by Steve Haner
A state court in Pennsylvania has ruled that the regulatory decision to enroll that state in the Regional Greenhouse Gas Initiative (RGGI) exceeded the authority of state regulators. It ruled RGGI is a tax that could only be lawfully imposed by the legislature.
It was the Republican majority in one of the state’s legislative chambers that brought the legal challenge, so unless or until the political balance changes in that state, a vote to join the interstate carbon dioxide capping program is unlikely.
Adding Pennsylvania would have been a major expansion of the 11-state RGGI compact. Its many fossil fuel power plants would need to buy $400 million or more worth of CO2 allowance credits per year, a third or more than Virginia’s power plants are being taxed.
It is also one of the larger states in the PJM Interconnect regional power marketplace (it is the P) where the power plants do not pay into RGGI, lowering the relative cost of its power when it flows into other PJM states. Virginia electric customers are often using electrons from elsewhere in PJM.
That the money the utilities must pay for operating their fossil fuel plants is a tax is something most RGGI proponents, including those in Virginia, vehemently deny. That was one of the key disputes in the challenge in Pennsylvania, where joining RGGI was a regulatory step initiated by its then-Governor Tom Wolf (D).
The court majority wrote in its opinion:
Upon further review and consideration, we reaffirm our determination in this regard, and now hold that the Rulemaking constitutes a tax that has been imposed by (Department of Environmental Protection) and (Environmental Quality Board) in violation of the Pennsylvania Constitution. Indeed, as the Pennsylvania Supreme Court explained long ago:
No principle is more firmly established in the law of Pennsylvania than the principle that a revenue tax cannot be constitutionally imposed upon a business under the guise of a police regulation, and that if the amount of a “license fee” is grossly disproportionate to the sum required to pay the cost of the due regulation of the business the “license fee” act will be struck down.
As is usually the case, an appeal to a higher court is possible. The decision from the Pennsylvania Commonwealth Court, an intermediate appellate court dedicated to administrative issues, was not unanimous.
There are parallels with the situation in Virginia, and major differences.
Virginia is leaving RGGI as of December 31. The Virginia Air Pollution Control Board made the decision, with the support of Governor Glenn Youngkin (R). But private plaintiffs – who are not legislators – are asking the Circuit Court of Fairfax County to void the Air Board’s action.
In Virginia, membership in RGGI also started as a regulatory effort under then-Governor Terry McAuliffe (D). And that regulatory effort was stalled when Republicans in the General Assembly, in 2019 and 2020, asserted it was a legislative prerogative and put language in the state budget to that effect.
Then when Democrats took full control of the Virginia General Assembly, they passed legislation reinstating the regulation. The Air Board under Governor Ralph Northam imposed the regulations three years ago and Virginia has collected more than $730 million from power producers since. It should reach about $800 million with December’s auction.
The largest Virginia RGGI payer, Dominion Energy Virginia, is directly collecting the tax from its customers through an addition on monthly bills. It costs them (us) almost $5 for every 1,000 kilowatt-hours of use. Dominion has run up enough costs through RGGI that the rate charge will continue into 2024 even if the withdrawal happens on time.
So, unlike in Pennsylvania, in Virginia the legislature acted. The question before the Virginia court is: was the bill that passed a mandate imposed on the Air Board or simply a grant of authority? The language used – probably because there was a reluctance to make it clear this was a new tax – has allowed different interpretations. Youngkin and the Air Board assert it had authority to withdraw.
As reported by Virginia Mercury, a hearing on the case was held late last week, focused on the narrow issue of whether the parties who brought it had standing to sue. The RGGI tax proceeds are being directed to specific programs and contracting entities that will lose some of that funding brought the petition.
Imagine, if you will, a suit brought by a highway contractor after the state lawfully decided to cut the gas tax. The judge is facing a very important question, a very scary precedent indeed. He is being asked to make RGGI an entitlement program.
RGGI is a regressive tax scheme, basically.
But they promised me that if I give the government more money they will make the weather more gooder.
You just didn’t give enough. Give all you have and then more to the weather cultists.
“The RGGI tax proceeds are being directed to specific programs”
Assigning public funds to specific purposes gets past the issue: would you pay more (general) taxes for more (general) services.
In other words, add something but do not take anything away.
Years ago I lived in Baton Rouge. People wanted more money for public libraries, then funded by about $3 million (iirc) from general revenues. The voters passed a dedicated tax to fund libraries another $3 million, or so they thought. Within months of getting voter approval, the politicians cut the funding from general revenues by $3 million. The net, of course, was libraries were still funded with only $3 million and the politicians had p $3 million more to play with.
Never be fooled by dedicated taxes. Money is fungible.
Same thing has happened with the lotto taxes. They were supposed to go to education but education was just cut in the general funding. Given the quality of public schools, maybe not a bad thing.
And politicians are venal fungi.
“It ruled RGGI is a tax that could only be lawfully imposed by the legislature.”
I wonder if such challenges will arise in any of the RGGI states. Of course that’s impossible here in Wokeachusetts, a one party state.
Not an easy legal question—and I am a member of the MA bar. There are at least two issues that will vary by state:
If it applies to everyone and there’s no choice to avoid, opt in or opt out, it’s a tax.
Hunting and fishing licenses aren’t mandatory for everyone, just those choosing to hunt and fish. https://www.youtube.com/watch?v=T2W64Xbt7lo
Can someone choose to have power, or not? In the modern age, I’d go with it being an essential but some people can live off-grid.
In most cases, tariffs for “public” electric utilities will not allow you to “live off grid” once you are connected to the utility.
I remember a case, I believe i read about on WUWT, of a Florida “customer” who spent the money to be electrically self sufficient including storage capacity. She was still required to pay the monthly service charges even though she was not using any power.
Whether one can, where electrical service is provided, build a home without ever connecting to the utility, I guess would depend on that tariff of that particular utility.
“[…] lowering the relative cost of its power when it flows into other PJM states. ”
Dang. Cant they just go ahead and charge these States an arm and a leg anyway when the wind don’t blow and the sun don’t shine?
The grid isnt separated along state lines – except in Texas . Power stations provide potential energy via a HV grid system. It doesnt flow in the sense like a canal or river
For AC power the ‘direction’ changes 50 cycles per sec
Maybe someone could explain it better than me
60 cycles per second in the USA.
If it’s anything like over here then it just depends on the operators. The operators, the energy companies, buy wholesale energy from the energy producing companies then sell it at retail to the individual customers. The energy will flow through the same wires whoever ‘owns’ it but it matters to the customer and the operator.
No, explain it to yourself = learn = get knowledge
Take that understanding to the green house gas effect = where the ‘direction’ changes at 16,931 Gigahertz (when the temp is 15Celsius)
Or 323,000 Gigahertz at the temperature the surface of the sun is
Clue: Think of Voltage as temperature, or as you say ‘Potential’
Then ask, will a 1.5 Volt Duracell battery jump-start a car with a flat 12Volt battery and why not?
The green house effect says it will……
Garbage
Here is a simple solution for you.
When the voltage, (and current), is positive, you draw V(+) and A(+) to create power. Positive times positive is positive so you pay for the power flowing. AND
When the voltage is negative, (and current), you draw V(-) and A(-) to create power. Negative times negative is a positive, so you pay for the power flowing.
So metering AC is easy, you measure the instantaneous volts and amps and the product is the instantaneous power.
The frequency for the billing makes no difference.
Duker is more correct than wrong; electron flow/ current doesnt work like most think, ( water flow) very complicated, especially the HV distribution system. Lots of new theories on this, like the idea similar to the pendulum metal balls hanging by threads and let the end one swing down and hit the next etc., So, one electron pushes the next etc., but no flow perse!
‘Virginia electric customers are often using electrons from elsewhere in PJM.”
Its an AC grid , the electrons barely move ( 50 cycles per sec) . Its the potential energy that is distributed at under light speed across the grid.
Power grids arent like cars on a highway moving at speed one after the other
Except for the high voltage DC transmission lines. However, the point is that the power is being produced elsewhere on the grid and that state is a net importer of power from power plants located elsewhere.
True, but I allow the author some artistic licence to talk of “using electrons from elsewhere” rather than energy. However, if one of the children in my school science class were to use such language I might have a quiet word with them. (Had I talked of electrons in my solid state semiconductor physics seminars at university the lecturer would probably have had a quiet word with me!)
The RGGI increases the cost of everything but hits energy hardest. It is fortunate that “global warming” has reduced the need for heating in the conforming States because the rising cost of energy will not have as much impact due to reduced requirement – ha, haaa.
Lots of “global warming” in western NY in the past couple of days. Snowfall requires water to be evaporated from oceans. Warmer oceans means more snowfall – another thing climate models get wrong.
Important for Pennsylvania to to stay out of this green mess. When NY starts running out of energy, it will need Pa energy to keep its lights on.
In the absence of isolating/regulating devices, a shortage on one part of the system is reflected onto all parts of the system. If system generation is insufficient to meet the total loads the system will collapse. Load shedding is the usual response, either voluntary or imposed. Widespread blackouts in this or subsequent winters is the big fear of everybody except for the feckless Leftists in charge of government green plans.
Don’t worry, heavily taxing citizens will save the earth. All democrats agree. I have never met one that believes taxes are too high.
Per the above article:
“A state court in Pennsylvania has ruled that . . . RGGI is a tax that could only be lawfully imposed by the legislature.”
Hurrah! One can only wonder how long it will be before taxpayers in the other 11 states that signed into RGGI realize they’ve been snookered about it being something more that a disguised tax, and consequently launch their own lawsuits.
Something here about “. . . but you can’t fool all of the people all of the time.”
Complementarily, in the UK (and presumably the US) the Greens try to argue that the current system amounts to a disguised fossil fuel subsidy. If that convoluted argument were to prevail, then the argument that RCGI is a disguised tax should also prevail. However, when it comes to senior judges political arguments and corruption prevail over logic, engineering and science!
Especially in Canada.
“One can only wonder how long it will be before taxpayers in the other 11 states that signed into RGGI realize they’ve been snookered about it being something more that a disguised tax, and consequently launch their own lawsuits.”
It probably will not happen in the many RGGI states. Most of them are single party states.
We needn’t discuss which party. 😉
I am having increasing difficulty maintaining my interest in the science of climate recently. It’s kinda like being on a 19th century frigate and drawing the flora and fauna in my note book from the last island we visited; when we should be clearing the decks for action because an enemy ship is out there and about to rake us with a full broadside. That’s the kinda waters we are in now. Time is running out.
“Time is running out.” For what, exactly?
As long as it’s not another bloody tipping point, I’m interested.
Politics! think of the history of philosophy what happens to heretics- sounds crazy absurd but true ( these days) Did you hear some of the expert testimony at the I think it was one of the Trump cases. They think “we “ ( conservatives skeptics whatever etc)or just sensible people in my opinion,are speaking in secret “ code” to signal each other! These people we are up against at bay sh.#% T crazy and oh I had another comment before this one that was censored At WUWT! What the hell is going on .
Communication is difficult when half your communication is censored!
Seriously though, there may be merit in some of what you say but time is on the side of science and reason. The weather cultists have stacked the deck; pushed their anti-scientific dogma onto the public and governments but they are losing ground as, bit by bit, their dogma is crumbling away. They know it’s only a matter of time before the cooling phase sets in (it probably has already but is disguised by UHI) and the entire AGW scam comes crashing down.
So the skirmishes continue – put the book down, Mr. Oliver and stand by your section, run the guns out and prepare to give fire!
Normally I would fully agree that science will win out but something seems different this time. A biased media and rapid exposure to ideas right or wrong is so prevalent now that ‘time’ required for truth or science to prevail may not be available for a generally uninformed public to make good or even reasonable decisions. Alarmists and activists have a ‘bully pulpit’ and use it very well and bad things could happen while reason goes down the slower path. Sort of like the saying about a lie goes halfway around the world etc., except on steroids.
mmmm. This is all so tiresome. RGGI, another grift. Just notice where the money goes, and who pulls the strings. OGA.
I dunno. I get a warm fuzzy feeling knowing I am helping to pay for solar, wind, and other greeny dreams via my RGGI taxes. But then I realize it’s heartburn and have to take a Tums.