On November 18, 2025, at noon in Harrisburg, Pennsylvania, Republican members of both the Senate and House of Representatives, along with union leaders and business representatives from the energy industry, convened a news conference emphasizing the positive impact of Pennsylvania’s withdrawal from the Regional Greenhouse Gas Initiative (RGGI) on the state’s future economy.
RGGI is a multi-state cooperative agreement launched in 2009 aimed at limiting and reducing carbon dioxide emissions from the power sector. After 134 days of deadlock, on November 12, 2025, Governor of Pennsylvania and the legislature passed a $50.1 billion budget, agreeing for Pennsylvania to exit the RGGI initiative.
Describing it as a historic moment for Pennsylvania, Senate Majority Leader Joe Pittman, leading the meeting, highlighted the transformative economic growth policy of exiting RGGI and the permit reform as part of the state budget, which he believes will secure Pennsylvania’s future and uphold its commitments.
Senate President Pro Tempore Kim Ward hailed this year’s budget as “extraordinary and historic,” stating that RGGI has cost Pennsylvania jobs, led to the loss of investments by companies planning to invest in the state, and terminating RGGI will eliminate the threat of a $1.2 billion annual energy tax burden on Pennsylvania families and businesses.
House Republican Leader Jesse Topper criticized RGGI as casting a shadow over Pennsylvania, surrendering jobs created by energy development to neighboring states like Ohio and West Virginia, and affecting industries reliant on coal and natural gas, which are significant in Pennsylvania’s economy.
Pennsylvania ranks as the second-largest natural gas producer in the United States after Texas and the third-largest coal producer after Wyoming and West Virginia. Attendees at the meeting included representatives from the Marcellus Shale Coalition, Pittsburgh Boilermakers Local 154, International Brotherhood of Electrical Workers Local 459, United Association of Plumbers and Pipefitters Local 520, Pennsylvania Chamber of Business and Industry, and Pennsylvania Manufacturers’ Association.
Patrick Henderson, Vice President of Government Affairs and Communications for the Marcellus Shale Coalition, labeled RGGI as a barrier that has cost Pennsylvanians thousands of jobs and billions of dollars in investments. Henderson stressed that RGGI serves as a fast track for private investments to build new power plants in other states, highlighting the lack of new major natural gas power plants in Pennsylvania since the inception of RGGI.
According to models by the Pennsylvania Department of Environmental Protection (DEP), RGGI would only reduce less than 0.25% of carbon emissions, contrasting with the 46% reduction in carbon emissions in the power industry since 2005 through market developments, equivalent to taking 12.5 million cars off the road annually. Henderson stated that RGGI’s true purpose is profit-driven, estimating a loss of $1.6 billion for Pennsylvania consumers annually due to RGGI, used not for energy bills but as an energy tax.
Shawn Steffee, Business Agent for the Pittsburgh Boilermakers Local 154 and Chairman of the South Central Building Trades, noted the negative impact of RGGI on the union and his community through factory closures and losses, including coal and natural gas power plants.
Aric Baker, President of the International Brotherhood of Electrical Workers Local 459, praised Senator Pittman’s efforts towards a comprehensive energy strategy to protect grid reliability, national security, energy consumers, and the livelihoods of blue-collar union members and their families, calling RGGI an anti-worker policy and a blatant assault on blue-collar jobs.
Jim Enders, Business Manager for the United Association Local 520, commended Pennsylvania’s decision to exit RGGI, emphasizing the importance of a cleaner energy transition that is environmentally responsible while being economically sustainable and supportive of Pennsylvania’s development path inclusive of environmental goals.
RGGI, a market-based initiative among states including Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont, requires emitters to purchase allowances to effectively price carbon emissions from the power sector.
Some Democratic members have criticized Pennsylvania’s withdrawal from RGGI. Governor Josh Shapiro believes the exit was necessary, intending to advance policies creating more job opportunities in the energy sector, incorporating more clean energy into the grid, and reducing energy costs for Pennsylvania residents.
Besides exiting RGGI, this year’s budget proposed new permit reforms for businesses, simplifying regulatory processes, establishing clear approval timelines, and implementing a real-time tracking system. Pennsylvania’s permitting process has long hindered business relocation or expansion, leading to missed job opportunities.