PA Small business, every consumer, to take the hit if state joins regional cap and trade program
The House Environmental Resources and Energy Committee recently held a hearing on the Governor’s proposal to have Pennsylvania join the Regional Greenhouse Gas Initiative (RGGI), a cap and trade program currently involving ten states, which is intended to lower carbon emissions from the power sector. NFIB, the leading small business association in Pennsylvania with 13,000 members in the state, opposes the state’s participation in RGGI because it will lead to significant hikes in energy costs for all consumers and fall especially hard on small businesses.
“Small business owners want to be environmental stewards, but the benefits and costs must be carefully weighed,” said Gordon Denlinger, state director of NFIB in Pennsylvania. “The fees placed on power plants get passed down to customers, and small businesses are especially vulnerable to spikes in the cost of energy.”
“Think about how costs for laundromats, car dealers, convenience stores, and small manufacturers could rise precipitously putting their economic security in question,” added Denlinger. “It is worth noting that all the states currently participating in this cap and trade program have much higher energy costs than Pennsylvanian’s currently pay.”
Pennsylvania’s many energy resources have kept prices down and made our state competitive when it comes to attracting business, ranking 16 for business energy costs. States currently participating in RGGI rank lower than Pennsylvania when it comes to competitive energy prices.
“Over a recent seven-year period, Pennsylvania’s energy sector reduced CO2 emissions by 36%, and that downward trend continues, which leads to questions about whether a punitive cap and trade program is worth the damage it could do to economic growth, especially in the small business sector,” said Denlinger. “Given the costs involved in committing Pennsylvania to RGGI, it is most appropriate for the General Assembly, rather than the executive alone, to weigh costs and benefits involved in this important decision.”
NFIB supports HB 2025, which would require the General Assembly to authorize participation in RGGI and have both the General Assembly and DEP open up the process by holding public hearings.
