Pennsylvania RGGI challenge bill advances

Pennsylvania lawmakers are moving closer to passing another legislative challenge to governor Tom Wolf's (D) effort to add the state to the Regional Greenhouse Gas Initiative (RGGI) cap-and-trade program.

The House of Representatives Environmental Resources and Energy Committee yesterday voted 17-6 in favor of HB 637, a bill that would require legislative approval before the state could join RGGI or any other cap-and-trade program aimed at reducing greenhouse gas emissions. Two Democrats joined the committee's Republican majority in backing the proposal.

Supporters said the bill is necessary to prevent Wolf from bypassing the legislature to join a program they warn will lead to higher energy costs for Pennsylvania residents.

"I can't fathom why the governor would want to travel this route and basically ignore the voice of our constituents," state representative Jim Struzzi (R), the bill's sponsor, said.

A companion version of the bill cleared the Senate environment committee last month. If either bill makes it through the legislature, it would be the second time lawmakers have tried to slow Wolf's plans to join RGGI, a cap-and-trade program to reduce power plant CO2 emissions in the northeast US. The legislation passed an identical bill last year, which Wolf vetoed.

Republicans did not attempt to override that veto, as they likely did not have enough votes to succeed, despite getting some Democrats to support the legislation. But Republicans picked up three seats in the House and one seat in the Senate in last year's elections, which could put them in position to bypass the governor if enough Democrats support the bill again this year.

In the meantime, the Department of Environmental Protection (DEP), at Wolf's behest, is pushing ahead in hopes of joining RGGI at the start of next year.

The DEP's proposal would set an initial CO2 cap for the state's power plants of 78mn short tons (st) for next year, which would taper off to around 58mn st in 2030, a 25pc reduction from 2022. The regulations are expected to make it to the state Environmental Quality Board (EQB) late this year for adoption.

A recent change to the DEP proposal includes a breakup of the 2022 allowance budget into quarters, in case the state is unable to join RGGI at the start of the year.

Without Pennsylvania, RGGI's current 11 members will have a cap of about 116mn st in 2022.

By Michael Ball