(The Center Square) — Rural Pennsylvania keeps losing population and has a worker shortage that limits economic growth.
Local leaders place the blame on barriers and headaches created by the state government.
“The overriding impediment is Governor Shapiro’s DEP,” said Rep. Bud Cook, R-Waynesburg, during a Wednesday House Republican Policy Committee hearing on strengthening rural communities. “It is a job-killer.”
Though he noted positive relationships with other state agencies, he pointed to permitting delays dramatically longer than the norm in nearby states.
“In the state of Ohio, it took 11 days to get a permit to drill. In the state of West Virginia, 14 days. In the Commonwealth of Pennsylvania, it was 365 days-plus,” Cook said. “I have three examples in my district right now that it’s almost like DEP has been weaponized in our area, and when I call for accountability, I just don’t see it.”
Limits on natural gas have been a persistent source of complaints. Industry executives and legislators have complained of permitting problems that limit pipeline construction as other states continue to build.
Though Cook lambasted the governor, he had praise for some officials within the Department of Environmental Protection.
“Our local DEP people could not be better,” he said.
The problem goes beyond natural gas and resource extraction.
“Is there a drastic need for permitting reform? Yes there is,” said Rod Wilt, executive director of the Penn-Northwest Development Corporation.
He argued that what’s needed is a regionalization of state rules to reflect the different problems in the state.
“But (DEP officials’) hands are tied, and they’re tied by the heavy hand of Harrisburg in this one-size-fits-all environment,” Wilt said. “The regions should be given better tools to regionalize some of these regulations.”
Wilt spoke of permitting delays he encountered when he got a liquor license for a golf course he co-owns.
To get a liquor license, he needed to get a restaurant license through the Department of Agriculture. For that license, he needed the well water they use to be high quality, requiring some system upgrades.
“I don’t have any of the permits yet and I’m already $14,000 in for the permitting process,” Wilt said. “Haven’t bought anything to improve the water quality yet, haven’t put a treatment system in, haven’t done any additional plumbing.”
Township voters approved his license request in May 2023. Wilt started the process in June and as of January, it’s still unfinished.
Similar delays happen with new housing construction, as The Center Square previously reported. In tandem with rising material and labor costs, it’s more difficult to build housing that middle-class buyers can afford.
“The sweet spot for our first-time home buyers is really under $200,000,” Re/MAX Realtor Tracy Mantzell said. “By the time you have development costs — land costs, development costs, and then construction costs in this area, we’re north of $300,000 and it’s no longer an affordable home.”
The problems have attracted attention from both Republicans and Democrats. Applying an approach to housing that’s already used for economic development may provide a solution.
“There are problems within PENNVEST that, if they were expanded to deal with some of these housing issues rather than just on the commercial/industrial side, that’s another area we can look at,” Wilt said. “The governor’s office does really seem interested in helping you as legislators tackle this issue,” Wilt said. “We don’t need more programs; we just need to tweak the ones we already have to make them work for housing the way they’ve worked for manufacturing and commercial development.”
