Pennsylvania’s reputation for speed is new.
As the Governor tells it, "We went from bottom five in the country on our permitting timelines to being top five." That meant eliminating 90% of the state’s permitting backlog.
The transformation was significant enough that Shapiro was asked to co-chair a National Governors Association working group on permitting reform with Oklahoma Governor Kevin Stitt.
I flew to Washington last week to watch the duo discuss this work with SEMAFOR Editor-in-Chief Ben Smith. They agreed on almost everything, but especially on three points:
First, speed is essential to winning the AI race against China.
"Our lunch is being eaten by other countries, particularly China, when it comes to speed," Shapiro said. "We are our own worst enemies."
Stitt shared a stat from a pipeline CEO: permitting now costs twice as much as actually building the project.
Second, the weaponization of permitting must be stopped.
Stitt pointed to Keystone: killed by Obama, revived by Trump, killed by Biden. "Investors are just going, 'enough's enough.'"
Both governors – a Republican championing wind, a Democrat championing natural gas – agreed: businesses can't plan when the rules change every four years.
Third, speed and certainty is a decisive factor in winning deals.
“Businesses need certainty and they need speed. We need to put a shot clock on the permitting process,” Stitt said.
“Nine times out of ten, CEOs aren't looking for a handout," Shapiro added. "They want speed and certainty."
McCormick had a similar take at July’s Summit, where talk of tax breaks and subsidies – traditional business attraction tools – was non-existent:
"It's much more about speed and talent than subsidies. Ease of use to invest, ease of use with talent, ease of use with regulations."
The formula: Speed beats subsidies.
