Federal rules frustrate, delay state's clean energy manufacturing

(The Center Square) — For Pennsylvania business leaders who want to expand their clean manufacturing output, the federal government may be more of a headache than a helping hand.

When it makes sense for them to change, they face delays or much-inflated costs.

The House Democratic Policy Committee met in Allegheny County at Vitro Architectural Glass to figure out what problems make it difficult to lower emissions or expand the clean energy manufacturing industry.

“Manufacturers highlighted how companies have become greater stewards of Pennsylvania’s resources and how that shift has helped drive job creation and economic growth,” Rep. Ryan Bizzarro, D-Erie, said, who chairs the policy committee.

Vitro’s Paul Bush explained the company’s efforts to rebuild an idled line for solar panel glass in Meadville, a $90 million investment that they hope will create at least 120 jobs with an $80,000 average salary with benefits. But the project could fall apart.

“The start-up of this clean energy manufacturing project and the addition of the new jobs is in jeopardy of being delayed due to the Pennsylvania air permit,” Bush said in his testimony. “In October 2023, Vitro made an application for the air permit to restart the Meadville float glass manufacturing line via an expedited process through Governor Shapiro’s Action Team and the process is just now nearing completion.”

The problem is the long delays at hand for Vitro.

“This extremely long, expedited review process is a barrier to not just clean energy manufacturing in Pennsylvania but to all manufacturing in Pennsylvania,” Bush said.

He also encouraged legislators to require Pennsylvania’s commercial buildings to have on-site renewable energy by changing the state’s commercial building code.

But Vitro has hit the wall of federal policy that aims to encourage the use of American-made products, as with vacuum glazing, which boosts the energy efficiency of buildings.

“Today, there’s no North American manufacturer of vacuum glazing or equipment manufacturer of vacuum glazing,” Bush said. “All of the equipment comes out of China and Vitro is looking to purchase some of this equipment to install. There's a 25% tariff at the federal level … with that large of a capital spend, it’s over $10 million for a tariff. If we can get a tariff waiver or get an offset to that tariff would make the decision easier to put that plant and those jobs in Pennsylvania.”

While Vitro waits for tariff relief, other businesses trying to navigate the federal grant process struggle. The Department of Energy’s advanced energy project tax credit is a headache, said Doug Gudenburr of DMI Companies, which builds out commercial HVAC projects for hospitals, offices, and others.

“The application process, although seemingly straightforward, caused difficulties for our limited staff. There were deadline changes, website changes, and problems with contacting the DOE help desk,” Gudenburr said. “Although these issues can normally be resolved, there exists a disconnect between businesses who seek funding and the staff of federal and state departments who we seek for help.”

The Inflation Reduction Act, which funds the tax credit, has a 184-page guidebook for businesses that is “quite daunting” and “difficult to navigate for staff who are not experts in these fields,” Gudenburr said.

While legislators were sympathetic, they didn’t offer solutions.

“I hear you saying that the federal funding application process is overly cumbersome — we hear that all the time, we wish we could help with that, but we cannot. However, we certainly can with the state process,” Rep. Mandy Steele, D-Cheswick, said. “I appreciate you sticking with it in the face of all those challenges.”

Steele argued they want to put more policies in place to help businesses.

“Our economic future lies in this area: We are talking about incredible economic opportunity while simultaneously being hugely impactful in the space of the climate crisis, which deserves immediate attention,” she said. “You should be regularly communicating with your legislators at the state and federal level so that we can attack this as a team and be successful in Pennsylvania.”