On Nov. 25, 2020 HB1808 (Now Act 127) was signed into law. This legislation provides regulatory certainty by ensuring advanced recycling facilities in Pennsylvania are regulated as manufacturers rather than waste facilities.

The bill was supported by the governor, PA DEP, Democrats and Republicans, and it provided a public platform for PCIC and members to discuss advanced recycling and other industry initiatives helping to reduce our impact on the environment. View PCIC's news release here.

Sept. 16, 2019: Bill introduced by Rep. Ryan Mackenzie and referred to House ERE 
July 7, 2020: Passed House with bipartisan vote (155-46)
July 13, 2020: Referred to Senate ERE
Nov. 18, 2020: Passed the Senate with partisan vote (30-19)
Nov. 25, 2020: Signed into law

Act 2019-20 directed two state entities to study the effectiveness, cost, environment impact and unintended consequences of a ban on single-use products and present findings in a report to the General Assembly in June 2020. PCIC worked with both entities on the study. 

• Legislative Budget & Finance Committee (view report): Directive was to evaluate the impact on environment and residents
• Independent Fiscal Office (view report): Directive was to study the impact on the economy
  • Key Findings:
    • Sanitary Concerns with Reusable Grocery Bags
    • Paper Bags Have a Greater Environmental Impact
    • Single-Use Plastic Bags Have Multiple Uses
    • Recycling is an Ideal Pursuit
    • A fee (10 cents) provides the most flexibility and least cost to consumer and economy compared to a ban or ban-plus-fee

*Page last updated December 2020

BACKGROUND: 

Gov. Wolf Executive Order:
In January 2019, Gov. Wolf signed an executive order to set Pennsylvania’s first statewide climate goals, aiming to reduce greenhouse gas emissions by 26 percent by 2025 and by 80 percent by 2050, compared to 2005 levels.

In October 2019, Gov. Wolf took executive action instructing the Pennsylvania Department of Environmental Protection (DEP) to join the Regional Greenhouse Gas Initiative (RGGI), a mandatory market-based program to reduce greenhouse gas emissions from the power sector. Current states in the cooperative include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. 

DEP Process: 
In May, DEP’s Air Quality Technical Advisory Committee (AQTAC) and Citizens Advisory Council (CAC) met to consider the draft rulemaking on RGGI. Even with a tie vote from the AQTAC, a vote against the draft regulations by a vote of 9-4 with one abstention from the CAC and the outspoken comments from committee members about DEP not providing enough information, specifically around the economic impacts of the proposed program, DEP moved forward in the rulemaking process and presented the draft program to the Environmental Quality Board (EQB) to begin the formal rulemaking process. 

On September 15, in a 13-6 vote, the EQB voted to accept the proposal and begin the formal rulemaking process for Pennsylvania to join RGGI. Rep. Daryl Metcalfe and Sen. Gene Yaw made several motions to table the regulation to allow for a more thorough review and ensure a public hearing in Indiana County, which will be severely affected by coal-powered power plant closures. Metcalfe and Yaw also looked to extend the amount of time that the public has to comment on the regulation before it would theoretically take effect. All of their motions failed. 

The proposed rulemaking was adopted by the EQB on Sept. 15 and published in the PA Bulletin on Dec. 4 which formally started the clock on public review and comment, which will end Jan. 14. The Department is expected to receive robust public comment on the regulation, and all written comments are shared with the House and Senate Environmental Resources and Energy Committees, as well as with the Independent Regulatory Review Commission (IRRC). The Department will develop responses to the comments as well as revisions to the regulation as necessary, and re-submit the draft final regulation to stakeholder groups and advisory committees before EQB takes a final vote. If approved, it would then go to the oversight committees and IRRC for review, before being sent to the Attorney General for approval, and finally would be posted in the Pennsylvania Bulletin as a final regulation.

PCIC will be submitting formal comments. 

Legislative Actions:
With the chairs of both the House and Senate Environmental Resources committees opposed to RGGI, both committees have continuously held hearings to take testimony from business, labor, community and consumer groups about their opposition to the RGGI proposal. 

HB 2025 which would put legislative oversight on Pennsylvania’s path to join RGGI passed the House and Senate and this week was vetoed by Gov. Wolf. 

Posted Materials:

• DEP RGGI 101 Webinar
• Economic Modeling Overview Presentation Slides 
• Economic Modeling Results 
• Proposed Rulemaking Executive Summary
• Proposed Rulemaking
• Proposed Rulemaking Annex A

This page was last updated 1/25/21.

The nuclear industry in Ohio, Illinois, New York, and New Jersey were able to successfully secure subsidies to bail out uneconomical plants. 

Currently the New Jersey Board of Public Utilities is considering a three-year extension of $300 million in zero emission credits for nuclear power operators. In Illinois, Exelon is expected to push for new subsidies for additional nuclear plants that were not included in the initial legislation. FirstEnergy and spinoff company, Energy Harbor are embroiled in an FBI investigation for its role in an alleged $60 million bribery scheme involving the Ohio Speaker of the House and House Bill 6, which provided subsidies to nuclear power operators. Potential legislative activity could begin in Ohio this spring. 

Instead of a direct subsidy bailout In Pennsylvania, in 2019, the nuclear industry approached the Pennsylvania legislature to request an alteration to the Alternative Energy Portfolio Standard allowing nuclear, as a zero carbon emitter, to be included. 

PCIC is engaged with a coalition of businesses, utilities, consumers and manufacturers opposing any action to subsidize nuclear power because of the electric market impacts and associated costs. PCIC sent a letter to the Pennsylvania Legislature to voice opposition to House Bill 11 and Senate Bill 510. This proposed legislation would increase all consumer electric bills, including those of the state’s chemical and petrochemical manufacturers.

According to an analysis by the Industrial Energy Consumers of Pennsylvania, if nuclear power generation were to be added to the Alternative Energy Portfolio Standard, the state’s industrial consumers would face at least $192 million in additional electricity costs annually.

Small manufacturers could annually pay an extra $60,000 on average, while larger manufacturers could see a nearly $2 million annual increase in electric costs. Large manufacturers with multiple facilities could face a nearly $4 million annual hike.

The legislation did not pass and there were limited attempts to advance nuclear subsidy legislation in the 2020 legislative session. However, in 2020,the industry set sights on pushing a carbon cap and trade program or Pennsylvania joining the Regional Greenhouse Gas Initiative (RGGI) in an attempt to layer costs on the natural gas and coal industries, making nuclear more competitive. These additional costs would be pushed down on Pennsylvania consumers, including manufacturers. In addition to higher energy costs, there are concerns that the nuclear industry may try to carve out a portion of the RGGI credit proceeds in the form of a direct subsidies. In other states proceeds have been used to support energy efficiency, vehicle electrification and consumer offsets. 

In addition to RGGI, 2020 was a down year for the economy as a whole, including all power generators. Record low wholesale power prices, combined with a reduction in power demand caused by numerous state lockdowns, resulted in significant losses for many power generators, including nuclear.  While the pandemic has impacted everyone, nuclear operators may use reported losses and its clean energy messaging as a platform to make another run at pushing nuclear subsidies in Pennsylvania. 

PCIC will keep the membership updated on this issue as it evolves when the legislature returns in September.

Reference Resources:

• PCIC Blog: A Nuclear Attempt To Leverage The Legislature
• Tweet This Post
• PCIC Letter of Opposition to the Legislature
• Fact Sheet
• Myth vs. Fact