Pennsylvania SB 503: An Act establishing the Pennsylvania Climate Emissions Reduction Program; imposing powers and duties on the Environmental Quality Board, the Pennsylvania Public Utility Commission and the Department of Environmental Protection; and establishing the Consumer Protection Account, the Pennsylvania Energy Transformation Account, the Workforce Enhancement Fund, the Workforce Enhancement Fund Board and the Low-income Support Account.

Bill Text

PRINTER'S NO. 770
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No. 503
Session of
2025
INTRODUCED BY COMITTA, SANTARSIERO, STREET, COLLETT, FONTANA,
COSTA, SCHWANK, SAVAL, CAPPELLETTI, HUGHES, HAYWOOD AND KIM,
MAY 12, 2025
REFERRED TO ENVIRONMENTAL RESOURCES AND ENERGY, MAY 12, 2025
AN ACT
Establishing the Pennsylvania Climate Emissions Reduction
Program; imposing powers and duties on the Environmental
Quality Board, the Pennsylvania Public Utility Commission and
the Department of Environmental Protection; and establishing
the Consumer Protection Account, the Pennsylvania Energy
Transformation Account, the Workforce Enhancement Fund, the
Workforce Enhancement Fund Board and the Low-income Support
Account.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Short title.
This act shall be known and may be cited as the Pennsylvania
Climate Emissions Reduction Act.
Section 2. Findings and purpose.
The General Assembly finds and declares as follows:
(1) The Governor established a working group in April
2023 to evaluate the merits of Pennsylvania's membership in
the Regional Greenhouse Gas Initiative and to consider
proposed alternatives to that membership.
(2) The working group was comprised of representatives
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of organized labor, environmental stakeholders and the energy
industry, including fuel production, electric utilities,
fossil fuel and nuclear generation and consumer advocates.
(3) The working group was charged with ensuring that any
recommendation be developed to protect and create energy
jobs, take real action to address climate change and ensure
reliable, affordable power for Pennsylvania's consumers over
the long term.
(4) The working group found that:
(i) Reducing greenhouse gas emissions in this
Commonwealth is necessary.
(ii) A cap-and-invest carbon regulation for the
power sector that generates revenue to support this
Commonwealth's energy transition would be the optimal
approach for this Commonwealth.
(iii) A cap-and-invest program should include
policies and investment strategies which help avoid any
potential emissions leakage, higher localized pollution,
increased energy costs and job loss.
(5) The purpose of this act is to establish this
Commonwealth as an energy leader by authorizing a
Pennsylvania-run cap-and-invest program.
(6) Upon the establishment of a Pennsylvania-run cap-
and-invest program, this Commonwealth shall not participate
in any other carbon auction addressing emissions from the
electric generation sector unless specifically authorized by
act of the General Assembly.
Section 3. Definitions.
The following words and phrases when used in this act shall
have the meanings given to them in this section unless the
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context clearly indicates otherwise:
"Board." The Environmental Quality Board.
"Commission." The Pennsylvania Public Utility Commission.
"Department." The Department of Environmental Protection of
the Commonwealth.
"Environmental justice area." A geographic area
characterized by increased pollution burden, and sensitive or
vulnerable populations based on demographic and environmental
data as identified by the department.
"PACER." The Pennsylvania Climate Emissions Reduction
Program established under this act.
"Regulatory Review Act." The act of June 25, 1982 (P.L.633,
No.181), known as the Regulatory Review Act.
Section 4. Pennsylvania Climate Emissions Reduction Program.
(a) Establishment.--The Pennsylvania Climate Emissions
Reduction Program is established within the department for the
purpose of implementing a Pennsylvania-run CO2 Budget Trading
Program.
(b) Pennsylvania-run auction.--Notwithstanding 25 Pa. Code §
145.401(a) (relating to auction of CO2 allowances), the
department shall conduct a Pennsylvania-run auction in
accordance with 25 Pa. Code § 145.401(b).
(c) Implementation and administrative support.--The
department may delegate implementation and administrative
support functions for any CO2 allowance auction conducted under
25 Pa. Code §§ 145.401 through 145.409 (relating to approval of
auction results) to an agent qualified to conduct auctions
provided that the agent performs all functions under the
direction and oversight of the department.
(d) Compliance.--Notwithstanding subsection (c), the
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department shall:
(1) Retain its authority to enforce compliance with 25
Pa. Code Ch. 145 Subch. E (relating to CO2 Budget Trading
Program) except as otherwise provided in this act.
(2) Retain control over the proceeds associated with the
sale of Pennsylvania CO2 allowances.
(3) Deposit the proceeds in accordance with section 7.
(e) Other states.--
(1) Allowances issued by the Pennsylvania-run auction
conducted in accordance with subsection (b) may be offered
for c