Board approves RGGI rule, moving Pa. a step closer to joining carbon emissions program

Rachel McDevitt

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I report on energy and the environment for StateImpact Pennsylvania at WITF.

My work focuses on responses and solutions to climate change in the state legislature and communities around the state. I trace my interest in these issues back to my time as a Girl Scout and this episode of Rocko’s Modern Life.

I look forward to winter just for the chance to ski a few times each season. I try to keep myself from doom-scrolling on my phone by keeping my hands busy knitting and learning to play the piano.

I grew up in Cambria County, Pa. and graduated from Temple University. I started at WITF just after Christmas in 2014.

Reid Frazier / StateImpact Pennsylvania

The Regional Greenhouse Gas Initiative is a cap-and-trade program intended to cut carbon emissions from the power sector.

July 13, 2021 | 11:20 AM

Updated: 2021-07-13 18:52:07

Courtesy PAcast live stream

Members of the Environmental Quality Board are seen in this screenshot during the July 13, 2021 meeting.

Pennsylvania is set to become the first major fossil fuel-producing state to put a price on carbon emissions.

The Environmental Quality Board voted 15-4 Tuesday to adopt the final regulation that would have Pennsylvania join the Regional Greenhouse Gas Initiative, a cap-and-trade program that targets carbon dioxide emissions in the power sector.

Pa. Republican lawmakers and the U.S. Capitol attack
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Sen. Gene Yaw signed a letter asking members of Congress to delay certifying Pennsylvania’s electoral votes despite no evidence that would call those results into question. The election-fraud lie led to the attack on the Capitol.

Rep. Greg Vitali (D-Delaware) said joining is an important first step in addressing climate change, which he called a moral obligation to future generations. He also scolded RGGI critics.

“There’s always two things in common: they never acknowledge the seriousness of the problem and they never propose any solutions of their own,” Vitali said.

Wolf signed an executive order starting the RGGI process in October 2019, as part of his overall climate goals of reducing state greenhouse gas emissions 26 percent by 2025 and 80 percent by 2050, compared to 2005 levels.

Pennsylvania is one of the country’s top five carbon-emitting states. The Department of Environmental Protection says emissions from the state’s power sector are greater than total emissions from some small countries.

Scientists say emissions must be cut dramatically in the next decade to avoid the worst effects of climate change.

Under RGGI, power plants with a generation capacity of at least 25 megawatts and that send 10 percent or more of their power to the grid must buy allowances for each ton of CO2 they emit. Plants won’t have to buy allowances to cover all their emissions immediately. DEP says 100 percent compliance isn’t required until the end of a three-year control period.

DEP estimates RGGI participation will prevent between 97-227 million tons of carbon emissions between 2022 and 2030, depending on factors such as energy demand. It says the pollution reduction could result in billions of dollars in health care savings.

The lower end of the projected emissions reductions is well below DEP’s original projection of 180 million tons. DEP climate adviser Hayley Book told the EQB that modeling was adjusted for updated factors, including 2020’s unexpected drop in emissions due to the pandemic.

DEP now expects to raise $131-187 million dollars annually from CO2 allowance auctions, down from the $300 million initially projected.

The Wolf Administration hopes to use the money to help energy communities transition away from coal, to clean up environmental justice communities, and to support energy efficiency and clean energy programs.

Democrats have introduced a bill that would direct investments using that framework, but Republicans have yet to support or introduce a measure guiding the proceeds’ use. If no legislation is passed governing investments, all money must go to the state’s Clean Air Fund, where it can only be used to reduce air pollution. The legislature is able to transfer money from the fund for other purposes.

In a statement, Power PA Jobs Alliance, a coalition of labor and business groups that would be affected by RGGI, said it is confident that the regulation will be struck down by the courts.

It claims the Homer City, Keystone and Conemaugh coal plants are responsible for a total of $2.87 billion in total economic impact that will be lost when the regulation begins.

Environmental groups are celebrating the vote.

“Today’s vote will be applauded by a majority of Pennsylvanians who demand immediate action on climate change,” PennFuture said. It added there is more work to do to address emissions from the transportation and industrial sectors of the economy.