Gubernatorial hopeful Shapiro wary of Wolf’s emissions curbing plan

By Christen Smith | The Center Square

HARRISBURG, PA – Pennsylvania Attorney General Josh Shapiro said this week he’s not convinced the state should join a regional carbon cutting program that’s been a key piece of Gov. Tom Wolf’s climate change strategy.

Pennsylvania could become the 12th state to join the Regional Greenhouse Gas Initiative (RGGI) in early 2022, so long as Shapiro’s office agrees the administration’s proposed regulations satisfy legal requirements.

In a statement to The Center Square issued Wednesday, however, Shapiro, the hopeful Democratic candidate to replace Wolf, said he is wary of RGGI’s impact on electricity prices and energy jobs.

“We need to take real action to address climate change, protect and create energy jobs and ensure Pennsylvania has reliable, affordable and clean power for the long term,” Shapiro said. “As governor, I will implement an energy strategy which passes that test, and it’s not clear to me that RGGI does.”

RGGI requires power producers in participating states to buy emissions credits through an annual auction designed to reduce pollution throughout the region. States then reinvest the proceeds into programs that further promote emissions reductions, energy efficiency and direct bill assistance.

The 11 participating states have cut power sector carbon pollution by 45% since 2005 and generated $4 billion in reinvestment proceeds. In the most recent auction completed Sept. 8, power producers bought more than $213 million in emissions credits.

Jason Gottesman, spokesperson for the House Republican Caucus, said via Twitter on Wednesday that Shapiro, as attorney general, can stop the regulatory process in its tracks, if he really wants to.

“Josh Shapiro has the ability to show Pennsylvanians he believes what he says by disapproving the RGGI plan currently before him,” Gottesman said. “If the aspiring governor makes promises the current AG won’t fulfill, maybe he should clarify his role by stepping aside.”

Shapiro said “ultimately” it’s a determination he will make as governor, “in close consultation with workers and affected communities.”

“I refuse to accept the false choice between protecting jobs or protecting our planet – we must do both and my priority will be ensuring Pennsylvania has a comprehensive climate and energy policy that will move all of us forward,” he said.

Wolf has said joining RGGI will help Pennsylvania reduce its harmful carbon emissions by 225 million metric tons and create 27,000 jobs over the next decade.

Critics argue participation without legislative approval flouts the constitution and could spike electricity prices up to 18% for greenhouse gas emissions reductions that will be all but erased by pollution leaking from nonparticipating states to the west and south.

Sen. Gene Yaw, R-Williamsport, said last month during a committee meeting that despite assurances from the administration’s own modeling consultant, IFC, the clearing price of emissions credits in the most recent auction hit $9.30 – 79% higher than the floor set in 2019 when Wolf signed his executive order that mandated RGGI participation.

The result, Yaw said, is Pennsylvania’s remaining coal plants will pay 50% to 60% more in taxes per megawatt hour of electricity generated than similar facilities in nonparticipating states such as Ohio and West Virginia.

“My comment on RGGI is it’s probably the most significant and, in my opinion, devastating thing I can think of that’s happened to industry and business in Pennsylvania across the board since I’ve been in the Legislature,” Yaw said. “It’s absolutely devastating to Pennsylvania businesses that rely on any form of energy.”

Building trade union officials told The Associated Press on Tuesday that Shapiro backed away from RGGI to secure their support in the election.

“He told me he does not stand for RGGI the way it stands right now and he feels it should be run through the Legislature,” said John Hughes, the business manager of Boilermakers Local 154. “We should get everyone to the table and talk about it. … I said, ‘We are going to support the guy who doesn’t support RGGI,’ and he told me, ‘I can’t support it as is.’”

Shapiro’s campaign has received backing from the Pittsburgh Building Trades, the International Brotherhood of Electric Workers and other local unions that represent steamfitters, plumbers and pipefitters across the state.