Shapiro Shouldn't Get In the Way of PA's Energy Momentum
All eyes were on Pennsylvania last week for the “Pennsylvania Energy and Innovation Summit” – an event highlighting what role the commonwealth’s energy sector will play in the future of artificial intelligence and other technological advancements. The event featured prominent political figures, such as President Donald Trump, U.S. Sen. David McCormick, and Gov. Josh Shapiro.
Yet, one of these things is most certainly not like the others – especially when it comes to energy policy. Shapiro, the lone Democrat to present at the forum, stood out like a vegetarian at a McDonald’s. But this stark contrast had little to do with his partisan affiliation and everything to do with the governor’s antithetical energy platform.
For example, the governor has flip-flopped on Pennsylvania’s membership in the Regional Greenhouse Gas Initiative (RGGI), the multistate compact that imposes a carbon tax on energy producers in participating states. As a candidate, Shapiro said RGGI did not represent “real action.” And he was right: an analysis by Power PA Jobs suggests that RGGI’s carbon tax would increase electricity prices for Pennsylvania ratepayers by 30%. Pennsylvanians, already weary from paying their exorbitant utility bills, won’t be pleased with the rate hike RGGI promises.
Yet, after the Commonwealth Court ruled that RGGI’s carbon tax was unconstitutional, he appealed the decision, prolonging the commonwealth’s legal limbo.
Shapiro dangled abandoning RGGI as a carrot for his broader energy proposal: his Lightning Plan. The governor’s comprehensive energy proposal serves as his version of the Green New Deal – a strong signal to environmental lobbyists that he is on their side.
The Lightning Plan includes two sprawling proposals: the Pennsylvania Climate Emissions Reduction Act (PACER) and the Pennsylvania Reliable Energy Sustainability Standard (PRESS).
PACER is Shapiro’s version of RGGI, implementing a carbon tax on Pennsylvania energy producers. But instead of imposing this tax on multiple states, PACER taxes the Keystone State solely.
Meanwhile, PRESS mandates that energy producers incorporate more solar, wind, and other unreliable sources into their portfolio.
PACER and PRESS come with a hefty price tag. Combined, recent analysis by the Commonwealth Foundation finds that PACER and PRESS will add $157 billion in new electricity costs over the next 10 years.
Outside of Pennsylvania, Shapiro hasn’t been a strong advocate for the commonwealth’s energy sector in Washington, D.C. He didn’t lift a finger to fight against federal overreach, such as President Joe Biden’s “pause” on liquified natural gas (LNG) or the EPA’s Clean Power Plant rule – both of which directly threatened Pennsylvania’s energy sector and compromised the reliability of the commonwealth’s grid. Meanwhile, Shapiro has found ample opportunities to file one lawsuit after another against the Trump administration.
If Shapiro genuinely wanted to get into the spirit of the event, Shapiro should adopt a different approach.
First, Shapiro must abandon all proposals involving carbon taxes or energy mandates. That means no more RGGI, AEPS, PACER, PRESS, or any other alphabet-soup recipe he concocts.
Next, the governor must tackle genuine regulatory reform. Permitting, in particular, remains a challenge, both at the federal and state levels.
Shapiro has only paid lip service to permitting reform. Last year, he signed the Streamlining Permits for Economic Expansion Development (SPEED) program into law. But the program only applies to 6% of Pennsylvania’s permits and requires extra fees for timely responses. The governor’s efforts have been, at best, half measures.
Ultimately, such minimal reforms only empower lawmakers to pick winners and losers in the marketplace. Regulatory reform must be universal and applicable to all business sectors. “That should not be something that is just for some companies,” said Pennsylvania State Senate President Kim Ward during the summit. “It needs to be across the board.”
Energy gives Pennsylvania a competitive edge. As the number-one exporter of electricity, the Keystone State has a comparative advantage due to its abundance of natural gas, nuclear power, and other forms of reliable, affordable energy.
“I think it’s critically important that we use Pennsylvania energy and the workers that create that energy … to be the ones powering the AI revolution,” said Shapiro during the energy summit.
Here, I wholeheartedly agree with the governor. And the commonwealth’s status as an energy juggernaut can continue to grow – so long as Gov. Shapiro doesn’t get in the way.
