On July 11, Gov. Wolf vetoed Senate Bill 275 (Yaw-R- Lycoming) which would have prohibited counties, local governments and authorities from promoting cleaner energy sources to reduce climate-changing greenhouse gas emissions.

Click Here for a copy of the veto message.

The legislation, passed by the Senate and House at the request of the natural gas industry,  would have prohibited municipalities from “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.”

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:

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

-- After 12 Years, House, Senate Pass Bill To Control Overuse Of Fertilizer On Turf  [PaEN]

[Posted: July 11, 2022]

7/18/2022