Pennsylvania Exits RGGI

Last week, Governor Shapiro signed Pennsylvania’s 2025-2026 Budget into law. Included in the budget bill was a provision withdrawing the state from the Regional Greenhouse Gas Initiative (RGGI), which is a carbon emissions reduction scheme applicable to electric power plants across 11 eastern states. While ongoing litigation has prevented the Keystone State from fully participating in RGGI, the Commonwealth’s recently enacted budget finally puts the issue to rest.

Notably, for the propane industry, exiting RGGI means that Pennsylvania officials will not be spending programmatic proceeds on activities that distort the energy market and disincentivize the use of propane. For example, according to a recent disclosure of RGGI investments by participating states, program revenues were spent, among other things, on the following activities:

• Beneficial electrification efforts, including the deployment of air-source heat pumps and heat pump water heaters;
• Deployment of woodstoves (pellet and cord wood);
• Installation of residential solar panels;
• And incentives for zero-emission medium- and heavy-duty vehicles as well as requisite charging infrastructure. 

According to the 2024 sales report, Pennsylvania is the 10^th largest state propane market in the country, with 340 million gallons sold. For more information, contact NPGA’s Senior Director of State Advocacy & Affairs, Jacob Peterson.