A dispute over a coal mining project in southwestern Pennsylvania offers insight into how Governor Josh Shapiro, a Democrat seeking reelection, navigates the complex energy landscape of a major fossil fuel-producing state. The case involves millions in taxpayer-funded subsidies, significant campaign donations, and a coal magnate’s influence in Harrisburg.

A Changing Landscape in the Laurel Highlands

The rolling hills of the Laurel Highlands, 50 miles outside of Pittsburgh, once thrived on coal mining in the early 20th century. Today, the area is transforming into a tranquil escape, attracting tourists with attractions like Frank Lloyd Wright’s Fallingwater and even wind farms. However, the industry isn’t finished extracting fossil fuels.

LCT Energy and the Rustic Ridge Mine

Latrobe-based LCT Energy’s Rustic Ridge No. 1 Mine in Acme, Pa., is at the heart of the controversy. In 2024, the Mountain Watershed Association petitioned the state to prohibit mining in an area where LCT wanted to expand. LCT Energy, along with its affiliates, has received tens of millions of dollars in state taxpayer- and ratepayer-funded subsidies in recent years.

Shapiro Administration Involvement

Robindale’s LCT Energy lobbied the state to reject the petition. Following consultation with Governor Shapiro’s office, environmental regulators did just that, using reasoning that mirrored arguments made by LCT. The state has since partially retracted this rationale. This decision led to litigation, and newly disclosed emails reveal the extent of the Shapiro administration’s involvement.

According to the emails, Department of Environmental Protection (DEP) staffers sought input from Shapiro’s office on the potentially “politically controversial” issue while the petition was pending. Regulators aimed to reject the petition as legally deficient, but only after receiving approval from the Governor’s team. “We are looking for Gov’s Office approval,” wrote Max Schultz, deputy policy director for energy resources at DEP, in a February 14, 2024, email.

Governor's Office Response

Governor Shapiro’s office declined to provide aides for an on-the-record interview. In a statement, the office asserted that DEP makes decisions “based on the applicable statutes and regulations.” The statement continued, “To insinuate that any different process is followed would be completely false and irresponsible.”

Concerns Over Industry Influence

Ashley Funk, executive director of the Mountain Watershed Association, expressed concern that DEP may be granting special treatment to projects based on factors unrelated to the law. She noted a cultural shift at DEP, becoming more deferential toward industry. “DEP shouldn’t constantly be looking over its shoulder to be like, ‘Hey Governor’s Office, can we do this?’”

The Kroh Family and Robindale

Behind LCT Energy is the Kroh family – CEO Scott, 76, and his sons Jud, 43, company president, and Zachary, 40, chief commercial officer – along with investors including billionaires Hans J. Mende and Fritz R. Kundrun. The Krohs also own firms in sectors regulated by the state, including three waste coal-fired power plants that have received millions in Pennsylvania tax credits.

Campaign Contributions and Policy Changes

Robindale executives have contributed significantly to campaigns and committees affiliated with legislators. In 2020, the Krohs donated $30,000 to the Pennsylvania Senate GOP campaign arm, and shortly after, a budget deal was amended to benefit the waste coal industry. Governor Shapiro has also benefited from the Krohs’ financial support, receiving approximately $90,000 in donations prior to the watershed association’s petition and an additional $271,000 in 2023.

Pennsylvania's Energy Future

Bituminous coal, mined in Western Pennsylvania, is still used for steelmaking and electricity generation, though its share of the state’s net generation has declined from 36% in 2014 to 5% in 2024. Despite the shift towards natural gas and cleaner fuels, coal retains cultural and political importance in the state. Governor Shapiro has advocated for a balanced energy approach, investing in clean technologies while continuing to utilize fossil fuels.