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ARTICLE · 20 NOVEMBER 2025

Pennsylvania Budget Institutes New Permitting Reforms, Abrogates Pennsylvania RGGI Rule

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On 12 November 2025, Governor Shapiro signed into law a budget for fiscal year 2025-2026 (SB 160) and accompanying amendments to the Fiscal Code (HB 416) (collectively, the Budget Bill).

United StatesEnvironment
David J. Raphael
David J. Raphael
Tad Macfarlan
Tad Macfarlan
Samuel R. Boden
Samuel R. Boden
Coleman Wheeler
Coleman Wheeler

On 12 November 2025, Governor Shapiro signed into law a budget for fiscal year 2025-2026 (SB 160) and accompanying amendments to the Fiscal Code (HB 416) (collectively, the Budget Bill). The Budget Bill abrogates Pennsylvania's participation in the Regional Greenhouse Gas Initiative (RGGI) and contains important permitting reforms intended to increase efficiency and transparency by building on the Streamlining Permits for Economic Expansion and Development (SPEED) Program.

Legislative Abrogation of RGGI Rule

RGGI is a multistate compact among certain Northeastern states that seeks to reduce power sector greenhouse gas emissions through the operation of a cap-and-trade program. Operators of fossil fuel-fired power plants in RGGI states are required to purchase allowances, either through quarterly auctions or the secondary market, to offset their carbon dioxide emissions. In 2019, then-Governor Tom Wolf issued an Executive Order directing the

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