Contact:
Adil Trehan, adil.trehan@sierraclub.org, 202-630-7275
Tom Schuster, tom.schuster@sierraclub.org, (814) 915-4231
Harrisburg, P.A. - This morning, the regulation known as the CO2 Budget Trading Program, which allows Pennsylvania to link to the Regional Greenhouse Gas Initiative (RGGI) went into effect via publication in the online version of the Pennsylvania Bulletin. Under the new rule, carbon dioxide emissions from fossil-fueled power plants in Pennsylvania will be capped at 78 million tons per year initially, and the cap will decrease by over 3% per year. This is the first time that Pennsylvania has limited greenhouse gas emissions in any sector of the economy.
Generators comply with the emissions limits by purchasing and retiring an allowance for each ton of CO2 they release, and proceeds from the sale are deposited in the state’s Clean Air Fund for investment in projects to further improve air quality, such as clean energy development and energy efficiency measures. Depending on allowance prices, this could mean anywhere from $200 million to roughly $1 billion in annual investments. A failed Senate resolution blocked participation in the first quarter of 2022, which caused the state to miss out on over $200 million in potential investment.
In response, Tom Schuster, Clean Energy Program Director for the Sierra Club Pennsylvania Chapter issued the following statement:
“It is fitting that Pennsylvania’s most important climate action to date is going into effect on Earth Day. By joining the other 11 states participating in RGGI, fossil-fueled power plants will no longer be allowed to freely spew unlimited amounts of climate disrupting carbon dioxide, and clean energy will be on a more level playing field. RGGI has a proven track record of cost-effectively reducing emissions and creating tens of thousands of jobs while keeping electricity affordable."
“We appreciate the steadfast commitment of Governor Wolf and Secretary McDonnell to follow through on this promise to our children and grandchildren, as well as the members of the PA House and Senate who defended the rule in the face of relentless pressure from the coal and gas industries. Participation in RGGI has the support of a strong majority of Pennsylvanians, and it is past time for the obstruction to end. We need to turn our attention to how we invest the hundreds of millions of dollars in annual allowance proceeds for the benefit of communities long overburdened by pollution, and those experiencing impacts from the energy transition that has been underway for well over a decade and will continue.”
About the Sierra Club: The Sierra Club is America’s largest and most influential grassroots environmental organization, with millions of members and supporters. In addition to protecting every person's right to get outdoors and access the healing power of nature, the Sierra Club works to promote clean energy, safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and legal action. For more information, visit www.sierraclub.org.