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ARTICLE · 01 APRIL 2024

Update On RGGI In Pennsylvania

Foley Hoag LLP
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In 2022, Pennsylvania became the 12th member of the Regional Greenhouse Gas Initiative ("RGGI").

United StatesEnergy and Natural Resources
Joshua Rosen
Joshua Rosen
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In 2022, Pennsylvania became the 12th member of the Regional Greenhouse Gas Initiative ("RGGI"). Pennsylvania joined RGGI pursuant to a 2019 executive order and a subsequent rulemaking promulgated by the state's Department of Environmental Protection ("DEP") and Environmental Quality Board ("EQB").

Later that year, various parties—including power producers, coal mine owners, and labor unions (collectively, the "Petitioners")—filed a lawsuit in the state's Commonwealth Court alleging that Pennsylvania's participation in RGGI was unconstitutional.

The Petitioners had asserted that the RGGI rulemaking was "unconstitutional because it usurps the authority of the General Assembly to levy taxes under the Pennsylvania Constitution and is not otherwise statutorily authorized." Respondents, the Pennsylvania Department of Environmental Protection ("DEP") and the Pennsylvania Environmental Quality Board ("EQB"), argued that the allowance auction payments do not constitute

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