The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort among the states of Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont to cap and reduce power sector CO2 emissions.
RGGI is composed of individual CO2 Budget Trading Programs in each participating state. Through independent regulations, based on the RGGI Model Rule, each state's CO2 Budget Trading Program limits emissions of CO2 from electric power plants, issues CO2 allowances and establishes participation in regional CO2 allowance auctions.
Regulated power plants can use a CO2 allowance issued by any participating state to demonstrate compliance with an individual state program. In this manner, the state programs, in aggregate, function as a single regional compliance market for CO2 emissions.
RGGI is the first mandatory, market-based CO2 emissions reduction program in the United States.
The Participating States have conducted a comprehensive program review of the CO2 Budget Trading Programs. Proposed amendments to RGGI, including revisions to the RGGI CO2 emissions cap, have been incorporated in an Updated Model Rule released on February 7, 2013. The Updated Model Rule will guide each state as it follows its own statutory and/or regulatory procedures to propose updates to its CO2 Budget Trading Program. More information on the Updated Model Rule and accompanying materials is available at http://www.rggi.org/design/program_review.