O’Neal Proposes Tax Credit to Offset RGGI Compliance Costs in Pennsylvania

Pennsylvania state Rep. Timothy O’Neal (R-Washington) has indicated he’s drafting legislation to bestow tax credits on power plants to cover costs of complying with the Regional Greenhouse Gas Initiative (RGGI).

Pennsylvania is among eleven northeastern and mid-Atlantic states to have joined RGGI, a compact to levy de facto taxes on electricity-generation facilities for emitting greenhouse gases — chiefly carbon dioxide and methane — which are associated with global warming. Because Keystone State legislators have balked at the program, Gov. Tom Wolf (D) announced in 2019 that he would enter the state into it using his own regulatory authority. Earlier this month, Pennsylvania’s Republican-controlled Commonwealth Court blocked the state’s entry into RGGI, insisting that Wolf breached the limits on his executive power, but the ruling is not ironclad as the Democrat-run state Supreme Court could reverse it.

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