United States: Pennsylvania’s Energy Plan Released By Governor Corbett

Last Updated: January 27 2014
Article by Michael L. Krancer and Margaret A. Hill

The title of Pennsylvania's newly released Energy Plan says it all: "Energy = Jobs." Pennsylvania's Energy Plan unabashedly embraces an "all of the above and below" energy policy as the key to making not only Pennsylvania more attractive and competitive, but also to making the United States more energy secure.

Pennsylvania's Plan promotes the vision of energy source diversity and leverages that into economic growth opportunity, along with various other factors. Here is an excerpt from the Plan:

Simply put, energy equals jobs. For any business, energy costs are a critical operating expense. Pennsylvania's abundant natural resources and competitive energy markets are an advantage in today's global economy where every dollar matters. Significant growth markets are nearby as Pennsylvania lies within a day's drive of 60% of North America's population. To help capture these markets, Pennsylvania's diverse and abundant resources offer nearly endless opportunity due to affordable and less volatile energy prices...[Pennsylvania] is a national leader in both energy production and resource diversity. This array of resources, paired with competitive energy markets, means affordable and abundant power delivered in a way that meets business needs.

 The facts outlined in the Plan back those statements up. Besides being underlain by the Marcellus Shale, the 2nd largest energy field in the globe, here are some metrics on how Pennsylvania stacks up among all the states:

  • 4th in overall energy production at 3,858 trillion BTUs;
  • 2nd in net electricity generation;
  • 2nd in natural gas production (growing 1,144 % faster than No. 1 Texas);
  • 2nd in nuclear generation;
  • 4th in coal production and the only producer of high-heat anthracite coal;
  • 9th in installed solar generation capacity;
  • 15th in wind energy capacity and 9th in new wind capacity installed in 2012;
  • 19th in crude oil production (as well as hosting in Philadelphia the largest oil refining complex on the East Coast). 

The Plan discusses in detail the contributions of all of the various combined energy sources that make up Pennsylvania's energy portfolio, including: coal, oil and natural gas, nuclear, wind, solar, geothermal, hydro, biomass, biofuels, hydrogen fuel cells, and combined heat and power. Also discussed are energy consumption tools like energy efficiency, demand response, and energy storage. When you add competitive electricity markets to this combination, you have what Governor Corbett says are all the ingredients for making Pennsylvania the energy capital of the nation.

The Plan also recognizes that it takes more than fine and diverse energy sources to make for success; sound public policy has to overlay them and smart policy is the key that unlocks the potential. Pennsylvania's Plan professes that free markets, private investment, and an entrepreneurial spirit are the essential keys to job production. This strategy has been working. In the oil and gas sector alone, there are currently over 240,000 workers in the core and ancillary industries; by 2020, shale gas development is projected to contribute nearly $14 billion in economic activity to Pennsylvania and generate nearly $5.6 billion in federal, state, and local taxes.

All of these ingredients, including a sound state government policy, get further leveraged by a host of other key factors important to businesses, including: low and stable energy prices; low cost and abundant feedstocks for manufacturing; location; transportation networks; a skilled, educated, and available workforce; educational institutions; and public-private partnership opportunities. 

  • Energy Prices. As a result of the increased use and production of natural gas and competitive electricity markets, the price of power and natural gas to Pennsylvania citizens and businesses has decreased by about 40% since 2008.
  • Low Cost and Abundant Feedstocks. Businesses that use chemical feedstock from natural gas production as inputs for manufacturing other goods, such as agricultural products, plastics, pharmaceuticals, personal health care, cosmetics, and more, gain a huge competitive advantage by being close to their input supply.
  • Location. 60% of the North American population and six of the nation's ten largest markets are within a day's drive of Pennsylvania. That means access to hundreds of millions of consumers with low transportation and delivery costs.
  • Transportation Networks. Twenty-three interstate highways and the Pennsylvania Turnpike crisscross the state. There are also six international airports and major interstate and short rail networks. Philadelphia's deepwater port ranks as the 4th largest in the United States, and Pittsburgh and Erie are important port centers, too. There are major pipelines traversing the state, as well. Additionally, in November 2013, Governor Corbett signed into law a major transportation funding measure calling for annual investments of $2.3 billion for the next five years.
  • Workforce. The Plan outlines the pro-active approach of the Pennsylvania Department of Labor and Industry, as well as the available tools being used to match current and prospective employers to job seekers.
  • Educational Infrastructure. The state is home to 260 degree-granting higher education institutions that are consistently listed among the top-ranked universities for business, biomedical research, material science, engineering, and computer science. In addition, the state's K-12 system shows high graduation and performance rates.
  • Public-Private Partnerships. The state is bullish on strategic investments that encourage growth in the energy and manufacturing sectors. Available devices include grants, tax credits, tax abatements, loans, loan guarantees, and grants associated with job creation. 

The Plan discusses liquefied natural gas ("LNG") exports, too. Preliminary figures from an ICF study being undertaken shows that even a modest amount of LNG exports from the United States of 8 billion cubic feet per day would boost U.S. employment by over 300,000 jobs and gross domestic product by up to $57 billion by 2035. In perhaps what is an understatement, the Plan notes that the combination of the state's booming production and its ports make Pennsylvania "well situated to explore and capitalize on those opportunities."

The Pennsylvania Energy Plan outlines a bold vision of the future of American energy security, responsible development of our energy resources, and significant economic expansion. The Plan should be well-received, except in OPEC countries and natural gas exporting forum countries like Iran and Libya.

For additional insight from Michael Krancer on Pennsylvania's Energy Plan, please read his Forbes.com article, "Did Pennsylvania Just Change the Way States Talk to Business about Energy?"

Follow Blank Rome's Energy/Environmental blog for real time updates at: http://energytrendswatch.com

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
Michael L. Krancer
Margaret A. Hill
 
In association with
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).
 
Email Address
Company Name
Password
Confirm Password
Position
Mondaq Topics -- Select your Interests
 Accounting
 Anti-trust
 Commercial
 Compliance
 Consumer
 Criminal
 Employment
 Energy
 Environment
 Family
 Finance
 Government
 Healthcare
 Immigration
 Insolvency
 Insurance
 International
 IP
 Law Performance
 Law Practice
 Litigation
 Media & IT
 Privacy
 Real Estate
 Strategy
 Tax
 Technology
 Transport
 Wealth Mgt
Regions
Africa
Asia
Asia Pacific
Australasia
Canada
Caribbean
Europe
European Union
Latin America
Middle East
U.K.
United States
Worldwide Updates
Registration
Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:
  • To allow you to personalize the Mondaq websites you are visiting.
  • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our information providers who provide information free for your use.
  • Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.
    If you do not want us to provide your name and email address you may opt out by clicking here
    If you do not wish to receive any future announcements of products and services offered by Mondaq you may opt out by clicking here

    Terms & Conditions and Privacy Statement

    Mondaq.com (the Website) is owned and managed by Mondaq Ltd and as a user you are granted a non-exclusive, revocable license to access the Website under its terms and conditions of use. Your use of the Website constitutes your agreement to the following terms and conditions of use. Mondaq Ltd may terminate your use of the Website if you are in breach of these terms and conditions or if Mondaq Ltd decides to terminate your license of use for whatever reason.

    Use of www.mondaq.com

    You may use the Website but are required to register as a user if you wish to read the full text of the content and articles available (the Content). You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these terms & conditions or with the prior written consent of Mondaq Ltd. You may not use electronic or other means to extract details or information about Mondaq.com’s content, users or contributors in order to offer them any services or products which compete directly or indirectly with Mondaq Ltd’s services and products.

    Disclaimer

    Mondaq Ltd and/or its respective suppliers make no representations about the suitability of the information contained in the documents and related graphics published on this server for any purpose. All such documents and related graphics are provided "as is" without warranty of any kind. Mondaq Ltd and/or its respective suppliers hereby disclaim all warranties and conditions with regard to this information, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Mondaq Ltd and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use or performance of information available from this server.

    The documents and related graphics published on this server could include technical inaccuracies or typographical errors. Changes are periodically added to the information herein. Mondaq Ltd and/or its respective suppliers may make improvements and/or changes in the product(s) and/or the program(s) described herein at any time.

    Registration

    Mondaq Ltd requires you to register and provide information that personally identifies you, including what sort of information you are interested in, for three primary purposes:

    • To allow you to personalize the Mondaq websites you are visiting.
    • To enable features such as password reminder, newsletter alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
    • To produce demographic feedback for our information providers who provide information free for your use.

    Mondaq (and its affiliate sites) do not sell or provide your details to third parties other than information providers. The reason we provide our information providers with this information is so that they can measure the response their articles are receiving and provide you with information about their products and services.

    Information Collection and Use

    We require site users to register with Mondaq (and its affiliate sites) to view the free information on the site. We also collect information from our users at several different points on the websites: this is so that we can customise the sites according to individual usage, provide 'session-aware' functionality, and ensure that content is acquired and developed appropriately. This gives us an overall picture of our user profiles, which in turn shows to our Editorial Contributors the type of person they are reaching by posting articles on Mondaq (and its affiliate sites) – meaning more free content for registered users.

    We are only able to provide the material on the Mondaq (and its affiliate sites) site free to site visitors because we can pass on information about the pages that users are viewing and the personal information users provide to us (e.g. email addresses) to reputable contributing firms such as law firms who author those pages. We do not sell or rent information to anyone else other than the authors of those pages, who may change from time to time. Should you wish us not to disclose your details to any of these parties, please tick the box above or tick the box marked "Opt out of Registration Information Disclosure" on the Your Profile page. We and our author organisations may only contact you via email or other means if you allow us to do so. Users can opt out of contact when they register on the site, or send an email to unsubscribe@mondaq.com with “no disclosure” in the subject heading

    Mondaq News Alerts

    In order to receive Mondaq News Alerts, users have to complete a separate registration form. This is a personalised service where users choose regions and topics of interest and we send it only to those users who have requested it. Users can stop receiving these Alerts by going to the Mondaq News Alerts page and deselecting all interest areas. In the same way users can amend their personal preferences to add or remove subject areas.

    Cookies

    A cookie is a small text file written to a user’s hard drive that contains an identifying user number. The cookies do not contain any personal information about users. We use the cookie so users do not have to log in every time they use the service and the cookie will automatically expire if you do not visit the Mondaq website (or its affiliate sites) for 12 months. We also use the cookie to personalise a user's experience of the site (for example to show information specific to a user's region). As the Mondaq sites are fully personalised and cookies are essential to its core technology the site will function unpredictably with browsers that do not support cookies - or where cookies are disabled (in these circumstances we advise you to attempt to locate the information you require elsewhere on the web). However if you are concerned about the presence of a Mondaq cookie on your machine you can also choose to expire the cookie immediately (remove it) by selecting the 'Log Off' menu option as the last thing you do when you use the site.

    Some of our business partners may use cookies on our site (for example, advertisers). However, we have no access to or control over these cookies and we are not aware of any at present that do so.

    Log Files

    We use IP addresses to analyse trends, administer the site, track movement, and gather broad demographic information for aggregate use. IP addresses are not linked to personally identifiable information.

    Links

    This web site contains links to other sites. Please be aware that Mondaq (or its affiliate sites) are not responsible for the privacy practices of such other sites. We encourage our users to be aware when they leave our site and to read the privacy statements of these third party sites. This privacy statement applies solely to information collected by this Web site.

    Surveys & Contests

    From time-to-time our site requests information from users via surveys or contests. Participation in these surveys or contests is completely voluntary and the user therefore has a choice whether or not to disclose any information requested. Information requested may include contact information (such as name and delivery address), and demographic information (such as postcode, age level). Contact information will be used to notify the winners and award prizes. Survey information will be used for purposes of monitoring or improving the functionality of the site.

    Mail-A-Friend

    If a user elects to use our referral service for informing a friend about our site, we ask them for the friend’s name and email address. Mondaq stores this information and may contact the friend to invite them to register with Mondaq, but they will not be contacted more than once. The friend may contact Mondaq to request the removal of this information from our database.

    Emails

    From time to time Mondaq may send you emails promoting Mondaq services including new services. You may opt out of receiving such emails by clicking below.

    *** If you do not wish to receive any future announcements of services offered by Mondaq you may opt out by clicking here .

    Security

    This website takes every reasonable precaution to protect our users’ information. When users submit sensitive information via the website, your information is protected using firewalls and other security technology. If you have any questions about the security at our website, you can send an email to webmaster@mondaq.com.

    Correcting/Updating Personal Information

    If a user’s personally identifiable information changes (such as postcode), or if a user no longer desires our service, we will endeavour to provide a way to correct, update or remove that user’s personal data provided to us. This can usually be done at the “Your Profile” page or by sending an email to EditorialAdvisor@mondaq.com.

    Notification of Changes

    If we decide to change our Terms & Conditions or Privacy Policy, we will post those changes on our site so our users are always aware of what information we collect, how we use it, and under what circumstances, if any, we disclose it. If at any point we decide to use personally identifiable information in a manner different from that stated at the time it was collected, we will notify users by way of an email. Users will have a choice as to whether or not we use their information in this different manner. We will use information in accordance with the privacy policy under which the information was collected.

    How to contact Mondaq

    You can contact us with comments or queries at enquiries@mondaq.com.

    If for some reason you believe Mondaq Ltd. has not adhered to these principles, please notify us by e-mail at problems@mondaq.com and we will use commercially reasonable efforts to determine and correct the problem promptly.

    By clicking Register you state you have read and agree to our Terms and Conditions