Politics

Governor Shapiro Reveals Plan to Fast-Track and Subsidize PA Power Plants and Hydrogen Projects

The governor’s proposal includes hundreds of millions in tax breaks for electricity-producing projects, hydrogen energy, and aviation fuel production.

Pennsylvania Governor Josh Shapiro said on Thursday that he wants to fast-track the construction of big power plants across the Commonwealth. His plan includes offering hundreds of millions of dollars in tax breaks for projects that provide electricity to the grid and utilize hydrogen.

Pennsylvania is the nation’s second-largest natural gas-producing state. Shapiro said he wants to start the “next chapter in Pennsylvania’s long story of energy leadership”.

“Pennsylvania, it’s time for us to be more competitive. It’s time for us to act. We need to take some big and decisive steps right now, build new sources of power so Pennsylvania doesn’t miss out,” Shapiro said at a news conference held at Pittsburgh International Airport

The governor wants to create the Pennsylvania Reliable Energy Siting and Electric Transition Board to streamline permitting and support for new energy projects in the state. The proposed tax credits are targeted towards large projects producing electricity, using hydrogen, and making hydrogen-based aviation fuel. 

With Shapiro’s plan, a new power plant could qualify for up to $100 million per year for three years based on the amount of power the facility can produce. 

Shapiro’s administration said it would leave it to lawmakers to decide what types of power plants would qualify for the tax credit. It also said the proposed restart of the Three Mile Island nuclear power plant to feed data centers run by Microsoft would not be included.

Republican lawmakers have been critical of Shapiro’s energy policy, saying it would be difficult for Pennsylvania to attract companies that want to build large new natural gas-fired power plants and stabilize the power grid. 

Renewable energy advocates have shown support for Shapiro’s plans, while environmental energy business groups remain skeptical. Shapiro’s announcement comes just days before he is set to deliver his annual budget address at the Harrisburg Capitol. 

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