Opinion: New clarity on energy policy will supercharge Pennsylvania’s economy

This year, Pennsylvania made one of the most significant energy decisions in more than a decade – and it’s a decision that puts working families and job creators first.

With this year’s state budget, we ended Pennsylvania’s participation in the Regional Greenhouse Gas Initiative. At the same time, we enacted long-overdue improvements to the state’s permitting system. These two changes together don’t just fix policy problems; they send a clear message: Pennsylvania is no longer willing to lose jobs, investment and opportunity because of bad public policy.

For years, the uncertainty of RGGI created confusion for everyone. Power generators didn’t know if they’d face a massive new energy tax, so they held back investment. Because businesses couldn’t plan for unpredictable electricity costs, many raised prices. And families were left absorbing double-digit increases in their bills while wondering if an even larger, 30% energy tax hike was around the corner.

That uncertainty stalled long-term investment. You can’t build a plant, expand operations or hire more workers when you don’t know what your costs will be a year from now.

By definitively withdrawing from RGGI, we finally removed that cloud. Energy producers know the rules. Employers can plan responsibly. And households, especially seniors and working families, are protected from a costly tax that would have driven electricity bills even higher.

Just as importantly, we fixed another major problem by addressing Pennsylvania’s permitting process. Anyone who has ever tried to build or expand anything in this state knows the frustration of waiting months (and, in many instances, years) for a basic yes-or-no answer. It has cost us good-paying jobs. It has pushed projects out of state. And it has slowed economic growth in communities that desperately need it.

This state budget changes that. For the first time, key permitting decisions must be made in accordance with real legal deadlines. Clear updates must be provided through a live tracking system rather than leaving applicants in the dark. And if the deadlines aren’t met, the application moves forward in the normal process and the project doesn’t stall indefinitely.

To Pennsylvanians, this means faster progress on energy upgrades, infrastructure and local projects. For employers considering where to build, this means something even more significant: Pennsylvania is now treating your time and investment with respect. 

That matters. In today’s economy, companies choose states that can make timely, predictable decisions. Our neighbors, especially Ohio and West Virginia, have been more aggressive about winning new energy and manufacturing projects because they make it easier to build. We just took a major step toward leveling that playing field.

Pennsylvania already has the assets that other states envy – our abundant natural gas, a strong industrial workforce, a strategic location and access to nearly 40% of the U.S. population within a day’s drive. What we’ve lacked is the kind of predictability that allows employers to commit to larger long-term investments in Pennsylvania.

These changes begin to fix that. They show that Pennsylvania is serious about attracting high-paying jobs. They demonstrate that we’re willing to learn from states that have been outperforming us, and they prove that we can protect families from higher costs without sacrificing economic opportunity.

This budget is not the end of our work; rather, it is just the beginning. We still need to modernize permitting across all agencies, shorten infrastructure approval timelines even further and update policies that currently make it too hard for businesses to grow here.

Still, ending RGGI participation and improving permitting sends a clear signal that Pennsylvania is done with uncertainty and ready for prosperity.