August 30, 2006—The seven Northeast states participating in the Regional Greenhouse Gas Initiative (RGGI)an effort to set a cap-and-trade system for greenhouse gas emissionsreleased a model rule for the program recently.
The model rule will form the basis for individual state regulatory or statutory proposals to implement the program. Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont are participating in the program, while recent legislation in Maryland requires the state to join RGGI by June 2007.
Under RGGI (pronounced “Reggie”), the seven states intend to launch a regional cap-and-trade system that utilizes emissions credits or allowances to limit the total amount of carbon dioxide emissions.
Beginning in 2009, emissions of carbon dioxide from power plants in the region would be capped at current levels of 121 million tons annually. The cap remains at the same level until 2015, after which the states would then begin reducing emissions over a four-year period to achieve a 10 percent reduction by 2019. Compared to the emissions increases the region would see from power plants without the program, RGGI will result in an approximately 35 percent reduction by 2020.
For more information, see the RGGI Web site.
