Energy Mandates
July 22, 2009

Hi, I’m Gene Barr, vice president of the Pennsylvania Chamber. Welcome to this month’s Pennsylvania Chamber Minute.

Keeping energy abundant and affordable is critical to meet the current and future needs of job creators and families.

Even with conservation and efficiency efforts, demand is expected to increase 40 percent by the year 2030 due to new technologies, a growing population and larger home sizes.

The last thing Pennsylvania should do is enact policies that could make energy more expensive and negatively impact reliability.

Legislation currently under debate in the General Assembly has the potential to do just that.

House Bill 80 would increase alternative energy mandates established by a 2004 law, even though the initial mandates have not been implemented and no one knows what their full cost impact will be. Plus, it’s still unclear what Congress plans to do.
Estimates are that the additional mandates will add billions to the cost of electricity in future years. In fact, business groups and organized labor have concerns about the bill’s adverse impact on electricity costs and jobs.
Increasing mandated percentages of particular sources also creates inflexibility in the energy market and removes business innovation from the equation. Policymakers cannot accurately predict what technologies will exist or be economically viable in the future. A case in point is the development of the Marcellus Shale natural gas reserves, which was not anticipated a decade ago.
Alternative energy is an important part of the energy mix, but should exist within a framework of a free enterprise system that balances energy needs with viable sources to meet those needs. This also includes traditional options, including environmentally friendly nuclear power, as well as clean coal.

The same concept holds true in the ongoing development of a state-specific climate change action plan.

A special advisory committee will present its recommendations to the legislature this fall.

This is the business community’s message: Develop a plan that rationally addresses climate change concerns while not economically harming industry in Pennsylvania or threatening our energy security.

Whether addressing energy cost and availability concerns separately or as part of the climate change conversation, much is at stake for job creators and individuals. The Chamber is actively engaged on your behalf to ensure that Pennsylvania’s energy future and economic competitiveness are not jeopardized.

On a final note, the legislature continues to debate the 2009-2010 state budget. Please contact your lawmakers and remind them to vote “no” on any new taxes.

Thank you for spending a minute of your time with the Pennsylvania Chamber…The Statewide voice of business.