The State Legislature negotiated last minute packages that would provide tax credits natural gas technology that will create a new program to encourage the development of technology to convert fracked gas into hydrogen through $141.6 million a year in tax credits.

The package within HB1059 provides:

$50 million annually for a federally designated regional clean hydrogen hub. The amendment stipulates that a developer must have been selected for an award by the federal Department of Energy to do the project, invest at least $500 million in the project, create a minimum of 1,200 permanent jobs and give priority to hires in the local job market.

A $30 million increase in the amount available under the current tax credit for using natural gas to make petrochemicals or fertilizer. The amount goes to $56.6 million annually from $26.6 million annually.

$20 million in tax credits annually to support semiconductor and biomedical manufacturing.

$15 million in tax credits annually to support milk processing facilities.

The idea of Pennsylvania becoming a hydrogen was an item of discussion during a recent Senate ERE Committee held a public hearing to discuss carbon capture technology in Pennsylvania. Committee Chairman Gene Yaw (R-Lycoming) said he decided to hold a hearing on carbon capture technology by virtue of its popularity and public interest.

Minority Chair Carolyn Comitta (D-Chester) explained the Senate has learned much about carbon capture technology as well as businesses' interest in creating a regional hydrogen hub within Pennsylvania under federal infrastructure law. She noted there is a wide range of views on the topic within the environmental and business communities. Comitta called for legislatures to ensure "the promise aligns with reality." She stated that many communities are still managing the effects of gas drilling and pipelines. "We need to have our eyes wide open," she said. Chair Comitta remarked that Pennsylvania's goal is to have net zero carbon emissions by 2050. She stated carbon capture technology may be part of the solution to the state's goal, but there is a multitude of solutions. She commented that any technologies used to bring Pennsylvania to net zero carbon emissions must maintain peoples' health and communities in an equitable manner.

Chairman Yaw commented that the state cannot fully utilize green energy without fossil fuels or mining. "I don't know where people think all the elements come from that we use to build batteries and everything else," he said. Chairman Yaw explained he does not believe in exploiting other countries to gain their natural resources. He detailed he opposes the Regional Greenhouse Gas Initiative (RGGI) because it eliminates jobs, while carbon capture creates jobs.

Ramez Ziadeh, acting secretary, Department of Environmental Protection (DEP), highlighted the potential impacts of decarbonizing the industrial sector in the state. He detailed the industrial center has increased its emission of greenhouse gases by eight percent from 2016 to 2019. Sec. Ziadeh said the department is "color blind" in regard to blue or pink hydrogen but endorses the use of hydrogen technology to reduce carbon emissions. He described current the permitting process for carbon capture and storage, as well as methods of "streamlining" the permitting process for those technologies. He explained the department would need additional personnel to administer permitting for carbon capture and technology activities. Sec. Ziadeh said he would support legislation to expand permitting if it conforms to federal standards.

Dr. Gale Blackmer, director, Bureau of Topographic and Geologic Survey, Department of Conservation and Natural Resources (DCNR), explained the bureau works to provide basic geologic data to move carbon capture storage forward. She stated the bureau is working through partnerships to develop best practices. Dr. Blackmer continued the bureau maintains a database of the state's geology and works to form a 3D geologic map. She remarked that any sequestration will require the use of pipelines and her bureau will work to make sure those pipelines are geologically sound.

Matt Mangum, carbon capture and storage business opportunity manager for Shell, explained his company has a "deep global commitment to decarbonization." He added the company is using its global capabilities to mature the potential for decarbonization, with demonstrated success. Mangum pointed out that Shell recently built a plant in Beaver County to create 600 permanent jobs and has invested more than $1.7 million in Pennsylvania's education, conservation, and other social investments. He said Shell has plans to create an end-to-end decarbonization hub within Pennsylvania if investments and actions are taken at the right pace with the market, alongside the correct legislative framework. He detailed the region's natural potential for carbon capture and sequestration. He urged Pennsylvania to create the basic legislative and regulatory building blocks to allow Shell to invest in the area. "With the right combination of industry leadership, exemplary private-public partnership, and the appropriate legal framework, we are poised to build a hub that could serve as an example for the rest of the country," he said.

The bill passed both chambers, and was signed into law on November 3.  

Earlier this summer, the House Democrats took the opportunity to solicit public input on ways to meet future energy needs while lessening the state’s dependence on fossil fuels. Experts testified before the Committee, touting what they saw as the numerous benefits of fusion power and its potential to drive job creation as well as offer consumers a clean baseload energy source.

“I wanted to host this hearing because I wanted to be a part of a conversation with experts to learn about fusion, and – more importantly – understand how Pennsylvania industries could expand with fusion,” state Rep. Emily Kinkead (D-Allegheny) said. “Fusion has the potential to be a clean, sustainable option more closely aligned with renewable energy that could not only be the future for electrical power but also manufacturing and job creation in PA and the U.S.”

Kinkead hosted the hearing on the low-carbon, clean-energy source that is more powerful than conventional fission energy. Today’s hearing, titled “Powering Pennsylvania: Fusion Energy,” was held at the K&L Gates Center in Pittsburgh.

“We learned about the potential of fusion energy today,” Policy Chairman Ryan Bizzarro (D-Erie) said, “and while harnessing electricity through fusion has not yet become a reality, when you are talking about an industry that has the potential of being worth hundreds of billions of dollars and a foundation for the future of U.S. manufacturing, Pennsylvania state lawmakers need to pay attention.

The hearing featured a panel of experts in fusion energy.

“It is inherently safer than fission,” testified Matt Moynihan, who has a doctorate in inertial confinement fusion and formerly worked as a senior nuclear engineer at the Bettis Atomic Power Laboratory in Pittsburgh. “Fusion energy sources mean no meltdowns, no long-lived nuclear waste and no weapons risks. Importantly, fusion power has major implications for fighting climate change as a clean baseload energy source.”

The fusion industry has the potential to be a new industry driving job creation as well as the potential to be worth tens – if not hundreds – of billions of dollars if a private fusion energy company does something new, Moynihan said. He explained the emerging fusion industry currently consists of about 30 startup companies racing to find a way to harness fusion for electricity. At the moment, a machine can be purchased for about $1 million that can be used for commercial applications and perform fusion for about 132 continuous hours, but it cannot yet harness electricity.

“The growing fusion supply chain will have benefits outside of the fusion industry,” said Mac Hatch, vice president of strategy at MetOx Technologies – a company that develops high temperature superconducting, or HTS, wire technology. “States like Pennsylvania have an opportunity to take a leading role in this transformation and benefit from the associated jobs and investments that come with it.”

Promoting the Pennsylvania workforce and making headway on a decades-old environmental problem in the commonwealth is the basis of legislation authored by state Rep. Jim Struzzi (R-Indiana) that is a governor’s signature away from becoming law.

“For far too long, we have basically ignored our orphaned oil and gas wells, which now number somewhere in excess of 200,000, and simply relied on the Department of Environmental Protection, which reduced the list by only 20 over the last two years,” said Struzzi. “Aggravating the situation is local companies who could be addressing the problem being ignored in favor of out-of-state entities, which is a slap in the face to the Pennsylvania worker.”

Struzzi’s House Bill 2528, which passed the House unanimously and the Senate overwhelmingly this week, would allow any Pennsylvania company to bid for a contract awarded by DEP for plugging oil and gas wells, regardless of the size of the business.

“I need to thank my Senate colleagues, who amended the bill to address certain House members’ concerns, which is reflected in this week’s unanimous vote,” Struzzi said. “Pennsylvania well-plugging companies deserve a fair shake when it comes to the more than $400 million headed our way from the federal government and targeted at resolving the problem. This is a pro-jobs, pro-small business and pro-Pennsylvania bill that needs to find its way into law. Gov. Tom Wolf can make that happen.”

As you know, the RGGI initiative is being considered by the courts and the state is prohibited from joining the compact per an order in July by the Commonwealth Court. The order from Judge Michael H. Wojcik of Pennsylvania Commonwealth Court again stops the state from implementing, administering, or enforcing a final rulemaking that would put Pennsylvania into the Regional Greenhouse Gas Initiative. The Department of Environmental Protection and the Environmental Quality Board appealed the decision to the state Supreme Court, which in early September denied that motion.

However, a final decision by the Commonwealth Court will almost definitely be appealed to the PA Supreme Court. If/when that happens the case will be heard with a new member and Chief Justice due to the death of Chief Justice Max Baer last month. In the meantime, arguments in Commonwealth Court continue in two separate cases, one brought by the Republican lawmakers, the other by a coalition of energy and labor groups - the latter of which will not be heard until November 14th.

The legal battle(s) have stopped PA from three carbon-allowance auctions held this year and essentially is an overall pause to the DEP’s plans for over 2 dozen qualifying power plants with a capacity of 25 megawatts or more to start tracking their emissions.  If the courts do decide in favor of the Administration’s rule to enter RGGI, those plants will have to buy a credit for every ton of carbon dioxide they emit to acquire CO2 allowances equal to the amount of CO2 they emit. As stated by DEP - Power plants must start accounting for their CO2 emissions starting on July 1, 2022. Facilities have until March 1, 2023, to account for 50 percent of their 2022 emissions and until March 1, 2024, to account for 100 percent of their 2022 emissions. Power plants will be required to have 50 percent of their 2022 required allowances by March 1, 2023, and 100 percent of required allowances by March 1, 2024. The most recent modeling from the Department of Environmental Protection expected RGGI to raise about $200 million in 2022, had the state joined at the beginning of the year. The state can use the money raised to boost clean energy and efficiency measures.

RGGI has been at item of focus in the Gubernatorial election for PA this year between Democrat candidate Josh Shapiro and Republican Doug Mastriano. Mastriano is solidly opposed to RGGI, and surprisingly Shapiro has not fully endorsed Governor Wolf’s approach. However, he has stated he is open to “discussions” on the benefits of the compact.

The RGGI argument between Governor Wolf and the Republican Majority of the Senate led to the latter refusing to appoint new members to fill two vacancies on the PA Public Utility Commission’s five member board. However, there was a recent agreement to fill the vacancies with two Democrats and the re-appointment of a Republican whose term was set to expire.

While the court decisions are litigated, there are already discussions and legislation introduced on how allocate those funds if PA does enter RGGI. Specifically, the “RGGI Investments Act” introduced by Senator Carolyn Comitta, the Democrat Chair of the Senate ERE Committee.  There are not enough Session days this year for this legislation to be passed, but will almost certainly be introduced when they return in 2023. The proposal would establish funds to disburse the estimated $300 million in annual revenue accordingly:

• 37.5% to the Energy Communities Trust Fund;
• 12.5% to the Environmental Justice Communities Trust Fund;
• 46% to the Clean Air Fund divided as follows:
• 56% to the Greenhouse Gas Abatement, Energy Efficiency, and Clean and Renewable Energy Investments Account
• 44% to the Commercial and Industrial Energy Efficiency Account;
• 4% for administration of the program.

On October 20, the Independent Regulatory Review Commission (IRRC) met to consider regulations.

Chairman George Bedwick, and Commissioners John Soroko and Dennis Watson were in attendance. Vice Chairman John Mizner and Commissioner Murray Ufberg voted by proxy.

The Commission approved the following regulations, among others:

IRRC No. 3263 State Architects Licensure Board #16A-4111: Digital Signature and Seal was unanimously approved.

Corinne Brandt, regulatory analyst,  described how the regulation updates current regulations on seals to be consistent with other design professional boards and incorporates the National Council of Examiners for Engineering and Surveying Model Rule on seals on documents. She stated the appropriate standing committees approved the regulation.

Bill Fritz, board counsel, State Architects Licensure Board (ALB), State Registration Board for Professional Engineers, Land Surveyors and Geologists, and State Board of Landscape Architects, asserted every one of his agency's architecture drawings utilizes an official seal. He commented ALB is trying to update its procedures to resemble those found throughout the country. He added ALB collaborated with the Department of Transportation and other agencies to develop the regulation. 

3264 State Registration Board for Professional Engineers, Land Surveyors and Geologists #16A-4712: Digital Signature and Seal was unanimously approved.

Michelle Elliot, regulatory analyst, noted the regulation updates current regulations on seals to be consistent with other design professional boards and incorporates the National Council of Examiners for Engineering and Surveying Model Rule on seals on documents. She stated the appropriate standing committees approved the regulation.

Fritz declared the rationale for the regulation is the same as the previous regulation.

IRRC No. 3265 State Board of Landscape Architects #16A-6112: Digital Signature and Seal was unanimously approved.

Laura Campbell, regulatory analyst,  outlined that the regulation updates current regulations on seals to be consistent with other design professional boards and incorporates the National Council of Examiners for Engineering and Surveying Model Rule on seals on documents.

Fritz declared the rationale for the regulation is the same as the previous two regulations.

HB 1059  RE: Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits (by Rep. David Hickernell, et al)

Amends the Tax Reform Code, in personal income tax, increasing the personal income tax threshold for estimated payments from $8,000 to $20,000 for taxable years beginning after December 31, 2022. Replaces dollar amounts for taxable years 2022-27. For taxable years after December 31, 2027, the amount shall annually increase by $500, with the department providing notice of the new amounts to the Legislative Reference Bureau. Updates language and technical sections to reflect these changes.

Reported as amended from Senate Appropriations Committee, read third time, and passed Senate, 10/26/2022 (41-8)
Received as amended in House and rereferred House Rules Committee, re-reported on concurrence as committed from House Rules, and House concurred in Senate amendments, 10/26/2022 (139-59)
Signed in the House and in the Senate, 10/26/2022

In the hands of the Governor, 10/27/2022

Signed by the Governor, 11/3/2022 (Act No. 108 of 2022)

 

HB 2404  RE: Stream Maintenance Package (by Rep. Clint Owlett, et al)

Amends the Dam Safety and Encroachments Act requiring the Department of Environmental Protection (DEP) to establish continuous maintenance permits for the Department of Transportation (PennDOT) or municipalities to use to maintain, inspect and monitor watercourses, water obstructions, appurtenant works, and encroachments as specified within the permit. Provides DEP shall approve an application if an applicant is without a sustained history of significant permit violations and takes an affirmative duty over watercourses, water obstructions, appurtenant works, and encroachments delineated in the permit application. Provides applicants with a permit may amend the permit through addition or removal of water structures; permittees may not be required to seek preapproval or further authorization by DEP for maintenance conducted under the permit; the permit shall provide for the maintenance, inspection, and monitoring of water structures in accordance with previously prepared applicable plans, specifications, reports, and designs for the structure's operation. Provides permittee municipalities shall provide a yearly compilation of the projects it has undertaken by January 15 of each year. Provides permits shall last no less than 10 years. For 10 years of operation with a permit, DEP shall extend the permit an additional 10 years. DEP may impose terms and conditions on construction methods, operation, maintenance, inspection, and monitoring to ensure compliance with the act. The municipality granted a permit shall accept responsibility for maintaining, inspecting, and monitoring the water structures.

Reported as committed from Senate Environmental Resources and Energy Committee, and read first time, 10/18/2022
Read second time, and Rereferred to Senate Appropriations Committee, 10/19/2022

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HB 2405  RE: Stream Maintenance Package (by Rep. Tina Pickett, et al)

Amends the Dam Safety and Encroachments Act amending definitions to provide definitions for drainage area and regional curve and amend the definition for the department. Provides county programs for removing obstructions and flood-related hazards on streams. Provides a county may develop a program to provide two regional curves for the watershed to cover the entire county, the first curve for rural areas and the second curve for portions of streams located in municipalities. Provides the county shall submit a written notification to the Department of Environmental Protection (DEP) that describes the program it developed. Provides DEP shall conduct at least one annual follow-up review of the county's program to determine effectiveness and compliance. DEP shall develop a training program for conducting channel maintenance for the purpose of a program, upon completion of the training program. Provides a county conservation district may authorize emergency permits to persons operating within a developed program . The Environmental Quality Board shall promulgate regulations for the removal of obstructions and flood-related hazards on streams by counties, municipal equipment workers, and contractors operating as agents of the counties and the board may consider existing county programs for the same or similar purpose.

Reported as amended from Senate Environmental Resources and Energy Committee, and read first time, 10/18/2022
Read second time, and Rereferred to Senate Appropriations Committee, 10/19/2022

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HB 2406  RE: Stream Maintenance Package (by Rep. Jonathan Fritz, et al)

Amends the Dam Safety and Encroachments Act amending definitions to provide definitions for flood-related hazards. Provides for small stream maintenance project permit. Small stream maintenance permits shall be established and authorized for mitigation of flood-related hazards of less than 250 linear feet or an area of less than one acre in size. The Department of Environmental Protection shall delegate permit review and approval responsibilities to county conservation districts. Provides an application shall include information on the project and the department may not require an applicant to specify professional engineering services or similar qualifications for proposed projects. Provides a county conservation district shall grant a permit if the district determines the proposed project complies with the act and related regulations. Provides no fee may be required for the permits.

Reported as committed from Senate Environmental Resources and Energy Committee, and read first time, 10/18/2022

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HB 2407  Stream Maintenance Package (by Rep. Joseph Hamm, et al)

Amends the Dam Safety and Encroachments Act establishes that the Pennsylvania Fish and Boat Commission (PFBC) has no authority or jurisdiction related to stream maintenance or clearing activities within the commonwealth. Provides PFBC may only enforce stream maintenance or clearing activities when there is a potential violation under 30 Pa.C.S. (Relating to Fish) due to a person not having a valid permit or conducting an activity that was not authorized by the permit. Provides that no approval or authorization from PFBC shall be required for any stream maintenance or cleaning activities and that the Department of Environmental Protection may not delegate its authority related to stream maintenance or clearing activities to PFBC. Provides nothing in the act shall be construed to prevent the PFBC from being involved in an advisory capacity with permits and plans regarding the construction or installation of new bridges or culverts. Provides PFBC shall not find that a stream maintenance or clearing activity violates 30 PA.C.S. if the stream maintenance or clearing activity is general maintenance of a bridge or culvert. PFBC shall not enforce a penalty for a violation under 30 Pa.C.S. until they contact DEP and the relevant County Conservation District to ensure that the stream maintenance or clearing activity was not authorized by a valid permit.

Reported as committed from Senate Environmental Resources and Energy Committee, and read first time, 10/18/2022

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SB 1360  RE: Payment of Municipal Stormwater Assessments by the Commonwealth (by Sen. John DiSanto, et al)

Amends Title 53 (Municipalities Generally), in municipal authorities, further providing for purposes and powers.

Introduced and referred to Senate Local Government Committee 10/24/2022

HB 609  RE: Engineers Licensure (by Rep. Joe Emrick, et al)

Amends the Engineer, Land Surveyor and Geologist Registration Law further providing for definitions, for continuing professional competency requirements and for exemption from licensure and registration. The bill establishes a competency requirement for the completion of distance learning courses if the course relates to professional practice, and if it is verifiable and measurable by hours of instruction. Further, the act shall not be construed to require the licensure and registration of the practice of engineering or land surveying by a regular employe or agent of an electric cooperative corporation in connection with the facilities of the electric cooperative, provided that the electric cooperative corporation or agent thereof either shall employ at least one professional engineer or professional land surveyor or belongs to a Pennsylvania electric cooperative association that employs a professional engineer or professional land surveyor. The exemption is removed for the practice of engineering, land surveying or geology by any person or by any employe of any copartnership, association or corporation upon property owned by such person or such copartnership, association or corporation, unless such practice affects the public safety or health or the property of some other person or entity. Provides an exemption for the practice of engineering, land surveying or geology work by the employees, contractors or agents of cable service, VOIP, broadband internet or other service delivered over a cable system, a provider of enhanced telecommunications system, or a provider of telecommunications services if those services are in connection with or incidental to products of, or non-engineering, land surveying or geology services, rendered by the company. Exempts activities by licensed landscape architects and geologists.

Reported as amended from Senate Consumer Protection & Prof. Licensure Committee, and read first time, 10/18/2022
Read second time, and rereferred to Senate Appropriations Committee, 10/19/2022
Reported as committed from Senate Appropriations Committee, 10/26/2022

SB 1341  RE: Engineer Board Updates (by Sen. Lisa Baker, et al)

Amends the Engineer, Land Surveyor and Geologist Registration Law, further providing for definitions, procedure for licensing as professional engineer, continuing professional competency requirements, fees and penalties. Amends the definition of "practice of engineering." Adds "engineer intern" to definitions. Amends language, replacing "engineer in training" with "engineer intern." Provides for the procedure of licensing as a professional engineer, first requiring certification as an engineer intern and outlines expectations. Outlines continuing professional competency requirements, including completion of distance learning courses.

Introduced and referred to Senate Consumer Protection & Prof. Licensure committee, 10/3/2022

 

 

HB 2398  RE: Highly Automated Vehicles (by Rep. Donna Oberlander, et al)

Amends Title 75 (Vehicles), providing for highly automated vehicles (HAVs). Provides for content and effect of certificate of title, platooning, accidents involving death or personal injury, accidents involving damage to attended vehicle or property, duty to give information and render aid, immediate notice of accident to police department, promulgation of vehicle equipment standards, requirement for periodic inspection of vehicles, and width of vehicles. Provides for operations, limitations, and safety regulations of HAVs. Provides nothing in the chapter will prohibit an HAV driver from controlling all or part of the dynamic driving task (DDT) or prohibit an HAV from operating without a driver. Provides for the operation of HAVs with an HAV driver and provides an HAV driver must be properly licensed. Tasks the HAV Advisory Committee with providing special reports to the General Assembly and posting the reports on the Department of Transportation's website. Provides for the operation of highly automated motor carrier vehicles and for the operation of highly automated transportation network services. Provides highly automated motor carrier vehicles and transportation network services must be authorized by state law, including having a valid commercial driver's license. Establishes provisions relating to licensing and registration, insurance, control, and regulations relating to HAVs. Updates existing language to reflect changes. Provides, in section 102, relating to definitions, a definition for certificate holder and removes definitions of highly automated work zone vehicle and platoon. Replaces references to "owner" of HAV with "certificate holder" and references to "subchapter" with "title" throughout the bill. Removes the definition of the certificate holder in section 8501. Removes section 8502 (a) heading and (b) in its entirety. Amends section 8508(f) to clarify the insurance amount of $1,000,000 is per incident. Amends language to provide clarity and change references to section 1106(b)(12) to section 1106. Amends technical section 16 to specify the amendment of 75 Pa.C.S. section 1106(b) is effective in one year. The remainder of the act is effective in 180 days.

Reported as amended from Senate Transportation Committee, and read first time, 10/18/2022

Read second time, 10/19/2022

Rereferred to Senate Appropriations Committee, 10/24/2022
Reported as committed from Senate Appropriations Committee, read third time, and passed Senate, 10/26/2022 (29-20)
Received as amended in House and rereferred to House Rules Committee, re-reported on concurrence as committed from House Rules, and House concurred in Senate amendments, 10/26/2022 (119-79)
Signed in the House and in the Senate, 10/26/2022

In the hands of the Governor, 10/27/2022

Approved by the Governor, 11/3/2022 (Act No. 130 of 2022)

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SB 965  RE: Highly Automated Vehicles (by Sen. Wayne Langerholc, et al)

Amends Title 75 (Vehicles) to authorize highly automated vehicles (HAVs) testing and deployment; and in construction, amending language so that nothing related to the regulations shall prohibit HAVs from operating without a driver. Provides the operation of the vehicles with or without an HAV driver on board. Further provides for the operation of HAV transportation network service and for various legal documents. Provides the HAV Advisory Committee shall send special reports to the General Assembly outlining the committee's evaluation of HAVs' benefits to the workforce and improvements to persons with disabilities. Clarifies the sort of regulations the department may promulgate and provides the department shall consult with the committee before publishing guidelines. Amends language throughout to reflect these changes and to specify HAVs without a driver is the focus.

Read second time, and rereferred to Senate Appropriations Committee, 10/19/2022