Pennsylvania senators approved legislation on Feb. 4 that would repeal the state’s participation in the Regional Greenhouse Gas Initiative (RGGI).
The legislation, Senate Bill 186, formally repeals the state’s participation in RGGI and ensures that decisions on electricity taxes or emissions programs go through the legislature, bill sponsor Sen. Gene Yaw (R-23) said Tuesday.
An analysis from the Independent Fiscal Office (IFO) concluded RGGI could nearly quadruple new electricity costs for consumers. Republican lawmakers say the multi-state compact also would cut energy and manufacturing jobs and lead to the closure of power plants throughout the state.
“It is time for Pennsylvania to take charge of its own energy future,” Yaw said. “We must close this chapter and move forward with responsible policy that strengthens grid reliability, incentivizes development, creates jobs and protects consumers from higher costs.”
Officials said the Pennsylvania Department of Environmental Protection (DEP) and the Environmental Quality Board was moving forward with regulations to establish a CO2 Budget Trading program, despite opposition in the General Assembly from both parties.
The vote this week “advances critical legislation to shield Pennsylvanians from being strong-armed into an unlawful electricity tax that will affect families across the state,” Sen. Camera Bartolotta (R-46) said on Wednesday. “After Gov. Josh Shapiro’s budget address yesterday, it’s clear he isn’t concerned about the state’s taxpayers and the financial challenges they already face. However, my colleagues and I will continue to defend them and their wallets.”
In 2019, then Gov. Tom Wolf signed an executive order directing the state to join the RGGI and for the DEP to propose regulations to cut carbon emissions. Legislators sued saying it would result in cost increases that were essentially a tax for Pennsylvania consumers and businesses. In 2023, the Commonwealth Court ruled RGGI does qualify as a tax and cannot be implemented without legislative approval.
Bartolotta said Shapiro’s decision to continue to appeal that ruling to the Pennsylvania Supreme Court has prolonged uncertainty for workers and businesses across the commonwealth and deepened concerns about energy grid reliability and affordability.
“Not only does RGGI increase energy costs to ratepayers, it threatens to strangle the economic potential of Pennsylvania’s energy sector,” said Americans for Prosperity-PA State Director Emily Greene. “Pennsylvania should be an energy exporting state, but outrageous overreach on the part of multiple Democrat Governors in the state has destabilized the sector and discouraged energy investors.”
“We are pleased to see the Senate reclaim its rightful taxing authority by striking rules related to RGGI,” Greene added. “We look forward to the Pennsylvania Supreme Court upholding the rule of law and restoring checks and balances to Harrisburg.”
Yaw said his work to repeal RGGI is part of his ongoing work to protect the reliability of the PJM electric grid.
The bill now moves on to the House of Representatives for consideration.