On March 13th, Governor Josh Shapiro announced a new energy plan for Pennsylvania as a potential counter to the controversial Regional Greenhouse Gas Initiative (RGGI) started by his predecessor, Gov. Tom Wolf.
The new plan follows the previous recommendations of the Governor’s RGGI Working Group and is broken into two separate legislative packages. If passed by the PA General Assembly, will attempt to reduce climate emissions, offer an electric bill rebate for consumers; sets new reliability targets for a resilient electricity grid by 2035, attract more federal dollars, supports low-carbon natural gas and nuclear facilities, and makes new investments in clean energy production.
First, the Pennsylvania Climate Emissions Reduction Act (PACER) establishes a Pennsylvania-specific cap-and-invest program that apparently will allow the Commonwealth to determine its own cap on carbon and invest directly in lowering consumers’ electricity bills. If enacted, PACER would take Pennsylvania out of RGGI. Under PACER, 70% of the revenue will be directed back to Pennsylvania residents as a rebate on their electric bill and apparently also support projects that reduce air pollution in Pennsylvania; as well as potential clean energy projects – such as carbon capture and storage, geothermal deployment, and clean hydrogen – in energy communities that have hosted coal, oil, or gas infrastructure.
Second, is the Pennsylvania Reliable Energy Sustainability Standard (PRESS) that will update the Commonwealth’s Alternative Energy Portfolio Standards (AEPS). PRESS adds nuclear power, next-generation technologies like fusion, and clean forms of natural gas with the goal of building out a more diverse, reliable, and affordable energy sector to attract federal investments in the Commonwealth. PRESS is designed with the goal of incentivizing a more reliable power generation fleet to combat the threats of extreme weather, cyberattacks, and other challenges that could impact individual sources of electricity. PRESS requires Pennsylvania to get 50% of its electricity from a diverse range of energy resources by 2035, including 35% from the clean energy sources of today and the future like solar, wind, small modular reactors, and fusion, 10% from sustainable sources like large hydropower and battery storage, and 5% from ultra-low emission forms of natural gas and other traditional fuels. By raising these targets for a diverse range of energy sources.
Both proposals have been met with mixed reactions from members of the Democrat House and Republican Senate leading to an uncertain future for the Governor’s plan. In the meantime, Governor Shapiro is still appealing the Pennsylvania Commonwealth Court’s decision at the end of 2023, which ruled against Pennsylvania joining RGGI. The earlier filing from the Commonwealth Court stated the initiative was an invalid tax, and constitutionally, the state’s participation in RGGI can only be reached through legislation enacted by the Pennsylvania General Assembly.
In a statement, Shapiro’s administration said the Commonwealth Court decisions on RGGI were “limited to questions of executive authority, and our Administration must appeal in order to protect that important authority for this Administration and all future governors.”