The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort by eight northeastern states to reduce global warming pollution. This landmark program will create the nation’s first multi-state emissions trading program for carbon dioxide. RGGI was initiated in April 2003, when New York Governor George E. Pataki called on governors of northeastern states to work together to reduce global warming pollution from power plants. Nine governors committed to participate in this effort.

After extended negotiations, seven states -- Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont -- officially agreed about the framework of RGGI on December 20, 2005. Maryland joined the pact March 31, 2006. Although both Massachusetts and Rhode Island were active participants in the design of the RGGI framework, Governor Mitt Romney withdrew Massachusetts from the agreement at the last minute, and Rhode Island Governor Donald Carcieri followed suit. The RGGI framework, however, includes a clear method for Massachusetts and Rhode Island to rejoin this effort -- simply by informing the other RGGI states of their intention and agreeing to the established rules.  The Massachusetts legislature has now begun this process.

The RGGI plan provides a flexible and cost-effective means for power companies to achieve their emissions reduction target while simultaneously offering incentives for energy efficiency and renewable energy technologies. The agreement calls on these states to stabilize carbon dioxide emissions from the region’s power plants at current levels (2005) from 2009 to the start of 2015, followed by a 10 percent reduction in emissions by 2019. In order to accomplish this, the emissions allowed under the new cap will then be divided up into individual permits and allocated by each state. Generators will need to hold a number of permits equal to their emissions. They will be able to trade permits and to offset up to 3.3 percent of their emissions by purchasing “offsets allowances,” which are “certified emissions reductions or carbon sequestration that take place outside the electric generating sector.”

For the next step in the process, representatives of the eight states will work to create a draft model rule. This model rule will be based upon the framework agreement and is intended to detail the specific rules and regulations under RGGI. Once a draft is released, it will be followed by a 60-day public comment period, after which the final rule will be released. Once the states have agreed on the final rules, each state will seek to implement the program before December 2008.

Massachusetts Senators: You can also find your senator here.