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HB 2347

An Act amending the act of April 9, 1929 (P.L.177, No.175), known as The Administrative Code of 1929, in energy development authority and emergency powers, redesignating the Energy Development Authority to the Energy Financing Authority; further providing for definitions, for Energy Development Authority, for annual report, for powers and duties and for authority indebtedness; and making editorial changes.

2025-2026 Regular Session Introduced by Lisa Borowski and 26 co-sponsors

Renames the Energy Development Authority to the Energy Financing Authority and empowers it to finance and catalyze broad energy projects in Pennsylvania through loans, guarantees,

Referred to Environmental Resources & Energy
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Bill Summary · HB 2347

Summary of HB 2347 (2025-2026) – Pennsylvania

Overview

HB 2347 proposes to redesignate and reorganize Pennsylvania’s Energy Development Authority as the Energy Financing Authority and to update its definitions, governance, powers, reporting, and funding mechanisms. The bill also makes editorial changes to reflect the new branding and expands certain authorizations related to financing, planning, and implementation of energy projects within the Commonwealth.

  • Jurisdiction: Pennsylvania
  • Session: 2025-2026
  • Principal change: Redesignates the Energy Development Authority as the Energy Financing Authority
  • Effective date: Immediate upon enactment

Main Purpose and Intent

  • Rename the existing Energy Development Authority to the Energy Financing Authority, signaling a shift toward a stronger emphasis on financial mechanisms to support energy projects.
  • Modernize the statutory framework governing the Authority, including its definitions, governance, funding, and powers, to enable broader financing, leveraging, and deployment of energy projects in Pennsylvania.

Key Provisions and Changes

1) Redesignation and Editorial Changes

  • The act redesignates the Energy Development Authority as the Energy Financing Authority.
  • References to the former name in statutes, regulations, contracts, and documents are to be treated as references to the Energy Financing Authority.
  • Allows continued use of the old name for ongoing litigation and certain documents until updated.

2) Definitions

  • Replaces “Energy Development Authority” with “Energy Financing Authority” in core definitions.
  • Expands “Cost” to include a broad set of project-related expenses (construction, land and rights, demolitions, storm water, sewage/waste/pollution controls, labor, materials, financing charges, interest during construction and a one-year post-construction period, planning, permits, energy audits, environmental and geotechnical surveys, etc.).
  • Expands “Project” to include broader activities related to energy research, demonstration, renewable energy deployment, energy resource utilization and transportation, resilience of energy infrastructure, and other related activities within Pennsylvania. Adds explicit allowance for limited-scale demonstrations and for projects that strengthen energy infrastructure resiliency.

3) Governance and Board

  • The Authority remains a public corporation and governmental instrumentality.
  • Board composition: Five directors appointed by the Governor (with at least two members of the general public). Terms and Senate consent provisions remain, with staggered initial terms.
  • Additional ex officio members: Secretaries or their designees from Environmental Resources/Protection, Conservation and Natural Resources, and Community and Economic Development.
  • Quorum and voting: Eight directors to constitute a quorum; specific vote thresholds apply (eight voting directors for most actions; seven votes required for financial assistance approvals).

4) Annual Report

  • The Authority must submit an annual report within 180 days after the end of the preceding fiscal year, detailing activities and providing a full operating and financial statement.

5) Powers and Duties

  • The Authority is granted broad powers to carry out energy financing projects, including:
    • Investigations and examinations for loan applications
    • Strategic planning and financing of projects
    • Leasing, sale, or other disposition of projects or property
    • Providing grants, loans, loan guarantees, rebates, and dividends
    • Accepting appropriations, grants, gifts, and other private/public funding
    • Receiving Federal tax credits or refunds and facilitating related arrangements
    • Planning, designing, developing, financing, constructing, owning, operating, maintaining, and improving projects (with ownership structures where the Authority maintains majority ownership)
    • Providing capital, leveraging private capital, offering credit enhancements, and packaging savings into securities
    • Acquiring and managing property necessary for projects
    • Assisting others in obtaining Federal tax refunds generated by elective tax credits, with the Authority able to charge reasonable fees for such assistance

6) Indebtedness and Financial Governance

  • Clarifies authority indebtedness provisions and trustee appointment processes in the event of default.
  • Establishes an Energy Development Financing Plan: the Authority must publish a plan within 180 days of enactment outlining how it will allocate and distribute financial and technical assistance. Public hearings must be held to gather input, with final plan promulgated within 90 days after hearings.

7) Funding for the Authority

  • Creates a dedicated Energy Development Financing Fund in the state treasury with an initial appropriation of $2,000,000 to cover plan development, initial administrative costs, limited research grants, and reserve establishment for loans or bonds.
  • Provisions for transferring excess funds to the General Fund if reserves exceed what is necessary for the Authority’s purposes.

Who/What Would Be Affected

  • The Energy Financing Authority (formerly the Energy Development Authority) would gain expanded authority to finance and support energy projects across Pennsylvania.
  • State agencies (Environmental Resources/Protection, Conservation and Natural Resources, and Community and Economic Development) would retain ex officio representation on the Authority’s board.
  • Public and private sector entities seeking financing for energy projects (renewables, energy efficiency, resilience improvements, and related demonstrations) could access new or enhanced support, including potential tax credit coordination and grant programs.

Procedural and Timeline Aspects

  • Authority must publish its Energy Financing Plan within 180 days of the act’s effective date.
  • Public hearings to review the Plan must occur within 90 days of initial publication; final Plan to be promulgated within 90 days after hearings.
  • Annual reporting timeline: 180 days after the end of the fiscal year.
  • Effective date: Immediate upon enactment.

Potential Impacts

  • Streamlined financing mechanisms for energy projects, potentially accelerating deployment of renewable energy and energy efficiency initiatives.
  • Enhanced ability to leverage private capital and utilize tax credits to support Commonwealth energy goals.
  • Increased transparency through mandated planning and annual reporting.
  • Financial planning and governance structure strengthened to manage probabilistic financing and project risk.

Note: This summary focuses on substantive provisions and likely impacts based on the bill text; consult the final enacted language for precise statutory effect.

Compiled from official sources — confirm details with the bill’s official record.

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