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As legislators in Harrisburg continue to stall on the state budget, here’s the legislation we are following: 

Governor Shapiro’s Lightning Plan  

• • HB 500 – EDGE tax credit reforms (Inglis, Matzie, Mehaffie)  

• • • Status: Final passage in the house on May 14th, referred to Finance in the Senate 

• • HB 501 – PRESS Alternative Energy Portfolio Standards (Otten) 
    • Status: Reported out of House Environmental and Natural Resource Protection committee on June 2, 2025
      • Moves to the House floor 

• • HB 502 – RESET Board (Steele)  

• • • Status: Referred to House Energy Committee  

• • HB 503 – PACER Pennsylvania Climate Emissions Reduction Program (Abney)  

• • • Status: Referred to House Energy Committee 

• • HB 504 – Community Energy (Schweyer) 

• • • Status: Passed the house on May 7th, referred to the Senate Consumer Protection & Professional Licensure Committee 

• • HB 505 – Act 129 reforms (Donahue) – referred to Consumer Protection, Technology & Utilities 

• • • Status: Passed the House on May 7th, referred to the Senate Consumer Protection & Professional Licensure Committee 

• •  HB1239 – Places some limitations on the ability of homeowner’s associations (HOAs) to restrict the installation of rooftop solar energy systems. 

• • • Status: Reported as amended from the House Energy Committee on June 25th. 

• • SB 876 – Pennsylvania Home Preservation Grant Program (Saval) Whole home repair legislation 

• • • Status: Referred to Senate Urban Affairs and Housing committee  

Accelerated Data Center Permitting Co-Sponsorship Memo 

• • Accelerated permits for data center projects that commit to equal, or higher, environmental performance 

• • Directs the PA Department of Environmental Protection to generate approved earthwork, stormwater and air permits to developers who commit to improved environmental outcomes by meeting, or exceeding, design standards 

• • Data centers’ demand for electricity brings unprecedented opportunity and challenges 

Support SEPTA plan 

• • HB 1364 

• • • Passed the House on 6/17 

• • • Referred to Transportation in the Senate 

Codes 

• • The implementation of the 2021 International Energy Codes is currently postponed due to required regulatory processes. The next meeting of the RAC is scheduled for July 31, 2025. A clearer timeline of anticipated implementation may be released after that meeting.   

CALL TO ACTION

• • Call your state legislators and tell them to include the initiatives listed above in the state budget! 

Energy Building Codes Update: 2024 IECC, with DNREC amendments 

• Public hearing was held on July 22, followed by a 15-day public comment period 
• GBU Staff and members joined the Sierra Club Delaware’s Advocacy Day – June 10, 2025 in Dover, DE 
  • GBU members met with ~12 DE legislators
  • Shared information about the org
  • Learned how the Delaware legislature operates

CALL TO ACTION

• Submit individual comments: DNREC Regulatory Review – DNREC 

• Philadelphia City Council passed a budget for FY 2026.  

• • Despite strong advocacy from our partners at the HERE 4 Climate Justice Coalition, City Council decided against including continued funding for the Philadelphia Energy Authority’s Built to Last program in the budget. 

• • GBU and H4CJ will continue to advocate for Built to Last ahead of the fall mid-year transfer conversations and looking ahead to the FY27 budget. 

• City Council also provided initial approval to the Parker Administration’s H.O.M.E. Initiative, which seeks to scale up support for housing construction and rehabilitation citywide. Looking ahead, Green Building United’s staff and members will be working with partners to ensure that energy efficiency, climate resilience, and electrification remain part of the conversation as the Administration and Council develop plans for implementing the approved funding. 

• 2021 Energy Codes Adoption Ordinance 

• • Introduced on 6/12: City of Philadelphia – File #: 250644 

• • Compromised position on codes: adopted energy efficiency but not all upgrades (including insulation requirements) 

• • Hearing to be held in the fall 

• Conversations about Building Performance Standard implementation will be resuming in late summer 

CALLS TO ACTION

• Review codes legislation and join Policy & Advocacy committee to plan for testimony during the fall City Council hearing   

• Join H4CJ to be part of housing conversations 

• Contact Emily to participate in BPS conversations 

We have also seen some exciting local climate action coming out of smaller jurisdictions in Southeastern Pennsylvania. With the support of Green Building United and the Delaware Valley Regional Planning Commission, Lower Merion, West Chester, West Whiteland, and Radnor all signed Letters of Understanding to pursue an energy benchmarking program modeled off of the City of Philadelphia’s long-standing program.  

These LOUs were the result of several years of work by DVRPC, GBU, and the municipalities, generously supported by the Pennsylvania Department of Environmental Protection and U.S. Department of Energy. We look forward to continuing to partner with these jurisdictions to finalize and pass benchmarking legislation in the year ahead. 

CALLS TO ACTION

• If you live or work in any of the above municipalities, please connect with Policy Director Emily Pugliese at epugliese@greenbuildingunited.org so we can ensure your voice is part of the next steps on developing these programs.  

• DVRPC and GBU are actively seeking funding to continue this work on behalf of municipalities. If you are aware of grants or other funding sources available to ensure these programs are a success, please contact Rich Freeh at rfreeh@greenbuildingunited.org  

Rapid elimination of 45Y/48E credits for solar and wind energy projects, and new Foreign Entity of Concern (FEOC) “material assistance” supply chain requirements (see more info below). With July 4 bill enactment, credit eligibility will be determined for solar and wind projects in the following manner:  

1. Projects that commence construction before December 31, 2025 are granted a four-year window to be placed in service. These projects are not required to comply with new FEOC material assistance restrictions. 2.
2. For projects beginning construction between January 1, 2026 and July 4, 2026, the same four-year placed-in-service deadline applies. However, unlike earlier projects, these must comply with FEOC restrictions. 
3. Projects that commence construction from July 5, 2026 through December 31, 2027 face a stricter timeline: they must be placed in service no later than December 31, 2027. These projects are also subject to FEOC compliance.  

Phasedown of credits. Full credit remains available for zero-emission technologies other than solar and wind, including energy storage projects, that commence construction before the end of 2033. Thereafter, 75% credit for projects in 2034, 50% in 2035, 0% starting in 2036. FEOC restrictions apply to projects that commence construction after December 31, 2025.  

Energy storage is subject to escalating thresholds to get the domestic content bonus for 48E. 

Loosens lifecycle greenhouse gas emissions analysis to determine eligible technologies, meaning additional technologies (e.g. biomass) could qualify. 

Places onerous restrictions on the use of credits by any projects tied to companies with a connection to certain nations – including China, Russia, Iran and North Korea – either by sourcing materials from these countries or having a share of ownership or influence based in these countries.  

• “Material assistance” (supply chain) requirements apply to all ITC/PTC projects that begin construction after December 31, 2025. 

• Onshore wind, solar, and storage are intended to be able to rely on the existing safe harbor tables (from the domestic content bonus) prior to guidance being published.  

• Ownership and influence (also called “entity level”) requirements apply for tax years beginning after enactment, including for projects that begin construction in 2025. Credits are disallowed based on partial ownership by a specified foreign entity (SFE), issuance of debt to an SFE, or authority to appoint board members/officers by an SFE. SFEs include, among other things, companies based in identified nations; citizens or nationals of those countries; and entities controlled by those companies or those individuals.  

• Payments to SFEs can be disqualifying immediately upon enactment if they are deemed to confer “effective control” of a facility, with “effective control” defined very broadly. ITC projects are subject to 100% recapture if a disqualifying payment is made within 10 years. These rules are broad: They could potentially include any IP contract payment and potentially disqualify all of a taxpayer’s facilities.   

One thorough discussion here. 

Five-year accelerated depreciation is allowed for projects that are eligible for the credits, including complying with FEOC material assistance requirements. The new rules apply to all technologies. 

If property is not eligible for the five-year MACRS rule, but will depreciate in 20-years or less, bonus depreciation is available. The OBBBA makes bonus depreciation permanent. 

*Depreciation method that allows businesses to recover the cost of assets, like clean energy equipment, over a period of time through annual deductions. Current law typically allows a 5-year recovery period, reducing tax liability and accelerating the return on investment. 

Bonus depreciation allows depreciation to be fully allowed in the first year. 

Allows credits for leased residential solar projects, under the same credit phaseout timeline as above. Disallows credit for solar water heaters and small wind projects. 

Does not significantly alter Transferability or Elective Pay, but these provisions will only be usable during the lifespan of the underlying credits.  

Buyers of transferred tax credits will now be subject to FEOC requirements.  

Retains Advanced Manufacturing Production Credit (45X) credit under the same phaseout schedule as existing law – 100% credit for projects through 2029, 75% in 2030, 50% in 2031, 25% in 2032, 0% in 2033 and thereafter. FEOC restrictions apply. Changes include:  

• Restricts the credit for wind components after 2027  

• Includes a phaseout schedule for critical minerals starting one year later than for other tech 

• Includes metallurgical coal as a critical mineral under credit, through 2029 

• No credit for sale of integrated components after 2026 

Amends Advanced Energy Project Credit (48C) – any unexpended credits can not be reallocated. 

Terminates the Clean Vehicle Credit (30D), the Previously-Owned Clean Vehicle Credit (25E), and the Commercial Clean Vehicle Credit (45W), effective September 30, 2025. 

Terminates Alternative Fuel Vehicle Refueling Property Credit (30C) credit effective June 30, 2026. 

Repeals Energy Efficient Home Improvement Credit (25C) for any property placed in service after Dec 31, 2025. 

Repeals Residential Clean Energy Credit (25D) for any expenditures made after Dec 31, 2025.

Repeals New Energy Efficient Home Credit (45L) for homes acquired after June 30, 2026. 

Repeals Energy Efficient Commercial Buildings Deduction (179D) effective for projects that commence construction after June 30, 2026. 

Retains the Zero-Emission Nuclear Power Credit (45U) and Carbon Sequestration Credit (45Q).  

For 45U, lifts the ban on credits for nuclear plants using fuel from covered nations or entities. Other FEOC restrictions still apply. 

For 45Q, accelerates the annual increase in credit value and provides parity for carbon that is utilized (e.g. for enhanced oil recovery) and that which is sequestered. 

Clean Hydrogen Production Credit (45V) available for projects that begin construction before Dec 31, 2027 (rather than 2032 under current law).  

Extends the Clean Fuel Production Credit (45Z) through 2029 (rather than 2028 under current law), and requires feedstocks to be from the U.S., Canada, or Mexico. Excludes indirect land use changes for lifecycle greenhouse gas emissions calculations, and provides authority to establish distinct emission rates for specific manure feedstocks. Also addresses overlapping claims for the 45Z credit, and FEOC restrictions apply to 45Z after 2025. 

No significant changes are made to the Biodiesel (40A) or Sustainable Aviation Fuel (40B) credits. 

Contains a provision titled “intangible drilling and development costs taken into account for purposes of computing adjusted financial statement income”  that functions as a new subsidy to oil and gas companies – exempting these companies from the corporate alternative minimum tax established in 2022.  

Rescinds funds from the following DOE Loan Programs Office (LPO) programs, used to cover the costs of credit subsidies supporting the office’s loan authority (approx. $9B altogether).  

• 1703 Loan Guarantee Program 

• 1706 Energy Infrastructure Reinvestment Program 

• Advanced Technology Vehicle Manufacturing (ATVM) Program 

• Tribal Energy Loan Guarantee Program 

Refashions the 1706 program into a new Energy Dominance Financing program – removes the requirement that projects reduce emissions, adds extra categories for project eligibility, and provides $1B in credit subsidy funding for energy and minerals projects. It also extends this 1706 program authority through 2028 (from 2026).  

Repeals authority provided to ATVM program in the IRA and rescinds its unobligated balances. 

These changes would in-effect stop the office’s ability to finance new clean energy and advanced manufacturing projects, except certain energy projects chosen by the president. 

Rescinds unobligated balances for these programs: 

• Advanced Industrial Facilities Deployment Program 

• Transmission Facility Financing  

• Grants to Facilitate the Siting of Interstate Electricity Transmission Lines 

• Interregional and Offshore Wind Transmission Planning 

• State-Based Energy Efficiency Contractor Training Grants 

DOE Home Energy Rebates programs are kept intact.  States that have approved programs continue to implement them. Although the Trump administration has not approved any new state programs since it took office in January 2025. 

Establishes a new DOE Artificial Intelligence program for national labs to partner with U.S. industry to curate existing scientific data to make it AI-ready, and support self-improving AI models. Provides $150M for the program. 

Provides $218M for maintenance of SPR and $171M for acquisition of petroleum products for storage in the SPR. 

Repeals statutory authority and rescinds unobligated balances for the $27B GGRF program, including NCIF, CCIA, and Solar for All. This could lead EPA to feel empowered, or possibly even required, to terminate grant award contracts.  

Retains authority but rescinds unobligated funding for nearly every other major EPA program created or funded by the IRA, including:  

• Climate Pollution Reduction Grants (CPRG) 

• Methane Emissions Reduction Program (MERP), delays charge on methane emissions until 2034 

• Clean Heavy-Duty Vehicles 

• Environmental Justice Block Grants 

• School Air Pollution Monitoring 

• Fenceline Monitoring in Polluted Communities 

• Diesel Emissions Reductions Act 

• Low-Emissions Electricity Program 

• Low-Embodied Carbon Labeling initiative for construction materials 

• Air Pollution Monitoring Upgrades 

• Greenhouse Gas Corporate Reporting 

• Environmental Product Declarations 

• Enforcement Technology Systems 

• American Innovation Manufacturing (AIM) Act implementation, aimed at HFC reductions 

Rescission of unobligated funds may impact management of EPA programs. 

Authority retained and no funds rescinded for the Clean Ports Program.  

EPA multi-pollutant vehicle emissions standards for light-duty and medium-duty vehicles were not included in the enacted bill. 

However, the bill eliminates NHTSA Corporate Average Fuel Economy penalties, a key enforcement mechanism for the CAFE program (see USDOT section). 

No expedited permitting of LNG export facilities or oil and gas pipelines was included in the enacted bill. 

Rescinds unobligated balances for USDOT IRA programs, including: 

• DOT Neighborhood Access and Equity Program (estimated at $2.9B in January 2025) 

• FHWA Low-Carbon Transportation Materials Grants program ($1B) 

• FAA Alternative Fuel and Low-Emission Aviation Technology Program ($200M)  

Eliminates civil monetary penalties against automakers under the CAFE program – effectively repealing the standards.  

The final bill did not include an EV registration fee, as was originally proposed in House legislation. 

Rescinds IRA funding for four USDA conservation programs, but also provides some new funding for each: 

• Conservation Stewardship Program (CSP): Rescinds approx $2.4B in unobligated IRA funds. Increases annual funding from $1B to $1.3B in 2026, $1.325B in 2027, $1.35B in 2028, & $1.375B through 2031. 

• Environmental Quality Incentives Program (EQIP): Rescinds $6.5B in IRA funds. Increases annual funding from $2.025B to $2.655B in 2026, $2.855B in 2027, and $3.255B through 2031. 

• Regional Conservation Partnership Program (RCPP): Rescinds $4.6B in IRA funds. Increases annual funding from $300M to $425M annually in 2026, and $450M annually through 2031. 

• Agricultural Conservation Easement Program (ACEP): Rescinds $1.1B in IRA funds. Increases annual funding from $450M to $625M in 2026, $650M in 2027, $675M in 2028, $700M thru 2031.  

Rescinds $100M+ in funding for IRA Sustainable Forestry programs. 

Mandates increased onshore and offshore oil, gas and coal leasing. It requires quarterly onshore oil and gas lease sales on federal lands in 9 Western states over the next ten years. It reinstates noncompetitive leasing, amends the Mineral Leasing Act to make all eligible lands available for leasing, removes agency discretion to deny leases based on environmental, private land, or community concerns, and increases the term of an onshore drilling permit from 3 to 4 years. It also requires the Interior Dept. to conduct 30 lease sales in the Gulf of Mexico over the next 15 years, and six lease sales over the next 10 years in Alaska’s Cook Inlet.  

Lowers the federal onshore and offshore oil and gas royalty rates from 16.67% 18.75%, respectively, to 12.5%. Repeals royalties imposed on all methane extracted from onshore and offshore leases.  It directs greater federal revenue sharing with Alaska and the Gulf Coast states. 

Requires BLM to promptly issue more coal leases on federal lands, and reduces the federal coal royalty rate from 12.5% to 7%.  

Increases oil and gas leasing in ANWR and NPRA, requiring four and six lease sales in each, respectively, over the next ten years.  

Increases fees for renewable energy projects on public lands. Includes revenue sharing from renewables projects on federal land with state and county governments (25% of revenue for each project). 

Requires the Forest Service and BLM to conduct increased timber sales of 250 million and 20 million board feet per year, and to enter into 40 and 4 long-term contracts, respectively. 

Cuts funding for Endangered Species Act recovery plans. 

Allows project sponsors to pay a fee, equal to 125% of expected costs, for expedited review under NEPA.  

Rescinds unobligated NOAA IRA program funds, estimated at $193 million, for coastal resilience, national marine sanctuaries, environmental reviews, and atmospheric research and weather forecasting.

Rescinds unobligated funding for the Green and Resilient Retrofit Program (GRRP) for multifamily housing (approx. $138 million). 

Rescinds unobligated balances for GSA IRA programs (collectively approx. $2B), including: 

• GSA Assistance for Federal Buildings 

• Use of Low-Carbon Materials 

• GSA Emerging Technologies