Last month, Pennsylvania Governor Josh Shapiro withdrew from the Regional Greenhouse Gas Initiative, or RGGI (pronounced “Reggie”), a cap-and-trade program that establishes a regional limit on carbon emissions from power plants located in the Northeast.
Here’s how RGGI works: Each year, credits allowing the power plants to emit a certain amount of carbon dioxide, up to the cap, are auctioned off. The proceeds from these auctions go to RGGI member states, which can reinvest them into clean energy and consumer affordability programs. Crucially, the emissions cap gradually lowers over time, theoretically ensuring that total emissions continue on a downward trend.
Pennsylvania is a giant within the program, because it has higher power sector emissions than all of the other RGGI states — Maine, New Hampshire, Vermont, Massachusetts, Connecticut, Rhode Island, New York, New Jersey, Delaware, and the District of Columbia — combined, so Shapiro’s exit sent shockwaves through the system. The Democrat withdrew from the program as part of a compromise to convince Repub... Read more
