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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Pennsylvania’s Largest Coal Plant Closure Shows Effect of Coming De Facto Carbon-Tax

In July, the Homer City Generation LP Plant, Pennsylvania’s biggest coal-fired energy creator, will be taken offline, meaning 129 well-paying jobs will disappear in Pennsylvania’s fifth-poorest county of Indiana. 

This event, say free-market advocates and fossil-fuel supporters, should admonish Keystone State policymakers not to let the commonwealth let its abeyant membership in the Regional Greenhouse Gas Initiative (RGGI) become active. The pact involving a dozen northeastern and mid-Atlantic states entails de facto taxation of carbon emissions. Even pre-implementation, industry experts explain, preparation for RGGI is killing otherwise viable power plants. 

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Commentary: Governor Shapiro’s First Budget Falls Short

Gov. Josh Shapiro’s first state budget proposal perpetuates unsustainable spending and fails to address the most promising ideas he put forward during his campaign. For starters, his budget calls for $45.9 billion in ongoing General Fund spending – but the state has only $43 billion in net revenues, so the governor is positioning us for a nearly $3 billion annual deficit.

Spending that exceeds revenue is unsustainable and fiscally irresponsible for individuals, businesses, and certainly for government.

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Shapiro Says Pennsylvania Republican Lawmakers ‘Are Praising’ His Budget Proposal While Omitting Criticisms

Pennsylvania Governor Josh Shapiro (D) is already claiming high-ranking Republicans “are praising” his first budget. Those Republicans’ actual remarks tell a different story.

A press release from the governor selectively quotes eight GOP state lawmakers’ reactions to the budget he unveiled last week. While the snippets accurately capture areas of agreement, they leave out decidedly negative sentiments the Republicans voiced about the $45.9 billion plan which would hike state spending by about four percent over the current level. 

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Shapiro’s Planned Spending Increase Alarms Pennsylvania Budget Hawks

Pennsylvania Josh Shapiro asked the state General Assembly members on Tuesday to support his requested $45.9 billion budget, which would increase spending by approximately 4 percent over current outlays. 

The governor insisted he based his plan for Fiscal Year 2023-24 on “conservative” revenue estimates. And he did include some provisions appealing to anti-taxers and free-marketers including nixing the state cell-phone tax, a move he estimates would save Pennsylvanians $124 million annually. 

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Policy Constraints Force Electric Bills Up in Pennsylvania

Pennsylvanians’ electric bills rose by an average of nearly three-quarters over the last two years and policymakers have only made the problem worse, according to the Harrisburg-based Commonwealth Foundation (CF). 

State residents served by Pennsylvania Power and Light (PPL) have seen their rates go up by just over half since December 2020. Customers of the Philadelphia Electric Company (PECO) have meanwhile experienced a doubling of their power costs during that time. All other providers have also risen their rates considerably. 

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Pennsylvania Business Leader Survey: Inflation Likely to Continue

Business leaders in Pennsylvania don’t see inflation subsiding in the near future, according to a survey released this week by the Harrisburg-based Lincoln Institute for Public Opinion & Research. 

A total of 212 businesses from across the Keystone State responded to the institute’s poll, with just over half of the respondents being business owners; 20 percent serving as either chief executive officer, head of finance or head of operations; and about a fifth serving as either state or local manager. 

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Report: Pennsylvania Job Openings Continue to Fall

A report released Monday by Pennsylvania’s Independent Fiscal Office (IFO) shows that new Keystone-State employment opportunities fell in June, marking a three-month overall decline.

Examining numbers from the federal Department of Labor, the IFO found that around 393,000 new jobs opened in June. Although that number exceeds the 281,000-per-month average for job openings that preceded COVID-19 in 2020, it continues a downward slope that began after new employment offerings reached 514,000 in March.

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Survey Suggests Pennsylvanians Back Free-Market Reforms, Believe State Economy Needs Improvement

A new survey released Thursday by the Commonwealth Foundation (CF), a Harrisburg-based think tank, suggests Pennsylvanians broadly support free-market reforms the institute urges policymakers to embrace. 

CF publicized its Better Pennsylvania 2023 Plan, a list of 23 such recommendations, in conjunction with the poll. Executive vice president Jennifer Stefano said the foundation plans to distribute the agenda to state lawmakers and candidates for public office. She believes the ideas’ implementation will “restore hope to our citizens across the commonwealth and set us on a better path that allows all Pennsylvanians to flourish.”

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Governor Election Will Decide Pennsylvania’s Membership in Regional Greenhouse Gas Initiative

Action in the General Assembly was not enough to stop the publication of regulations to enter Pennsylvania into the Regional Greenhouse Gas Initiative, but legal action could stop it in the future. 

If legal action doesn’t halt Pennsylvania’s entry into RGGI, the outcome of the gubernatorial election could determine whether the Commonwealth stays in the multi-state compact or leaves it by executive order.

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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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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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Pennsylvania Senate Falls Short of Two-Thirds Needed to Kill Greenhouse Gas Initiative

White smoke emitting from a couple of buildings

Most state senators voted to end Pennsylvania’s participation in the Regional Greenhouse Gas Initiative (RGGI) on Monday but fell short of the two-thirds needed to succeed.

In 2019, Gov. Tom Wolf (D) initiated Pennsylvania’s entry into the 11-state compact to reduce carbon emissions by charging power plants for their discharge in hope of counteracting global warming. Unlike most of the other northeastern and mid-Atlantic states that participate in RGGI, the Keystone State’s governor could not get sufficient backing from state legislators for Pennsylvania’s membership and thus acted via executive order. Republicans and some Democrats have argued Wolf exceeded his constitutional authority in rebuffing the legislature.

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State Senator Yaw Proposes Legal Framework for Carbon Capture in Pennsylvania

Pennsylvania state Sen. Gene Yaw (R-Williamsport) indicated Wednesday he will soon introduce legislation to create a regulatory framework for “carbon capture” in the commonwealth.

Carbon capture is the process of catching carbon-dioxide discharge from fossil-fuel-fired power plants and manufacturing facilities for either reuse or storage so that the emissions don’t make it into the atmosphere and exacerbate global warming.

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Industry and Unions Warn Pennsylvania Senate RGGI Will Kill Jobs, Hurt Consumers

Blue Collar Worker

In a rare moment of concord between industry and unions, representatives of both interests exhorted Pennsylvania state Senators on Tuesday to resist Pennsylvania’s entry into the Regional Greenhouse Gas Initiative.

Eleven states in the northeast and mid-Atlantic regions have joined the pact to impose prices on carbon emissions for power plants. Unlike most member states, however, Pennsylvania entered into the agreement without legislative approval though an executive order by Gov. Tom Wolf (D) in 2019. The emissions pricing has not yet gone into effect; the governor wants to implement it in the next fiscal year.

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Committee Votes to End Pipeline Bans, Check Pennsylvania Governor’s Power on Carbon Tax

A bipartisan majority of a Pennsylvania House of Representatives panel Monday passed several measures to increase fossil-fuel development in and exportation from the Keystone State.

One resolution, sponsored by state Rep. Stan Saylor (R-Red Lion) would call upon Govs. Kathy Hochul (D-NY) and Phil Murphy (D-NJ) to terminate their states’ bans on the building of new conduits that could carry natural gas extracted in Pennsylvania. Other legislation offered by state Sen. Joe Pittman (R-Indiana) would ensure that legislators must approve Pennsylvania’s entry into the Regional Greenhouse Gas Initiative (RGGI), a multi-state pact to which Gov. Tom Wolf (D) has committed the state by executive order. Implementation of RGGI entails effectively imposing a tax on carbon emissions.

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Pennsylvania Budget Secretary Defends Governor’s Budget That Lawmakers Say Overspends

Gregory Thall

Pennsylvania’s House Appropriations Committee ended hearings on next fiscal year’s budget on Thursday, with the governor’s budget chief defending a plan that many lawmakers fear significantly overspends.

Governor Tom Wolf (D) has asked the Republican-controlled General Assembly to consider a Fiscal Year 2022-23 budget that spends $43.7 billion, an increase of 16.6 percent over current expenditures. His proposal assumes the state will enjoy a revenue intake that surpasses that predicted by the nonpartisan Independent Fiscal Office (IFO) by $762 million.

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Pennsylvania Lawmakers Opposing Greenhouse Gas Initiative Offer Alternative Policy

Lawmakers who have attempted to stop Pennsylvania’s entry into the Regional Greenhouse Gas Initiative (RGGI) are proposing alternative measures to mitigate carbon emissions in the Keystone State.

Representative Jim Struzzi has amended the anti-RGGI legislation he introduced last year to authorize spending $250 million from Pennsylvania’s COVID-19 Response Restricted Account on carbon-dioxide-reduction technologies and related items. Funded projects would include methane abatement, hydrogen-based infrastructure and stormwater mitigation as well as assistance to communities weathering electric-generation plant closures.

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Gov. Wolf Unveils His Final Pennsylvania Budget Proposal, Urging Massive Spending Hike

Gov. Tom Wolf (D-PA) unveiled his final state budget proposal to the General Assembly yesterday, asking members to approve a 10.9 percent spending increase.

Major items he proposed include $1.75 billion more for public schools and $200 million more for college scholarships. The governor insisted his aims could be realized without resorting to tax rises, though his $43.7 billion plan hinges on the use of about $2 billion in one-time federal funds from the American Rescue Plan Act (ARPA).

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Majority in Pennsylvania House Disapprove of Gov. Wolf’s Efforts to Enroll in Climate Initiative

The Pennsylvania General Assembly has sent a disapproval resolution to Gov. Tom Wolf, rejecting his efforts to enroll the state in the Regional Greenhouse Gas Initiative, but vote totals show there aren’t enough opposing lawmakers to override a veto.

The House approved Senate Concurrent Regulatory Review Resolution 1, 130-70, on Wednesday. The vote total is just short of two-thirds of the chamber’s 203 members necessary to override a veto.

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