Concerns raised about Pennsylvania carbon tax’s impact on remaining power plants

(The Center Square) – Pennsylvania’s future as one of the nation’s key power-producing states has become a frequent discussion point among state lawmakers and officials. Will Gov. Tom Wolf’s planned rollout of a tax on carbon emissions obliterate Pennsylvania’s remaining power plants? Or will market forces ultimately determine if, and when, they cease operations?

The questions, and polar-opposite views on the issue, have been explored in recent months as lawmakers have been combing through Wolf’s proposed 2021-22 budget and meeting with agency heads within the governor’s administration.

Wolf in late 2019 announced a cap-and-trade executive action plan to join a coalition of neighboring states and cut the amount of carb emissions from power plants. At the time, Wolf touted the maneuver as a fight against climate change, though the Republican-controlled General Assembly has been pushing back on it ever since.

State Sen. Joe Pittman, R-Indiana, said he has concerns with Wolf’s use of a carbon tax and the impact it would have on the section of the state he represents, where power plants remain an important economic engine.

“What I need to understand is what is the plan to address the premature closure of the power plants that I represent as a result of the governor’s carbon tax?” Pittman asked Dennis Davin, secretary of the Department of Community and Economic Development, at a Senate Appropriations Committee budget hearing March 22.

From his vantage point, Pittman said he is concerned the implementation of a carbon tax will topple what he already considers a vulnerable industry.

“I feel like I’m being asked to have a tooth pulled before it’s ready,” Pittman said. “This is a premature deactivation of these plants. They are already deferring maintenance, which means the job loss is already happening in the trade unions, such as the boilermakers.”

Davin, however, offered a different take on the issue and said Wolf’s order, which is to take effect at the beginning of 2022, is not correlated to the industry. In the last decade, Davin pointed out 14 statewide power plants have closed before a carbon tax even exited.

“That wasn’t the result of anybody’s policy at the state level. It was the result of market forces,” Davin said. “To me, market forces are the single biggest issue that we need to deal with. That is what it is.”

During the recent Appropriations Committee meeting, Davin said his agency is committed to working with legislators and other state departments, such as the Environmental Protection Agency, to seek long-term solutions.

“We need to get ahead of it, working directly with you … to try and see what we can do to help,” Davin said to Pittman. “I’m telling you, Senator, the governor is not causing those jobs to be lost prematurely. We can agree to disagree on that.”

During the lengthy debate, Pittman said he has not witnessed solutions from Wolf’s cabinet on alternative job creation strategies as measures such as the carb tax are enforced.

“I need something much more concrete than a playbook,” Pittman said. “I need to know what kinds of jobs are going to be brought into my community to replace the ones the governor is causing to be lost prematurely.”

In response, Davin said, “I wish it was as easy to say we’re going to get a solar manufacturer to replace this. It’s not. The pledge is that we’re going to work with you.”

State Sen. Patrick Browne, R-Lehigh, said the recent debate between Pittman and Davin mirrored one that occurred a year ago, during hearings on Wolf’s 2020-21 budget.

“We’ve had several exchanges, on concerns about this issue and how significant this is,” said Browne, who is majority chair of the Senate Appropriations Committee. To Davin, Browne said, “Your willingness to (collaborate) would be much appreciated.”

Disclaimer: This content is distributed by The Center Square