The Pennsylvania Senate recently passed SB 832, a bill aimed at improving the state’s permitting process, which has been criticized for being slow and hindering economic development. While Governor Josh Shapiro initially opposed the bill, he should reconsider his stance and recognize the benefits it could bring to the state. Under SB 832, the permitting process would be overhauled, with separate tracks established for small-scale and large-scale energy projects. An alternative permitting pathway for small-scale projects and an accelerated review process for large-scale projects are also included in the bill.
SB 832 introduces two new offices, the Independent Energy Office and the Pennsylvania Opportunities with Energy Reliability Authority (POWER), to address the state’s energy and permitting challenges. While Democrats in the state House of Representatives have voiced their opposition to the bill, it aligns with Governor Shapiro’s efforts to address permitting issues in Pennsylvania. The governor’s PAyback initiative, which offers refunds to businesses when state agencies miss permit deadlines, has already shown some success in reducing turnaround times for professional licenses and DEP decisions.
Despite these efforts, the permitting process for energy projects in Pennsylvania continues to face delays and inconsistencies, leading to lost investment opportunities. High-profile projects like Bechtel Corporation’s $1 billion natural gas-fired power plant in Renovo and Encina’s plastics recycling facility in Northumberland County have been cancelled or put on hold due to regulatory challenges. Fairlife’s decision to build a milk processing plant in New York rather than Pennsylvania was also influenced by the state’s slow permitting process.
Governor Shapiro’s PAyback initiative demonstrates his commitment to meeting permit decision deadlines, but businesses ultimately want permit approval rather than fee refunds. SB 832 offers a logical next step for reform by providing alternative review pathways and regulatory waivers for projects facing obstruction and indecision from state agencies. By embracing the reforms in SB 832, Governor Shapiro can show that Pennsylvania is open for business and committed to utilizing its energy resources for future growth.
The current permitting system in Pennsylvania has cost the state thousands of jobs and billions of dollars in economic activity, highlighting the urgent need for reform. Governor Shapiro should work with the legislature to craft a permitting system that benefits all Pennsylvanians and signals to businesses that the state is ready for investment. While SB 832 may not be perfect, advocating for constructive improvements rather than outright opposition will help move Pennsylvania towards a more efficient and business-friendly permitting process. It is crucial for the state to address its permitting challenges promptly to attract and retain investment opportunities for future growth.