A Republican bill led by Pennsylvania State Sen. Gene Yaw (R-23) that would prevent a new electricity tax by repealing the state’s participation in the Regional Greenhouse Gas Initiative (RGGI) recently took center stage during a Feb. 23 House Republican Policy Committee hearing focused on stopping new energy taxes.
Yaw, who serves as chairman of the State Senate Environmental Resources and Energy Committee, was invited to testify at the hearing as the sponsor of Senate Bill (SB) 186, which would repeal regulations related to RGGI, otherwise known as a CO2 budget trading program.
“Ultimately, there are few issues before us as pressing as this one and any decision we make on energy policy will have a significant impact on our day-to-day lives,” Yaw testified during the hearing held at the Pennsylvania College of Technology in Williamsport, Pa. “I appreciated the invitation to join my House colleagues for this important discussion.”
On Oct. 3, 2019, Gov. Tom Wolf issued an executive order to unilaterally enter Pennsylvania into RGGI, despite bipartisan objection from the General Assembly. The state Department of Environmental Protection (DEP) and the Environmental Quality Board (EQB) then promulgated a rulemaking for a CO2 Budget Trading Program in the commonwealth that created a carbon tax on electric generation.
In 2023, the Commonwealth Court affirmed that RGGI is a tax that has been imposed in violation of the state’s Constitution. The commonwealth’s participation in RGGI may only be achieved through legislation duly enacted by the General Assembly and not merely through rulemaking promulgated by DEP and EQB, according to a bill memo Yaw released in January on SB 186.
“Every other participating state entered RGGI through the legislative process, not executive action, and a bipartisan majority of Pennsylvania legislators have consistently voted against RGGI when the issue has been brought to the floor,” Yaw testified.
The ruling has been appealed to the Pennsylvania Supreme Court, and that appeal remains pending.
“The existence of continued litigation of the RGGI regulations, despite the clear reasoning of the Commonwealth Court — litigation which will likely take significant time to complete — further places family sustaining jobs at risk at a time when families already continue to feel the strain of inflationary pressure,” according to Yaw’s bill memo.
State Republicans say that RGGI, a multi-state compact, would increase electricity rates for consumers, cut energy and manufacturing jobs, and lead to the closure of Pennsylvania power plants.
If enacted, Yaw’s legislation would formally repeal Pennsylvania’s participation in RGGI, ensuring that any decision to impose electricity taxes or emissions programs must go through the legislative process rather than being enacted unilaterally by the executive branch.
“As an expert in the field, you’ve been very much the tip of the spear in maintaining the constitutional separation of powers that is supposed to make sure the taxation authority lies within the legislature,” State Rep. David Rowe (R-85), chairman of the House Republican Policy Committee, said of Yaw.
SBl 186 passed the State Senate earlier this month with bipartisan support and now awaits consideration from the State House Environmental and Natural Resource Protection Committee.
Also during the hearing, members examined what they say are unfavorable energy policies that negatively impact consumers and businesses and drive investments outside of Pennsylvania.
Other testifiers included Joe Delmar, director of governmental affairs for Cogentrix Energy LLC, and Rod Williamson, executive director of Industrial Energy Consumers of Pennsylvania.
“A well-functioning competitive market is critical to keeping prices down and to allow for consumer choice,” testified Delmar. “Forcing changes to the competitive market under the banner of consumer protection can further undermine electricity markets, thereby raising consumer costs and threatening resource adequacy.”
Williamson pointed out that many of the other intermittent energy sources being brought to market are not dispatchable.
“Pennsylvania’s electricity rates are ranked 18th highest in the nation compared to other states and RGGI will increase the cost of electricity even more,” he said. “Electricity rates in every RGGI state are increasing faster than in Pennsylvania.”