The RGGI Model Rule

The Model Rule is a set of proposed regulations that form the basis for each RGGI state's CO₂ Budget Trading Program. Since its original design, the Model Rule has been periodically revised.

On March 23, 2006, the RGGI states released a draft version of the Model Rule for public comment. The states received over 1,000 pages of comments from more than 100 organizations over a period of 60 days. Taking these comments into account, the RGGI states issued an updated Model Rule on August 15, 2006. On December 31, 2008, the states issued a further revised Model Rule to reflect consistencies among state rules.

In 2012, the RGGI states conducted a comprehensive Program Review process, including extensive research, modeling, and stakeholder outreach and commentary. The RGGI states released a revised Model Rule on February 7, 2013, and non-substantive technical revisions to this rule were released on December 23, 2013.

In 2016, the RGGI states again conducted a Program Review process which resulted in the release of a revised 2017 Model Rule on December 19, 2017. The participating states will next move forward with state-specific processes to implement statutes/regulations based on this revised Model Rule. More information on next steps is available in the Principles to Accompany Model Rule Amendments, released at the same time.

The RGGI Memorandum of Understanding

On December 20, 2005, seven states announced an agreement to implement the Regional Greenhouse Gas Initiative, as outlined in a Memorandum of Understanding (MOU) which outlines the framework for a Model Rule.  The MOU was signed by the Governors of the participating states, including Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont.

In 2006, in response to public comments, the states agreed to substantive amendments to the MOU. Those amendments were signed by the agency heads of the energy regulatory and environmental agencies in each participating state. In early 2007, Massachusetts and Rhode Island, which had participated in the early development of RGGI, signed the MOU, as did Maryland later that year.