On July 6, at the request of the natural gas industry, the Senate and House passed and sent to the Governor Senate Bill 275 (Yaw-R- Lycoming) which prohibits counties, local governments and authorities from promoting clean, cheaper energy sources to reduce climate-changing greenhouse gas emissions.

The legislation was significantly amended since it was first introduced, however, the key provisions remain the same, a municipality may not--

“Adopt a policy that restricts or prohibits, or has the effect of restricting or prohibiting, the connection or reconnection of a utility service based upon the type of source of energy to be delivered to an individual consumer within the municipality.

“Discriminate against a utility service provider based in whole or in part on the nature or source of the utility service provided for an individual consumer within the municipality.

“A policy, or part of a policy, that is adopted by a municipality may not restrict or prohibit, or have the effect of restricting or prohibiting, the ability of an individual or entity within the municipality to use the services of a utility service provider that is capable and authorized to provide utility service for the property of the individual or entity.”

The bill was amended to preserve the right of a municipality to regulate energy generation as a land use and “shall not be construed as restricting or prohibiting an individual or entity from choosing a utility service provider.”

Another amendment preserved the right of municipalities to manage or operate a publicly owned utility.

The bill redefines a “utility” to include anyone providing fuel oil, propane or manufactured gas, not just the typical utility services of electric and natural gas.

The bill was introduced because a small number of cities in other states, not in Pennsylvania, were adopting ordinances requiring the electrification of new construction and prohibiting the use of natural gas and heating oil as part of initiatives to reduce greenhouse gas emissions.

Duquesne Light [Read more here] and PennEnvironment [Read more here] have pointed out the economic and environmental benefits of electrification of new buildings in Pennsylvania, especially now when natural gas prices are spiking [Read more here].

This legislation is part of a nationwide initiative by the American Gas Association to get states across the country to adopt legislation to prohibit local governments from adopting ordinances that would block the use of natural gas in new homes and commercial construction.  Read more here.

In March, the U.S. Energy Information Administration’s Annual Energy Outlook said the falling costs of renewable energy means “robust” competition with natural gas and said electricity is the fastest growing energy source in buildings.  Read more here.

On May 16, the U.S. EIA reported photovoltaic module shipments jumped from 1.3 million kilowatt hours in February to 2.2 million kilowatt hours in March.  Read more here.

This legislation is meant by the natural gas industry to reduce conversions to electricity, even in the face of record natural gas cost spikes as a result of the Russian Ukraine war.

As Bloomberg and others have reported, “Natural Gas Soars 700%, Becoming Driving Force In The New Cold War.”

The spiking cost of natural gas is also affecting electricity, as the Public Utility Commission warned on May 9 when they announced electricity costs will be rising between 16.1 percent and 44.6 percent starting June 1.  Read more here.

However, electric generation companies are moving quickly to incorporate cheaper renewables in their generation mix, as the U.S. Energy Information Administration has reported.  Read more here.

A copy of the House Fiscal Note & Summary is available.

Related Articles This Week:

-- Gov. Wolf Now Has To Decide To Hold Oil & Gas Drillers Accountable, Or Create A $5.1 Billion Cleanup Liability For Taxpayers  [PaEN]

-- DEP Issues 20% More NOVs To Oil & Gas Well Drillers For Abandoning Wells Without Plugging Them In 2nd Quarter [PaEN]

-- House Committee Meets July 11 On Letter To IRRC Opposing Final Oil & Gas Facility Methane Reduction Regulation  [PaEN]

[Posted: July 6, 2022]

7/11/2022