Permitting reform critical in cementing PA’s energy leadership

Note: This editorial originally appeared in Broad + Liberty.

World energy markets remain in turmoil as Russia’s horrific invasion of Ukraine invited sanctions and a long-needed rethink of global energy policy. Markets around the world have strongly signaled they are willing to pay a premium for American energy, having seen how Putin has used proceeds from Russian oil and gas to help fuel his invasion.

Pennsylvania is awash with enough energy resources to meet this demand, while keeping prices lower for consumers domestically – we just need the infrastructure to deliver it and the regulatory environment to build.

Our state has huge reserves of natural gas and coal, not to mention decades of knowledge and supply chain in the nuclear, grid management, and renewables spaces. Most importantly, we have a skilled and ready workforce that is ready to get to work to deliver energy safely to homes and businesses and to move it overseas to growing economies that want to trade with free market democracies like the United States.

How will we do it? It will take expanding Pennsylvania’s ability to move gas to market, including through an export facility in the southeastern part of the state. Such a project would mean tens of thousands of man-hours for good-paying jobs in the skilled trades, while helping to grow the economy and providing cleaner, American-made energy to our allies.

A study is currently underway to examine how Pennsylvania could become a leading player in the global energy marketplace by exporting liquid natural gas (LNG). The Philadelphia LNG Export Task Force, a bipartisan coalition comprised of public officials, industry leaders, and building and trades representatives, is conducting a series of hearings to develop a report on the subject, which is expected later this year.

Building an LNG export facility would not only create jobs in the skilled trades; its establishment would also support permanent employment opportunities throughout the entire greater Philadelphia region.

Research demonstrates that every direct job in the natural gas and oil industry generates at least three and a half additional jobs in Pennsylvania. Beyond these workforce opportunities, revenues generated from natural gas exports can also help contribute to the wellbeing of the regional economy.

To make an LNG export terminal a reality, however, we need comprehensive permitting reform.

By one estimate, it takes an average of 4.5 years for energy infrastructure projects to undergo environmental reviews. This process can delay critical projects – like the Mountain Valley Pipeline proposed in Appalachia – and force others to be canceled entirely. When this happens, potential benefits for local economies (like job creation and economic development) go unrealized.

Reforming our state and federal permitting processes is essential for producing and supplying all sources of energy and making progress on emissions reduction.

Legislators on both sides of the aisle in Washington and Harrisburg have recognized that addressing the challenges of fighting climate change while ensuring abundant, affordable energy will only happen when policy promotes innovation and building new projects in the United States. The non-partisan policy think tank Common Good estimates permitting delays on energy projects cost the nation trillions in public health costs, and the Property and Environment Research Center has pointed to slow federal reviews of forest management as a contributor to wildfires plaguing the Mountain West.

The Port of Philadelphia is the most efficient facility of its kind in the nation, and it is a key infrastructure asset to the state’s quality of life and economic climate. Expanding shipments of goods and energy, including through an LNG terminal in southeastern Pennsylvania will be a boon for workers, consumers, businesses, and families, here and abroad.

As bad actors continue to disrupt global energy markets, Pennsylvania can be a leading state among nations in exporting cleaner oil and gas – and in the process, strengthening national security for America and our allies.

Jon Anzur is the Vice President of Public Affairs at the Pennsylvania Chamber of Business and Industry.

PA Chamber Testifies Before U.S. Senate Panel on Environmental Regulations

HARRISBURG – Today, Pennsylvania Chamber of Business and Industry Director of Government Affairs Kevin Sunday testified before the United States Senate Committee on Environment and Public Works Subcommittee on Chemical Safety, Waste Management, Environmental Justice, and Regulatory Oversight. The hearing, entitled “The Impacts of Plastics Production and Disposal on Environmental Justice Communities,” explored the balance between commerce and conservation.

 

In his testimony, Sunday highlighted the importance of enacting public policy that expands opportunities for all citizens and advances sustainability while supporting economic growth. He emphasized the regressive nature of high energy prices on vulnerable communities and the paramount need for domestic energy development as a means to combat energy poverty.

Sunday outlined Pennsylvania’s significant contributions as a leading producer of energy, electricity, gas, construction materials, food, medicine, and life-sustaining products. He also noted the ongoing efforts in the Commonwealth to establish a circular economy that minimizes water and plastics waste.

“The abundant natural resources of our state have led this country through every major energy transition that has occurred in the past 165 years,” Sunday said.

Sunday stressed the importance of a robust and reliable supply of energy and life-sustaining products, as underscored by the pandemic and recent supply chain shocks. He urged policymakers to consider the economic and environmental benefits of Pennsylvania’s energy and plastics industries, which support over $24 billion in annual economic output and 55,000 jobs, and cautioned against pursuing measures that would constrain this vital sector.

“Limiting domestic output of this industry will produce negative economic and environmental costs and impacts, from raising the cost of goods and services for working families and sending more jobs overseas, to increasing global emissions and an increase in the amount of waste sent to landfills,” Sunday said.

Sunday emphasized the desire for job creation in environmental justice communities and the negative public health consequences of high unemployment. “One of the key criteria in defining an environmental justice community is the percentage of households or individuals in poverty,” Sunday said. “These communities want jobs.”

Sunday also underscored the importance of the state’s plastics and petrochemical industries in manufacturing goods including medical devices, products, vaccines, ammonia, and fertilizer. He highlighted progress in reducing greenhouse gas emissions and the significant energy savings achieved through manufacturing goods from recycled materials. Sunday stressed that plastics remain essential in taking advantage of renewable technologies and reducing emissions.

“Plastics play a key role in renewable technologies and batteries – from light-weighting automobiles to composite components of wind turbines and solar panels, so it is all the more important that we develop strategies for their responsible use and recycling,” Sunday said.

Pennsylvania’s approach to environmental justice, according to Sunday, ensures public participation from impacted communities and produces durable permitting decisions. He urged policymakers to define clear standards that promote fairness and allow communities to thrive.

“As state and federal regulators and legislators define policy goals with respect to environmental justice, the implementation of these goals must come through clearly articulated, objective regulatory standards, established by statute and through a rulemaking process, that are applied fairly and without excessive conditioning of permits and processes.”

The PA Chamber of Business and Industry strongly supports legislative efforts to drive meaningful permitting reform and increase investment in the industry. Sunday acknowledged the bipartisan leadership of Committee Chairman Tom Carper (D-DE) and Ranking Member Shelley Moore Capito (R-WV) and their commitment to enacting permitting reforms.

Sunday maintained that Pennsylvania’s chemicals, manufacturing, and recycling sectors play a crucial role in fostering inclusive and sustainable growth. He cited examples of ongoing projects, such as the International Recycling Group’s zero landfill plastics recycling facility in Erie, Monroe Energy’s refinery in Delaware County, and Shell’s polymers manufacturing facility in southwestern Pennsylvania. These projects not only support economic development but also empower local communities through responsible environmental practices.

“We encourage a balanced discussion that recognizes the important economic benefit of our state’s energy, manufacturing, and chemical sectors as well as any environmental impacts that need to be addressed,” Sunday said.

In closing, Sunday emphasized that strength in these economic sectors is necessary for growth, food security, and energy independence. He highlighted the importance of Pennsylvanian and American-made products in meeting the challenges of climate change and supporting a growing global economy.

PA Chamber Testifies on Workforce Challenges in Rural Communities

 

HARRISBURG – This week, PA Chamber Director of Government Affairs Kevin Sunday testified on the ongoing workforce challenges that employers face in the Commonwealth’s rural communities during a public hearing at Penn College hosted by the Center for Rural Pennsylvania.

The hearing brought together leaders from Pennsylvania’s energy and healthcare sectors as well as educators, agency officials, and nonprofit associations. Participants included PA Chamber members UPMC, Coterra Energy, Penn College, Penn State, Shippensburg University, and the University of Pittsburgh. Senator Gene Yaw (R-Lycoming) – who also serves as the Center for Rural Pennsylvania’s board chairman – chaired the hearing.

During his testimony, Sunday emphasized the importance of improving Pennsylvania’s economic competitiveness through favorable tax and regulatory policies. “Our goal at the PA Chamber is to make Pennsylvania the most economically competitive state in the nation. This requires a tax and regulatory environment that encourages investment into the state,” Sunday said.

He also highlighted the need for modernized infrastructure to support economic growth throughout Pennsylvania. “We need modernized infrastructure across the state – from a safe and efficient system of roads and bridges to world-class airports and ports, to reliable gas, electric, and water infrastructure, and, just as important, access to high-speed broadband.”

Sunday also discussed recent legislative achievements, including the Senate’s advancement of comprehensive permitting and licensing reform legislation (SB 350) and tax reform measures (SB 345 and 346) that accelerate reduction of the state’s corporate net income tax and enhance businesses’ ability to carry forward net operating losses into future years.

The PA Chamber also supports efforts to improve the state’s workforce by addressing key barriers such as affordable childcare, occupational licensing requirements, and re-entry into the workforce after incarceration. In his testimony, Sunday reiterated the Chamber’s support for expanding Pennsylvania’s Clean Slate law and efforts to improve childcare for working families.

With Pennsylvania’s population decline being another major concern in the hearing, Sunday’s written testimony cited IRS data demonstrating that residents are leaving Pennsylvania for states with better economic climates. Sunday recommended targeted regional marketing efforts and greater collaboration with local chambers of commerce and economic development groups as a solution to help attract more residents to the Commonwealth.

Sunday urged policymakers to focus on creating an environment that attracts investment and promotes population growth. “We encourage the Center to take a close look at regional economic needs and population migration trends. Reforms to the state’s tax and regulatory structure help everywhere, but it is certainly the case that each region of the state has its own key industries.”

Sunday concluded his testimony by restating the PA Chamber’s commitment to working with stakeholders including the governor’s office, state legislature, and local communities to help move Pennsylvania forward.

Sunday’s full written testimony is available here. To watch his remarks, click here.