DV Journal

It is a few days before Christmas and across the commonwealth. Pennsylvania families are busy looking for last-minute holiday gifts, planning family gatherings, and engaging in charitable efforts to help those in their communities during the holiday season.

However, this season is another stark reminder that every Pennsylvanian is facing the same staggering reality: The cost of Christmas is higher than it was last year and the ability to provide for a meaningful family celebration during this holiday season is increasingly out of reach.

Despite the federal government’s continued assurances that inflation’s impact on family budgets is waning, the numbers speak for themselves in terms of the continued negative impact increasing costs are having on family budgets across the country.

November’s recently released Consumer Price Index numbers show year-over-year inflation increased 2.7  percent with a .3 percent increase over the prior month. More regionally, the northeastern part of the United States saw year-over-year inflation increase an even higher 3.5 percent.

As it pertains to Christmas, PNC’s annual “Christmas Price Index” whimsically showed the cost of the 12 gifts of Christmas increased 5.4 percent over last year. Its review took a turn for the serious when PNC Asset Group’s Chief Investment Officer Amanda Agati said, “Believe it or not, we’re still seeing the cause and effect of the pandemic-inflation hangover, even nearly five years later…With years of steep price increases, we’d think inflation has nowhere to go, but we’d be wrong.”

Those numbers mean little for the Pennsylvania parents trying to put Christmas gifts under the tree or host a nice Christmas dinner for their family. The numbers they are looking at are more real; they are the dollars and cents of a bank account that is stretched too thin by rising energy, housing and food costs.

What they need is the financial pinch that continues to steal their Christmas to end and real relief to come to their budgets.

As we enter a new legislative session, that is something Pennsylvania’s House Republicans will be keeping at the forefront of our attention.

We are excited to continue our work to bring transformational change to Pennsylvania’s system of education and reduce government’s regulatory burdens.

In addition, our members will focus with urgency on ways that we can meaningfully put more money in the pockets of Pennsylvanians.

Last session, Republicans in both the House and the Senate stood unified in calling for a tax cut for Pennsylvania families. Now, it is incumbent upon us to continue an examination of our state finances to find ways to support and advance policies that return taxpayer investment directly back into the pockets of Pennsylvanians.

We also have much work we can do on the back end of cost savings.

While continued reduction of the Corporate Net Income Tax is smart policy, we need to examine the bipartisan-supported repeal of the sales tax prepayment that affects many small businesses, increases their business costs and ultimately costs consumers.

In addition, we must examine the energy cost driver impacting the bottom line of many Pennsylvania families.

We have been saying it for years, and it remains true today: Pennsylvania is an energy rich state. It is a failure of policymakers that we are not able to turn our home-grown energy assets into appreciably lower energy costs for Pennsylvanians.

Not only do we need to look at outside-the-box ways to help Pennsylvanians afford to heat and cool their homes and turn the lights on, but we also must also find tangible and short-term ways to increase both production of Pennsylvania-based energy resources and enhance our transmission capabilities to get our products to market.

Increasing production and transmission will not only lead to lower energy prices for Pennsylvanians, but will increase job opportunities and educational offerings, and grow communities to create an abundantly sustained Commonwealth.

By supporting policies that will directly put money back into the pockets of Pennsylvanians and lowering energy costs in both the short and long terms, Pennsylvania’s House Republicans are focused on stopping the financial pinch who stole Christmas in the past and making Christmas affordable again in the future.

Pennsylvania Sen. Kim Ward, the first woman to serve as Pennsylvania Senate President Pro Tempore, will continue serving as interim pro tempore and is expected to be reelected in January.

Ward (R-Westmoreland) spoke to DVJournal about what she hopes to accomplish for Pennsylvanians.

“This election spoke volumes,” said Ward. “People don’t want to hear about social issues. Obviously, the Democrats ran full speed on abortion. [People] don’t want to hear about boys in women’s sports. They want to hear about how you will help them put food on the table and pay their utility bills.

“And we need to work on our energy,” said Ward. “We have an abundance of energy in Pennsylvania, and we have room in this commonwealth for every type of energy. But the Democrats have declared war on fossil fuels.

“Pennsylvania is sitting on the second biggest pot of gold in the United States,” said Ward. “We need to be able to unleash that to give people really great jobs that pay well so they can take care of their families.”

One reason electric bills are so high now is because former Gov. Tom Wolf (D) “unilaterally” took the state into the Regional Greenhouse Gas Initiative (RGGI).

“We went to court to say a governor does not have the unilateral ability to tax, and that was a tax.  Well, Gov. (Josh) Shapiro said he supported our stance but then, when we won in court, he appealed it. But you know, that’s the way it goes with him.” They are waiting for a decision on that appeal.

“But [RGGI] is one of the big reasons we’re having higher electric bills, because the companies have come out with higher rates,” she said.

“The Democrats have closed down our coal-fired plants. Meanwhile, China’s building them. They’re not closing them down in Ohio. They’re not closing them down in West Virginia. But in Pennsylvania, we’re saying, ‘Oh, no thank you.’”

This is “one of the big issues that we should be pushing because I think it affects our families,” said Ward. “It affects jobs across the board, affects incomes. It affects people’s ability to pay the bills they have to pay every month.

“And I think that’s energy we have to unleash, and we need to unleash our potential here in Pennsylvania,” said Ward.

Ward said the best thing about being a state senator is being able to help people. Asked about the most important things she’s accomplished as Senate pro tempore, she said the bill to fight breast cancer was “huge.”

And the corporate net income tax cut from 8.99 percent to 8.49 percent “was important to getting Pennsylvania on the right track.”

Also, raising the child tax credit to match the federal government was important. “I’d like to go further,” said Ward. “Those are the kind of issues that matter to people.”

Asked about working with a Democratic-led House, Ward said, “It’s like we live in two different countries.”

The Senate Republicans send the House “commonsense bills” that return like “a loaded up cherry tree.” One example was her bill to move up the state’s primary date, which the House sent back with so many other provisions it could not pass the Senate.

Asked if it was difficult working with a Democratic governor, Ward said, “No, I can’t call it difficult. I would say that it’s a challenge to get him to commit to one side or the other.”

For the next term, Sen. Joe Pittman (R-Indiana) was reelected Senate majority leader; Sen. Ryan Aument (R-Lancaster) was reelected majority whip; Sen. Kristin Phillips-Hill (R-York) was reelected as majority caucus chair:

Sen. Camera Bartolotta (R-Beaver) was reelected Senate majority caucus secretary; and Sen. Scott Martin (R-Lancaster) was reelected as chair of the Senate Appropriations Committee.

On the Democratic side, Sen. Jay Costa, Jr. (D-Allegheny) was reelected minority leader. The caucus whip will be Sen. Tina Tartaglione (D-Philadelphia); Appropriations Committee chair will be Sen. Vincent Hughes (D-Philadelphia); Sen. Maria Collett (D-Montgomery) will be caucus chair;  Caucus Secretary will be Sen. Steve Santarsiero (D-Bucks);  Policy Committee Chair will be Sen. Nick Miller (D-Lehigh) and the administrator will be Sen. Judy Schwank (D-Berks).

“I am honored and humbled to announce that I will be serving as the leader of the Pennsylvania Senate Democratic Caucus for the next two years,” said Costa. “I’d like to thank my fellow Democratic senators for entrusting me with this responsibility. I look forward to the fight ahead.”

Former President Donald Trump says he’ll make America’s economy great again.

And, according to the Trump campaign, the latest jobs numbers show American workers are in trouble and it’s time for a change.

“Just 114,000 jobs were created in July, while unemployment shot up to 4.3 percent — its highest since October 2021 — as economists warn the U.S. is in the early stages of a recession,” the Trump campaign said in a statement Friday.

A day earlier, Trump gave a speech on economic policy to the New York Economic Club, where he said a key to returning economic greatness is America’s energy sector, particularly in Pennsylvania.

“Energy [policy] is what caused our problem initially. Energy is going to bring us back.”

He contrasted his approach to that of Vice President Kamala Harris, who he said “wants four more years to impose a radical left agenda a threat to every American family.”

Trump laid out a plan to increase domestic oil and gas production.

“First, I will end Kamala Harris’ energy crusade and implement a policy of energy abundance, energy independence, and even energy dominance. We have more liquid gold under our feet than any other country, including Russia and Saudi Arabia. We’ll be using it. My plan will cut energy prices in half, or more than that within 12 months of taking office.”

By bringing gasoline prices lower than $2 a gallon, other prices, from airfares to electricity, will go down, he said.

“Meanwhile, Kamala Harris cannot bring down the price of anything because her energy policies are driving up the cost of everything. Everything is up, way up,” said Trump.

The Biden-Harris administration shut down the Keystone pipeline in America “on day one” while allowing the Russian Nordstream 2 pipeline to go through, Trump reminded his audience.

“If I was president, oil production would be four times higher than it is right now,” said Trump. Additionally, he had opened up the ANWAR site in Alaska to drilling but the Biden-Harris administration closed it.

And, the Biden-Harris EPA has shut down “more than 50 power plants…setting the stage for a catastrophic energy shortfall that will make inflation far worse than it has ever been.”

Trump said he would issue an energy emergency declaration to cut through bureaucratic red tape to open more energy plants.

“We will blast through every bureaucratic hurdle to issue rapid approvals for new drilling, new pipelines, new refineries, new power plants, new electric plants, and reactors of all types.

Prices will fall immediately in anticipation of this tremendous supply that we can create very quickly. And we’ll be the leader instead of the laggard,” said Trump.

Trump said Harris wants to “ban fracking in Pennsylvania and everywhere else, take away your private health insurance and perhaps most pertinent to the very brilliant people in this room, raise your business and corporate taxes, and unbelievably she will seek a tax on unrealized capital gains…She’s been after this for years and as everyone knows, she’s a Marxist who destroyed almost singlehandedly San Francisco.”

“Kamala Harris is the first major party nominee who fundamentally rejects freedom and embraces Marxism, communism, and fascism,” Trump said.

As for her claim that she’s reversed her position on fracking and now opposes a ban, Trump dismissed it as unbelievable.

“Harris recently said her values have not changed,” Trump said. “That’s what she wants.”

“Communism is the past. Freedom is the future, and it is time to send Comrade Kamala Harris back home to California,” Trump added.

Trump also promised to end the “Green New Deal” and its mandates for electric vehicles; cut unnecessary regulations; prioritize government efficiency, saying Tesla CEO Elon Musk agreed to help; encourage domestic manufacturing; and improve affordable housing by reducing inflation to lower mortgage costs.

“She’s promising communist price controls, wealth confiscation, energy annihilation, reparations, the largest tax increase ever imposed, and mass amnesty and citizenship for tens of millions of migrants who will consume trillions of dollars in federal benefits and destroy Social Security and Medicare,” Trump said.

The Harris campaign said Thursday, “Vice President Harris has a plan for a new way forward on the economy to boost the middle class, working Americans, and small businesses. She has an agenda that is responsible, funding her plans by ensuring billionaires and big corporations pay their fair share. She has an agenda to reduce Americans’ grocery, healthcare, and housing costs and other everyday expenses where most Americans just need a little help.

“Trump may try to distort objective reality on his dangerous plans, but mainstream experts agree on the devastating results of his agenda: shrinking the economy, undermining job growth, driving up inflation, exploding the national debt, and raising taxes on the middle class.”

Trump argues he’s the best choice for the economy.

“For four straight years, I fought for American workers like I would fight for my own family,” Trump said. “I took care of our economy like I would take care of my own company. In every decision I asked, will I create jobs here or will I be sending jobs overseas? I always put America first.”

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When Vice President Kamala Harris takes the stage at the Democratic National Convention on Thursday night, voters will be listening as she outlines her vision for America’s future. Her speech to the delegates, the American public, and audiences around the world will likely include a preview of a potential Harris-Walz administration energy policy.

For the sake of the Democrats’ election prospects in November, not to mention American security and prosperity, Harris should deliver a clear message that the U.S. will remain energy independent under her leadership.

The vice president has an historic opportunity to align her party with the majority of Americans who say the U.S. should harness the power of American hydrocarbon energy. A June 2024 Pew Research Center poll found only 29 percent of Americans want to phase out fossil fuels entirely, while a full 69 percent favor a combination of fossil fuels and renewable energy sources to power the national economy.

Americans understand that the country’s energy revolution of the past decade has not only strategically advantaged the U.S. as a global power but has also underpinned our record economic growth. For instance, the Dallas Federal Reserve estimated that oil prices would be 36 percent higher without the fracking technology and production advances from America’s Shale Revolution. With the advent of hydraulic fracking and horizontal drilling in shale formations, U.S. output reached 12.8 mb/d by the end of 2019. That increase of 7.9 mb/d since 2007 has all come from shale. The Dallas Fed also calculated that the Fracking Revolution contributed to 10 percent of GDP growth from 2010-2015. This was no small feat, and that energy boost helped President Barack Obama shepherd the economy back from the impacts of the Great Recession.

Interestingly enough, the places that benefitted the most were the rural parts of America, those most hard hit by the recession and poor healthcare which caused population flight to the big cities and shortened lifespans. They need economic development, good jobs, and social services to strengthen their communities and lighten the burden being absorbed by the urban centers. The American people are not just more prosperous because of our natural resources, they are also protecting future generations by aiding in the reduction of emissions.

According to the U.S. Energy Information Administration, the transition from coal to natural gas in electricity generation as a result of the increase in domestic natural gas exploration and production led to a 65 percent decrease in emissions of carbon dioxide in the electrical power sector.

And a groundbreaking 2024 study found U.S. LNG was significantly better for the environment than burning coal or other nations’ (i.e. Russia) natural gas, from production to end use. That’s why it’s encouraging that in 2023, the U.S. became the world leader in LNG production and exports. Worldwide electricity generation from coal hit a record high in 2023, and the U.S. would be well-poised to offer the world cleaner alternatives like U.S. LNG.

Despite the science, the Biden-Harris administration made the unprecedented decision in January to freeze new LNG export projects. The policy has been nothing short of counter-productive for the U.S. economy, our allies’ energy security, and our emissions’ reduction goals. Rather, we should be using it as a full-fledged transition fuel to bridge us to the future that Harris envisions. It will also create prosperity opportunities in the rural districts that were once dependent upon much dirtier coal. Harris’ vice presidential nominee, Gov. Tim Walz, will see the tremendous value for economic development in the rural districts that have a special place in his heart.

Gone are the days of having to accept Washington climate activists’ binary choice between preserving our planet and saving our economy. By fostering the American Energy Revolution, a Harris administration would help add billions to the economy, support middle-class families with their prices at the pump, and remove countless tons of greenhouse gasses from the environment as a result.

Harris and Walz must consider the impact that policies like the LNG export freeze earlier this year will have on U.S. strength in the world, and on Americans’ bottom line. We as a nation cannot afford to experiment with energy policy that denies science and undermines our national interest.

Instead, at this year’s convention I encourage our presidential nominee to send a signal to the world that her administration would harness the power of American energy and propel us to economic and geostrategic greatness. This is what the American people unambiguously want, and it is what voters will consider as they vote for the 47th president of the United States in November.

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The energy landscape in Pennsylvania is rich.  We’ve taken advantage of our huge coal and natural gas resources for more than a century.  More recently, prolific gas production has ensured low heating and power generation costs in Pennsylvania for years.  But the transition to a ‘green’ economy could stop this progress with clean coal and gas-fired generation, and could mean giving up our natural gas appliances too.

The energy industry in Pennsylvania has served us well.  Pennsylvania homes and businesses enjoy energy low prices and good energy jobs.  But now this is being threatened with bad science and misguided politicians.

First, some facts –

• Pennsylvania is the nation’s second-largest natural gas producer after Texas, producing more than 7½ trillion cubic feet each year.
• Pennsylvania is the third-largest coal-producing state, and it’s the second-largest coal exporter to foreign markets.
• Pennsylvania ranked second after Illinois in electricity generation from nuclear power. And since 2019, natural gas has surpassed nuclear energy as the largest source of in-state electricity generation.
• Over half of Pennsylvania households use natural gas as heating fuel; and the state’s 49 gas storage sites — the most for any state – help meet winter demand for the Mid-Atlantic and New England.
• Pennsylvania is the second-largest net supplier, after Texas, of total energy to other states.

Pennsylvania’s fossil fuel industry has been important to our nation – in the past, now, and in our nation’s future.

Today, we also demand that we are better stewards of the environment.  Industry has delivered with improved manufacturing methods and more efficient infrastructure.  The EPA reports that, since 1980, carbon monoxide emissions are down by more than 74%.  Nitrogen dioxide emissions have been reduced by more than 70%.  Sulfur dioxide emissions are off 93%.  And carbon dioxide emissions – CO2 – for all vehicles during the same period – have fallen by 31% – and still trending down .

President Biden is pushing a transition to a green economy.  But the EPA says we are getting greener without borrowing trillions of dollars.  I was always taught If it ain’t broke, don’t fix it.  Don’t force Electric Vehicles on us.  Let us choose what works best now, while we improve on technology for the future.

Biden says green industries can deliver jobs.  But running gas-fired power plants and refineries requires many workers.  How many jobs would Pennsylvania lose under Biden’s Inflation Reduction Act, which, by the way has only increased inflation?  Biden’s plan hopes to create more than 200,000 jobs over the next ten years in Pennsylvania.  What Biden doesn’t tell you is that the good jobs in natural gas and coal go away, to be replaced with taxpayer-subsidized energy justice jobs and environmental justice jobs, whatever that means.

President Biden visited the Philadelphia shipyard to talk about energy jobs, and one particular ship’s components will be built by nine unions across the country.  How do temporary jobs in Philadelphia help develop energy jobs across Pennsylvania?  Biden hopes that workers who lose their jobs in the transition will find a place in the green economy.  But the EV industry, as an example, is a net job loser for us, and a net job gainer for China.

Can Biden’s Inflation Reduction Act produce as many jobs as those we’ll lose?  If your job that is connected with natural gas or coal, or if your job depends on Pennsylvania minerals for manufacturing, then you can understand the damage that will be done if Mr. Biden phases out gas and coal.  You see, after the equipment is built and installed, solar and wind almost runs itself.  Job losses naturally follow.

According to the DoE, energy jobs in the U.S. grew by 3.8 percent in 2022, half of them being green energy jobs.  But remember – once it’s installed, most of the work goes away.  The green economy can’t replace job losses from refineries and power plants that require 24-hour, 365-day staffing.  And it cannot deliver the same reliable energy!  The wind doesn’t always blow and the sun isn’t always shining.

Thousands of Pennsylvania families have, for generations, made a living in oil and gas and coal.  Now Joe Biden wants to end these jobs and tell workers to find jobs elsewhere.  This delivers serious headwinds to energy with the green transition.  American companies cannot compete with cheap labor in China, which dominates the solar panel business.

I said in the beginning that I would tell you what we need to best develop energy here in Pennsylvania.  We need Donald Trump.  Donald Trump understands energy and real job creation.  He understands competition, and American ingenuity that produces energy from all sources – in a cleaner, and less expensive way.

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Two weeks after Pennsylvania Gov. Josh Shapiro announced his cap-and-trade carbon credits system, House Republicans unveiled a vastly different energy legislative package.

Calling Shapiro’s proposals an “assault on Pennsylvanians’ wallets,” Republicans said their bills better promote energy savings. They include proposals that would redirect more than $520 million in Act 129 funds meant for energy efficiency and conservation programs into a credit on Pennsylvanians’ energy bills.

“Households across the commonwealth experience the impacts of high energy costs, as some are forced to reduce spending on food, medicine or other necessities in order to heat their homes,” said the group of representatives, which included Bucks County Rep. Joe Hogan. “This is unacceptable, especially when rising prices are attributable to government regulations and policies.”

Shapiro claims his Pennsylvania Climate Emissions Reduction Act (PACER) proposal would save customers $252 million via electricity rebates.

Hogan, however, argued the state needs to expand its property tax/rent rebate program.

“I have heard from too many of my neighbors to know more people need help,” he told DVJournal. “That is why I’m working to include utility costs in the income determination so that more people qualify and the rebates are larger for those that currently qualify.”

The state’s property tax/rent rebate program gives rebates to qualifying residents who make up to $45,000 a year.

Another bill would create a Health Savings Account type program for utility bills that allows employers to directly deposit part of a worker’s salary into a bank account without paying taxes.

Other proposals target the Department of Environmental Protection (DEP).

One bill called for an Independent Energy Advocate within the agency. Appointed by the governor, the advocate would encourage regulators to consider “broader energy implications” before issuing rules. Republicans said that that would protect grid reliability and energy affordability.

DEP could get a name change to the Department of Environmental Services to promote a more business-friendly culture. A bill description suggested that DEP workers see “themselves as…a necessary barrier to the expansion of business and development.”

A bill by Rep. James Struzzi II (R-Indiana) called for the creation of an independent agency to promote energy development. The head of the unnamed agency would review all proposed energy rules. Another bill by Struzzi tasked regulators with explaining how electricity prices might be negatively affected by new regulations.

Energy production facilities that were closed due to Pennsylvania’s stalled entry into the Regional Greenhouse Gas Initiative could also become eligible for Keystone Opportunity Zone-related tax breaks. A bill description said that would propose job growth and new development.

There’s also a bill suggesting that Pennsylvania, Ohio, and West Virginia team up for lobbying efforts before PJM Interconnection officials. The states are the top three energy producers in the PJM Interconnection-run power grid.

Energy and manufacturing groups hailed the bills.

“It’s refreshing to see Pennsylvania policymakers focused on a pro-growth, pro-production, pro-consumer agenda,” Carl A. Marrara, Vice President of Government Affairs for the Pennsylvania Manufacturers’ Association told DVJournal. “Nationally, Pennsylvania is the number one exporter of electricity, number two producer of natural gas, number three producer of coal; we are a global energy leader and it’s time we act like it.”

Marcellus Shale Coalition President David Callahan argued that Pennsylvania policymakers need to remember how the state benefited from natural gas. He told DVJournal that natural gas reduced carbon emissions 46 percent from the power sector and saved consumers nearly $9 billion last year compared to 2008.

Republicans are the minority in the House but control the Senate. A Senate Republican Caucus spokesperson told DVJournal that they share a common objective with House Republicans on energy policy.

Shapiro’s office did not return an email asking for comment.

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(This article first appeared in Broad + Liberty.)

Governor Shapiro reignited the energy debate in the commonwealth last week when he announced his long term energy plan that includes a cap-and-trade mechanism to lower the state’s carbon emissions, and also sets new goals for the state’s energy portfolio.

But many critics of the plan say key details are missing, and some of the energy sources he’s banking on are still so theoretical or untested that it creates a risk for the commonwealth to bet on those technologies at the moment.

Shapiro’s plan asks the state to get 35 percent of its energy from so-called clean energy sources by 2035.

The acceptable sources for that goal are called “Tier I sources”, and include “solar, wind, low-impact hydropower, geothermal, small modular nuclear reactors, nuclear fusion technology, and fugitive emissions from coal mines and landfills,” according to a report by StateImpact Pennsylvania.

Two of those sources — small modular nuclear reactors, and fusion reactors — still appear to be struggling to become commercially viable, raising serious questions as to whether those technologies could play a legitimate role in the state by the 2035 goal — a mere eleven years away.

Small Modular Nuclear Reactors

Small Modular Nuclear Reactors, or SMRs, are exactly what their name sounds like: taking large nuclear power plants and downsizing them to make their construction and geographic placement easier and more flexible.

Although the idea has caught a lot of hype, actual deployment of the technology has proven frustrating.

“In fact, SMRs are not forecast to hit the commercial market before 2030, and although SMRs are expected to have lower up-front capital costs per reactor, their economic competitiveness is still to be proven in practice once they are deployed at scale,” an article from the website Energy Monitor says.

An example of the real-world difficulties can be found in western states, where a recent deal to start deployment of SMRs had to be abandoned in November.

“Utah Associated Municipal Power Systems (UAMPS), a coalition of community-owned power systems in seven western states, withdrew from a deal to build the plant, designed by NuScale Power, because too few members agreed to buy into it,” a report from Science.com said. “The project, subsidized by the U.S. Department of Energy (DOE), sought to revive the moribund U.S. nuclear industry, but its cost had more than doubled to $9.3 billion.”

“To some observers, the plan’s collapse also raises questions about the feasibility of other planned advanced reactors, meant to provide clean energy with fewer drawbacks than existing reactors,” the report went on to say.

“There’s plenty of reasons to think [the other projects] are going to be even more difficult and expensive,” Edwin Lyman, a physicist and director of nuclear power safety at the Union of Concerned Scientists, told the outlet.

The Utah news created shocks in North Carolina, where the state’s largest energy producer, Duke Energy, is betting big on SMRs.

“We are disappointed that the Carbon-Free Power Project will not be moving forward but remain committed to pursuing new nuclear to provide our customers affordable, reliable and clean energy solutions and meet the growing energy needs in our communities,” the company said in response to the Utah failure.

But the same statement also noted that Duke is hoping to add “next-generation nuclear technologies starting in the mid-2030s.”

Duke Energy already has two locations picked out for the first deployments of its anticipated fleet of SMRs and is sawing away at the permit, regulatory, and transmission issues right now. Pennsylvania knows none or very few of those things, making 2035 seem unrealistic.

Fusion Reactors

If SMRs face long odds to be in the state’s portfolio by 2035, fusion reactors may be an even longer shot.

A small scientific breakthrough in 2022 rekindled imaginations of a power source that would largely be emissions free and radically drop costs.

“But it turns out that fusion power is … hard. Really hard. Really complicated,” an article from Space.com says. “Full of unexpected pitfalls and traps. We’ve been trying to build fusion generators for three-quarters of a century, and we’ve made a lot of progress — enormous, groundbreaking, horizon-expanding progress. But we’re not there yet. Fusion power has been one of those things that’s been ‘only 20 years away’ for about 50 years now.”

An undated “FAQ” page from the International Atomic Energy Agency provides an optimistic yet tame forecast.

“A prototype of a fusion reactor (DEMO) is expected to be built by 2040. Electricity generation and exploitation is also expected to take place in the second half of the century, depending on funding and technical advancement.”

With a prototype only being deployed by 2040, it beggars belief that the technology could play a meaningful role in the state’s clean energy portfolio by 2035.

“If Governor Shapiro is going to overthrow Pennsylvania’s competitive market for electricity, he should at least tell us where the power will come from and how much each source will generate,” said David N. Taylor, President and CEO of the Pennsylvania Manufacturers’ Association.

“The governor’s mandate would monopolize half of Pennsylvania’s electricity market for his chosen power sources, so how many small modular nuclear reactors will be online in the commonwealth by 2035? Who will build them? Where will they be located? How much generation will they add to the grid? When will nuclear fusion be discovered and by whom?

“If Governor Shapiro intends to mandate the usage of these sources, he should be able to answer these questions.”

A request for comment to Governor Shapiro’s office was not returned.

Senate Majority Leader Kim Ward who sits on the Senate Environment and Energy Committee, also says she has more questions than answers. For example, she says Shapiro’s proposal to mix in federal dollars is one of those areas.

“Shapiro has offered no detail or explanation of where exactly the federal funding will come from, nor does he address how it will be used, or confirm if it will be sustainable,” Ward said. “More importantly, do these federal dollars come with strings attached, such as labor union requirements, DEI, or other items? It all seems to be cobbled together in a quagmire. Shapiro plays this quagmire off as if it is visionary. Instead it is murky and built on a house of cards.”

A request for comment to two Democrat members of the Senate Environment and Energy Committee about SMRs and fusion were not returned.

For another point of view, see: “Counterpoint: A Fossil Fuel Export Society is Wrong for America”

America’s oil and natural gas producers are innovating to produce more oil and gas than ever while generating less emissions and bringing reliable, affordable energy to Americans and our global allies. In its latest short-term energy outlook, the Energy Information Administration estimated that U.S. crude oil production reached “an all-time high in December of more than 13.3 million barrels per day.”

That production helps stabilize prices for consumers. Oil and natural gas are sold on global markets, and prices can be affected by events or decisions (frequently by bad actors) on the other side of the world. However, having strong U.S. output helps reduce the shock of those actions for Americans.

Our record level of energy production does face threats — specifically by the U.S. government, whose leaders have sought to shut down oil and gas producers with an all-of-government approach, but the industry pushes forward.

Last year, the oil and natural gas sectors continued to innovate and reach record-breaking levels of production. After becoming a net energy exporter in 2019, the United States has emerged as a behemoth in the global energy market, hitting prolific levels of oil and natural gas production and exports in the past year. U.S. liquified natural gas had a tremendous 2023, with the United States becoming the top LNG exporter in the world.

These record-breaking levels of production have not come at the expense of Americans, as some claim. On the contrary, record energy production levels have successfully met domestic and international demand, providing crucial energy security at home and abroad, all while keeping prices stable.

The American oil and natural gas industry continues to prioritize environmental progress. The workers producing the energy we use daily live in homes surrounded by the oilfield, breathing the air and drinking the water from aquifers above the oil reservoirs where they produce; thus, they are highly motivated to preserve and protect the environment for today and for future generations.

Data from the Environmental Protection Agency showed stunning drops in methane emissions across the board in oil- and natural gas-producing basins. The Arkoma Basin (Arkansas and Oklahoma) had a 77 percent decrease over the last five years. Anadarko (Oklahoma, Texas and Kansas) had a 44 percent decrease. And the Permian (Texas and New Mexico) had 32 percent less emissions. All show that even with record production, U.S. operators continue to produce oil and gas responsibly and with an eye toward methane reduction.

Voluntary initiatives like the Environmental Partnership, representing nearly 70 percent of U.S. onshore oil and gas operations, showcase the industry’s commitment to responsible operations through innovation and collaboration. In their 2023 report, the Environmental Partnership highlighted an additional 14 percent reduction in total flare volumes and a 2.4 percent reduction in flare intensity from the previous year — building on the work to cut flaring intensity nearly in half in 2022 — even as U.S. oil and gas production grew.

Considering the uncertain regulatory environment, these accomplishments and innovations are even more impressive. Nowhere has this been more apparent than in the Biden administration’s illegal actions regarding onshore and offshore leasing.

In the Gulf of Mexico, offshore production provides the lowest carbon barrels of oil, generates millions of dollars in funding for parks and recreation programs, and supports hundreds of thousands of jobs across every state. Yet the administration released an offshore plan 450 days late that only offered three lease sales over the next five years — the fewest in history.

Onshore, it’s a similar story. There are widespread administrative efforts to limit access for development despite disagreement from local groups, including tribes. The president and leaders who control the Senate want to limit capital access for producers, add new taxes and increase federal regulations.

Yes, our members are achieving record production NOW. But you can find a timeline on the Independent Petroleum Association of America website that shows how the exploration and production process — from identifying potential acreage and seismic testing to production and development — can take up to 15 years. There are many rounds of environmental analysis and permitting before a well starts producing. Much investment and planning goes into the process. Policies that stall energy production through delayed permitting, infrastructure or regulatory barriers diminish producers’ ability to operate.

The bottom line is a thriving American oil and gas industry means increased energy and economic security at home and abroad and progress toward global emission reduction goals. While administration regulatory hurdles add challenges, U.S. oil and natural gas producers continue to produce record-setting, responsible oil and natural gas.

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Whether southeastern Pennsylvania becomes the base for a liquified natural gas terminal remains unclear after the release of a much-awaited report from the bipartisan Philadelphia LNG Export Task Force.

“Our abundant natural gas resources not only fuel economic growth within the commonwealth but also offer us a unique opportunity to meet growing energy demand across the globe while creating tens of thousands of jobs and generating billions of dollars in yearly economic activity that can benefit communities in the Southeast region,” said task force Chair Rep. Martina White (R-Philadelphia).

Recommendations in the final report include:

• Facilitating pathways to support the current skilled labor workforce and workforce of the future by promoting educational opportunities and partnerships with the industry, institutions of higher education, and K-12 schools—especially those located in the Greater Philadelphia area and surrounding communities.
• Streamlining and improving the permitting process in Pennsylvania to balance regulatory considerations with the need for an effective and efficient permitting process to attract investment in Pennsylvania.
• Calling on Congress to reform the Jones Act to facilitate the transport of LNG between U.S. ports.

“As this report shows, Pennsylvania is poised to help address the increasing global demand for affordable, reliable energy by leveraging its abundant supply of natural gas and exporting LNG overseas,” said Stephanie Catarino Wissman, executive director of American Petroleum Institute Pennsylvania. “Under the leadership of Rep. White, this task force has put forth a comprehensive report and roadmap for Pennsylvania to establish an LNG export facility that would bring significant new investment and economic growth to the region and generate thousands of new jobs. Advancing the recommendations outlined in the report, including permitting reform at the state and federal level, is critical to developing an LNG export terminal and thus expanding Pennsylvania’s role as a global energy leader.”

Task Force member Sen. Gene Yaw (R-Bradford) said, “Pennsylvania’s diverse energy portfolio, robust energy sector, and extensive geological formations make us uniquely qualified to address the demand for affordable and reliable energy.”

“We already know the benefits of an LNG terminal are far too great to ignore, and the final report of the task force serves as a solid roadmap to position Pennsylvania as a global leader in energy exportation,” said Yaw, who chairs the environmental resources and energy committee. “Through the report’s recommendations to streamline the permitting process, strengthen our skilled labor workforce, and facilitate the safe and efficient transportation of LNG, we have the potential to create jobs, support economic development, reduce harmful emissions, and restore energy independence to this country.”

Toby Z. Rice, president and chief executive officer of EQT Corporation, a natural gas producer, sees this as a moment to seize the economic opportunity from the state’s standing as “a leading energy supplier.”

“For the first time in decades, the number of people without access to electricity increased in 2022. The task force’s report is clear – making clean, affordable, reliable Appalachian natural gas available on a global scale will increase energy security, decrease global emissions, and promote family-sustaining jobs across the Commonwealth. We have an incredible opportunity before us to unleash U.S. LNG from Pennsylvania, which will address the global energy shortage and generate thousands of jobs for Pennsylvanians,” Rice said.

Jim Snell, business manager of Steamfitters Local 420, likes what he sees in the report. “I am thrilled with the adoption of the final report from the Philadelphia LNG Export Task Force. This is an important step toward realizing the economic benefits of an LNG export terminal in our region, which can create thousands of well-paying union jobs and support the hard-working men and women in our community.”

White said the recommendations in the report are aimed at growing Pennsylvania’s economy, supporting Pennsylvania workers, and developing the future workforce.

“The adoption of this report is especially important in light of the decision by the Pennsylvania Commonwealth Court voiding Pennsylvania’s entrance into the Regional Greenhouse Gas Initiative (RGGI), a multi-state energy tax program that would have increased energy costs for Pennsylvanians,” said White. “We have the opportunity to not only increase energy production safety and efficiently and work toward reducing energy costs for Pennsylvania consumers.”

Carl Marrara, executive director of the Pennsylvania Manufacturers’ Association, conducted an economic analysis, finding the LNG export facility would benefit the local, regional, and statewide economies.

“Assuming a four-year constriction phase, a similarly sized LNG export facility would produce over 7,000 jobs per year, with approximately $575.35 million in labor income alone added to the state and local economy. In total, construction of the facility would add approximately $1.195 billion in total yearly economic output.

“The industries most positively impacted from the increase in economic activity are those in the skilled trades, led by jobs created for the construction of the facility structures, as well as commercial and industrial machinery repair, concrete manufacturing and fabricated pipe and fitting manufacturing,” Marra said.

However, some local officials are lining up to oppose any LNG development.

Chester Mayor-elect Stefan Roots told DVJournal he is concerned about pollution and the danger an LNG terminal might bring.

“There’s a public health and public safety issue first and foremost,” said Roots. Typically, these plants are built on at least 1,000 acres of “unpopulated land,” he said. “To squeeze all that onto 100 acres displaces dozens and dozens of families, churches, and established entities here to create the blast zone that they need, which indicates this is not a safe business, is something I don’t like.”

It is also unclear whether Gov. Josh Shapiro will support the effort to locate an LNG facility in the Delaware Valley. His spokesperson did not respond when asked whether the governor supports an LNG terminal for southeastern Pennsylvania.

The bipartisan Philadelphia LNG Export Task Force was comprised of members of the General Assembly, representatives of the natural gas industry, organized labor, the Port of Philadelphia, Philadelphia Gas Works, the mayor of Philadelphia, and members of the governor’s administration.

With the declaration, “Enough is enough,” California Attorney General Rob Bonta announced his state was suing five major oil companies. Now some in Pennsylvania are pushing for the commonwealth to side with California.

While there has been no action from the Attorney General’s Office, David Zeballos with the Center for Climate Integrity (CCI) wants the Keystone State to jump in on the Golden State’s side.

“State and local leaders have an important role to play in supporting these accountability efforts and making polluters pay for the damage they have caused,” he said on October 2 at the Pennsylvania Capitol. “You can lead the charge to calculate local climate change adaptation costs, condemn climate disinformation, raise awareness for urgent action on the climate crisis, and much more. The fossil fuel industry knowingly caused the climate crisis and continues to profit from climate pollution while our communities pay the price.”

CCI is considered the main driver of the civil lawsuits against ExxonMobil, BP, Shell, Chevron, and ConocoPhillips. California cited the nonprofit several times in court papers. There are reports suggesting CCI is working with other states and cities on their climate-related lawsuits. CCI President Richard Wiles has also suggested more government-backed suits may be on the horizon.

In Pennsylvania, a Big Oil lawsuit enjoys support from state Rep. Christopher M. Rabb (D-Philadelphia County). He cited the Center for Climate Integrity in August when complaining about the warmer-than-usual summer. Rabb vowed it was time to “make Big Oil pay” for the changing weather.

“Just a few weeks ago, intense rains caused flash flooding in my district of Philadelphia and beyond, killing at least six people in Bucks County,” he said. “Pennsylvania communities have an opportunity to sue Big Oil and protect our residents from being stuck with the bill to adapt to the climate crisis that Big Oil created. The worsening impacts of this climate crisis will continue whether we’re ready or not. It’s time to be proactive and protect our communities.”

Fossil fuels are an important part of Pennsylvania’s economy. The state is the second largest natural gas producer in the country, behind only Texas. It is also the top East Coast supplier of natural gas, coal, and refined petroleum products, according to the U.S. Energy Information Administration. Renewable energy provides three percent of the state’s power.

Pennsylvania isn’t involved in any suits against Big Oil, and there’s no word if Gov. Josh Shapiro’s administration would even consider it.

The Pennsylvania Manufacturers Association hopes Rabb will stay away from litigation. “The radical greens are attempting to overthrow our modern civilization,” PMA President and CEO David Taylor told DVJournal. “Their allies in the litigation industry are trying to extort money out of the productive sector. Either way, it’s a war on society via the courts, also known as ‘lawfare’.”

Taylor sees the suits as “the stupidest kind of politics” because they are going after an industry “that makes modern life possible.” He points out that environmentalists forget that fossil fuels are used for more than just vehicles and heating.

“Electric cars require a ton of rare earth minerals that have to be mined, processed, and transported from the other side of the world, using massive earth-moving equipment, refineries, and ships,” he said. “The rest of the car is metal, plastic, and synthetic rubber. The road is concrete, which is made from cement. The road is then coated in asphalt, which is a petroleum product. It is then striped with paint, which is another petroleum product. The idea that modern humans can live without petrochemicals and hydrocarbons is insane.”

The suits have run into mixed results in courts. The 2nd U.S. Circuit Court of Appeals threw out New York City’s lawsuit in 2021, saying states didn’t have jurisdiction. The U.S. Supreme Court has declined to move other suits to federal court. Justices are expected to rule on whether Minnesota’s Big Oil suit moves to federal court in the near future.

“Anyone blaming fossil fuels should stop using them,” Taylor quipped. “Good luck.”

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