Lawsuit Says Pa. RGGI Carbon Tax Will RAISE Not Lower Emissions
Several lawsuits have been filed against the Pennsylvania Gov. Tom Wolf administration in its attempt to force the state to join the Regional Greenhouse Gas Initiative (RGGI) carbon tax program, including a lawsuit by the state legislature. In July, three gas-fired power plant operators–Calpine Corporation, Tenaska Westmoreland Management, and Fairless Energy–filed a lawsuit against the state Dept. of Environmental Protection (DEP) and its Environmental Quality Board (EQB) opposing its attempt (under orders from Wolf) to force the state into RGGI carbon tax auctions. That lawsuit has some rather illuminating charges–like the claim that moving to RGGI will result in HIGHER, not lower, emissions from power plants.
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In June, MDN told you about this year’s distribution of last year’s (2021) Pennsylvania impact fee revenue (PA’s version of a severance tax) to local municipalities and to the black hole of Harrisburg politicians (see 
As we mentioned yesterday, House Bill (HB) 1059, legislation to provide $142 million annually in state tax credits for several purposes, including clean hydrogen hubs, use of natural gas, semiconductor manufacturing, and milk processors, was approved by a Senate committee and is on a fast track to becoming signed into law (see 
After the shocking news that U.S. Senator Joe Manchin had sold out his state and the entire country by agreeing to support the misnamed Inflation Reduction Act (IRA) bill, the details began to come out about just how bad this bill really is for the oil and gas industry. First and foremost, it slaps a new tax on oil and gas activities (see 
Last December, Virginia’s newly-elected governor, Glenn Youngkin, said that as soon as he took office, he would use his executive power to withdraw Virginia from the Regional Greenhouse Gas Initiative (see 
The so-called Regional Greenhouse Gas Initiative (RGGI), a tax on carbon dioxide emissions from coal and natural gas-fired power plants aimed at killing off those two sources of energy, held its latest tax auction on Friday. The result was pricing close to an all-time high, although the average price came down just a smidgen from the previous auction. Pennsylvania Gov. Tom Wolf is trying to force PA to join the RGGI cabal of 11 states (most of them in the northeast), a move endorsed by the man who wants to replace him in November, PA Attorney General Josh Shapiro (see 
After the shocking news that U.S. Senator Joe Manchin had sold out his state and the entire country by agreeing to support the misnamed Inflation Reduction Act (IRA) bill, the details began to come out about just how bad this bill really is for the oil and gas industry. First and foremost, it slaps a new tax on oil and gas activities (see 
Earlier this year, one of the biggest nutjobs in Congress, Sen. Sheldon Whitehouse (Democrat-RI), introduced an excise tax, which he erroneously called a windfall profits tax, targeted at oil company profits. The bill would impose a 50% tax on the difference between the current sale price of a barrel of oil and the average price of a barrel of oil from 2015 to 2019, which was roughly $66 per barrel. It would apply to sales by companies that produce or import at least 300,000 barrels of oil per day (or did so in 2019). Whitehouse later revised his plan to a proposed 21% windfall profits tax on oil company profits over 10%. Believe it or not, Ohio appears to be debating whether or not to apply such a windfall profits tax to its energy producers.
U.S. Senator Joe Manchin, in an interview with the Associated Press, attempts to come off as the reasonable, middle-of-the-road, aw-shucks guy who sticks up for what he believes is right and the good of West Virginians. Don’t fall for it. He was pressured by the wackadoodle left in the Democrat Party, and he folded like a cheap suit. Manchin deserves to be voted out of office the instant that opportunity arises. We’re talking, of course, of Manchin’s betrayal of fossil energy through his support for one of the most destructive pieces of legislation that has passed since Joe Biden began to occupy the White House–the so-called Inflation Reduction Act (IRA), better known as the Green New Deal (aka Build Back Better). Manchin’s betrayal has profound consequences for fossil energy in this country.
The dirty deed is done. Dementia Joe signed the so-called Inflation Reduction Act (IRA) into law yesterday, and the country is harmed because of it. Tens of thousands of jobs will be lost. Businesses will close shop. It’s a pretty dystopian future we face thanks to a bill passed with absolutely no Republican votes. But face it we must. One of the first orders of business is to figure out how the new methane tax will work and to who it applies. Will LNG export facilities be subject to this incredibly harmful tax? Nobody knows. In fact, nobody knows how the tax will work, given certain loopholes baked into the bill at the last minute. The IRA is yet another exercise in total confusion by the Democrat left.
While some companies (ExxonMobil, Occidental Petroleum, Diversified Energy) have sold out in return for corporate favoritism in the Manchin-Schumer so-called Inflation Reduction Act (IRA), which is really just a Big Green giveaway that slaps a huge new methane tax on oil and gas companies, there are some (many) bold and brave companies that are telling Manchin and those who have caved that the “Emperor has no clothes.” This bill is terrible. Among the groups pushing back are (surprisingly) the American Petroleum Institute (API). Also among the bold and the brave are the Pennsylvania Independent Oil & Gas Association (PIOGA) and the Ohio Oil & Gas Association (OOGA). In fact, 58 major oil and gas associations and groups representing thousands of companies sent a letter yesterday to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy outlining their strong opposition to Manchin-Schumer.
Every single year Pennsylvania Gov. Tom Wolf proposed a budget (all eight years of his ignominious occupation of the office), he insisted on raising taxes on the Marcellus industry by adding a high severance tax to an already-high impact tax. Every. Single. Year. In addition to an impact (i.e. severance) tax in PA, Marcellus drillers must pay an insanely high corporate net income tax (CNIT) of 9.99%. All businesses in the state are subject to the CNIT. Because of the high tax burden (the impact tax and the CNIT added together), many drillers have decided to expand elsewhere, like West Virginia, Ohio, and Louisiana. Now that he’s leaving office, Wolf has signed on to a reduction of the CNIT, claiming he never liked that nasty ole tax anyway.
Make no mistake: The Manchin-Schumer “Soar Inflation Higher” bill is bad for the country in EVERY way, including bad for the fossil energy industry via an industry-killing methane tax (see