State lawmakers approved legislation Wednesday that ends Pennsylvania’s participation in a multi-state program to offset global warming by reducing greenhouse gas emissions.

The provision is part of the Fiscal Code, a piece of the state budget package for Fiscal Year 2025-26.

An amended House Bill 416 was approved by a 43-6 vote in the Senate and 189-14 vote in the House. HB416 goes to Gov. Josh Shapiro for signing.

The scrapping of the Regional Greenhouse Gas Initiative, removes a flashpoint between the Senate Republican majority and Shapiro over energy policy.

RGGI requires fossil fuel plants to purchase credits for their CO2 emissions. GOP senators have long criticized RGGI as harmful to economic development.

Former Gov. Tom Wolf led Pennsylvania into RGGI in 2019, but a legal challenge blocked full participation in the initiative.

Sen. Carolyn Comitta, D-Chester, minority chair of the Senate Environmental Resources and Energy Committee, said she was willing to set RGGI aside to end the state budget impasse. But Comitta said senators need to consider her Senate Bill 503 to reduce greenhouse gas emissions.

New state tax credit

Drawing bipartisan support is a provision to establish a new state tax credit for working Pennsylvanians to help pay for child care, transportation and other expenses.

The state tax credit is equal to 10% of a federal earned income tax credit, according to a Senate fiscal note.

Sen. Lynda Culver, R-Northumberland, said the tax credit will give families “a hand up.”

The Fiscal Code contains a grab bag of provisions authorizing various fees, fund transfers and directives for state agencies among other items.

Fiscal Code provisions implement many appropriations found in the state budget. The Fiscal Code contains language from a number of bills that gained traction this year.

HB416 extends the current 911 state surcharge on wireless phones at $1.95 monthly for three years until January 2029.

Surcharge revenue helps fund county-run 911 emergency call systems. The County Commissioners Association of Pennsylvania sought a higher $2.20 rate to ease the burden on county taxpayers.