Regional Greenhouse Gas Initiative: Lessons Learned from the Design of the Nation

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Regional Greenhouse Gas InitiativeLessons
Learned from the Design of the Nations First
Carbon Cap-and-Trade Program
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Overview

• Brief Background on RGGI
• Some RGGI Innovations
• Lessons Learned

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Regional Greenhouse Gas Initiative
The Nations First Mandatory Cap-and-Trade
Program for Carbon Dioxide Launch Date Jan. 1,
2009
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Process

• April 2003 Invitation
• 3 Year Design Process
• December 2005 Memorandum of Understanding (7
  States)
• Model Rule Completed
• MA RI Joined
• MD to Sign

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The Region at a Glance(CT, DE, ME, MD, ME, NH,
NJ, NY, RI VT)

• 48.8 million people (16 of US Population)
• 10 of U.S. Emissions
• 8th largest emitter in the world
• 2.4 trillion economy (19 of U.S.)

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Reduction Requirements

• Stabilize emissions at current levels through
  2014
• then reduce by 10 by 2019
• 13 below 1990 levels
• 35 below business as usual

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RGGI Innovations

• Firing Biomass/Biofuel a control method
• Offsets Valve
• Offsets5 Initial Types
• Natural Gas, Propane, Heating Oil Efficiency
• Land to Forest
• Landfill Gas Capture Combustion
• Methane Capture from Animal Operations
• SF6 Leak Prevention.
• Recognition of International Currencies

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RGGI Innovations

• Allocations
• States agreed to propose minimum 25 public
  benefit allocation in MOU
• A number of states have proposed 100 auction
• New York
• Massachusetts
• Maine
• Vermont
• New Jersey (up to 100)

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Lessons Learned

• Clear, Simple Rules
• Allowance Allocations Provide Opportunity to
  Lessen Impacts of the Program
• Integrity of Offsets Requires Careful Approach
  to Design Implementation

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RGGI Next Steps

• Complete RGGI Implementation
• Get rules on the books
• Auction Platform and Tracking System
• First auction early 2008?
• Bring Maryland On
• Add Additional StatesPA?
• Link to California? Others in West Coast AZ, NM,
  OR, WA?
• Address Imports of Electricity

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RGGI California

• MOU among RGGI States Welcomes Participation by
  Additional States
• RGGI California
• 28.5 of U.S. Population
• 32 of U.S. Economy
• 3rd Largest World Economy
• 17 of U.S. GHG Emissions
• 6th Largest Emitter Worldwide

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Franz Litz Climate Change Policy CoordinatorNY
Dept. of Environmental Conservation ftlitz_at_gw.dec.
state.ny.us