The Pennsylvania Senate on Wednesday voted 33-17 to pass a proposed GOP-led bill that would cancel and officially stop the rules of the CO2 Budget Trading Program, also known as the Regional Greenhouse Gas Initiative (RGGI). The bill now heads to the State House of Representatives for action.
“By voting to end this reckless scheme, the Senate has taken a vital step toward restoring investor confidence, fostering new opportunities in clean, efficient generation, and ensuring affordable, dependable power for generations to come,” the Power PA Jobs Alliance, a coalition of Pennsylvania labor unions, business leaders, and industry organizations, said.
The Abrogation of CO2 Budget Trading Program Regulations Act, Senate Bill (SB) 1068, first received approval earlier in the day from the State Senate Appropriations Committee, which voted 14-8 to advance it to the Senate floor. The PA Senate Environmental Resources and Energy Committee on Monday passed the bill with a 7-4 vote.
SB 1068 is sponsored by state Sen. Gene Yaw (R-23) and eight Republican cosponsors, including State Senate Majority Leader Joe Pittman (R-41), to immediately abrogate provisions of law related to the controversial RGGI, a program to limit carbon dioxide emissions from fossil fuel-fired power plants in the state.
Opponents to RGGI have long fought to end it, calling the program an unconstitutional energy tax.
“Pennsylvania’s participation in RGGI will result in an energy tax that would drive up electricity prices by an estimated 30 percent,” said the Commonwealth Foundation, a conservative think tank in Pennsylvania.
The group said SB 1068 would require Gov. Josh Shapiro to cease Pennsylvania’s entry into RGGI, which it called a unilateral move by former Gov. Tom Wolf that was ruled unconstitutional and subsequently appealed by Gov. Shapiro to the PA Supreme Court.
The Power PA Jobs Alliance pointed out that even under the temporary injunction by the Commonwealth Court, the mere threat of RGGI has deterred billions of dollars in critical investments, stifled the construction of new natural gas facilities, and driven thousands of family-sustaining union jobs across state lines to non-RGGI neighbors like Ohio and West Virginia.
“The Senate’s bold action on SB 1068 upholds the rule of law, as affirmed by the Commonwealth Court’s ruling that RGGI constitutes an unauthorized tax lacking legislative approval,” the coalition said, adding that “it prioritizes real-world consequences over symbolic gestures” and protects the communities and livelihoods of its members.
The group also said that SB 1068 would permanently shield the state from the impacts of the carbon tax.
“For too long, the RGGI — unilaterally imposed through executive action — has loomed as a multibillion-dollar electricity tax on two-thirds of Pennsylvania’s current generation portfolio, primarily reliable coal and natural gas plants that power our homes, factories, and communities,” the coalition said.
Democrat Shapiro also has offered his own version of the program via a state-specific alternative called the Pennsylvania Climate Emissions Reduction Act (PACER), a proposed carbon pricing program designed to reduce carbon emissions that he thinks would be more beneficial for consumers and the state economy.
In fact, Shapiro’s administration is appealing court decisions that blocked the state’s entry into RGGI, and his office has stated that the state would pull out of RGGI if the legislature passes PACER.
Amy Brinton, director of government affairs for the PA Chamber of Business and Industry, also endorsed the measure in an Oct. 20 letter to members of the PA Senate Environmental Resources and Energy Committee.
“Eliminating costly carbon taxes that have disproportionately impacted energy-intensive industries, such as manufacturing and power generation, will not only lower operational costs for businesses, but encourages investment in new energy generation projects in the commonwealth,” Brinton wrote, noting that by withdrawing Pennsylvania from RGGI, the bill also would reduce unnecessary financial burdens on businesses in the state, promoting a more competitive business environment, and fostering economic growth.
“For these reasons, we believe Senate Bill 1068 is a critical step toward supporting Pennsylvania’s business,” she added.