Rep. Metcalfe raises concerns about economic impact of Pa. joining Regional Greenhouse Gas Initiative

Pennsylvania House Environmental Resources and Energy Committee Chairman Daryl Metcalfe (R-Butler) raised concerns about the impact on the state economy that would result from Pennsylvania joining the Regional Greenhouse Gas Initiative (RGGI) during a state budget hearing on Monday.

In a question posed to Patrick McDonnell, secretary of the Pennsylvania Department of Environmental Protection (DEP), during a House Appropriations Committee hearing, Metcalfe asked why the Wolf administration would unilaterally move to join the RGGI when evidence indicates it would negatively impact industry and jobs throughout Pennsylvania.

“Until the Wolf Administration can honestly move beyond the realm of zero answers, uncertainty and non-transparency as to how the RGGI process would proceed, Pennsylvania taxpayers and job-creating energy producers have every reason to question whether our tax dollars are being spent in an appropriate manner by executive agencies such as the DEP,” Metcalfe said in a statement released after the hearing.

McDonnell testified that DEP is in the process of developing the regulation and recently presented draft regulatory language to the Air Quality Technical Advisory Committee.

“RGGI will limit harmful pollution from power plants and require that companies pay for the carbon that’s emitted into the atmosphere,” McDonnell said in prepared testimony. “Those payments are then reinvested in Pennsylvania’s economy. We see this program as an opportunity to not only reduce air pollution, but also create jobs and economic activity.”

Gov. Tom Wolf issued an executive order on Oct. 3 directing DEP to join RGGI, a program under which 10 Northeast and Mid-Atlantic states cap total carbon dioxide emissions from electric power generation in their states.

Carl A. Marrara, vice president of Government Affairs for the Pennsylvania Manufacturers’ Association (PMA), testified before the Pennsylvania House Environmental Resources and Energy Committee on Feb. 5 about the economic impact of Pennsylvania joining the RGGI.

“Let us begin by establishing a commonsense baseline: everyone wants a clean, healthy, and sustainable environment,” Marrara said. “The issue at hand is whether or not a government program, that will undoubtedly add substantial costs to Pennsylvania’s electricity consumers, is the best mechanism to achieve the cleanest, healthiest, and most sustainable environment possible. You’ll find that the answer to this question is clearly that RGGI does not accomplish this goal, but the program will negatively impact Pennsylvania’s economy in a punishing way.”

According to research published by the CATO Institute, “RGGI allowance costs added to already high regional electric bills. The combined pricing impact resulted in a 12 percent drop in goods production and a 34 percent drop in the production of energy-intensive goods. Comparison states increased goods production by 20 percent and lost only five (5) percent of energy-intensive manufacturing. Power imports from other states increased from eight (8) percent to 17 percent.”

In November, state lawmakers introduced legislation that would require legislative authorization before Pennsylvania could impose a carbon tax and enter into a multistate program such as RGGI.