Overview
- Gov. Josh Shapiro signed the 2025–26 budget that includes a legislative exit from the Regional Greenhouse Gas Initiative, effectively ending the state’s appeal and pursuit of the program.
- Pennsylvania’s Commonwealth Court previously ruled that RGGI’s auction mechanism amounted to an unconstitutional tax that only the General Assembly can impose.
- Backers of the exit point to affordability and competitiveness, citing a Lawrence Berkeley National Laboratory study highlighted by Pittsburgh Works that found RGGI states had higher electricity prices than Pennsylvania.
- Business groups and Republican leaders praised the move as providing certainty for energy development, while climate advocates criticized the decision as a retreat from emissions policy.
- Recent analyses cited in coverage note Pennsylvania emissions fell 9% from 2019–2024 as generation rose 5% (IFO), with federal data crediting natural gas for much of U.S. CO2 declines and studies suggesting RGGI-era power imports shifted emissions across state lines.