a credit on their electric bill based on how much power is produced, just as if the solar panels were on their property. This would give people who rent, have a shady property, or just can afford the upfront cost of a solar project the choice and opportunity to acquire solar energy through a community solar array and to save money on their electric bills.
HB 531 has been stuck in Rep. Brad Roae’s Consumer Affairs Committee for over a year, but many groups have been working to get this bill unstuck, and we’re hopeful it will get a Committee vote soon and a floor vote in the General Assembly, where it should pass.
Electric Vehicle Infrastructure
The Pennsylvania Clean Transportation Infrastructure Act (SB 596) provides a plan for the commonwealth’s transportation future that provides economic growth, cleaner air, and consumer benefits for Pennsylvanians. It would broaden the ability of electric utilities to develop charging stations for electric vehicles, leading to more charging stations and stations at strategic, accessible locations. This should help to reduce ‘range anxiety’ and increase the number of electric vehicles on the road.
This bill passed the Senate in November 2019 but has been stuck in Rep. Brad Roae’s Consumer Affairs Committee for the past few months. We’re optimistic that this bill can be passed before this legislative session ends.