Pennsylvania House Bill HB1164

Pennsylvania 2025-2026 Regular Session

• Introduced: 4/7/25
• Refer: 4/7/25

Caption

Authorizing the Department of Environmental Protection to conduct a public comment process on and submit to the General Assembly a measure or action intended to abate, control or limit carbon dioxide emissions by imposing a revenue-generating tax or fee on carbon dioxide emissions; and abrogating regulations.

Impact

If passed, HB 1164 would significantly alter how Pennsylvania manages carbon emissions, essentially laying the groundwork for potential taxation or regulatory measures. The bill aims to address the state's ability to participate in regional greenhouse gas initiatives like the Regional Greenhouse Gas Initiative (RGGI). By mandating a structured process for public input and legislative review, the bill aims to ensure transparency and stakeholder engagement in developing carbon emission regulations, which is critical given the contentious nature of environmental policy changes. The proposed public hearings would allow various interests, including industries likely to be affected, to voice their opinions and concerns about these regulations.

Summary

House Bill 1164, also referred to as the Pennsylvania Carbon Dioxide Cap and Trade Authorization Act, seeks to grant the Department of Environmental Protection (DEP) the authority to initiate a public comment process regarding the regulation of carbon dioxide emissions. The bill envisions a mechanism by which the DEP can propose measures to implement a tax or fee on carbon dioxide emissions. This legislative initiative arises from the absence of statutory or constitutional authorization for the DEP to regulate such emissions, emphasizing the need for the General Assembly's involvement in this regulatory area. Essential stakeholders, including the Environmental Quality Board and the Pennsylvania Public Utility Commission, are also identified as key players in establishing this framework.

Sentiment

The sentiment around HB 1164 is likely to be mixed, reflecting varying opinions on environmental regulation. Proponents of the bill view it as an important step toward addressing climate change and reducing carbon emissions in Pennsylvania, a goal increasingly aligned with global environmental standards. Conversely, opponents may express concerns regarding the economic implications of implementing a carbon tax, fearing it could lead to increased costs for consumers and businesses. The discourse surrounding the bill is expected to highlight the balance between environmental sustainability and economic viability, as stakeholders weigh the benefits of reducing emissions against the potential financial burdens.

Contention

Notable points of contention regarding HB 1164 center on the specifics of how carbon dioxide emissions will be regulated and the economic impact of such measures. Critics may argue that imposing a tax or fee could place a financial strain on businesses, particularly those in the energy sector, potentially hindering their competitive edge. Additionally, the ability of the DEP to regulate emissions without clear authority has sparked debates on the limits of regulatory power and state governance. The requirement for extensive public engagement through hearings and discussions signifies an attempt to address these concerns, yet skepticism remains about the effectiveness of such measures in balancing environmental goals with economic realities.