Wolf Budget Proposes Energy Communities Trust Fund To Ease Transition Of Workers, Communities Impacted By Power Plant Closures

On February 3, Gov. Tom Wolf’s FY 2021-22 budget includes one new environmental and energy proposal to create an Energy Communities Trust Fund to provide direct support to dislocated workers and communities experiencing impacts from the closure of existing power plants.

This proposal must be adopted in law by the General Assembly.

The Fund would be financed by a portion of the expected $300 million in revenue generated by the sale of allowance under the proposed Carbon Pollution Reduction Program covering power plants compatible with the Regional Greenhouse Gas Initiative (RGGI).  [Read more here.]

Funds would also be dedicated to make immediate and targeted investments in environmental justice communities, to minimize and correct disproportionate environmental impacts, empower communities and foster economic opportunities.

These communities have experienced a higher burden of historical impacts from environmental pollution due to decisions that allowed polluting industries to concentrate in areas where minorities or lower-income persons live. 

RGGI funds will be used to make investments in environmental clean up, water and air quality improvement, recreation and general economic development projects within these environmental justice communities.

Gov. Wolf is also proposing new investment in greenhouse gas abatement, energy efficiency and clean and renewable energy programs that help to reduce air pollution in Pennsylvania. 

Vital funding for key advancements like new research and projects to develop Carbon Capture Utilization and Storage, or much needed abandoned oil and gas well plugging would become available. 

Investments in clean and renewable energy, including but not limited to biomass, geothermal, hydropower, solar and wind will help to drive in-state investment and job creation while generating electricity.

Finally, proceeds will be dedicated to helping the vital contributors to Pennsylvania’s economy in the industrial and commercial sectors in Pennsylvania to reduce their greenhouse gas emissions through investments such as process electrification, fuel switching, combined heat and power, and energy efficiency projects.

RCAP Expansion

Wolf is also proposing a $1 billion expansion of the Redevelopment Assistance Capitol Program to fund broadband infrastructure and lead and asbestos remediation projects at schools

Severance Tax

Wolf is proposing to use proceeds from a new severance tax on natural gas to pay for a multi-billion workforce development program, not for any environmental or energy programs.

Cost-To-Carry

The individual budgets for the departments of Agriculture, Conservation & Natural Resources and Environmental Protection are basically cost-to-carry budgets with about the same funding as in FY 2021-22.

It includes the same diversions from the Oil and Gas Lease Fund to support DCNR operations, and other cuts typically proposed by the Governor.

Governor’s Budget Documents

-- Governor’s Executive Budget [Big Budget Book]

-- Budget In Brief [Summary of Initiatives]

-- Budget Line-Item Appropriations

-- Text Of Budget Address

-- Governor’s Budget Press Release

House Democrats Documents

-- Summary Of Budget Proposal

Reaction

“PennFuture supports several aspects of Gov. Wolf’s budget proposal, especially his call to create the Energy Communities Trust Fund that will simultaneously benefit residents in environmental justice communities as well as workers transitioning away from the fossil fuel industry, all while cutting greenhouse gas emissions,” said PennFuture President and CEO Jacquelyn Bonomo. “While we celebrate this sorely-needed idea, it must be endorsed and embraced by residents who live in these frontline communities who disproportionately suffer the impacts of carbon pollution in Pennsylvania.

Related Articles This Week:

-- 90% Of Voters Want MORE Funding For Critical Environmental, Conservation Programs & Local Projects-- Whose Budget Proposal Does That? 

-- York Daily Record/USA Today Special Report: PA’s Polluted Susquehanna River Is Poisoning The Chesapeake Bay - What Can Be Done

-- State, Local Partners Made Record Progress In 2nd Year Of Chesapeake Bay Watershed Implementation Plan

Related Articles:

-- New Poll Shows 90% Of PA Voters Want Senate, House Members To Address Environmental, Conservation Priorities, Provide More Funding For Critical Programs

-- 90% Of PA Voters Want Senate, House To Provide More Funding For Critical Environmental, Conservation Programs - That Didn’t Happen In 2020

-- York Daily Record/USA Today Special Report: PA’s Polluted Susquehanna River Is Poisoning The Chesapeake Bay - What Can Be Done

[Posted: February 3, 2021]  PA Environment Digest