The Pennsylvania Senate has passed legislation aimed at repealing the Regional Greenhouse Gas Initiative (RGGI) electricity tax. This decision comes as a response to an executive order from the Wolf Administration in 2019, which sought to implement RGGI. The initiative, part of a multi-state compact, has been criticized for potentially increasing electricity rates and hindering job growth in manufacturing.
Senate Majority Leader Joe Pittman emphasized that no new investments in baseload generation have occurred in Pennsylvania since the attempt to join RGGI six years ago. In 2023, the Pennsylvania Commonwealth Court ruled that entering RGGI requires legislative approval rather than executive action through rulemaking by the Department of Environmental Protection and the Environmental Quality Board.
Senate Bill 186 aims to repeal Pennsylvania’s participation in RGGI, ensuring any future decisions on electricity taxes or emissions programs are made through legislative processes. “For nearly six years, we have been taking actions to stop the RGGI Electricity Tax,” Pittman stated. He warned that if implemented, the tax could lead to significant increases in electric bills for consumers across the state.
Despite bipartisan opposition from the General Assembly, Governor Josh Shapiro has continued to challenge the Commonwealth Court’s ruling by appealing to the Pennsylvania Supreme Court. The bill will now proceed to the House of Representatives for consideration.
