Regional Greenhouse Gas Initiative Axed as Part of PA Budget Deal

Remember the Regional Greenhouse Gas Initiative (otherwise known as RGGI)? We blogged a number of times about Pennsylvania’s attempted entry into program.

As a reminder: RGGI is a cap-and-trade system that a number of states in the northeastern United States participate in.  

Under the system, large fossil-fuel fired electric generating units are required to purchase credits to allow their emission of carbon dioxide (CO₂), which they can trade. The idea? By gradually reducing the number of credits available for purchase in Pennsylvania, statewide emissions of CO₂would be reduced over time. 

 In Pennsylvania, proceeds from the sale of CO₂ emission credits was to have been used to fund energy efficiency projects. We say “was” because as part of this week’s deal on the formerly stymied Pennsylvania budget, it was agreed that the regulations implementing RGGI in Pennsylvania would be abrogated, meaning that Pennsylvania will not participate in RGGI. 

You may recall that Gov. Tom Wolf’s attempt to impose RGGI by regulations promulgated by the Department of Environmental Protection drew a legal challenge from [mostly, if not entirely] Republicans in the General Assembly based on the argument that the requirement to purchase CO₂ emission credits was a tax, and that under the Pennsylvania Constitution taxes may be imposed only by an act of the General Assembly.  

The RGGI opponents’ argument was upheld by an order of the Commonwealth Court, and DEP’s appeal of that order is currently pending before the Pennsylvania Supreme Court, although that appeal would now seem to be moot.

All of which is for the history books.  

Gov. Josh Shapiro has, however, pledged to take as-yet-unspecified steps to make electric power generation in Pennsylvania both cleaner and cheaper while promoting job growth in the energy sector. A tall order, to be sure.  

We’ll keep you posted on his efforts to do so as he makes them.