Business

Legal challenges to RGGI are keeping millions in carbon allowances from flowing to Pennsylvania

According to a September report, the third carbon-allowance auction of 2022 generated more than $301 million in revenue for reinvestment.

The Elderton Cemetery is in the foreground as The Keystone Generating Station (a coal-fired power plant in Plumcreek Township) looms in the distance.

The Elderton Cemetery is in the foreground as The Keystone Generating Station (a coal-fired power plant in Plumcreek Township) looms in the distance. Michael S. Williamson/The Washington Post via Getty Images

By Cassie Miller

Pennsylvania is missing out on millions of dollars in revenue from carbon-allowance auctions that are part of a multi-state initiative to combat climate change as legal challenges to the commonwealth’s involvement in the initiative continue. 

The commonwealth formally joined the Regional Greenhouse Gas Initiative, or RGGI, in late April after considerable bipartisan pushback from opponents, who said Democratic Gov. Tom Wolf’s decision to join the multi-state agreement was an example of executive overreach. 

Because of those legal challenges, Pennsylvania has missed out on three carbon-allowance auctions held this year, leading to frustration among environmental advocates who say the lost revenue could have been put to good use in the commonwealth. 

“It’s frustrating to see deadline after deadline go by,” Molly Parzen, executive director for Conservation Voters of Pennsylvania said, adding that the revenue could have been used to weatherize homes across Pennsylvania and build more climate-resilient communities. 

According to a September statement from RGGI, Inc., the third carbon-allowance auction of 2022, which was held on Sept. 7, generated more than $301 million in revenue for reinvestment.

Pennsylvania’s neighboring states generated millions of dollars in proceeds from the most recent auction, including New Jersey, $38.6 million; Maryland, $37.9 million; and New York, $73.9 million, according to reported auction results. 

“It’s disappointing that attempts to delay RGGI are resulting in Pennsylvania missing out on significant economic benefits, not to mention crucial time to cut our carbon emissions,” state Sen. Carolyn Comitta, of Chester County, the ranking Democrat on the Senate Environmental Resources and Energy Committee, told the Capital-Star.  

“Unfortunately, delays to RGGI are also significantly limiting our response to the growing impacts of climate change,” Comitta said. 

Legal battles

In July, the Commonwealth Court of Pennsylvania issued an order, blocking the state from continuing its efforts to join RGGI. 

Officials at the state Department of Environmental Protection and the Environmental Quality Board appealed the decision to the state Supreme Court, which has yet to issue a ruling. 

“I remain optimistic that RGGI will clear these obstacles,” Comitta said. 

Allocating RGGI funds 

Until the state’s highest court makes its ruling, Pennsylvania lawmakers are continuing discussions about how best to spend Pennsylvania’s share of the revenue generated from RGGI’s quarterly carbon-credit auctions.

To plan for all eventualities, last summer, Comitta introduced legislation to direct the proceeds. 

The legislation, also known as the “RGGI Investments Act,” would establish funds to disburse the estimated $300 million in annual revenue accordingly: 

  • 37.5% to the Energy Communities Trust Fund; 
  • 12.5% to the Environmental Justice Communities Trust Fund;
  • 46% to the Clean Air Fund divided as follows: 
    • 56% to the Greenhouse Gas Abatement, Energy Efficiency, and Clean and Renewable Energy Investments Account
    • 44% to the Commercial and Industrial Energy Efficiency Account; 
  • 4% for administration of the program.

“This is money coming into the commonwealth that we need to decide to do something productive with,” Parzen said. 

Without specific legislation allocating the funds, revenue from RGGI auctions would all go to the state’s Clean Air Fund. 

It’s disappointing that attempts to delay RGGI are resulting in Pennsylvania missing out on significant economic benefits, not to mention crucial time to cut our carbon emissions.
– state Sen. Carolyn Comitta

“That’s why we need to pass the RGGI Investments Act,” Comitta said. “So Pennsylvania is prepared to make effective investments in the clean energy economy, environmental justice communities, and support for workers and communities impacted by the transition from fossil fuels.” 

The bill is currently awaiting a vote by the Senate Environmental Resources and Energy Committee. 

Parzen said that lawmakers who are opposed to RGGI and its supporters will have to reach a compromise in the next legislative session to determine how the money will be spent and move the bill out of committee. 

“The money is coming and we can either use it or not use it,” Parzen said, adding that the allocation of RGGI funds “shouldn’t be politicized.”

RGGI in the governor’s race

Conservation Voters of Pennsylvania, which has endorsed Democratic gubernatorial nominee Josh Shapiro along with a handful of other environmental organizations, is supportive of Shapiro’s willingness to continue dialogues and build consensus around the commonwealth’s involvement in RGGI, Parzen said. 

She added that in his recent comments on the campaign trail, Shapiro was “laying out the importance of bringing people to the table” around RGGI, including voices outside of Pennsylvania’s oil and natural gas industry. 

“Those are the voices we think are so often not included in this conversation,” Parzen said, adding that Conservation Voters of Pennsylvania has had “productive conversations” about RGGI with Shapiro’s campaign.

In November 2021, Shapiro’s Republican opponent for governor, state Sen. Doug Mastriano, a Republican from Franklin County, penned an op-Ed in opposition to RGGI, calling the initiative “burdensome” and adding that it will “do more harm than good.”

Cassie Miller is a reporter for the Pennsylvania Capital-Star, where this story first appeared.

X
This website uses cookies to enhance user experience and to analyze performance and traffic on our website. We also share information about your use of our site with our social media, advertising and analytics partners. Learn More / Do Not Sell My Personal Information
Accept Cookies
X
Cookie Preferences Cookie List

Do Not Sell My Personal Information

When you visit our website, we store cookies on your browser to collect information. The information collected might relate to you, your preferences or your device, and is mostly used to make the site work as you expect it to and to provide a more personalized web experience. However, you can choose not to allow certain types of cookies, which may impact your experience of the site and the services we are able to offer. Click on the different category headings to find out more and change our default settings according to your preference. You cannot opt-out of our First Party Strictly Necessary Cookies as they are deployed in order to ensure the proper functioning of our website (such as prompting the cookie banner and remembering your settings, to log into your account, to redirect you when you log out, etc.). For more information about the First and Third Party Cookies used please follow this link.

Allow All Cookies

Manage Consent Preferences

Strictly Necessary Cookies - Always Active

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data, Targeting & Social Media Cookies

Under the California Consumer Privacy Act, you have the right to opt-out of the sale of your personal information to third parties. These cookies collect information for analytics and to personalize your experience with targeted ads. You may exercise your right to opt out of the sale of personal information by using this toggle switch. If you opt out we will not be able to offer you personalised ads and will not hand over your personal information to any third parties. Additionally, you may contact our legal department for further clarification about your rights as a California consumer by using this Exercise My Rights link

If you have enabled privacy controls on your browser (such as a plugin), we have to take that as a valid request to opt-out. Therefore we would not be able to track your activity through the web. This may affect our ability to personalize ads according to your preferences.

Targeting cookies may be set through our site by our advertising partners. They may be used by those companies to build a profile of your interests and show you relevant adverts on other sites. They do not store directly personal information, but are based on uniquely identifying your browser and internet device. If you do not allow these cookies, you will experience less targeted advertising.

Social media cookies are set by a range of social media services that we have added to the site to enable you to share our content with your friends and networks. They are capable of tracking your browser across other sites and building up a profile of your interests. This may impact the content and messages you see on other websites you visit. If you do not allow these cookies you may not be able to use or see these sharing tools.

If you want to opt out of all of our lead reports and lists, please submit a privacy request at our Do Not Sell page.

Save Settings
Cookie Preferences Cookie List

Cookie List

A cookie is a small piece of data (text file) that a website – when visited by a user – asks your browser to store on your device in order to remember information about you, such as your language preference or login information. Those cookies are set by us and called first-party cookies. We also use third-party cookies – which are cookies from a domain different than the domain of the website you are visiting – for our advertising and marketing efforts. More specifically, we use cookies and other tracking technologies for the following purposes:

Strictly Necessary Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Functional Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Performance Cookies

We do not allow you to opt-out of our certain cookies, as they are necessary to ensure the proper functioning of our website (such as prompting our cookie banner and remembering your privacy choices) and/or to monitor site performance. These cookies are not used in a way that constitutes a “sale” of your data under the CCPA. You can set your browser to block or alert you about these cookies, but some parts of the site will not work as intended if you do so. You can usually find these settings in the Options or Preferences menu of your browser. Visit www.allaboutcookies.org to learn more.

Sale of Personal Data

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Social Media Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.

Targeting Cookies

We also use cookies to personalize your experience on our websites, including by determining the most relevant content and advertisements to show you, and to monitor site traffic and performance, so that we may improve our websites and your experience. You may opt out of our use of such cookies (and the associated “sale” of your Personal Information) by using this toggle switch. You will still see some advertising, regardless of your selection. Because we do not track you across different devices, browsers and GEMG properties, your selection will take effect only on this browser, this device and this website.