Pennsylvania House Bill HB2275

Pennsylvania 2023-2024 Regular Session

• Introduced: 5/8/24
• Refer: 5/8/24

Caption

Establishing the Pennsylvania Climate Emissions Reduction Program; imposing powers and duties on the Environmental Quality Board, the Pennsylvania Public Utility Commission and the Department of Environmental Protection; and establishing the Consumer Protection Account, the Pennsylvania Energy Transformation Account, the Workforce Enhancement Fund, the Workforce Enhancement Fund Board and the Low-income Support Account.

Impact

The bill integrates a framework that allows for the ongoing evaluation of carbon reduction strategies, particularly their effects on jobs, consumers, and vulnerable communities. It creates mechanisms for allocating auction proceeds from the sale of carbon allowances to various programs, ensuring that at least 40% of funds support initiatives located in environmental justice areas. This is expected to promote not only environmental benefits but also economic growth in communities that may have previously faced systemic neglect.

Summary

House Bill 2275 establishes the Pennsylvania Climate Emissions Reduction Program (PACER), which aims to implement a state-run auction system for carbon allowances as part of a cap-and-invest strategy. This program is designed to aid Pennsylvania in reducing greenhouse gas emissions while fostering an energy transition that ensures reliable and affordable power for consumers. The act mandates the establishment of several funds dedicated to consumer protection, energy transformation, workforce enhancement, and low-income support, highlighting the state's commitment to addressing both climate change and economic equity.

Sentiment

Support for HB 2275 is generally favorable among environmental advocates and those interested in job creation within the renewable energy sector. They see the cap-and-invest approach as a robust solution to achieve meaningful emissions reductions while providing resources for training and development in emerging industries. However, skepticism remains among some industry stakeholders who worry about potential regulatory burdens and higher energy costs, signifying a division in sentiment regarding the bill's practical implications.

Contention

Key points of contention involve concerns about the bill's potential to increase energy prices for consumers, as well as debates surrounding who will benefit from job creation initiatives. Critics argue that while the intent is to protect disadvantaged communities, the implementation might not effectively address all local needs. Additionally, the emphasis on auction revenues could create market volatility in energy pricing, raising fears about economic impacts on Pennsylvania's energy sector as it transitions.