CDRW Priorities: The Regional Greenhouse Gas Initiative

The Coalition is excited to highlight many of our ongoing priorities with a series of guest blogs. We hope this will serve as an educational resource that will encourage our members, prospective members, and the public at-large to advocate for Delaware River Watershed priorities. Today we are highlighting the Regional Greenhouse Gas Initiative’s impact on carbon emissions within the Delaware River Watershed and beyond.

By: Donna Kohut (she/her), Campaign Manager, PennFuture

What is the Regional Greenhouse Gas Initiative?

RGGI states

Map shows RGGI member states highlighted in blue. Image courtesy of the Rhode Island Department of Environmental Management.

The Regional Greenhouse Gas Initiative (also known as RGGI or “Reggie”) is a multi-state cap and invest program designed to reduce carbon emissions generated by fossil-fuel fired power plants. Member states include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia. Currently, Pennsylvania is the only state in the Delaware River Basin that is not a member of RGGI. Under this program, power plants pay "allowances" for the amount of emissions they create, and the revenue generated from those allowances gets reinvested in local communities impacted by power generation. Specifically, electric generators over 25 MW must hold an allowance for each ton of CO2 they omit. They can purchase allowances at a quarterly auction, or they can buy and sell them on a secondary market.

We know that RGGI has helped reduce emissions. Since 2005, states that participate in RGGI have reduced their carbon emissions in the power sector by up to 45%. By joining RGGI, Pennsylvania could reduce its emissions by 26% by 2025 and 80% by 2050. Put another way, Pennsylvania's participation in RGGI could save more than 180 million tons of carbon pollution.

Preventing that much pollution from going into the atmosphere has real world benefits that are enjoyed by people that live in and near member states. A group called Abt Associates took a deeper dive into the health and economic benefits experienced because of RGGI. Ultimately, they discovered that reducing carbon emissions actually "saved hundreds of lives, tens of thousands of hours of lost work, led to strong net job creation, and resulted in an overall total of $5.7 billion dollars in benefits." 

What does RGGI mean for PA?

RGGI in PA

Image courtesy of the Pennsylvania Department of Environmental Protection (DEP).

As the fourth largest carbon emitter in the United States, anything that we do to reduce our emissions would have profound ramifications for the state, nation, and the world. The Commonwealth, alone, is responsible for about one half of one percent of global emissions. Consequently, by doing its part to stop fueling the climate crisis, Pennsylvania would reduce the potential for harm and destruction caused by intense storms, as well as damage done to aging and failing infrastructure. Additionally, RGGI can actually reduce the cost of energy for residents.

The RGGI Investment Act (SB 15 and HB 1565) was proposed in 2021, which would prescribe how revenue from RGGI would be spent through the establishment of the Greenhouse Gas Abatement, Energy Efficiency, Clean and Renewable Energy Investments, and Commercial and Industrial Energy Efficiency Accounts within the Clean Air Fund. These buckets would support the transition to renewable energy and offer financial support to environmental justice communities through job development in the renewable energy sector, additional benefits provided to displaced workers who are transitioning to clean energy jobs, and the allocation of funding to environmental justice communities for much needed infrastructure work.

How would RGGI impact the Delaware River Basin?

The unchecked climate crisis continues to inundate the entire Delaware River Watershed with intense storms of increasing frequency, which leads to more extreme flooding events and damage to aging and failing infrastructure. By reducing Pennsylvania's emissions, RGGI would help reduce the impacts of climate change experienced within the basin. Joining RGGI would also bring Pennsylvania in line with the other member states of the Coalition for the Delaware River Watershed (CDRW) and the Delaware River Basin Commission (DRBC), signaling a united front. As one of the largest fossil fuel states in the country, Pennsylvania's participation in RGGI would send a strong signal to surrounding states that it is ready to step up and become a good neighbor. Finally, joining RGGI would help to support environmental justice communities that have been systematically and historically harmed by the climate crisis and the pollution emitted by these power plants.

What is CDRW's role in advancing it forward?

Pennsylvania's state legislature tends to resist efforts to protect the environment and address the climate crisis. For instance, PA lawmakers drafted SCRRR1, a concurrent resolution that would prevent the Commonwealth from joining RGGI. Thankfully, they were unable to come up with enough votes to overcome Governor Wolf's veto, and consequently, RGGI continues to move forward.

This resistance to addressing the climate crisis among Pennsylvania's elected officials makes it crucial for organizations to band together and promote the benefits of RGGI. CDRW's role in these efforts is twofold.

First, it can shore-up a robust defense against legislation drafted in opposition to joining RGGI. Beating back these bills are vital to ensuring that it is possible for Pennsylvania to join the multi-state compact. Demonstrating support through sign-on letters and social media are key ways for members to act.

Secondly, our work is not over once Pennsylvania joins RGGI because, theoretically, the next governor can pull the Commonwealth out of the compact. That means that CDRW can play a key role in pushing momentum forward in support of RGGI within its membership and across the legislature.

RGGI connects the issues that are of greatest interest to CDRW members, such as the climate crisis and environmental justice and equity. If we are unable to address these issues by getting RGGI across the finish line, other important affairs—like  outdoor recreation, water infrastructure, open space, and water pollution—will feel the impact.