The Pennsylvania House of Representatives voted Wednesday to pass a bill limiting the state’s entry into the Regional Greenhouse Gas Initiative (RGGI), but experts expect the state will ultimately enter the environmental compact despite concerns from legislators.

House Bill 2025 passed by a bipartisan majority of 130-71. It would require the legislature’s approval before Pennsylvania can enter any multistate program like RGGI that imposes taxes. The Department of Environmental Protection would need to submit “a description of the economic and fiscal impacts that would result” from joining such a program to aid the legislature in its decision.

The bill would also require legislative authorization before the state can impose a carbon tax on employers engaged in electric generation, manufacturing or other industries.

Gov. Tom Wolf signed an executive order in October directing the DEP to develop a rulemaking for joining RGGI by July 31; citing the pandemic, Wolf provided the department with a six-week extension, to Sept. 15. His authority to issue such an order has been continually challenged by the Republican-controlled legislature. (See GOP Continues Opposition to Pa. RGGI Plans.)

“This bill gives a voice back to the people by allowing those of us who represent them to have say in this process,” Rep. Jim Struzzi, the bill’s primary sponsor, said during Wednesday’s House session and vote. “The action to enter RGGI would have serious ramifications on Pennsylvania businesses, jobs, energy prices and future economic opportunities that are not being considered by the governor.”

RGGI, which includes New York and the six New England states, currently has three PJM states: Delaware, Maryland and New Jersey. On Wednesday, Virginia Gov. Ralph Northam announced that the state had finalized a rule in preparation for it joining the compact on Jan. 1. (See PJM Panel Weighs Impact of Pa., Va. Joining RGGI.)

The bill now goes before the State Senate for consideration, with sessions scheduled for July 13 and 14. The body may take up the House bill or consider its companion bill, Senate Bill 950, which currently has 20 Republican sponsors, representing 40% of the 50-seat chamber.

During Wednesday’s session, House Majority Leader Kerry Benninghoff (R) said that of the nine states that have already entered into RGGI, all of them voted to join through votes in their respective legislatures. Benninghoff also called RGGI a “job killing” measure that will drive high-paying jobs out of Pennsylvania and into Ohio and West Virginia, the state’s two neighbors that are neither part of nor considering joining the compact.

“No governor has the authority to rule by the swipe of a pen without the input or the consent of the people of Pennsylvania,” Benninghoff said. “No governor has the authority to implement a tax, and no governor has the authority to enter into a binding compact or agreement. That authority lies with the people of Pennsylvania and the members of this chamber sent by the people.”

Rep. Leanne Krueger (D), a supporter of RGGI, said H.B. 2025 was an attempt to downplay the significance of reducing carbon dioxide emissions in Pennsylvania and at the same time scare people into thinking the actions of joining the group will harm them financially.

“Joining RGGI is the biggest climate action that Pennsylvania will have ever taken, the biggest environmental action certainly of my generation,” Krueger said in comments after the bill passed. “And yet we’re facing a bill that would stop the governor in his tracks and not allow us to join this common-sense” market.

Outside View

Despite Wednesday’s vote, outside observers said Pennsylvania still stands a strong chance of joining RGGI.

ClearView Energy Partners predicted in a report that Wolf is guaranteed to veto any bills passed by the legislature overriding his executive order. And although Wednesday’s bill passed with bipartisan support, ClearView said there most likely won’t be enough votes to overcome a veto.

ClearView said legislators may rely on a strategy of inserting H.B. 2025 language into November’s budget, forcing Wolf to take a stand on budget debates. However, it pointed out Wolf has line-item veto authority over the budget and has used his power before to reject abortion language inserted in last year’s budget.

Another possible Republican strategy, according to ClearView, is a legal challenge, as legislators have argued that Wolf’s executive order did not cite specific provisions within the Pennsylvania Air Pollution Control Act, which does not describe CO2 as a “pollutant.”