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House of Representatives
Session of 2019 - 2020 Regular Session

MEMORANDUM

Posted:	April 24, 2019 02:34 PM
From:	Representative Mike Turzai and Rep. Aaron D. Kaufer, Rep. Natalie Mihalek, Rep. Joshua D. Kail, Rep. Jonathan Fritz, Rep. Tarah Toohil, Rep. Eric R. Nelson, Rep. Michael J. Puskaric, Rep. Timothy J. O'Neal
To:	All House members
Subject:	Energize PA Legislative Package

This legislative package, “Energize PA,” is designed to make Pennsylvania attractive to outside businesses, create family-sustaining jobs and provide economic benefits to underserved regions, without creating any new fees or taxes.

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Document #1

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I plan to introduce legislation that will encourage manufacturers to invest in PA. This legislation mirrors the existing Pennsylvania Resource Manufacturing tax credit that was established during the 2012-13 budget. This legislation will target those large manufacturers using PA Methane in the production of ammonia, urea and methanol. The Commonwealth is open for business, and we should be encouraging large corporations to make PA their home.   The great Pennsylvania natural gas rush is perhaps the most unpredicted significant energy development in the past 100 years. In 2018, natural gas supplied 35% of Pennsylvania's electricity, a powerful leap from just 8% in 2007. Nationally, gas is now 34% of U.S. electricity, versus 20% or so a decade ago.   The Commonwealth is a prime location to attract natural gas manufacturers. At over 18 Bcf/d, Pennsylvania now yields over 20% of all U.S. gas, only behind Texas' 22 Bcf/d. In the 10 years since a shale revolution took flight in its Marcellus operations, Pennsylvania's gas output has exploded 32-fold.   Please join me in co-sponsoring this pro-growth, pro-business and pro-jobs legislation.

Document #2

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will introduce legislation that will increase the percentage rate cap for net loss deductions, otherwise known as net operating loss (NOL), an entity may carry forward. The current percentage is 40%. My legislation increases that rate to 45% in taxable year 2020 and 50% in taxable year 2021. Early stage companies often incur tax losses in their first few years of existence, while they are building and growing.  Mature companies, which operate in industries that fluctuate with the business cycle, can have significant loss years followed by years of profitability. Net operating loss deductions are important for companies of all sizes because they offer a degree of taxpaying consistency for businesses that might experience significant profits during a boom cycle and significant losses during recession cycle. It is also important to encourage companies to invest in technology or other aspects of the business that are required for growth. Set off and carry forward of losses is good for the long-term health of companies because it helps them even out their income while at the same time incentivizing them to invest in growth. During the recession of 2008, many companies had generated net operating losses and subsequently utilized them when the economy recovered from recession. NOLs are important assets for companies. It works on the pay as you earn principle. When Company ‘X’ earns profits it pays taxes, when it incurs loss, it gets some relief. Please join me supporting this legislation which send the message that Pennsylvania is open for business.

Document #3

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will be introducing the Keystone Energy Enhancement Act (KEEA), a piece of legislation designed to facilitate economic growth and encourage capital investment within Pennsylvania’s natural gas, manufacturing, and petrochemical industries. Using preexisting statutory framework, the KEEA would establish an instrumentality of the Commonwealth known as the Keystone Energy Authority (KEA). The KEA will be governed by a seven-member board of industry experts with clearly-defined powers and responsibilities. The legislation prescribes board composition and membership criteria, meeting schedules, policies and procedures, as well as duties of board members. The preeminent responsibility of the KEA will be to administer the Keystone Energy Enhancement Zone (KEEZ) Program, which is modeled after the successful Keystone Opportunity Zones Program. The KEA will authorize up to 20 Keystone Energy Enhancement Zones across all regions and corridors of the Commonwealth. Natural gas, manufacturing, petrochemical, and other downstream businesses operating within a zone will be eligible for state and local tax exemptions, deductions, abatements, and credits for a 10-year period. In addition to administering the KEEZ Program, the KEA will be responsible for: Facilitating the proliferation of transmission and distribution pipelines for natural gas and natural gas liquids Coordinating and expediting all necessary permit and regulatory reviews required by KEEZ business participants Working cooperatively with industrial development agencies, local authorities, DCED, DEP, Revenue, the PUC, and other agencies of the Commonwealth Identifying barriers to the expansion of natural gas transmission and distribution infrastructure and providing the Governor and General Assembly its legislative and regulatory policy recommendations Please join me in co-sponsoring this important piece of pro-growth legislation. If you have any questions, please do not hesitate to contact me.

Document #4

Description:

As part of the “Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will introduce legislation that expands the valuable Pipeline Investment Program (PIPE) grant program. To fully realize the benefits of Pennsylvania’s vast energy resources, it is critical to make low-cost natural gas energy available to Pennsylvania’s residents, manufacturers, and pad-ready sites. Manufacturers will have a significant competitive advantage in production costs and Pennsylvania communities will be able to attract new manufacturing enterprises with readily available access to natural gas.   This legislation will make grants available to construct the last few miles of distribution lines to business parks and existing manufacturing and industrial enterprises, will accelerate beneficial deployment of low-cost energy and will result in the creation of new economic base jobs in the Commonwealth while providing access to natural gas for residents.   My legislation accomplishes the following: Opens existing grants to large residential conversion projects and combined heat and power applications. Increases the maximum grant amount from $1 million to $1.5 million. Provides for an additional $500,000 grant for tapping projects. Directs the Commonwealth Financing Authority (CFA) to develop streamlined guidelines to expedite applications for grants of $75,000 or less.  Please join me in cosponsoring this important legislation.

Document #5

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will introduce legislation to amending Title 27 (Environmental Resources) to require the Department of Community and Economic Development (DCED) to establish a registry for abandoned manufacturing sites across the Commonwealth.    The registry will include the following information: • Name and contact information of the current owner; • Legal description of the site; and • The current condition of the property (to include brownfield status).   The Commonwealth has existing properties that might be attractive to entities looking to relocate to the state. By establishing this registry, the state is making it clear that PA is open for business and we have available sites open for development and repurposing.   My legislation is a proactive step toward having a central repository businesses’ can search when they are looking for properties to develop.   Please join me in cosponsoring this legislation.

Document #6

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will introduce legislation to further incentivize businesses to remediate Commonwealth lands that pose a current or future risk to the health and safety of our residents.    My legislation will do this by building on the current success of Act 2 to create a consolidated standards permit.  People who are awarded this permit would not be required to obtain separate authorizing permissions, thus, streamlining the process for permitees, as well as the Department.    Obtaining numerous permits and receiving a timely response has become a deterrent to businesses and corporations looking to locate or expand their footprint. Let’s streamline this process and make Pennsylvania attractive to those who want to do business here. The Commonwealth is open for business and our policies should reflect this.   Please join me in supporting this modernizing legislation that promotes the cleanup of contaminated lands.

Document #7

Description:

As a part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I plan to introduce legislation that overhauls the permitting process for all general and individual environmental permits, as well as general plan approvals. Currently, businesses and corporations are faced with extreme wait times, causing uncertainty in projects. This affects the business climate of the Commonwealth, and costs businesses incredible amounts of money in the process. My legislation provides for the following: Timeframe: A 30-day timeframe for approval. Administratively complete applications: Applications are administratively complete if they contain all the necessary information supplied in the application; Provides for a process for disagreements between the department and the applicant; A presumption that if the application is accompanied by an affidavit executed under the penalty of perjury by a professional engineer, the application is presumed administratively complete, unless rebutted. Administratively complete applications: The department has 10 days from filing date to provide in writing what specific information is still needed. Once the permit is filed, all days will be accounted for, as to not have to start the process over from day one. Informal dispute resolution: A dispute as to the administrative completeness of the application may be submitted by the applicant to a referee who has a short time period to resolve the issue. Applications deemed approved: If the department fails to adhere to the timeline in my legislation, the application is deemed approved; Please join me in cosponsoring this legislation, so that development can proceed without unnecessary delays.

Document #8

Description:

As part of the ‘Energize PA’ package, a pro-growth, pro-jobs package of eight bills that puts more people to work without increasing taxes and fees, I will introduce legislation that will create the Pennsylvania Permitting Commission as an independent commission. For far too long the Department of Environmental Protection (DEP) has been overly-burdened by the administrative function of collecting applications and approving permits. This legislation will alleviate DEP of that burden. DEP currently has two core functions: Enforcing regulations in the field; and Issuing permits. Unfortunately, they are failing at both. The Department consistently cites staffing, in the permitting function, as the reason why. By establishing the Pennsylvania Permitting Commission, this legislation removes DEP’s permitting function from its duties and allows it to accomplish their mandate of protecting the environment through enforcing regulations in the field. Highlights of the commission are as follows: Consists of five Governor appointed members, confirmed by the Senate, for a term of 10 years; Each appointee must be qualified, with at least two being professional engineers; The commission must meet at least monthly; The commission shall have the power and its duty shall be to administer the permitting and plan approval processes vested in DEP, by law; The commission may formulate, adopt, promulgate and repeal such regulations as necessary to carry out the commission’s duties. Please join me in cosponsoring this critical legislation. It’s time to overhaul the system and place the priority of DEP where it should be - enforcing regulations in the field.

Memo Updated: April 24, 2019 02:35 PM