Shapiro’s energy plan draws reaction from business, political leaders

Listen to this article

Gov. Josh Shapiro announced his plan Wednesday to protect and create nearly 15,000 energy jobs, lower utility bills for Pennsylvania households, and address carbon pollution. 

The governor’s office said that if passed by the legislature, the initiatives would save Pennsylvania ratepayers $252 million in the first five years, while generating $5.1 billion in investment in clean, reliable energy sources. The newly announced plan has been met with caution as some opponents compare it to the Regional Greenhouse Gas Initiative (RGGI), a program that many employers were critical of as an additional tax burden on businesses. 

“Pennsylvania is falling behind in the race to create clean and reliable energy – and we must take action to be more competitive, ensure our consumers pay less for their electricity bills, and create more jobs and opportunities for our businesses to grow and our workers to get ahead,” Shapiro said in a statement.

The governor added that any energy policy supported by his administration “must meet the three-part test of protecting and creating energy jobs, taking real action to address climate change pollution, and ensuring reliable, affordable power for consumers in the long term.”

Shapiro is proposing the Pennsylvania Climate Emissions Reduction Act (PACER) to establish a Pennsylvania-specific cap-and-invest program that allows the state to determine its cap on carbon and invest in lowering consumers’ electricity bills. The governor’s office said that if passed, PACER would take Pennsylvania out of the Regional Greenhouse Gas Initiative (RGGI) and give the state control over its own energy future.

The governor’s plan calls for a second legislative initiative, the Pennsylvania Reliable Energy Sustainability Standard (PRESS), designed to attract federal investments and keep utility costs low in the long-term.

In addition, the governor’s office states that Shapiro’s plan “recognizes the importance of carbon capture, utilization, and storage (CCUS) in meeting emissions reductions goals.”

Pennsylvania’s political and business leaders responded to Shapiro’s announcement of the PACER and PRESS energy programs.

“We all share the goals of protecting our environment and growing our economy – and, one does not have to come at the expense of the other,” Pennsylvania Chamber of Business and Industry President and CEO Luke Bernstein said.  “Pennsylvania is a global leader in energy production and reducing emissions, and policies going forward should build on this progress.

“We await details on the governor’s proposals, which raise significant questions and concerns about the impacts on our residents, businesses, the environment, and our economy. We encourage the governor to work in a collaborative way with additional stakeholders and the legislature to address important questions pertaining to the short- and long-term impacts of these policies and develop the best plan for Pennsylvania.”

Sen. Scott Martin, R-Lancaster, said the plan presented by Shapiro bears strong similarities to RGGI and raises many of the same concerns. 

“For us to count today’s announcement as any kind of progress, Governor Shapiro needs to withdraw his appeal to the Commonwealth Court’s decision that RGGI is unconstitutional,” said Martin. “We cannot negotiate in good faith when we’re being held hostage to the governor’s demands for higher energy taxes, closure of power plants, job losses, and a less reliable grid.” 

Pennsylvania House Democrats issued a statement declaring, “Tackling the growing climate crisis demands a comprehensive approach – one that balances protecting our environment, strengthening our economy, and cutting costs for families.

“Governor Shapiro has brought together many different sectors to explore how Pennsylvania can be a clean energy leader, and today’s announcement represents a step forward toward that goal.”