- Law re-asserts PA legislature’s sole right to impose taxes on Commonwealth, ending debate which started in 2019
- Move will stop a forecasted 30% increase in energy bills from RGGI’s de facto tax
HARRISBURG, Pa. – Consumer Energy Alliance (CEA), the leading energy and environmental advocate for families and businesses, today applauded the Pennsylvania General Assembly for passing legislation that removes the Commonwealth from the Regional Greenhouse Gas Initiative (RGGI), a move that will help prevent significant energy bill increases and unlock economic growth across the state.
The House voted 189-14 and the Senate voted 41-9 to end Pennsylvania’s participation in RGGI, which was forecast to increase utility bills by an average of 30% by 2030. The legislation now heads to Gov. Josh Shapiro for his signature as part of the state’s budget agreement.
“Pennsylvania lawmakers recognized that RGGI was a barrier to affordability, reliability, jobs and economic opportunity for families and businesses across the Commonwealth, and their common-sense bipartisan action leads the way for other states to do the same,” CEA President David Holt said. “This decisive vote recognizes RGGI as the de facto tax that it would have become for Pennsylvanians. We urge Gov. Shapiro to sign this legislation and unshackle the state’s energy and let it thrive again as one of the nation’s traditional energy production and export powerhouses.”
Pennsylvania is the nation’s second-largest natural gas producer and a net energy exporter. Exiting RGGI will allow the state to strengthen regional energy reliability, attract technology sector investment, and keep energy costs affordable for families already struggling with high utility bills. Recent polling shows 78% of Pennsylvanians have experienced higher energy bills over the past two years, with almost as many worried about their ability to afford energy costs.
Two-thirds of those polled supported exiting RGGI, which a previous governor entered Pennsylvania into by executive order. The program never went into effect due to legal challenges which argued that only the legislature could impose a tax. It would have made Pennsylvania the only major oil and gas producing state to undertake such restrictions.
“Getting out of RGGI means Pennsylvania can better compete for the data centers, advanced manufacturing facilities and energy investments that are driving 21st-century economic growth,” Holt said. “This bipartisan vote is a win for families, small businesses and the state’s tradespeople, all of whom will benefit from the more affordable and reliable energy Pennsylvania can better deliver now that RGGI’s additional costs and job-killing effects are permanently out of the picture.”
The legislation’s passage comes as Pennsylvania positions itself to capture more than $90 billion in data center and AI investments recently announced at the Pennsylvania Energy & Innovation Summit. By removing a de facto tax on power generation, Pennsylvania is better positioned to leverage its substantial natural gas resources and nuclear facilities to meet this exponential growth in electricity demand while maintaining affordability and reliability for families and small businesses.
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About Consumer Energy Alliance
Consumer Energy Alliance (CEA) is the trusted voice advocating for affordable, reliable, and cleaner energy solutions that benefit all Americans. Representing families, farmers, small businesses, distributors, producers, and manufacturers, CEA champions sensible, balanced policies that support economic growth and environmental resiliency; and ensures families and businesses are a vocal part of the nation’s energy dialogue. Every day, we work to inspire practical, responsible solutions that meet America’s energy needs while protecting the environment for generations to come.
Contact:
Bryson Hull
(202) 657-2855
bhull@consumerenergyalliance.org