On July 1st, Commonwealth Court Judge Michael Wojcik granted a preliminary injunction against Pennsylvania’s entrance into the Regional Greenhouse Gas Initiative (RGGI). This halted Governor Wolf’s two-year effort to join eleven other eastern states in the cooperative effort to reduce CO2 emissions. On July 11th, he appealed the decision to the State Supreme Court, effectively lifting the preliminary injunction.
The question at issue is whether Gov. Wolf can enter RGGI through executive order - something that RGGI opponents staunchly deny. They argue that Gov. Wolf’s order undermines the legislature’s exclusive authority to impose taxes and enter interstate agreements. As an energy powerhouse, Pennsylvania’s entrance would significantly strengthen RGGI and become a “political litmus test” for carbon pricing programs. RGGI would arguably be the most significant step Pennsylvania has ever taken to address climate change, and the battle over it has brought political tensions around environmental issues to the forefront.
RGGI is the first market-based cap-and-trade program that establishes a regional limit on CO2 pollution. Each participating state has an individual CO2 Budget Trading Program based on the RGGI Model Rule. Over time, the regional cap declines so that CO2 emissions decrease in a formulaic way. Within RGGI states, electric power plants are required to bid for allowances at quarterly auctions, authorizing them to emit 1 short ton of CO2 pollution. Auction proceeds are then invested into strategic energy and consumer benefit programs. RGGI states have added nearly $5 billion to their economies since the program began.
Entering RGGI has been the centerpiece of Gov. Wolf’s plan to combat climate change. Describing RGGI as a “historic, proactive, and progressive approach that will have significant positive environmental, public health, and economic impacts,” Gov. Wolf has been intent on joining the program since he signed Executive Order 2019-07 back in October 2019. The executive order required the Department of Environmental Protection to submit a proposed rulemaking to the Environmental Quality Board by July 2021 that would “establish a carbon dioxide budget consistent in stringency to that established in the RGGI.” According to the Wolf administration, this is a solution that 72 percent of Pennsylvanians support.
Environmental groups also consider Pennsylvania’s entry into RGGI as a top priority. Pennsylvania is the third largest power producer in the nation, and would become RGGI’s largest emitter if the state were to enter the program. According to the EPA, the state had 85 million tons of CO2 emissions in 2021. Under RGGI regulation, emissions would fall to 58 million tons by 2030. Mark Szybist, a lawyer at the Natural Resources Defense Council, describes Pennsylvania’s entrance as a “springboard” to a more expansive clean energy industry in the state.
On the opposing side, RGGI has been a unifying enemy for Republican lawmakers, coal and energy interests, and labor unions. The Senate Republican Caucus believes that the program will “result in the loss of good paying jobs and harm [the] state’s economy.” The Industrial Energy Consumers of Pennsylvania argues that RGGI will result in increased electricity costs to residents and put industrial manufacturers at a “competitive disadvantage to facilities in other states and countries.” Pennsylvania lawmakers disapprove of the “one sided-decision” made by Gov. Wolf, underscoring the importance of engaging the legislature in a decision that would heavily affect “communities and families whose livelihood is built upon important sectors of our energy economy.” Lawmakers attempted to pass the Senate Concurrent Regulatory Review Resolution 1, which would have disabled the state from joining RGGI, but the bill was vetoed by Gov. Wolf last December.
An end to this contentious RGGI battle seems far from sight. A final decision could rest with the Supreme Court or by an agreement between Gov. Wolf and the General Assembly, but elections this fall might add further challenges. Republican candidate Doug Mastriano has promised to get Pennsylvania out of RGGI on “Day 1,” describing RGGI as a threat to national security. Democratic candidate Josh Shapiro is drawing criticism for his reservations about the program. Shapiro stated, “we need to take real action to address climate change, [and] protect and create energy jobs…as governor, I will implement an energy strategy which passes that test, but it’s not clear to me that RGGI does.”
For a state that has a long history of fossil fuel dependence, heightened political tension around the topic of environmental restraint is neither surprising nor unprecedented. The problem is that we don’t have time for political jockeying. Pennsylvania’s climate has increased 2.8 degrees Fahrenheit since 1970, higher than the national average. The state must act fast to reign in its carbon emissions, and RGGI is a place to start. The program would hopefully create a path forward for more legislation that confronts climate change and symbolize Pennsylvania’s commitment to environmental issues. As Battle RGGI rages on, all eyes should be on Pennsylvania’s elections this fall. There is no time like the present to be informed about the candidates’ views on RGGI, and head to the polls.
By Gabrielle Hughes, Fair Shake Legal Intern
