Press Release

Lawmakers Move to Repeal Shapiro’s Harmful Energy Tax
Harrisburg, Pa., February 4, 2025 – Today, the Pennsylvania Senate passed, with a bipartisan 31-18 vote, legislation to leave the Regional Greenhouse Gas Initiative (RGGI). Gov. Shapiro is currently appealing a Commonwealth Court ruling that struck down Pennsylvania’s participation in RGGI, as RGGI represents a tax levied without legislative consent. Shapiro’s administration argues it should be able to impose RGGI unilaterally, as Gov. Tom Wolf first attempted to do.
RGGI is a multi-state cap-and-trade program that imposes a carbon tax on power generators, resulting in a new, economy-wide energy tax. Any involvement in RGGI would threaten grid reliability, undermine energy production, and raise utility bills for Pennsylvania families and businesses. A future without RGGI and other proposed cap-and-tax schemes means more opportunities and lower costs for all Pennsylvanians.
The Commonwealth Foundation thanks state Senators, including lead sponsor Senator Gene Yaw, for advancing this legislation to prioritize energy expansion and protect families from energy taxes. The Commonwealth Foundation urges the Pennsylvania House to take up the legislation, and for Gov. Shapiro to support this important bill instead of continuing to lock-up Pennsylvania’s energy potential in favor of handouts to special interests.
Elizabeth Stelle, Vice President of Policy at the Commonwealth Foundation, issued the following statement:
“Senate lawmakers who voted to repeal RGGI understand what Gov. Shapiro does not – RGGI is an unconstitutional energy tax paid for by hardworking Pennsylvanians. Involvement in carbon taxes like RGGI would raise Pennsylvanians’ electric bills by 30 percent, an initiative opposed by 71 percent of Pennsylvanians. Thankfully, these lawmakers recognize that Pennsylvanians don’t want what RGGI offers – limited energy and higher taxes.
“Energy is Pennsylvania’s superpower. The best way to harness energy opportunities in the Keystone State is to maintain our competitive edge as a major producer and exporter of electricity. This decisive act of leadership by Pennsylvania Senators is a step in the right direction to unleash Pennsylvania energy and keep costs low for hardworking families.
“If Governor Shapiro really cares about lowering costs for consumers, he should put RGGI to rest.”
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The Commonwealth Foundation transforms free-market ideas into public policies so all Pennsylvanians can flourish.