Pennsylvania Withdraws From RGGI, But A State-Specific Cap-and-Trade Program May Be In The Commonwealth's Future

In a significant move for energy policy and climate action, Pennsylvania has officially announced its withdrawal from the Regional Greenhouse Gas Initiative (RGGI), a cap-and-trade program aimed at reducing greenhouse gas emissions in the Northeastern and Mid-Atlantic regions. RGGI was established in 2009, facilitating what is touted as a cooperative, market-based approach to controlling greenhouse gas emissions from the power sector. Through a cap-and-trade system, participating states set a limit on emissions and distribute or auction off allowances that power plants must hold to emit CO2.

In 2019, former Governor Tom Wolf signed an executive order directing Pennsylvania's Department of Environmental Protection (PADEP) to develop rules enabling the state's participation in RGGI. PADEP spent two years producing the CO2 Budget Trading Program, which was finalized and immediately subject to legal challenges in April 2022. The Program's implementation was stayed