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PA Chamber members welcome dialogue on state energy policy

Stress that traditional and alternative sources must be part of energy mix

PA Chamber members commend state lawmakers for focusing on the direction of energy policy in the state, starting with addressing the cost impact of government imposed energy mandates on residential and business customers.

On Monday, Aug. 22, the House Majority Policy Committee held the first in a series of public hearings on the impact of state mandated energy programs, in particular, the Tier I and Tier II mandates contained in the 2004 Alternative Energy Portfolio Standards Act.

AEPS Tier I mandates require that businesses draw 8 percent of their power supplies from solar, wind, geothermal, biomass, and methane resources by 2020, with a specific carve out of 1.5 percent for solar. Businesses are also directed to have Tier II sources - coal refuse, wood pulp and municipal solid waste - comprise another 10 percent of their operations in that same year.

PA Chamber members support all forms of energy generation and consumption – both traditional and alternative sources – as the Commonwealth’s energy needs continue to grow, but oppose government energy mandates because they create an unfair system of winners and losers in the marketplace. To that end, the PA Chamber worked to defeat a legislative proposal last session that would have extended certain AEPS mandates, and is urging lawmakers to rethink the mandate approach to energy policy moving forward.

In a memo sent to committee members, the PA Chamber stressed that government imposed energy mandates reserve a portion of the market for certain politically-favored technologies, regardless of price, creating a very powerful disincentive for investment in any other resource that does not qualify.

At a time when economic recovery from the recession is still ongoing, government should be looking for ways to decrease costs on consumers, not adding on to their cost of doing business.

Since the strength of Pennsylvania’s economy relies in part on the strength of all energy sectors, PA Chamber members encourage lawmakers to enact policies that allow the marketplace to select the most appropriate energy technologies and avoid government actions that select, force or subsidize particular technologies.

It’s an exciting time for energy production in the Commonwealth. The energy sources that defined Pennsylvania’s past, combined with alternative sources, complement new economic opportunities through the Marcellus Shale and emerging technologies in order to position Pennsylvania as an energy leader. As discussions continue on the direction of the energy industry, PA Chamber members will continue to promote a productive dialogue among industry leaders and government officials to shape policy that is dedicated to supporting energy efficiency, reducing costs, growing jobs and bringing real economic benefits to job creators and consumers. 

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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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