Shown is the Northampton generating station in Northampton, Pa., Wednesday, March 13, 2024. Gov. Josh Shapiro unveiled a plan to fight climate change Wednesday, saying he will back legislation to make power plant owners in Pennsylvania pay for their planet-warming greenhouse gas emissions and require utilities in the nation's third-biggest power-producer to buy more electricity from renewable sources. (AP Photo/Matt Rourke)
Shown is the Northampton generating station in Northampton, Pa., Wednesday, March 13, 2024. Gov. Josh Shapiro unveiled a plan to fight climate change Wednesday, saying he will back legislation to make power plant owners in Pennsylvania pay for their planet-warming greenhouse gas emissions and require utilities in the nation's third-biggest power-producer to buy more electricity from renewable sources. (AP Photo/Matt Rourke)
Aired; May 23rd, 2025.
A pivotal case now before the Pennsylvania Supreme Court could determine whether the state continues participating in a key carbon-reduction program known as the Regional Greenhouse Gas Initiative (RGGI). The outcome may have lasting implications for Pennsylvania’s energy policy, economy, and environmental health.
RGGI is a multi-state cooperative aimed at cutting carbon dioxide emissions from power plants. “Together these states established a regional cap on CO2 emissions,” explained Julie Grant of The Allegheny Front in a recent interview on The SPARK. “Since 2005, the 10 states in RGGI say they have reduced the annual power sector emissions by 50%, and that’s significantly faster than the nation as a whole.”
Pennsylvania joined RGGI in 2022 under former Governor Tom Wolf, becoming the first major fossil fuel-producing state to put a price on carbon. The program requires large coal- and natural gas-fired plants to buy allowances for each ton of carbon they emit. These allowances are auctioned off quarterly, creating both a cap on pollution and a secondary carbon market.
However, opposition from Republican lawmakers led to a legal challenge. They argue that the program imposes a tax—which only the legislature can authorize—rather than a regulatory fee. “The argument against joining RGGI was that by requiring power plants to buy carbon credits… the state was creating a tax,” said Grant. “In November of 2023, the Commonwealth Court agreed… saying participation needed to be approved through the General Assembly.”
Governor Josh Shapiro inherited the case, and his administration has appealed to the state Supreme Court. “They argued that the Commonwealth membership in RGGI is authorized by the state’s Air Pollution Control Act,” Grant noted, emphasizing that the administration views the program’s charges as regulatory fees, not taxes.
Environmental groups like PennFuture, the Sierra Club, and the Environmental Defense Fund have backed the state’s appeal, citing Pennsylvania’s Environmental Rights Amendment, which guarantees citizens the right to clean air and water.
At the same time, Shapiro has shown some skepticism about RGGI’s effectiveness. “The governor has also raised concerns,” Grant said. “He’s convened a working group… and they recently released a report that said a cap-and-investment program would be optimal… but did not endorse RGGI as the best option.”
As a result, Shapiro is now proposing a Pennsylvania-specific alternative: the Pennsylvania Climate Emissions Reduction Initiative (PACER), designed to cap emissions and make polluters pay—potentially without the legal controversy RGGI has sparked.
With the state Supreme Court still deliberating, the future of Pennsylvania’s role in regional climate action hangs in balance.
