In Property Assessed Clean Energy Program, further providing for purpose, for definitions and for scope of work.
Summary
HB789 amends Pennsylvania’s Property Assessed Clean Energy (PACE) law to broaden the kinds of projects that can be financed through the program. The bill updates the stated purpose of the chapter so that PACE financing is expressly available for energy efficiency, electric vehicle charging infrastructure, indoor air quality, resiliency improvements, water conservation, and renewable energy projects for agricultural, commercial, and industrial property owners.
The bill also revises the definition of a “qualified project” to include permanent improvements fixed to qualifying commercial property, specifically adding electric vehicle charging infrastructure projects and clarifying that alternative energy-generating equipment affixed to land or buildings is included. In addition, it adds a new reporting and tax-administration requirement for municipalities and counties that approve EV charging projects for alternative fuel dealer-users: they must notify the Department of Revenue when the project is completed, and the department must then ensure collection of any applicable tax under the motor vehicle fuel tax provisions tied to charging electric vehicles at those facilities. The act takes effect in 60 days.
Impact
HB789 would expand the scope of Pennsylvania’s PACE statute in Title 12 by expressly authorizing financing for EV charging infrastructure and other clean-energy-related improvements, while also adding a revenue-notification mechanism tied to electric vehicle charging projects. It affects municipalities and counties administering PACE programs, commercial property owners seeking financing, qualified project installers, and the Department of Revenue, which would gain a new notice-based enforcement role for taxes associated with EV charging under Title 75.
Sentiment
The bill appears to have generally favorable support among House members, as reflected by its eventual 107-96 final passage vote after earlier committee approval. The close votes, however, indicate that support was not unanimous and that the measure remained politically divided. The absence of committee transcript material limits insight into detailed debate, but the voting pattern suggests a mix of support for clean-energy financing expansion and concern about the bill’s tax and regulatory implications.
Contention
The main points of contention likely center on the bill’s expansion of PACE financing into electric vehicle charging infrastructure and the related tax-notification requirement. Supporters appear to favor broader clean-energy investment, resiliency, and infrastructure development for commercial properties, while opponents may be concerned about government involvement in financing mechanisms, the administrative burden on local governments, and the Department of Revenue’s role in collecting taxes associated with EV charging. The narrow House votes suggest these issues divided members along policy and fiscal lines.
In Pennsylvania Economic Development for a Growing Economy (PA EDGE) tax credits, providing for an advanced clean manufacturing project and further providing for definitions.