Next Stop for RGGI-The PA Supreme Court
The Regional Greenhouse Gas Initiative is a proven, market-based cap and invest approach to reducing carbon emissions. Under RGGI, power plants pay for allowances in order to emit CO2. RGGI caps these allowances, reducing the amount every year, therefore reducing their impact on the climate crisis over time. RGGI currently has 12 members, including Pennsylvania, however, Pennsylvania has been unable to participate in RGGI because of lawsuits brought by Republican state legislators as well as the fossil fuel industry.
RGGI’s road in PA has been long and complicated. One important thing to note is that Pennsylvania entered RGGI as an executive order from former Governor Wolf, unlike most other states that entered with approval from their state legislators. This comes into play in one of the latest developments. On November 1, 2023 Pennsylvania’s Commonwealth Court rejected RGGI on the grounds that they see the money the fossil fuel-fired power plants have to pay as a tax and not a fee. All taxes must be approved by the state legislature, therefore in their opinion RGGI needs to go through the state legislature first. This would be highly unlikely to pass given the current membership of the state legislature.
Environmental groups, including the Community Net-Zero Education Project, contend that the money the power plants pay is a fee, and in fact barely scratches the surface of the harm they have caused over the years because of their contribution to the climate crisis. The proceeds from selling the allowances could be used to increase renewable energy, build out a more sustainable transportation infrastructure, increase energy efficiency, help fossil fuel workers transition to more sustainable jobs, etc., thus mitigating just some of the damage their CO2 emissions have done. This will be a boon to our economy and will improve the health and well-being of all Pennsylvanians.
A report released this summer found that if Pennsylvania were to participate in RGGI it would lower emissions, add to the state’s revenue, and have little impact on electric utility bills.1
On November 21, 2023 Governor Shapiro announced that his administration will appeal the decision made by the Commonwealth Court, which moves the decision to the Pennsylvania Supreme Court, where it most likely will be seen in a more favorable light. It must be noted that Shapiro couched his decision to appeal as a way to preserve the scope of executive action, not on the merits of RGGI. In other words, he is being a politician and trying to avoid angering either side.
RGGI has had great success in other states, let’s work to ensure that Pennsylvania can also reap its benefits. Write Letters to the Editor and contact your state legislators as well as Governor Shapiro about the benefits of RGGI.