Pennsylvania Argues Carbon Market Program Is a Fee, Not a Tax

Proceeds from an emissions allowance auction are government fees, not taxes, meaning Pennsylvania should have the right to impose them, according to a recent reply brief filed in the state Supreme Court.

The case seeks to overturn a lower court ruling that struck down Pennsylvania’s bid to join the Regional Greenhouse Gas Initiative (RGGI), a climate pact with 11 other Northeastern states.

Under the RGGI program, states agree to cap carbon dioxide emissions of power plants. Utilities must buy allowances for those emissions, and the revenue goes to the states.

Industry opponents have argued that the state executive branch doesn’t ...