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West Montgomery Times

Tuesday, October 15, 2024

Pennsylvania Senate approves repeal of Regional Greenhouse Gas Initiative electricity tax

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State Senator Tracy Pennycuick | Pennsylvania

State Senator Tracy Pennycuick | Pennsylvania

The Pennsylvania Senate has approved legislation to repeal the Regional Greenhouse Gas Initiative (RGGI) electricity tax, initially enacted through an executive order by the Wolf Administration in 2019. Sen. Tracy Pennycuick (R-24), who supported the measure, announced the approval.

RGGI is a multi-state compact that critics argue would increase electricity rates for consumers, cut energy and manufacturing jobs, and lead to the closure of Pennsylvania power plants. No new investments in baseload generation have been made in Pennsylvania since the Wolf Administration attempted to enter the state into RGGI five years ago.

Last year, the Pennsylvania Commonwealth Court ruled that Pennsylvania’s entrance into RGGI could only be achieved through legislation duly enacted by the General Assembly, not merely through rulemaking by the Department of Environmental Protection (DEP) and the Environmental Quality Board (EQB). This ruling has been appealed to the Pennsylvania Supreme Court by Gov. Josh Shapiro, and that appeal remains pending.

Governors Tom Wolf and Josh Shapiro have faced significant criticism for advocating for Pennsylvania's participation in RGGI despite bipartisan objection from the General Assembly.

Senate Bill 1058 aims to abrogate the CO2 Budget Trading Program regulation promulgated by DEP and EQB.

“Families are already struggling with paying more for basic necessities and RGGI will just make that burden even heavier,” said Pennycuick. “We should be working to make energy more affordable and reliable in an environmentally responsible way. The RGGI scheme, which was never approved by people’s elected representatives, distracts us from that immediate concern.”

This legislative action follows a series of hearings with members of the Ohio General Assembly discussing PJM Interconnection LLC (PJM) and reliability of the mid-Atlantic power grid it manages. PJM projects that 20% of its existing capacity will retire between now and 2030, potentially leaving insufficient power to meet consumer demands.

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