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The Regional Greenhouse Gas Initiative

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RGGI Overview

The Regional Greenhouse Gas Initiative (RGGI) is a cap and trade initiative set to regulate and reduce the emissions of greenhouse gases from power generating facilities with an electrical capacity equal or greater than 25 electrical megawatts (RGGI, 2015). The drafting of this initiative started in 2003 when Connecticut (CT), Delaware (DE), Maine (ME), Massachusetts (MA), New Hampshire (NH), New Jersey (NJ), New York (NY), Rhode Island (RI), and Vermont (VT) showed interest in reviewing greenhouse gas emissions and a cap-trade coalition to address the emission from power plants in their territory. In 2005, the above mentioned states with the exception of RI and MA signed a Memorandum of Understanding (MOU) that outlined the model rules for the program. Some of the topics outlined in RGGI Model Rule include: the responsibilities of the account representatives, permitting recommendations, monitoring requirements, compliance certification reports, control periods and others. The Model Rules were also the building blocks used to develop state-specific regulations supporting the goals and actions necessary to succeed as a member. In 2007 MA, RI and MD also signed the MOU (RGGI, 2015a; RGGI, 2015b). On January 1, 2012, RGGI lost one of its founding members after the governor of NJ; Chris Christie withdrew NJ’s support to the initiative. Throughout its participation, NJ received over $100 million in revenues directly from the RGGI markets. (Christie, 2011) The

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