Shapiro’s RGGI Group concludes work, Pa. Senator calls for withdrawal

Following nine meetings held this spring and summer, the Regional Greenhouse Gas Initiative (RGGI) Working Group created by Gov. Josh Shapiro concluded its work with a consensus reached on several key issues.

The RGGI Working Group, comprised of consumer advocates, energy industry representatives, environmental protection stakeholders, and industry representatives agreed that cap-and-invest carbon regulation for the power sector that generates revenue to support the state’s energy transition would be the optimal approach.

Co-chaired by Mike Dunleavy of the International Brotherhood of Electrical Workers Local 5 in Pittsburgh and Jackson Morris of the Natural Resources Defense Council (NRDC), the Working Group was formed by Shapiro shortly after taking office last January. Shapiro had pledged to create and empower the group after having heard on the campaign trail from Pennsylvanians who felt shut out from conversations and decision-making regarding the RGGI.

RGGI is an initiative of Mid-Atlantic and New England states to reduce the power sector’s greenhouse gas emissions while creating economic growth. To reflect Pennsylvania’s diversity, the RGGI Working Group was made up of members from across the state who could provide an array of perspectives regarding energy policies. The Working Group’s task was to evaluate the merits of membership in RGGI and proposed alternatives.

Morris and Dunleavy issued a statement that the Working Group “reached broad consensus that reducing greenhouse gas emissions in the commonwealth is both necessary and inevitable, and that a cap-and-invest carbon regulation for the power sector that generates revenue to support the commonwealth’s energy transition would be the optimal approach for the commonwealth to protect and create energy jobs, take real action to address climate change, and ensure reliable, affordable power for consumers in the long term.”

Morris and Dunleavy stated that the Working Group agreed that any cap-and-invest program should include investment strategies to address potential emissions leaks, increased localized pollution and energy costs, and loss of employment.

Pennsylvania Senate Appropriations Committee Chair Scott Martin, R-Lancaster, called for Shapiro to withdraw from what the senator called the “disastrous RGGI carbon tax scheme.”

Martin said Pennsylvania should instead pursue a “realistic and pragmatic energy policy” rather than a policy that he stated, “creates enormous risks to the reliability of our energy grid and will leave consumers stuck with sky-high energy costs.”

It was telling, Martin added, that “even some of the parties in Gov. Shapiro’s own working group refused to say this policy was right for Pennsylvania. This report does nothing to unite around energy policies that really work for our commonwealth’s citizens and support desperately needed economic growth in our state.” 

Martin called the RGGI “ill-advised” and said Shapiro should commit instead to working with the General Assembly to achieve shared priorities, such as making energy more affordable, attracting economic investment, and focusing on policies that create and protect jobs. 

PennFuture’s President & CEO Patrick McDonnell issued a statement while it’s not surprising the diverse RGGI working group couldn’t come to a consensus, it is telling that its report finds an obvious answer in a cap-and-invest carbon emissions program as well as “maximizing and leveraging” the job creation and benefits of the Inflation Reduction Act (IRA) and Infrastructure Investment and Jobs Act (IIJA).

“The working group does not identify an alternative to RGGI for a cap-and-invest strategy,” said McDonnell. “Still, it doesn’t need to reinvent the wheel when RGGI provides Pennsylvania with the meaningful renewable energy policy to reap the federal benefits and move us toward a cleaner, sustainable energy future.”