PRINTER'S NO. 4607
THE GENERAL ASSEMBLY OF PENNSYLVANIA
HOUSE RESOLUTION
No.
1088
Session of
2020
INTRODUCED BY STRUZZI, SNYDER, METCALFE, OBERLANDER, BARRAR,
CAUSER, DAVANZO, DUNBAR, DUSH, ECKER, GABLER, GLEIM, HEFFLEY,
KAUFFMAN, KEEFER, KORTZ, MACKENZIE, MOUL, PICKETT, READSHAW,
REESE, ROWE, RYAN, SAINATO, SANKEY, SAYLOR, SCHMITT AND
ZIMMERMAN, NOVEMBER 16, 2020
REFERRED TO COMMITTEE ON ENVIRONMENTAL RESOURCES AND ENERGY,
NOVEMBER 16, 2020
A RESOLUTION
Urging Pennsylvania's Independent Regulatory Review Commission
to reject the proposed carbon dioxide budget trading program
regulation as part of the Regional Greenhouse Gas Initiative.
WHEREAS, On October 3, 2019, Governor Wolf directed the
Department of Environmental Protection (DEP) by Executive Order
2019-17 to develop regulations that would facilitate
Pennsylvania's entry into or partnership with the Regional
Greenhouse Gas Initiative (RGGI); and
WHEREAS, In coordination with RGGI, Inc., the private,
nonprofit administrator of RGGI, and member states Connecticut,
Delaware, Maine, Maryland, Massachusetts, New Hampshire, New
Jersey, New York, Rhode Island and Vermont, DEP submitted a
proposed carbon dioxide trading program regulation to, and
received approval from, the Environmental Quality Board (EQB) on
September 15, 2020, which is subject to public comment and
review by the Independent Regulatory Review Commission (IRRC);
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and
WHEREAS, RGGI is a multistate program in which each state
regulates carbon dioxide emissions from electric generation
plants by imposing a cap and then a tax on those emissions,
intended to reduce in-state carbon dioxide emissions and
generate revenues to fund various non-fossil-fuel-related
projects; and
WHEREAS, Under the act of January 8, 1959 (P.L.2119, No.787),
known as the Pennsylvania Air Pollution Control Act, there is no
reference to carbon dioxide under the definition of "air
pollution," let alone express statutory authorization to
regulate, cap and tax carbon dioxide emissions, and in contrast
to the Federal definition of "air pollutant," the Air Pollution
Control Act definition also requires an air pollutant to be
"inimical to public health. . .injurious to humans. . .or which
unreasonably interferes with the enjoyment of life or property,"
unlike carbon dioxide which is necessary to sustain life; and
WHEREAS, According to DEP and data from the International
Panel on Climate Change (IPCC), carbon dioxide emissions from
all Pennsylvania energy production sources, not just from
electric plants, represent approximately 0.19% of global carbon
dioxide emissions, and according to DEP models, any carbon
dioxide reductions in Pennsylvania would be offset by increased
carbon dioxide emissions from neighboring, non-RGGI states, like
West Virginia and Ohio, and thus fail to meet the Air Pollution
Control Act mandate that the RGGI regulation must also
meaningfully "prevent, control, reduce, and abate" climate
change; and
WHEREAS, There is no Federal court, Federal agency or
Commonwealth mandate that the Commonwealth cap and tax carbon
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dioxide emissions; and
WHEREAS, Under Pennsylvania Supreme Court precedent, "the
power of taxation, in all forms and of whatever nature lies
solely in the General Assembly" and a regulatory fee is
"intended to cover the cost of administering a regulatory
scheme"; and
WHEREAS, The RGGI revenue generating mechanism, which
according to DEP will generate $2.4 billion in revenue over 10
years, is a tax because only a small portion will be used to pay
the administrative expenses of the RGGI regulatory scheme; and
WHEREAS, Consistent with the Constitution of Pennsylvania and
Supreme Court precedent, the Air Pollution Control Act mandates
that the EQB may only establish "fees sufficient to cover the
indirect and direct costs of administering" the act and the
Federal Clean Air Act, however DEP intends to utilize RGGI
revenues beyond that purpose; and
WHEREAS, The Constitution of Pennsylvania precludes the
General Assembly from delegating taxing power to an unelected
board or commission, such as the EQB, by declaring "[t]he
General Assembly shall not delegate to any special commission,
private corporation or association, any power. . .to levy taxes
or perform any municipal function whatever"; and
WHEREAS, The $2.4 billion RGGI tax will be imposed on all
coal and natural gas electric generation plants in Pennsylvania,
and according to DEP's modeling will eliminate over 87% of
existing Pennsylvania coal generation by 2022 and impair the
future competitiveness of all natural gas plants; and
WHEREAS, RGGI represents the single, most significant energy
generation restructurings in the history of Pennsylvania, and
the forced early retirement of coal and natural gas plants will
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lead to the loss of thousands of direct and indirect jobs
supporting the electric generation industry; and
WHEREAS, If all coal plants and many natural gas plants
within Pennsylvania are forced to close as a result of the RGGI
fee, Pennsylvania electric customers will be at risk for
significant price spikes and potentially rolling brownouts as
have occurred in other states that have moved away from fossil
fuel electricity before ensuring that nonfossil fuel electricity
was available to meet consumer demand; and
WHEREAS, Every state within RGGI has enacted legislation that
specifically governs entry into the initiative or otherwise
expressly authorizes the regulation of carbon dioxide, and
nearly all of those state statutes appropriate RGGI revenues to
assist low-income families with direct bill pay assistance,
which DEP acknowledged cannot occur under its proposed
rulemaking; therefore be it
RESOLVED, That the House of Representatives urge
Pennsylvania's Independent Regulatory Review Commission to
reject the proposed carbon dioxide budget trading program
regulation as contrary to State statute and the Constitution of
Pennsylvania; and be it further
RESOLVED, That the House of Representatives deem this
resolution to serve as its official public comment for the
proposed carbon dioxide budget trading program regulation; and
be it further
RESOLVED, That the House of Representatives has and will
continue to consider statutory energy policy reforms that make
sense for Pennsylvania workers, consumers and employers; and be
it further
RESOLVED, That a copy of this resolution be transmitted to
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the Governor, the Department of Environmental Protection, the
IRRC and the EQB.
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