Regional Greenhouse Gas Initiative (RGGI)

Issue context, Background, & Resources

Overview: RGGI in PA

 

On October 3, 2019, Governor Wolf issued an Executive Order directing the Department of Environmental Protection (DEP) to develop a carbon budget trading program that would allow Pennsylvania to join with the Regional Greenhouse Gas Initiative, a multi-state compact of Northeastern and Mid-Atlantic states to reduce carbon pollution.

States that participate in RGGI require power plants to purchase allowances in order to emit carbon pollution. This mechanism generates proceeds that are then reinvested into the state’s economy, usually through programs that support energy efficiency, clean energy, and greenhouse gas reduction. RGGI states have invested over half of all proceeds into energy efficiency programs over the lifetime of the compact. It is through this investment of proceeds that RGGI makes a bold impact on energy efficiency, clean energy, and statewide economic development.

The Analysis Group estimates that RGGI delivered 4 billion in net economic benefits over its first decade. These economic benefits came in the form of direct benefits from job creation and bill savings as a result of energy efficiency investments, but also and indirect effects from new demand for local goods, services and jobs that result from that investment.

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