JOSH SHAPIRO PROPOSES STATE CLIMATE PROGRAM TO REPLACE RGGI, ASKS FOR NEW RENEWABLE ENERGY GOALS
Allegheny Front
March 14, 2024
Gov. Josh Shapiro is offering his own version of a controversial program to limit climate-warming pollution from power plants, and is setting new goals for how much energy Pennsylvania gets from renewable sources.
Shapiro estimates the two proposals would save ratepayers $250 million over five years and create 14,500 jobs.
The plans are getting praise from environmental and renewable energy groups, who have been pushing for a transition to cleaner energy sources, and pushback from industry groups and lawmakers who say the proposals will hurt the fossil fuel economy.
Former Gov. Tom Wolf proposed joining the Regional Greenhouse Gas Initiative with 10 northeastern states in 2019. That effort is still tied up in court, as some Republican legislators and industry groups are trying to stop Pa. from joining.
Now, Shapiro says he wants to create a Pennsylvania-specific program to cap carbon emissions and make power plants pay to pollute.
He’s calling it the Pennsylvania Climate Emissions Reduction (PACER) Initiative, and says it’s based on the conclusions of his RGGI working group.
That committee was made up of representatives from environmental, labor, and industry groups. It did not endorse a specific cap-and-trade program, but agreed that “reducing greenhouse gas emissions is necessary and inevitable, and that a cap-and-invest carbon regulation for the power sector that generates revenue to support the Commonwealth’s energy transition would be the optimal approach.”
The group also agreed any program should include measures to help avoid any potential emissions leakage, higher localized pollution, increased energy costs, and job loss.
Under PACER, the state would determine a total pollution limit and power plants would need to buy credits to release emissions.
“We will set our own cap. We will set our own price for those carbon credits. And we won’t have any other state determining what is right for us here in Pennsylvania,” Shapiro said during a news event Wednesday at a Scranton union hall.
Shapiro said 70% of money raised through the program would go to electricity bill rebates.
Part of the remaining 30% would be used to help further lower bills for low-income Pennsylvanians and go toward clean energy and energy efficiency for homes and small businesses, Shapiro said.
According to a policy summary from the governor’s office, a share of the money could fund carbon capture and storage technology and retrofit natural gas plants with carbon capture equipment.
Shapiro said if the legislature passes this program, he will sign it into law and immediately pull Pennsylvania out of RGGI.
Environmental groups supportive, but still prefer RGGI
Jackson Morris, director of state power sector policy at the National Resources Defense Council and co-chair of Shapiro’s RGGI working group, said NRDC continues to believe that RGGI can deliver for Pennsylvania, and supports the defense of that regulation in court.
“But, we’re also open and eager to explore alternative approaches, such as what’s envisioned in the PACER legislation,” Morris said.
“We can and must forge a path forward together that tackles climate change, protects consumers, and creates family-sustaining jobs. With the tailwinds of the once-in-a-lifetime federal incentives for clean energy…there has literally been no better moment to seize this opportunity.”
Clean Air Council executive director Alex Bomstein said the plan shows the governor’s commitment to putting Pennsylvanians first.
“While we still view RGGI as the best power sector cap-and-invest program for Pennsylvania, we are excited to work with the Governor and the legislature on PACER to realize the greatest possible benefits for Pennsylvania residents, ratepayers, and workers alike,” Bomstein said.
In a statement, PennFuture said RGGI is a well-established program.
“RGGI has always served as a successful baseline policy,” PennFuture said. “This is why Pennsylvania developed its RGGI rule years ago, and why it should be the standard by which we judge all other proposals.”
Fossil fuel groups don’t like it
Groups that have fought the state joining RGGI are also rejecting Shapiro’s alternative.
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