Pennsylvania Appeals Carbon ‘Tax’ Decision

The Shapiro administration will appeal a Pennsylvania court’s decision to strike down a proposed carbon “tax” as unconstitutional in a bid to “protect” the authority of future governors.

The news comes just one day after Gov. Josh Shapiro teased the appeal during a press club luncheon in Harrisburg. He said it was important to “listen” to all sides involved, most of whom agree that “cap and trade” is a good idea to reduce harmful emissions.

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Commonwealth Court Strikes Down Carbon ‘Tax’

Commonwealth Court struck down Pennsylvania’s entry into an emissions regulatory program Wednesday, agreeing with critics that it’s an unconstitutional tax.

The decision delivers a blow to supporters of the Regional Greenhouse Gas Initiative – a multi-state program that charges power generators for the pollution they produce – who had hoped Pennsylvania might join the rest of the Mid-Atlantic and Northeast in the agreement.

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Pennsylvania Supreme Court Hears Tax-Versus-Fee Arguments About Whether RGGI Can Stand

Arguing before the Pennsylvania Supreme Court on Wednesday, one state agency alleged another improperly refused to publish an executive action implementing a de facto carbon tax, effectively halting the polcy. 

At issue is a decision made by the Pennsylvania Legislative Reference Bureau (LRB) not to publicize a regulation decreed by then-Governor Tom Wolf (D) entering the state into the Regional Greenhouse Gas Initiative (RGGI). The LRB, which drafts all state legislation upon lawmakers’ requests and provides other policy reference services, declined to promulgate the rule enrolling the commonwealth in the multistate compact, citing a state House of Representatives resolution opposing it.

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Commonwealth Court Blocks Pennsylvania’s Entry into Carbon Taxation Initiative

Pennsylvania’s Commonwealth Court this week blocked the state’s entry into the Regional Greenhouse Gas Initiative (RGGI), an 11-state compact requiring de facto taxation of power plants’ carbon emissions.

Gov. Tom Wolf (D) tried to effect Pennsylvania’s participation in the initiative by issuing an executive order in 2019, thus neglecting to seek approval of the Republican-led General Assembly. The court’s new opinion comes one day after the state Senate failed to override the governor’s veto of legislation letting the General Assembly end the state’s membership in the compact. Legislative leaders have argued that the governor’s unilateral action violated the state Constitution and were heartened upon hearing of the judges’ decision.

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Commentary: Carbon Offsets – Not Taxes or Emissions Caps – Are the Best Path to Carbon Neutrality

Carbon taxes, emissions caps, subsidies – these all seek to reduce atmospheric emissions of greenhouse gases, yet regularly meet criticism and opposition. Is there a more efficient solution to achieving climate balance? Not only is the answer yes, but the potential benefits could far outperform what other strategies hope to achieve.

Most solutions seek to reduce emissions –abruptly or over time– or attain carbon neutrality by utilizing renewable power sources, but increasingly we hear that carbon neutrality is not enough. We must find new technology and techniques to reduce greenhouse gases already in the atmosphere, which will require meaningful investments in research and development. One solution is voluntary carbon offsets.

Carbon offsets are certificates for purchase intended to counteract operational emissions or capture legacy emissions from the past. This is done by paying for a given quantity of CO2 to be neutralized through investment in offsetting projects or technology. Whether the certificates are directed towards conservation efforts, renewable energy, or carbon capture or removal, purchasing carbon offsets provides one party investor satisfaction and the other party an infusion of funding intended to finance a carbon-reduction strategy. When purchasing high quality offsets, these serve as a down payment and incubator toward the best climate solutions available in the laboratory or in the field.

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