by Gordon’s Tomb
With Democrat Josh Shapiro as the newly inaugurated governor and new legislature, Pennsylvania will shine like an energy superstar or continue down the path of a looming recession.
The Commonwealth leads the nation in energy production despite being held back by strict regulations, market-distorting subsidies and irrational hostility towards fossil fuels.
Shapiro’s energy policies will have implications for grid reliability across the Northeast, thousands of coal and natural gas jobs, and the competitiveness of manufacturers worldwide. state. The price of electricity for living—has increased on average 73 percent from 2020—will continue to erode Pennsylvania’s competitiveness unless the status quo changes.
In 2021, Keystone State exported more electricity than any other state, according to the report Independent financial office. The US Energy Information Administration lists Pennsylvania as the second-largest net supplier of total energy to other states, after Texas, and the third-largest coal-producing state, after Wyoming and West Virginia. Pennsylvania’s natural gas production hits a record 7.6 trillion cubic feet in 2021, second only to Texas.
Energy producers manage that despite a regulatory regime that tends to abuse its power. For example, the Department of Natural Resources and Environment (DEP) of the previous governor, Tom Wolf, attempted to impose new regulations on coal mines that directly contradicted existing laws. DEP Withdraw the proposal only after the Independent Regulatory Review Committee rejected it.
During his tenure, Wolf repeatedly attempted to enact a royalties tax on natural gas – an industry that has suffered more than 6 billion USD in taxes and special fees In the century. In 2019, Wolf began pushing to unilaterally join the Regional Greenhouse Gas Initiative (RGGI), while being challenged by lawmakers, labor unions and Public. RGGI, present under consideration in court, is that a carbon tax on generators will cost Pennsylvania consumers 800 million dollars a year and just move most emissions to neighboring states.
Shapiro will take a more sensible approach to energy regulation?
Shapiro is indifferent to the carbon taxsays it’s “not clear” whether RGGI will “address climate change, protect and create jobs in the energy sector, and ensure Pennsylvania has clean, reliable, and affordable electricity in the long run term or not.”
With allies in both the environmental and labor communities, Shapiro’s campaign rhetoric alternately address mutual interests—sometimes talking about allowing reforms to speed approval of energy projects and other times severely restricting gas well drilling. “Josh refuses to accept the false choice between protecting our jobs or protecting our planet,” says his campaign website.
As attorney general, Shapiro charged natural gas drillers and pipeline operators with crimes that are normally treated as civil matters. Industry advocates worry that such treatment will reduce business investment in the state. Remaining Environment argues that the criminal prosecution of Shapiro’s producers is just “slap on the wrist.”
What we do know is that Shapiro proposes to increase the share of alternative energy in retail electricity sales from 18 to 30 percent—an increase of 67 percent. The alternative energy program has cost consumers 104 million USD a year of subsidies and put coal or gas-fired power plants at a disadvantage.
While some regulations are important to health and safety, there are too many annoying restrictions that keep the state from producing affordable energy. Shapiro should help amending constitution ensure that the legislature can review and reject regulations that excessively restrict energy production. Elected representatives, not unelected officials, should have the final say over these expansive and costly regulations.
Shapiro should also support regulatory reform that will allow power plants and well drilling companies to continue operating and create jobs for tens of thousands of people. Only three power plants at risk provided more support 8,000 jobs.
In the end, Shapiro should withdraw carbon tax RGGI and streamline state fossil fuel industry regulations. This will promote affordable energy production and grid stability, and help unleash Pennsylvania’s energy potential.
In 2023, advocating a good energy policy will be important to Shapiro. The development of Pennsylvania’s coal and natural gas fields will enhance its role as a global power and promote the welfare of Pennsylvanians. But further limiting Pennsylvania’s energy potential will continue to push investments, jobs and people out of the state.
This commentary was first published at Real pure energyJanuary 22, 2023, and can be accessed here.
Gordon’s Grave is a senior fellow of the Commonwealth of Nations, a free market consulting organization based in Pennsylvania, and a senior advisor to CO2 AllianceArlington, Virginia.
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