08.15.06
RGGI - Northeast States Reach Agreement on Proposed Rules
Today, the seven northeast states participating in the Regional Greenhouse Gas Initiative (”RGGI”) released the model set of rules intended to be the starting point for obtaining the legislative and regulatory approvals necessary for implementing the program. They also released an amendment to their December 2005 Memorandum of Understanding.
If approved, this will be the first mandatory cap-and-trade program for CO2 emissions in the United States. Participating states are: Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont. The State of Maryland recently adopted legislation requiring it to join RGGI by June, 2007.
Beginning in 2009, CO2 emissions from regional power plants would be capped at close to current levels - 121 million tons annually - with this cap remaining in effect until 2015. The states would then begin reducing emissions incrementally over a 4-year period to achieve a 10% reduction in CO2 emissions by 2019. It is projected that RGGI will result in an estimated 35% reduction in CO2 emissions in the region by 2020.
The participating states will now proceed with obtaining the necessary approvals from their respective legislative and regulatory bodies. Pending successful completion of this process, the RGGI program is expected to become effective on January 1, 2009. For additional information on the RGGI program, go to www.rggi.org.
Lynn Fountain