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INDUSTRY AND LABOR COALITION HAS SOME ADVICE FOR PENNSYLVANIA'S NEXT GOVERNOR

Pittsburgh Works


INDUSTRY AND LABOR COALITION HAS SOME ADVICE FOR PENNSYLVANIA'S NEXT GOVERNOR

Anya Litvak
Pittsburgh Post-Gazette
alitvak@post-gazette.com

Mar 25, 2022
12:31 PM

A coalition of gas and manufacturing companies and labor unions released a
gubernatorial wish list on Thursday, urging candidates to embrace lowering
corporate income taxes, raising funding for technical training and industrial
site preparation, and speeding up environmental reviews.

Pittsburgh Works, a group that includes the natural gas drillers CNX Corp. and
Range Resources, steel firms U.S. Steel and TMS International, pipeline giant
Energy Transfer and more than a dozen labor unions, outlined the priorities its
members believe will make Pennsylvania more attractive to manufacturers and
workers. It has already met with some gubernatorial candidates and is trying to
schedule meetings with others. 

The group is asking for a cut to Pennsylvania’s corporate net income tax rate,
which stands at 9.9%, the second highest in the country. Ken Zapinski, head of
research and public policy for Pittsburgh Works, said the group doesn’t want to
dictate a number that would be deemed competitive but suggested it should be
more in line with the median, which is around 6.75%, according to data collected
by the Tax Foundation. While the vast majority of states have such taxes, some,
including Ohio and Texas, do not.

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To boost the pipeline of skilled workers in the state, Pittsburgh Works wants
state funding to cover living expenses for people in technical training programs
such as trade apprenticeships. It would be analogous to providing disadvantaged
college students with scholarships to cover expenses, Mr. Zapinski said.

Pittsburgh Works wants more money funneled to an existing program that gives
grants and low-interest loans for industrial site development.

The organization’s energy-related goals revolve around the development of
natural gas.

“In Washington County, we say the power is under our feet. It doesn’t do us any
good leaving that energy source there,” said Jeff Kotula, president of the
Washington County Chamber of Commerce, who sat on a panel with Mr. Zapinski and
Jeff Nobers, executive director of Pittsburgh Works.

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The group wants the next governor to reject Pennsylvania’s participation in the
Regional Greenhouse Gas Initiative, a voluntary multistate compact that puts a
price and cap on carbon emissions. Gov. Tom Wolf has advanced Pennsylvania’s
entry into the program, although it has not yet joined and the effort is being
opposed by Republicans in the Legislature and in the courts.

On the other hand, Pittsburgh Works wants the future governor to boost
Southwestern Pennsylvania’s chances of becoming a hydrogen and carbon capture
and sequestration hub. That means natural gas extracted from Marcellus and Utica
shales would be transformed into hydrogen and the carbon produced during the
process would be captured and pumped into geologic storage underground.
Pittsburgh Works shares some members with a consortium of large energy and
manufacturing companies that is pursuing billions in federal funding for such a
hub.

One way the state can make itself more attractive to investment is to speed up
its permit processing, the group said. 

It urged the Department of Environmental Protection to issue permits faster and
suggested that higher permit fees would be a good bargain to hire more staff to
process applications. While the DEP has a permit guarantee program, which
ensures a decision is made within certain period of time — the agency’s latest
permit report indicates that so far this year it has processed 95% of
applications in that program on time — Mr. Zapinski said too many applications
are excluded from the program. According to DEP’s count, about 22% of
applications received since the beginning of last year that were eligible for
the permit guarantee program did not qualify for it because of deficiencies

“It’s better in concept than it is in execution,” Mr. Zapinski said.

The group also wants Pennsylvania lawmakers to consider legislation that would
give permit applications an automatic stamp of approval if the DEP doesn’t
render a decision within a certain period of time. This kind of “deemed
approval” framework is common in building permits, but does not apply to
environmental permits in Pennsylvania. A bill that sought to introduce that
limit on the DEP was part of an “Energize PA” package of legislation sponsored
by Pennsylvania House Republicans in 2019. It did not advance. 

Anya Litvak: alitvak@post-gazette.com 

First Published March 25, 2022, 10:00am



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