Pa. House passes bill that would allow the state to use federal funds for energy development

The Blue Creek wind farm in Ohio, consists of 152 wind turbines with a total capacity of 304 megawatts. The Federal Energy Regulatory Commission has finalized new rules that are expected to help ease the backlog of new wind, solar and battery storage projects awaiting regulatory approval. (Robert Zullo/ States Newsroom)

Legislation aimed at restructuring the Pennsylvania Energy Development Authority (PEDA) passed the Pennsylvania House on Tuesday. 

“This bill will simply give PEDA, an existing authority, permission to seize federal money, multiply it with private capital, and initiate energy projects,” state Rep. Elizabeth Fiedler (D-Philadelphia), who introduced House Bill 2338 said Tuesday, adding it would help create jobs.

Supporters of the legislation say if this bill becomes law, PEDA can own energy projects which would allow it to use funding from the Inflation Reduction Act (IRA) and the Bipartisan Infrastructure Law (BIL) to invest in clean energy projects.

“It empowers PEDA to bring federal dollars home to Pennsylvania,” said state Rep. Rob Matzie (D-Beaver). “Ultimately, that is one of the most important jobs we have as members in the legislature: bring home the dollars.”

Matzie said the legislation has support from the Pennsylvania building trades, various labor unions, and environmental organizations. 

In addition to creating jobs to fund these energy projects, supporters of the bill, which passed 107-95, say it will lead to lower utility costs.

However, several GOP lawmakers, including state Rep. Joshua Kail (R-Beaver), who sits on the PEDA board, believe the legislation is just a “continuation of bad energy policy” from the federal and state governments. 

“Over the course of the last number of years, decisions have been made out of DC and out of Harrisburg, where we have decided to invest more in so-called renewable energy and not take advantage of our own resources here in the Commonwealth of Pennsylvania,” Kail said.

State Rep. Chris Rabb (D-Philadelphia) made the case that renewable energy jobs would be local. 

State Rep. Joe Hamm (R-Lycoming), who opposed the legislation, said Pennsylvania’s gas and oil industry is “being unfairly targeted” by the bill. 

During a hearing earlier this month, Robert Bair, president of the Pennsylvania Building and Construction Trades Council, said six other states had similar pending legislation that would also allow them to use funding from the IRA and BIL. 

The bill will now go to the state Senate for consideration.

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