Pennsylvania lawmakers voted on Wednesday to exit a regional carbon emissions reduction effort focused on power plants, a decision integrated into a delayed state budget agreement.
An ongoing legal challenge has prevented Pennsylvania from joining the Regional Greenhouse Gas Initiative since former Gov. Tom Wolf’s 2019 directive. Though technically part of the collaboration of 11 Northeastern and Mid-Atlantic states, active participation would have significantly lowered the region’s emissions, according to experts.
After a nearly five-month delay, the $50.1 billion budget was approved with overwhelming support—156 to 47 in the Democrat-controlled House and 40 to 9 in the Republican-led Senate. Critics argue this compromise hindered significant climate action to resume funding for essential services such as education and transportation.
“They didn’t present it as a separate bill, which would have been easier to oppose, but included it in a must-pass budget bill,” said David Masur, director of advocacy group PennEnvironment. He noted the challenging decision faced by lawmakers who supported RGGI but also needed to fund local services.
Masur described the vote as a major environmental policy reversal, calling it a “huge blow” to climate initiatives. RGGI requires power generators to purchase carbon allowances, promoting a transition to clean energy and raising funds for climate projects.
A 2023 analysis by the University of Pennsylvania’s Kleinman Center for Energy Policy suggested that active RGGI membership could have reduced Pennsylvania’s electricity-sector emissions by 84% from 2020 levels by 2030. The state could also have generated $101 million to $148 million through emissions allowance auctions in 2030, according to the study.
Joining RGGI was projected to have minimal impact on retail electricity prices, decrease coal use, and boost renewable energy adoption, the analysis indicated.
However, the Consumer Energy Alliance, a group opposing RGGI, praised the legislative decision, claiming it would maintain affordable energy costs and enhance reliability.
“Pennsylvania lawmakers saw RGGI as an obstacle to affordability, reliability, jobs, and economic opportunities. Their bipartisan decision sets a precedent for other states,” said CEA President David Holt.
“Exiting RGGI positions Pennsylvania to attract data centers, advanced manufacturing facilities, and energy investments critical for economic growth,” Holt added.
Since 2005, the other 10 RGGI states have reduced power-sector emissions by 50%, nearly 50% faster than the national average, while raising about $8.6 billion for community investments, according to a report from January. RGGI states establish a regional emissions cap that decreases over time, with allowances issued based on each state’s cap share.
Pennsylvania’s participation in RGGI has been stalled by a legal dispute from some Republican legislators over whether the levy on power producers is a tax or fee. Opponents claim it constitutes a tax, which only the legislature can impose, a stance supported by a state appeals court. Gov. Josh Shapiro has appealed this decision to the Pennsylvania Supreme Court.
Gov. Shapiro, a Democrat, addressed criticism over the RGGI withdrawal by promoting his “Lightning Plan,” which advocates for job creation, consumer cost reduction, and climate change mitigation.
“For years, Senate Republicans used RGGI to delay substantive energy discussions,” Shapiro stated while signing the bill. “Now, we must move forward with policies that generate jobs in the energy sector, increase clean energy on the grid, and lower energy costs for Pennsylvanians.”
Proponents of RGGI membership believe it was a missed opportunity.
“By abandoning RGGI, Governor Shapiro has undermined climate and air pollution progress in favor of industry priorities,” said Patrice Tomcik, senior director at advocacy group Moms Clean Air Force.
“He dismisses the demand for healthcare and safety as non-negotiables,” Tomcik added. “Losing RGGI is a setback for families across Pennsylvania who deserve robust climate and energy affordability programs.”
Original Story at insideclimatenews.org