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RGGI Program Overview, Review & Admendments

Summary of the Regional Greenhouse Gas Initiative Program and its functions, including a description of 2018 Amendments to RGGI

Table of Contents

Program Overview

On December 6, 2013, DOER finalized amendments to 225 CMR 13.00, DOER CO2 Budget Trading Program Auction Regulation. The Department of Environmental Protection (MassDEP) concurrently amended its regulation 310 CMR 7.70, the Massachusetts CO2 Budget Trading Program. These amendments implement the changes announced by on February 7, 2013, to revise the RGGI program by reducing the regional cap to 91 million tons per year, and implementing programmatic changes, including the auction process, consistent with a model rule developed by the nine RGGI states. The amendments include:

  • Lowering the MA base budget by 40% for the years 2014-2020,
  • Further adjustments to MA base budget for 2014-2020 to account for allowances already held by regulated facilities and private entities,  
  • A Cost Containment Reserve to mitigate price spikes by providing a limited quantity of  allowances in addition to the cap if certain price thresholds are exceeded,
  • Updates to the RGGI offsets program, including a new forestry protocol,
  • Interim Compliance Periods to require partial compliance in the first two years of each three year control period,
  • Administrative updates including documents incorporated by reference.

The overall changes to the RGGI program will cause real reductions in greenhouse gas emissions and the economic proceeds will be invested in programs to promote energy efficiency, conservation and demand response.

The changes were developed through a regional stakeholder process, coordinated through RGGI, Inc. RGGI, Inc. is a nonprofit corporation established by the RGGI participating states to support the development and implementation of the RGGI program. The RGGI program review was a rigorous and comprehensive evaluation, supported by an extensive stakeholder process that engaged the regulated community (including 28 large, fossil-fueled power plants in Massachusetts), environmental, consumer and industry advocates, and other interested stakeholders.

Additional Resources

2018 Admentments

In a move that will accelerate state and regional efforts to combat climate change while continuing to grow the economy, Massachusetts joined with eight other Northeastern and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) on August 23, 2017, to announce a plan to reduce greenhouse gas emissions beyond 2020.  As the result of extensive RGGI program review conducted by the states over 18 months, the proposal calls for an additional 30 percent cap reduction between 2021 and 2030, relative to the RGGI 2020 levels


On December 28, 2018, the Massachusetts Department of Energy Resources (DOER), acting under the statutory authority of G.L. c. 25A, §§ 6 and 13, G.L. c. 21A, §22, and in conformance with G.L. c. 30A, held public hearings on proposed amendments to 225 CMR 13.00, the DOER CO2 Budget Trading Program Auction Regulation, concurrent with MassDEP’s revisions to 310 CMR 7.70: CO2 Budget Trading Program. Together, these amendments implement the changes announced by Governor Baker on August 23, 2017, to revise the Regional Greenhouse Gas Initiative (RGGI) program by reducing the regional cap and implementing programmatic changes, including the auction process, consistent with a model rule developed by the nine RGGI states. The overall changes to the RGGI program will cause real reductions in greenhouse gas emissions and, in accordance with the Green Communities Act, the economic proceeds will be invested in programs to promote energy efficiency, conservation and demand response.

Additional Resources

Contact

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