Governor Josh Shapiro of Pennsylvania announced a strategy on Wednesday to combat climate change. He outlined his support for a new law that would hold power plant companies responsible for their contribution to greenhouse gas emissions in the state, which ranks as the third-largest energy producer in the country. Additionally, the proposed legislation would require utilities to increase their use of renewable energy sources.

This measure would establish Pennsylvania as the initial large-scale producer state to implement a carbon-pricing initiative. However, it is receiving strong backlash from businesses concerned about potential increased costs for energy and will face challenges in a Legislature that prioritizes protecting the state’s natural gas sector.

Shapiro has put forward a suggestion amidst mounting pressure from activists to take bolder action against climate change in the second largest natural gas-producing state in the country. At the same time, the state’s supreme court is reviewing a legal challenge against the former administration’s strategy to implement a carbon-pricing initiative. This move follows the closure or conversion of various coal-powered plants, which were some of the largest sources of pollution in the state.

During a press conference in Scranton, also known as the “Electric City,” Shapiro announced his proposal to boost Pennsylvania’s standing in a sustainable energy market, enhance electricity dependability, reduce emissions of greenhouse gases, and decrease electricity costs.

According to him, legislators need to take action without further delay.

“If they opt for inaction, they are essentially opting for decreased competitiveness in an environment that requires us to consistently deliver excellence,” stated Shapiro. “By choosing to do nothing, they are opting to fall behind.”

According to Shapiro’s proposal, Pennsylvania would establish an independent program for pricing carbon, in which the majority of funds collected from the power plants responsible for pollution (70%) would be allocated towards reducing consumer electricity expenses. Shapiro assured that no individuals would face an increase in their electricity costs, and in fact, many may see a decrease.

By 2035, utilities will need to purchase 50% of their electricity from mostly carbon-free sources, which is an increase from the current requirement of 18% set by the state.

At present, approximately 60% of the state’s power supply is generated by natural gas-powered plants. The mandated 50% renewable energy target could potentially decrease the demand for electricity from these plants. A third of Pennsylvania’s electricity is sourced from nuclear plants, which are not subject to the 50% renewable requirement, and the remaining portion comes from a combination of coal and renewable sources.

The state Senate, currently controlled by Republicans, has advocated for increased natural gas production in Pennsylvania. They have cautioned against implementing carbon-pricing measures, stating that it could lead to higher electricity costs, strain the electricity grid, negatively impact local energy producers, and cause new power plants to be built in other states.

According to a statement made Wednesday by Republican Senate Majority Leader Joe Pittman of Indiana, families are currently facing financial pressure due to inflation and higher household costs. This must be taken into consideration when making changes to energy policy.

The plan put forth by Shapiro’s administration on Wednesday lacked specific information regarding the amount of greenhouse gas reduction, the financial impact on power plants, and the potential effect on household electric bills.

Pennsylvania’s consumer advocate, Patrick Cicero, stated that the savings on electricity costs will vary based on usage. Larger industrial customers can expect to see greater savings, while low-income households will benefit from “substantial” reductions due to the state’s proposed expansion of the energy-assistance program.

According to Cicero, the impact on the average household will be insignificant, but it will not result in increased expenses. This is seen as a mutually beneficial outcome.

The states bordering Pennsylvania, namely Maryland, New Jersey, and New York, have established objectives to obtain at least 50% of their energy from renewable sources by 2030. This raises concerns that Pennsylvania may lag behind in the shift towards a clean energy economy.

The president of the Pennsylvania State Building and Construction Trades, Robert Bair, emphasized the need for Pennsylvania’s energy policy to prioritize the well-being of workers in the coal and gas industries. However, he expressed concern that the state may face a loss of clean energy jobs to other states if no actions are taken.

Shapiro’s proposed “energy tax” has received criticism from businesses and individuals with high energy consumption, who believe it will have negative consequences for industries and lead to the closure of the state’s remaining coal-powered plants.

The Marcellus Shale Coalition, a group that advocates for Pennsylvania’s massive natural gas sector, was more cautious. According to the organization’s president, Dave Callahan, the top priority is ensuring the stability and dependability of the electric grid.

Although there were not many specifics provided, Shapiro’s proposal received positive feedback from renewable energy organizations and supporters of the environment.

The executive director of the Clean Air Council, Alex Bomstein, stated that the governor’s proposal is insufficient in addressing the climate crisis. However, it is a significant improvement compared to Pennsylvania’s current state.

Environmental activists are concerned about discarding the strategy created by Shapiro’s predecessor, ex-Governor Tom Wolf.

At the moment, a local court has halted Wolf’s law that allows Pennsylvania to join the Regional Greenhouse Gas Initiative with other states. This initiative sets a cost and gradually decreasing limit on carbon dioxide emissions from power plants.

Shapiro, who was running for governor, had separated himself from Wolf’s proposal. However, some critics argued that Shapiro’s plan was comparable. On Wednesday, Shapiro refused to comment on whether he would enforce Pennsylvania’s involvement in the regional coalition if the courts ruled in favor of it and the Legislature did not take action.

Shapiro stated that his focus is on passing these items.

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Levy wrote from Harrisburg, Pennsylvania.

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Source: wral.com