Regional Greenhouse Gas Initiative (RGGI)

The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory U.S. cap-and-trade program for carbon dioxide. It was established in December 2005 by the governors of seven Northeastern and Mid-Atlantic states: Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont. RGGI sets a cap on emissions of carbon dioxide from power plants, and allows sources to trade emissions allowances. The program will begin by capping emissions at current levels in 2009, and then reducing emissions 10% by 2018. Massachusetts and Rhode Island both joined RGGI in early 2007, and Maryland joined in April 2007.

Timeline

March 18, 2009: RGGI member states conduct third allowance auction [1].

December 31, 2008: RGGI member states and RGGI observer Pennsylvania sign a Letter of Intent to develop a Low Carbon Fuel Standard [2].

December 17, 2008: RGGI member states conduct second allowance auction [3].

September 25, 2008: RGGI member states conduct initial allowance auction [4].

July 24, 2008: RGGI releases materials [5] for initial allowance auction.

April 20, 2007: Governor Martin O'Malley of Maryland commits his state to join RGGI, bringing the total number of participating states to ten.

January 30, 2007: Governor Donald Carcieri announces that Rhode Island will join RGGI.

January 18, 2007: Governor Deval Patrick of Massachusetts commits his state to join RGGI, making Massachusetts the eighth member state.

August 15, 2006: The seven Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) release the final model rule [6] for the program. The model rule provides a set of regulations for the structure and function of RGGI. Each state that intends to participate in RGGI must adopt this rule through legislation or regulation.

March 23, 2006: The seven RGGI states release the draft model rule [6], which, once finalized, will form the basis of state regulations to implement RGGI. The public is invited to comment on the draft model rule for 60 days, until May 22, 2006.

December 20, 2005: The governors of seven Northeastern states announce the creation of the Regional Greenhouse Gas Initiative (RGGI). The governors of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont sign a Memorandum of Understanding agreeing to implement the first mandatory U.S. cap-and-trade program for carbon dioxide. RGGI sets a cap on emissions of carbon dioxide from power plants, and allows sources to trade emissions allowances. The program will begin by capping emissions at current levels in 2009, and then reducing emissions 10% by 2019.

Related Materials

Allowance distribution summary chart [7]

Governors' Statements

• Governor M. Jodi Rell [8] (R), Connecticut
• Governor Ruth Ann Minner [9] (D), Delaware
• Governor John Elias Baldacci [10] (D), Maine
• Governor Martin O'Malley [11] (D), Maryland
• Governor Deval Patrick [12] (D), Massachusetts
• Governor John Lynch [13] (D), New Hampshire
• Acting Governor Richard J. Codey [14] (D), New Jersey
• Governor George E. Pataki [15] (R), New York
• Governor Donald Carcieri [16] (R), Rhode Island
• Governor James H. Douglas [17] (R), Vermont

State Statutes and Rules for Implementation

• Connecticut: Public Act No. 07-242 [18], "An Act Concerning Electricity and Energy Efficiency"; 22a-174-31 [19], "Control of Carbon Dioxde Emissions/Carbon Dioxide Budget Trading Program"
• Delaware: SB 263 [20], "An Act to Amend Title 7 of the Delaware Code Relating to a Regional Greenhouse Gas Initiative and CO₂ Emission Trading Program." Proposed Regulation No. 1147 [21], "CO₂ Budget Trading Program"
• Maine: LD 1851 [22], "An Act to Establish the Regional Greenhouse Gas Initiative Act of 2007"; Chapter 156 [23], "CO₂ Budget Trading Program"
• Maryland: Subtitle 26.09 [24], Maryland CO₂ Budget Trading Program (draft as of October 2007)
• Massachusetts:  SB 2768 [25], "The Green Communities Act of 2008"; 310 CMR 7.70 [26], "Massachusetts CO₂ Budget Trading Program"; 225 CMR 13.00 [27], "DOER CO₂ Budget Trading Program Auction Regulation"
• New Hampshire: HB 1434 [28], "An Act Relative to the Regional Greenhouse Gas Initiative and Authorizing Cap-and-Trade Programs for Controlling Carbon Dioxide Emissions"
• New Jersey: A4559 [29], "The New Jersey Regional Greenhouse Gas Initiative Act"; Proposed Regulation [30], "CO₂ Budget Trading Program" 
• New York: Draft Part 242 [31], "CO₂ Budget Trading Program"
• Rhode Island: H5577 [32], "An Act Relating to Health and Safety - Implementation of the Regional Greenhouse Gas Initiative Act"
• Vermont: Title 30, Chapter 5, §255 [33], "Regional Coordination to Reduce Greenhouse Gases"; Chapter 22 [34], "Vermont CO₂ Budget Trading Program"

Supporting Statements

On the September 2008 RGGI Auction
Statement from Eileen Claussen on September 2008 RGGI Auction [35]

Judi Greenwald discusses the significance of the RGGI's first auction [36] of emissions allowances on NPR's The Kojo Nnamdi Show. (September 24, 2008)

Additional statements:

• Pew Center on Global Climate Change
  Eileen Claussen [37] (pdf)
  Theodore Roosevelt, IV [38] (pdf)
• Entergy [39] (pdf)
• BP [40] (pdf)

Find out what's being done in other states [41] to combat climate change.