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State House committee advances costly energy mandate bill
Measure would limit consumer choice, stifle innovation The House Environmental Resources and Energy Committee voted this week to advance H.B. 2405, which would expand renewable energy mandates established in the 2004 Alternative Energy Portfolio Standards Act. The legislation was approved by a vote of 17-9. H.B. 2405 is similar in scope and nature to H.B. 80, which the PA Chamber worked aggressively to oppose because of its well-intended but misguided approach to energy policy. Both bills would seek to have state government mandate specific types of alternative energy (namely wind and solar), limiting consumer choice and stifling innovation. “Many of our member businesses have placed a priority on sustainability efforts and investing in alternative energy,” PA Chamber Vice President Gene Barr said. “We simply don’t believe it’s the role of government to dictate the types and percentages of alternative energy.” H.B. 2405 would extend and expand alternative energy mandates created in 2004, the effects of which have not yet even been realized. Industry experts place the cost of this bill at anywhere from $9 billion to $12 billion, at a time when energy costs are already on the rise, energy demand is ever-increasing and businesses are still feeling the aftershocks of a tumultuous economy. This legislation essentially shuts out one-third of the market and could hurt Pennsylvania’s historic energy strengths, including coal, nuclear and natural gas. It would also discourage innovation because developing alternative energy sources wouldn’t be on the government’s arbitrary list of favored sources. And the notion that such legislation would be a landmark job creator is largely hyperbole. A study used by proponents of H.B. 80 and H.B. 2405 has seen its own authors discredit it and newer studies have shown its claims of job creation to be both unfounded and inflated. Lawmakers need to consider all types of energy as they evaluate Pennsylvania’s future consumption needs and should encourage their development within the framework of the free-market system. Click here to watch a video explaining more about the PA Chamber’s views on the energy policy debate in Harrisburg. ### Founded in 1916, the Pennsylvania Chamber of Business and Industry is the state’s largest broad-based business association, with its membership comprising businesses of all sizes and across all industry sectors. The PA Chamber is The Statewide Voice of Business. |
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