Obstacle-Free Innovation: Getting Out of Our Own Way

Consider what made western Pennsylvania home to the world’s best steel producers.

It was a perfect combination. When it was identified that our region had ample resources, a rich supply of coal to fuel the steel-making process, as well as iron ore deposits, a raw ingredient for steel, investors looked at our unique river system and saw that transporting material could easily occur on our “three rivers.”

Add in western Pennsylvania’s hard workers, who were more than willing to trade grit and determination for an honest, family-sustaining wage. The result was a booming local economy while products from our region helped fuel America’s prosperity overall.  

We stand at the precipice of another economic renaissance that can make our region a heavy hitter in a competitive market. The industry is technology, and the ability to power this new industry is well within our grasp. Already, technology accounts for more than 23% of southwestern Pennsylvania’s workforce, according to the Pittsburgh Technology Council.

But we have to stay out of our own way.

Like much of the public, I use the phrase “saved to the cloud.” But “the cloud” has a brick-and-mortar location, a data center, which is also used for things like record keeping, digital currency and artificial intelligence. Growth in these technologies will require electricity, a lot of it. Policies in Harrisburg and Washington, D.C., can either expand or stifle the energy industry’s ability to fuel these new technologies.

The transmission organization, PJM Interconnection, operates the electric grid in Pennsylvania and a dozen neighboring states. Last year, PJM sounded a significant alarm when it spent 700% more for electricity, blaming aggressive government policies that favor renewable energy that is less reliable than traditional sources. It doesn’t take long for a spike in wholesale costs to be felt by retail customers.

We stand at the precipice of another economic renaissance that can make our region a heavy hitter in a competitive market. The industry is technology, and the ability to power this new industry is well within our grasp.

This is why I am skeptical of using government policies to drive consumer habits. Renewable energy’s place in the market will occur when new technologies make it competitive with coal and natural gas. Government should not be steering the industry in one direction. This includes the discussion of Pennsylvania entering the Regional Greenhouse Gas Initiative (RGGI), which forces power plants to buy CO2 allowances, which become more expensive and harder to get each year.

Certainly, clean air is a priority. But it’s important to note, the U.S. Energy Information Administration shows that Pennsylvania reduced carbon dioxide emissions by 20.8% between 2000 and 2018, making our emissions lower than most of the states enrolled in RGGI.

New projects in my legislative district demonstrate our region’s potential in the technology sector. Recently, three companies repurposed shuttered office and industrial sites into a data center, an innovation hub for advanced manufacturing and machining, as well as a venture studio, helping businesses advance in automation, robotics and artificial intelligence. 

It is often said that if government is going to help with economic development, it must move at the pace of business. But I expect we can all agree that speed is not one of government’s strengths. This is why Harrisburg and Washington, D.C., must be careful, because a well-intended regulation can become an obstacle quickly. We must continue to streamline the permitting process and unleash the abundant energy beneath our region’s surface.

Paths to success must be cleared of obstacles, and government’s mindset must change from “How can I fine you or delay your progress?” to “How can I help your technology business flourish in our region?”

That perfect combination of workforce and materials, like the combination that grew the steel industry generations ago, is before us. Our universities and research institutions are providing the workforce while businesses find ways to grow. And energy, one of the crucial raw materials, is readily available.

But we have to stay out of our own way.