A recent letter supporting Gov. Wolf’s plans to enter Pennsylvania into a cap-and-trade program, the Regional Greenhouse Gas Initiative, was missing some important context on what this rule, as designed, would mean for the state.
First, even without RGGI, the state’s business sector has been driving billions each year into highly efficient new and clean energy technology — so much so that economy-wide, Pennsylvania has achieved emissions reductions 2.5 times more, over the past decade, than all the northeastern states participating in RGGI combined.
Second, Pennsylvania’s energy sector has done something remarkable; while RGGI states increased their reliance on imported electricity and gas from other states, Pennsylvania plants reduced their emissions intensity by 35% while increasing output. Pennsylvania has delivered for the economy and consumers, even in a highly competitive electricity market.
This raises a third key point: Not every state in the PJM grid participates in RGGI. RGGI’s flawed designs allow third parties to bid up prices, with credits now trading four times what DEP projected. It is likely at these prices, a significant amount of economic activity moves out to states who burn more coal than PA, resulting in higher emissions than if PA stays out of RGGI.
With inflation raging and Russia’s invasion of Ukraine highlighting the need for responsible energy policy, leaders in Harrisburg and Washington should be focusing on increasing supply, not raising prices on families, and disadvantaging our state’s economy.
Kevin Sunday,
Director of Government Affairs
Pa. Chamber of Business and Industry
Author: Kevin SundayPublication: The Daily Item
https://www.dailyitem.com/