The PA permit Fast Track program, established by the governor's executive order to make the permitting process more efficient, promotes economic development in the state.
The government is leveraging a variety of technologies to speed up the permitting process, from software tools to AI. In Pennsylvania, process improvements have already led to investments. This includes one $2 billion investment from Amazon aimed at establishing multiple high-tech cloud computing and AI innovation campuses across the state. AI investment in the state is expected to have a major economic impact.
The modernized permit officially began in November with Executive Order 2024-04, but Pennsylvania Secretary of Community Economic Development Rick Cigar said the work dates back to January 2023's transformation and the creation of job opportunities.
“The spirit is really about speed, certainty and predictability for government customers,” Cigar said, noting that for state governments, this includes businesses, local governments and community groups. The goal was to bring urgency and accountability to government processes, he said, and the results are demonstrable. Obtaining a business license like one for a limited liability company took about eight weeks. Today he said, it will take two days.
The Regional Economic Development Authority (DCED) works every day for both state businesses and companies considering business there. Siger said the state is taking advantage of the new permit speeds, similar to what it does with grants and tax incentives. It's working, he said. He said companies cite the speed and certainty of the state's processes as a key factor in their investment in states.
This is especially true for companies that include complex facilities and processes, including technology companies. One such example is the $20 billion investment in the state, where the secretary said it created at least 1,250 jobs.
“In my discussion with Amazon, it was absolutely important that certainty, speed and predictability in permissions were certainty, speed and predictability,” Siger said.
Siger said the investment would show other companies that if a major business like Amazon makes this substantial investment, Pennsylvania can support operations in the state, including large and complex projects.
The AI of this investment is expected to create significant economic impacts beyond job creation, including the impact on the state's tax base and the local tax base on which these facilities are built.
“But I think it's important to know that Pennsylvania is not just a place to build data centers,” Cigar said, emphasizing that the work empowers a wider innovation economy. “This is where next-generation breakthroughs in AI technology (like life sciences, robotics, agriculture, and other areas) are happening.”
The proposed data center project in Tucson, Arizona was faced with a recently published pushback and was ultimately rejected due to water and energy concerns.
However, Cigar emphasized that improving the efficiency of the process will not change or mitigate road rules for Pennsylvania businesses, including air quality, water quality and protection of endangered species species. He said businesses still have to adhere to core protections for the people and the environment of the state, but authorities are working to help them get there faster.
Faster permits are not just an advantage for businesses considering moving to Pennsylvania, but more than a million small businesses already operating in the state. Additionally, they can support state government officials, work on the backlog or introduce new technologies.
The Environmental Protection Agency, which supports the distribution of air and water quality permits, which can be generally complex and large, essentially cleared its backlog, he said.
“I am truly pleased to the extent that having strong, committed and effective partners to the government, big and small, is important to businesses,” Cigar said. “And we're just starting out.”
This massive AI investment has enabled authorities to grow the state's AI economy. The Pennsylvania government has investigated the use of AI through a pilot program that has achieved tangible results, and state IT teams are investigating a wider range of AI implementations across the government, Siger said.
