Meanwhile, back at The Great War Against Shale Gas, some major and refreshing news from the Pennsylvania Department of Environmental Protection:
Not only has the DEP approved a final water quality permit for the $1 billion PennEast Pipeline, which will primarily deliver natural gas from Northeast Pennsylvania to New Jersey utilities, it has approved the final water-crossing and sedimentation permits for the $2.5 billion Mariner East 2 pipeline, which will carry natural gas liquids across the commonwealth.
Both projects have undergone exhaustive vetting — envirocrats did their darnedest to scotch them — and their importance to developing this state’s much-needed pipeline infrastructure cannot be overestimated.
As The Philadelphia Inquirer reminds, the Mariner East 2 pipeline will link shale gas producers in Western Pennsylvania, West Virginia and Ohio with Sunoco’s Marcus Hook Industrial Complex, about 23 miles southwest of Philadelphia.
Indeed, this is a red-letter development for an industry that long has garnered little respect from the regulatory regimen of “The State.” Let’s hope it’s the beginning of a new day.
Ford’s planned $1 billion investment in Pittsburgh certainly is nothing to sneeze at. The auto giant says it would like to make the erstwhile Steel City an engineering and test center for autonomous vehicles.
Uber, the ride-sharing company, already uses Pittsburgh as a testing ground for driverless vehicles. Ford will team up with Argo AI, an artificial intelligence company.
It’s not yet clear how many jobs will be a part of the investment. But an Allegheny County official told the Tribune-Review that “thousands” of jobs could be created over the next five years. We shall see.
While the news is encouraging, more details are needed to better evaluate the plan.
Are there tax breaks for Ford? If so, how are they structured?
Are there any direct public subsidies? If so, how much?
Will tax-increment financing (TIF) be sought to help Argo AI build a Pittsburgh headquarters? If so, will Pittsburgh Public Schools, which would have the largest share of tax receipts to lose, be consulted or merely asked to rubber stamp the deal?
The Pittsburgh Business Times quotes a local regional development official as saying it’s “fair to say that almost every major car company has had some conversation about Pittsburgh.”
The intimation is that other major car makers might be considering locating research and development operations here.
That’s great — if it’s truly a testament to Pittsburgh’s universities-based high-tech acumen. But, past being prologue, we also have to wonder if any part of it is based on what public subsidies these companies can extract.
Public subsidies for public infrastructure are appropriate. And TIFs can be structured to dedicate tax dollars to the new infrastructure for which such projects create a demand.
But if tax-increment financing merely turns taxpayers into venture capitalists — which is not its or their role — then a major re-think of the respective projects’ value should be in order.
Stay tuned.
The Urban Institute is touting its new study showing how the repeal of ObamaCare would “cost” about $13 billion in lost tax credits and subsidies over the next decade in Pennsylvania.
OK. But playing the same numbers game, there’s another side of this equation that too few are too loath to discuss: That means about $13 billion in tax credits and subsidies won’t be given.
Thus, “cost” becomes a “savings,” does it not?
Think of this in the same vein as gambling. “The State” often touts how much it’s “making” from legalized gaming. But, a like amount of money was lost by gamblers.
Of course, when it comes to health care, one cannot ignore the equation’s variables. The study also predicts nearly 1 million additional Pennsylvanians won’t have health insurance should ObamaCare be repealed.
Unless, of course, ObamaCare is replaced by more market-based insurance that embraces competition and lowers cost.
Colin McNickle is a senior fellow and media specialist at the Allegheny Institute for Public Policy (cmcnickle@alleghenyinstitute.org).
