Pennsylvania governor unveils plan to cut greenhouse gases, boost renewables in big energy producer
MICHAEL RUBINKAM and MARC LEVY
Updated Wed, March 13, 2024
SCRANTON, Pa. (AP) — Pennsylvania Gov. Josh Shapiro unveiled a plan Wednesday to fight climate change, saying he will back legislation to make power plant owners in the nation's third-biggest energy-producing state pay for their greenhouse gas emissions and require utilities to buy more electricity from renewable sources.
Such legislation would make Pennsylvania the first major fossil fuel-producing state to adopt a carbon-pricing program. But it is drawing fierce opposition from business interests wary of paying more for power and will face long odds in a Legislature protective of the state's natural gas industry.
Shapiro's proposal comes as environmentalists are pressuring him to do more to fight climate change in the nation’s No. 2 gas-producing state and as the state's highest court considers a challenge to his predecessor's plan to adopt a carbon-pricing program. It also comes after many of the state's biggest power polluters, coal-fired plants, have shut down or converted to gas.
At a news conference in Scranton, nicknamed the “Electric City,” Shapiro said his plan will make Pennsylvania competitive in a clean energy economy, improve electricity reliability, cut greenhouse gas emissions and lower electricity bills.
It is long past time for lawmakers to act, he said.
“If they choose to do nothing, they’re choosing to be less competitive in an environment that demands us to bring excellence to the table every single day,” Shapiro said. “They’re choosing to fall behind if they choose to do nothing.”
Under Shapiro's plan, Pennsylvania would create its own standalone carbon-pricing program, with most of the money paid by polluting power plants — 70% — going to lower consumer electric bills. No one will pay more for electricity and many will pay less, Shapiro said.
Meanwhile, utilities would be required to buy 50% of their electricity from sources that are mostly carbon-free by 2035, up from the state's current requirement of 18%.
Currently, about 60% of the state's electricity comes from natural gas-fired power plants, and the 50% renewables requirement could hurt demand for electricity from those plants. Another third of Pennsylvania's electricity is from nuclear plants — which are not included in the 50% renewables requirement — and the rest from coal and renewables.
Republicans who control the state Senate have pushed to open greater opportunities for natural gas production in Pennsylvania, and have warned that carbon-pricing could raise electricity bills, fray the electricity grid, hurt in-state energy producers and drive new power generation to other states.
“Families are feeling the strain of inflation and increased household expenses, which must be a chief concern when implementing any changes to energy policy," Senate Majority Leader Joe Pittman, R-Indiana, said in a statement Wednesday.
Shapiro’s administration did not provide many details of his strategy Wednesday, including how much it would reduce greenhouse gases, how much money power plants would pay or how it would affect the average household electric bill.
Patrick Cicero, Pennsylvania’s consumer advocate, said the amount of savings on electric bills will depend on usage — large industrial customers would see more and low-income households would get “significant reductions” because of a planned expansion of the state’s energy-assistance program.
For the average household, “it’s not going to be much,” Cicero said, “but it’s not costing households more. That’s a win-win.”
Neighboring Maryland, New Jersey and New York have set requirements to draw 50% or more of their electricity from renewables by 2030, prompting warnings that Pennsylvania risks falling behind in a clean energy economy.
Robert Bair, president of the Pennsylvania State Building and Construction Trades, whose members work on power plants, refineries and pipelines, said Pennsylvania energy policy must protect workers in the coal and gas industries. But he also said Pennsylvania will lose clean energy jobs to other states if it does nothing.
Heavy energy users and coal-industry businesses slammed Shapiro's “energy tax” as posing a damaging blow to industries and a fatal blow to the state's few remaining coal-fired power plants.
The Marcellus Shale Coalition, which represents Pennsylvania's enormous natural gas industry, was more circumspect. The most pressing challenge is ensuring the electric grid is stable and reliable, said Dave Callahan, the group’s president.
Despite the lack of details, Shapiro's plan drew statements of support from renewable energy trade associations and environmental advocates.
“Even what the governor has proposed is not enough to meet the needs of addressing the climate crisis, but it’s a huge step forward from where Pennsylvania is now," said Alex Bomstein, executive director of the Clean Air Council.
Meanwhile, environmental advocates worry about abandoning the plan produced by Shapiro's predecessor, former Gov. Tom Wolf.
For the time being, a state court has blocked Wolf’s regulation that authorizes Pennsylvania to join the multistate Regional Greenhouse Gas Initiative, which imposes a price and declining cap on carbon dioxide emissions from power plants.
As a candidate for governor, Shapiro had distanced himself from Wolf's plan — although critics said Shapiro's plan is similar — and Shapiro wouldn't say Wednesday whether he'd enforce Pennsylvania's participation in the regional consortium should the courts uphold it and the Legislature do nothing.
“I’m focused on getting these things passed,” Shapiro said.
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Levy reported from Harrisburg, Pennsylvania.
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Shapiro unveils energy plan that Republican lawmakers call ‘carbon tax’
Jared Weaver
Wed, March 13, 2024
(WHTM)– Pennsylvania Governor Josh Shapiro was in Scranton on Wednesday to announce a new energy proposal called the Pennsylvania Climate Emissions Reduction Initiative, or “PACER”.
Under the plan, the Department of Environmental Protection would set a cap for the amount of carbon that Pennsylvania’s power plants can produce and release into the air.
To produce any carbon, the power plants would need to purchase credits from the Commonwealth to offset the pollution they emit.
Pennsylvania lawmakers propose Jason Kelce Day in Pennsylvania
Governor Shapiro says this plan will save homeowners money on utility bills, create thousands of jobs, and help Pennsylvania maintain its energy independence.
“It’s time to do better,” Shapiro said. “It’s time to do better in a multitude of ways, especially when it comes to energy. And it is long past time to take action in this space. It’s time to take these commonsense steps to cut costs, protect our planet, and create jobs.”
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If passed, the Governor’s office says these initiatives would save Pennsylvanians $252 million in the first five years while generating $5.1 billion in investment in clean, reliable energy sources.
The Governor says his plan would also create nearly 15,000 energy jobs.
The proposal has faced opposition from Republican Pennsylvania lawmakers. Senate President Pro Tempore Kim Ward (R-Westmoreland) compared Shapiro’s proposal to ones that cause blackouts and high energy prices in states such as California and Washington.
“Our Commonwealth needs to be focused on unleashing our energy potential, not taxing it,” Ward said in a statement. “Doing so would create thousands of good jobs and keep our power grid secure. Shapiro’s carbon tax proposal appears to be more aligned with states like California and Washington, who suffer from rolling blackouts and higher energy prices.”
State Senator Scott Martin (R-Lancaster) said the Governor’s plan is similar to one ruled unconstitutional by the Commonwealth Court.
“For over a year, Senate Republicans have urged Governor Shapiro to set aside the disastrous Regional Greenhouse Gas Initiative (RGGI) and pursue an energy strategy that puts Pennsylvania families and job-creators first and ensures we have a safe, reliable electricity grid,” said Martin. “It is difficult to move forward on Pennsylvania energy decisions when the governor is continuing to fight us in court to enact a policy that takes away jobs and pushes energy prices even higher.”
Pennsylvania governor announces new renewable energy standard, endorses statewide carbon-capping market
Zack Budryk
Wed, March 13, 2024
Pennsylvania Gov. Josh Shapiro (D) on Wednesday endorsed a statewide carbon-trading market in the state while seeming skeptical about a regional market embraced by his predecessor.
Speaking in Scranton, Shapiro endorsed pending legislation in the state Legislature that will create a statewide carbon-capping market, with proceeds paying for rebates to electricity ratepayers and renewable projects in the Keystone State.
“We will not take direction from anyone outside of this commonwealth,” Shapiro said during his remarks. “This initiative will be established by us, run by us. We will set our own cap, we will set our own price. We won’t have any other state determining what is right for us in Pennsylvania.”
The proposal would remove Pennsylvania from the Regional Greenhouse Gas Initiative (RGGI), a multi-state carbon-capping market, in favor of the new Pennsylvania program, the Pennsylvania Climate Emissions Reduction Act.
Shapiro’s predecessor, Gov. Tom Wolf (D), joined RGGI during his term, making Pennsylvania the first major fossil fuel-producing state to do so. Last November, however, Pennsylvania’s Commonwealth Court ruled with Republicans in the state Senate that the state Department of Environmental Protection is not authorized to collect revenues under the program.
Shapiro also announced a new renewable energy standard for the state that would require renewables supply at least 50 percent of consumer electricity. It is the first update in more than 20 years to the state standard, which currently requires only 18 percent of electricity be renewables.
“Pennsylvania is falling behind in the race to create clean and reliable energy — and we must take action to be more competitive, ensure our consumers pay less for their electricity bills, and create more jobs and opportunities for our businesses to grow and our workers to get ahead,” Shapiro said.
In a statement Wednesday, Conservation Voters of Pennsylvania Executive Director Molly Parzen praised the renewable energy standard but expressed concerns about a full exit from RGGI.
“RGGI has a 15-year track record of reducing carbon pollution while investing billions of dollars in expanded clean energy,” she said in a statement. “Any new plan that is adopted must provide at least the same benefits to the environment and to our communities as RGGI.”
Climate Change Pennsylvania
This is the Keystone Generating Station in Shelocta, Pa., on Wednesday, March 13, 2024. Gov. Josh Shapiro unveiled a plan to fight climate change Wednesday, saying he will back legislation to make power owners in Pennysylvania pay for their planet-warming greenhouse gas emissions and require utilities in the nation's third-largest power-producer to buy more electricity from renewable sources. (AP Photo/Gene J. Puskar)
