PA Environment Digest Blog: Gov. Shapiro’s Work Group Concludes A Cap-And-Invest Carbon Pollution Regulation Program Would Be Optimal Approach To Reducing Greenhouse Emissions From Power Plants; Scale Up Solar Energy

On September 30, Gov. Shapiro released the consensus recommendations by the Climate and Energy Work Group of organized labor, energy industry, consumer and environmental stakeholders to discuss Pennsylvania’s energy future, including the Regional Greenhouse Gas Initiative.

The Governor made clear any energy policy supported by his Administration must meet his three-part test of protecting and creating energy jobs; taking real action to address climate change; and ensuring reliable, affordable power for consumers in the long term.

The Working Group evaluated potential energy policy using that test, and reached consensus that a form of cap-and-invest carbon regulation for the power sector that generates revenue to support the Commonwealth’s energy transition is the optimal approach moving forward.

The Associated Press quoted the Governor’s Office as saying-- “Our administration will review the working group’s full set of recommendations as we await the Commonwealth Court’s decision on Pennsylvania’s participation in RGGI.”

Co-Chairs Statement

Working Group Co-Chairs Jackson Morris, Natural Resources Defense Council, and Mike Dunleavy, International Brotherhood of Electrical Workers Local 5 in Pittsburgh, issued the following statement on behalf of the Working Group--

“Governor Shapiro brought together the most diverse group of Pennsylvania leaders in recent memory to develop recommendations on climate and energy policy that will serve all interests in the Commonwealth – and we’re proud that every member of the Working Group engaged in a thoughtful, productive conversation about the three-part test he laid out during his campaign.

“Thanks to that dialogue, the diverse members of the Working Group – from organized labor and the energy industry to environmental groups and consumer representatives – found common ground and consensus on a number of key issues.

“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.

“The Working Group also agreed that any cap-and-invest program should include policy levers and investment strategies which help avoid any potential emissions leakage, higher localized pollution, increased energy costs, and job loss.

“While the Working Group has concluded its work, we look forward to continuing this dialogue and working with Governor Shapiro – and each other – to implement many of the consensus recommendations to strengthen the Commonwealth’s energy portfolio and serve the best interest of all Pennsylvanians.”

The Working Group members include--

Co-Chair: Michael Dunleavy, IBEW Local 5 (Retired)

Co-Chair: Jackson Morris, NRDC

Robert Bair, Pennsylvania Building & Construction Trades Council

Tony Seiwell, Laborers’ District Council of Eastern Pennsylvania

James Snell, Steamfitters Local 420

Shawn Steffee, Boilermakers Local 154

Franz Litz, Litz Energy Strategies

David Masur, PennEnvironment

John Walliser, Pennsylvania Environmental Council

Lael Campbell, Constellation

Julie LaBella, Talen Energy

Sean Lane, Olympus Power

Hilary Mercer, Shell

Zach Smith, CNX

Kevin Walker, Duquesne Light Company

Patrick Cicero, Pennsylvania Consumer Advocate

Elizabeth Marx, Pennsylvania Public Utility Law Project

Consensus Recommendations

This summary was taken from the consensus report by the Working Group.

There was consensus among members of the Working Group that--

-- Reducing greenhouse gas emissions in the Commonwealth is both necessary and inevitable; and

-- 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 meet the Governor’s charge to benefit the environment by reducing emissions.

However, there was not consensus on the preferred specific form of cap-and-invest (i.e. RGGI vs. PJM-wide).

All members also acknowledge that it would take significant time to pursue such a PJM-wide construct, and that the adoption of such an approach is far from certain.

Members agree that any cap-and-invest program should include policy levers and investment strategies which help avoid any potential emissions leakage, higher localized pollution, increased energy costs, and job loss.

Among the consensus recommendations of the group were-

-- [Participate In RGGI If Lawful] If the courts deem it lawful to participate in RGGI, and/or if the program is otherwise adopted by the General Assembly, continue to participate in RGGI, and utilize the program to satisfy the state’s requirements under proposed federal Clean Air Act GHG emission reduction standards.

(Note: as mentioned above, some members of the working group still oppose the implementation of RGGI, but are open to a PJM-wide cap-and-invest approach to reduce CO2 emissions from the power sector).

-- Legislative codification is the preferred method of institutionalizing the various elements outlined below, though there are alternative administrative pathways for many of them.

-- Establish a RGGI Advisory Council: If the courts deem it lawful to participate in RGGI, and/or if the program is otherwise adopted by the General Assembly, in order to advance the environmental, affordability and job objectives in a balanced manner as the state invests its RGGI revenues, the state should establish a RGGI Advisory Council.

-- Establish a State Energy Policy Collaborative: Regardless of the outcome of the RGGI litigation, this Collaborative would be much broader, as well as separate and apart, from the RGGI Advisory Council.

-- Convene a bipartisan process that includes legislators to evaluate the recommendations of the State Energy Policy Collaborative and develop a statewide energy and climate plan that addresses jobs, reliability, consumer protection, and tangible emissions reductions.

-- Implement the energy and climate plan and seek a PJM-wide cap-and-invest program through legislation, to the extent practicable.

-- Ensure the preservation of existing nuclear generation and other clean energy resources in the Commonwealth.

-- Retain Pennsylvania’s status as the nation’s number one exporter of electricity and protect existing energy jobs, while pursuing legislative and gubernatorial support for additional state investment in PA’s energy and environment infrastructure in a way that supports current and new projects that reduce GHG emissions, solutions and technologies with tax credits, grant money, legislation to clarify underground carbon storage rights, and/or other mechanisms necessary to attract private investment, including but not limited to--

-- Pursue essential energy and capacity market reforms with PJM and FERC to ensure grid reliability, the overall viability and decarbonization of the Commonwealth’s power plant fleet, and to prevent any loss of jobs to other states

-- Scale up solar projects in the state—with a particular emphasis on rooftop solar on schools and warehouses across PA and explore community solar policies;

-- Low-GHG (including blue with sufficient rates of CCS) hydrogen production, consumption (conversion by carbon intensive industries), and electric generation project development

-- Carbon capture utilization and storage technology, development and deployment at existing facilities/sites

-- [Other mechanisms listed]

-- Frontline power plant communities in counties that have existing coal power stations receive a targeted share of cap-and-invest proceeds for clean energy job creation and transition

-- [Protect Energy Consumers] The Commonwealth should ensure that its energy consumers do not unreasonably or disproportionately shoulder the cost and potential reliability burdens associated with the clean energy transition; this is especially essential as it relates to low-income residents of the Commonwealth and the most vulnerable populations.

At the same time, consumers in environmental justice communities should not continue to face disproportionate economic and environmental burdens associated with high local emissions (although not exclusively attributable to electric generation) or the solutions advanced to address those high emissions.

[Several legislative and regulatory measures listed.]

Click Here for a copy of the full consensus recommendations.

Click Here for the complete announcement by the Governor.

Related Comments

This week, Environmental Evangelical Network Action-- the advocacy partner of the Evangelical Environmental Network-- submitted 50,780 comments from evangelical Christians to Gov. Shapiro in support of Pennsylvania reaffirming its commitment to the Regional Greenhouse Gas Initiative (RGGI).

These comments demonstrate that evangelicals throughout Pennsylvania are strongly in favor of the ways RGGI will benefit their commonwealth, from creating thousands of family-sustaining jobs to ensuring a safe and healthy future for generations to come.

This is not only true of Christians, but Pennsylvanians as a whole, with 72% of the state’s residents supporting RGGI, according to 2020 polling.

Pennsylvania has long been a leader in energy production from wood, to coal, to natural gas.

While energy has brought immense benefits to the Commonwealth, it has come at a terrible cost in the form of adverse health impacts, especially on children.

It is clear that carbon-based fuels are not the future of energy in Pennsylvania. Already, utility scale wind and solar electricity is cheaper to generate, and now is a critical time for Pennsylvania to invest in clean energy jobs.

RGGI is a successful multi-state initiative that places caps on carbon pollution from power plants and uses funds generated from the program to reinvest into communities, including investments in energy efficiency and clean energy.

Pennsylvania has been a part of RGGI for over a year but has not been able to benefit due to the initiative being held up in the courts. In total, it is estimated that Pennsylvanians have missed out on over $1.5 billion in funds due to this delay, not to mention a significant reduction in emissions.

With the strong support of our community, EEN Action will continue to push for the reaffirmation of RGGI in Pennsylvania to defend children’s health, create new jobs, and build a stronger economy alongside a cleaner future.

NewsClips:

-- AP: Gov. Shapiro Noncommittal On Greenhouse Gas Strategy As Climate Task Force Finishes Work

-- Inside Climate News - Kiley Bense: Gov. Shapiro’s Climate Work Group Endorses Emissions Curbs To Fight Climate Change But Don’t Embrace RGGI Membership

-- House/Senate Legislative Climate Caucus Announces Climate Week Activities In PA Oct. 1-7; PA Climate Convergence Oct. 1-2 [PaEN]

PA Oil & Gas Industry Public Notice Dashboards:

-- Pennsylvania Oil & Gas Weekly Compliance Dashboard - Sept. 23 to 29; More Abandoned Wells; Oil & Gas Doesn’t Typically Issue NOVs For ‘Routine’ Venting Of Natural Gas, Will Air Quality Under New Regs? [PaEN]

-- PA Oil & Gas Industrial Facilities: Permit Notices/Opportunities To Comment - September 30 [PaEN]

-- DEP Invites Comments On Title V Air Quality Permit For Eastern Gas Transmission Compressor Station In Westmoreland County At Oct. 31 Hearing [PaEN]

-- DEP Posted 54 Pages Of Permit-Related Notices In September 30 PA Bulletin [PaEN]

NewsClips This Week:

-- PennLive Guest Essay: Gov. Shapiro, The Fracking Clock Is Ticking - By Megan McDonough, Food & Water Watch

-- AP: Gov. Shapiro Noncommittal On Greenhouse Gas Strategy As Climate Task Force Finishes Work