The Pennsylvania Chamber of Business and Industry on Tuesday urged the Pennsylvania Department of Environmental Protection (DEP) to “fully and carefully” evaluate a rulemaking petition that aims to establish a carbon cap and trade program.
The Environmental Quality Board (EQB) voted Tuesday to request that DEP study the petition, which more than 192 individuals and groups led by the Clean Air Council proposed last year.
“This regulation, if enacted, would be among the most costly and sweeping regulatory programs ever implemented by state government,” PA Chamber President and CEO Gene Barr said. “As evidenced by the deliberations of the Environmental Quality Board today, many questions remain unanswered – including the underlying constitutionality of the Department of Environmental Protection’s authority to implement such a measure. It is imperative the department proceed deliberatively and carefully weigh the costs, legality and effectiveness of this proposal.”
Under the proposed plan, every state carbon emitter would pay the state in credits for each ton of carbon they release per year. These credits would either be given or auctioned by the state to companies. Companies that require additional credits would be able to purchase them from other companies. The plan would not impact plastics manufacturing and would allow DEP to distribute free carbon credits to companies that can demonstrate they could move their business to states that don’t have carbon limits. The plan aims to make Pennsylvania carbon neutral by 2052.
The next step for DEP following the approval from EQB is to conduct a legal, economic and technical analysis of the petition. The department has 60 days to conduct the analysis, but it can be extended to allow for further review.
In early April, more than a dozen business and industry groups including the PA Chamber sent a letter to EQB expressing policy and regulatory concerns related to the petition, including its constitutionality and the impact the program would have on the state’s economy.
“As the petition moves further along the review process, we trust that DEP will address the various economic concerns and regulatory and policy issues we raised in our joint letter to the members of the board,” Barr said.
State Sen. Gene Yaw (R-Bradford/Lycoming/Sullivan/Susquehanna/Union Counties), chair of the Senate Environmental Resources and Energy Committee, issued a statement on the rulemaking petition, which noted the PA Chamber’s concerns.
“Any revenues collected through this carbon pricing scheme would essentially impose an unconstitutional tax, a tax which has not been authorized by the General Assembly,” Sen. Yaw said. “I’d echo the concerns expressed by the Pennsylvania Chamber of Business and Industry. Have the petitioners, or those supporting this measure, given any consideration to the impacts this petition would have on our workforce, our economy, our residents and households? This petition would have far-reaching consequences on our economy, consumer costs and job creators which have not been adequately considered by the Department.”