Congress moves to strip funding from state energy efficiency programs
H.R. 7991 — STOP RGGI Act · Filed by Jefferson Van Drew (R-NJ) · Introduced Mar 18, 2026 · Referred to committee
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What it does
This bill prohibits states from imposing charges (such as fees or surcharges) to fund the Regional Greenhouse Gas Initiative (RGGI) Energy Efficiency Program. RGGI is a multi-state cap-and-trade system for carbon emissions; the bill blocks states from using revenue from that system to pay for energy efficiency programs, effectively defunding those programs unless states find alternative funding sources.
Why we flagged it
The bill's operative mechanism is a direct prohibition on state funding of a specific climate program. While framed as a tax/charge restriction, its functional effect is to starve energy efficiency initiatives of their primary revenue source, making it a defunding measure rather than a tax-relief measure.
What the text implies
- States may redirect RGGI revenue to other uses (general fund, other programs) rather than lose it entirely, meaning the bill does not necessarily reduce total state revenue—only its allocation to efficiency.
- Energy efficiency programs typically serve lower-income households disproportionately; defunding them may widen the energy-cost burden gap between wealthy and low-income households.
The full analysis lists 4 implications of this text.
Who stands to gain
fossil fuel producers and utilities (reduced pressure to fund efficiency, which competes with energy; energy-intensive industries (lower compliance costs if efficiency programs shrink)