Stand Against Shapiro’s Energy Tax

Key Points on RGGI

• The Regional Greenhouse Gas Initiative (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.
• The RGGI tax could raise Pennsylvanians’ energy bills by as much as 30 percent.
• Pennsylvania entered RGGI through a unilateral executive order usurping the legislature’s sole constitutional authority to levy taxes. 

What is RGGI?

The Regional Greenhouse Gas Initiative (RGGI) is a multistate compact between Northeastern and Mid-Atlantic states that attempts to reduce greenhouse gas emissions from the power sector. Established in 2009, RGGI operates a cap-and-trade program in which participating states set a collective cap on carbon dioxide emissions from power plants. Power generators must purchase allowances for each ton of CO2 they emit, and the cap gradually decreases over time to encourage emission reductions. RGGI allowances are passed down as a burdensome carbon tax—increasing energy costs and threatening grid reliability and energy jobs.