Pennsylvania Effort to Join RGGI Faces Legal, Political Peril
Jun 6, 2023
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Exploring Pennsylvania's legal and political hurdles to joining the RGGI market, the podcast delves into the economic and climate impacts of transitioning from coal to renewable energy. It discusses the opposition faced by Pennsylvania, job effects of coal plant closures, and the implications of Reggie on gas generators and drillers. The uncertain future lies in Governor Shapiro's hands, who is yet to commit to the market's development.
Pennsylvania's entry into REGI is facing legal and political challenges, highlighting uncertainties over the energy industry's future and the roles of fossil fuels and clean energy.
Proponents argue that joining REGI can accelerate decarbonization, aid in achieving net-zero targets, and generate revenue for the state, while opponents raise concerns about potential electricity price increases and job losses.
Deep dives
Overview of the Regional Greenhouse Gas Initiative (REGI)
The Regional Greenhouse Gas Initiative, established in 2009, has led to a reduction in greenhouse gas emissions in 11 eastern states. The podcast explores the challenges facing REGI's expansion in Pennsylvania, highlighting the legal battles and political uncertainties. Pennsylvania's entry into REGI has faced opposition due to concerns over the energy industry's future, the impact on fossil fuels, and clean energy roles. The fate of REGI in Pennsylvania depends on a court decision and the governor's commitment to the market's development.
Purpose of Carbon Cap and Trade Market and REGI Operations
Carbon cap and trade markets aim to limit carbon dioxide emissions, with REGI specifically focusing on emissions from the electricity sector. The market involves setting emission limits, issuing permits for emissions, and requiring electricity generators to purchase allowances to emit carbon dioxide. Pennsylvania's recent entry into REGI faced a legal limbo due to a court injunction post-joining. The podcast discusses the impacts of Pennsylvania's participation in the cap and trade market.
Contentious Issues around Pennsylvania's Membership in REGI
Debates surrounding Pennsylvania's involvement in REGI are marked by contrasting views on economic and environmental impacts. Proponents argue that REGI accelerates decarbonization, aids in achieving net-zero targets, and generates revenue for the state. Opponents raise concerns about potential increases in electricity prices, job losses from plant closures, and the concept of leakage shifting emissions elsewhere. The podcast unpacks these contentious issues around Pennsylvania's REGI membership.
Findings from a Recent Report on the Prospects for Pennsylvania as a REGI Member
A recent report analyzes the impact of Pennsylvania's membership in REGI, revealing lowered emissions in the state and the region. The study indicates minimal impacts on electricity prices, a decrease in coal generation, and an increase in renewables' usage. The report suggests that joining REGI results in a marginal impact on electricity exports. Additionally, the findings address potential job impacts, highlighting ongoing coal plant closures and the need for transition assistance in affected communities.
A new report examines the economic and climate impacts of Pennsylvania joining the Regional Greenhouse Gas Initiative, now stalled in court.
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The Regional Greenhouse Gas Initiative, or RGGI, was the first major carbon market to be established in the United States. Since its inception in 2009, RGGI has contributed to a reduction in greenhouse gas emissions from the electricity sector in a market that now spans 11 eastern states. Yet RGGI has recently seen its expansion stalled in Pennsylvania, one of the nation’s largest emitters of carbon dioxide, and a state where the struggle over the future of the energy industry, and the roles to be played by fossil fuels and clean energy, has been particularly intense.
Authors of a recent report on expected economic and climate impacts of Pennsylvania’s participation in RGGI discuss their findings, and explore the political and legal battles that are now taking place over the market’s future in the state. That future may ultimately lie in the hands of a newly elected governor who inherited RGGI from his predecessor, but who has yet to publicly commit to the market’s development. But first, a state court must render its decision on the legality of Pennsylvania’s participation in the RGGI market.
Angela Pachon is research director at the Kleinman Center for Energy Policy. Maya Domeshek is a research associate at Resources for the Future. Their recent report, “The Prospects for Pennsylvania as a RGGI Member” is a joint publication of the Kleinman Center and Resources for the Future.
Energy Policy Now is produced by The Kleinman Center for Energy Policy at the University of Pennsylvania. For all things energy policy, visit kleinmanenergy.upenn.edu