Regional Greenhouse Gas Initiative (RGGI)

The Regional Greenhouse Gas Initiative, or RGGI, is an agreement among ten Northeastern and Mid-Atlantic States (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) to reduce greenhouse gas emissions from power plants. The RGGI states (“Participating States”) have committed to cap and then reduce the amount of carbon dioxide that certain power plants are allowed to emit, limiting the region’s total contribution to atmospheric greenhouse gas levels. The Participating States have agreed to implement RGGI through a regional cap-and-trade program using uniform quarterly auctions to sell nearly the entire annual regional emissions budget of approximately 188 million allowances per year.

NYSERDA’s Role in RGGI
Rules and regulations under development by the NYS Department of Environmental Conservation (DEC) and NYSERDA, call for NYSERDA to administer or participate in periodic auctions to sell approximately 62 million allowances per year, nearly 100% of New York’s annual emissions budget. Pursuant to these regulations, the proceeds will be used by NYSERDA to administer energy efficiency, renewable energy, and/or innovative carbon abatement programs and to cover the costs to administer such programs.

Notice of Auction
On June 17, 2009 the New York State Energy Research and Development Authority (“NYSERDA”) will be participating in a regional auction for the sale of carbon dioxide allowances under the Regional Greenhouse Gas Initiative (“RGGI”) in accordance with the CO2 Allowance Auction Program (Title 21 NYCRR Part 507). The auction will be conducted on June 17, 2009, from 9 a.m. until 12 p.m. ET. In this auction, NYSERDA will be making available for sale 11,861,849 allowances from the 2009 Allocation Year, and 776,385 allowances from the 2012 Allocation Year. All parties are eligible to participate in this auction provided they become qualified and meet all other participation requirements. Applications for participation are due May 1, 2009. Complete details on the June 17, 2009 auction, including the auction schedule, participation requirements, and auction documents can be found at: www.rggi.org. The NYSERDA contact person regarding the New York CO2 Allowance Auction Program is Kevin Hale, who can be contacted at rggi@nyserda.org. 

Development of an Operating Plan Related to Auction Proceeds
NYSERDA has begun a process to develop an Operating Plan that will summarize and describe the initiatives to be supported with the RGGI auction proceeds. The Plan will include (a) program selection criteria, (b) an anticipated schedule for implementation of the programs, (c) descriptions of the measurement, verification, and evaluation methods that will be used to judge the impacts and success of the programs, and (d) a quantification of NYSERDA’s costs for administration and evaluation of the programs.

Similar to other programs that NYSERDA administers, the Authority has convened an Advisory Group to advise it on how to best use these proceeds. Meetings with the Advisory Group will be open to the public. The final version of the Operating Plan will be presented to NYSERDA’s Board for review and approval in the Spring of 2009.

The first step in the process involved the development of a Concept Paper to establish a foundation for programs to be supported with RGGI auction proceeds. The Concept Paper also outlined the process for developing these programs and included some initial ideas about how the proceeds might be used. Please click here to view the Concept Paper.

An open meeting with the Advisory Group was held on November 21st in Albany, New York at the Desmond Hotel and Conference Center to discuss this Concept Paper. The agenda can be accessed here.  For more information, please see NYSERDA's Development Process presentation and DEC's presentation.  For video of the event, please visit our archived RGGI Advisory Group Meeting video page.

Comments on the Concept Paper that were submitted may be viewed here.

A meeting was also held on January 14th in Albany to discuss the Concept Paper with various New York State agencies.  DEC's presentation and NYSERDA's presentations are both available to download.

Another open meeting with the Advisory Group was held to discuss the draft Operating Plan on March 6th in New York City at the New York State Public Service Commission public hearing room. The agenda for the meeting may be viewed here and a pdf of the presentation is also available. The draft Operating Plan can be viewed here. A Windows Media Player version of the March 6th meeting can be viewed in two parts - Part 1 - Part 2 - If you do not have Windows Media Player on your computer, you can download Windows Media Player here.

The comments that were on the draft Operating Plan can be viewed at our written comments page. A formal Response to Comments document has been created and can be viewed here. The input from the Advisory Group and other stakeholder comments were used to develop a final version of the RGGI Operating Plan.

The final version of the Operating Plan and the Responses to Comments document were distributed to NYSERDA’s Board of Directors for its review and consideration during its April 27, 2009 meeting. The Board approved the Operating Plan at this meeting.

Since a number of factors may impact the roll-out of RGGI programs during the first year of the Operating Plan (e.g., changes in the economy, the uncertainty associated with the pending RGGI litigation, efforts to supplement and not supplant economic stimulus funding, etc.), a provision was included in the final Operating Plan stating that an update will be provided to NYSERDA’s Board of Directors, the Advisory Group and other stakeholders six months after the Operating Plan is approved. It is anticipated that such an update will help determine whether adjustments to the Operating Plan will be needed at that time.

NYSERDA’s RGGI Auction Regulation (Part 507)
Part 507 has been designed to complement the provisions of the CO2 Budget Trading Program, which is being separately promulgated as new Part 242 by the Department of Environmental Conservation.

Final Express Terms Part 507 - Effective October 8, 2008 (43kb .pdf)

Revised Part 507 Proposal - May, 2008

NYSERDA Revised Express Terms - Part 507 (42kb .pdf)

NYSERDA Revised Regulatory Impact Statement - Part 507 (40kb .pdf)

NYSERDA Revised Rural Area Flexibility Analysis - Part 507 (18kb .pdf)

NYSERDA Revised Regulatory Flexibility Analysis for Small Businesses and Local Governments - Part 507 (9kb .pdf)

NYSERDA Revised Job Impact Statement - Part 507 (9kb .pdf)

Initial Proposal - October, 2007

NYSERDA Summary of Express Terms (10kb .pdf)

NYSERDA Express Terms - Part 507 (39kb .pdf)

NYSERDA RIS - Part 507 (50kb .pdf)

NYSERDA RFA - Part 507 (19kb .pdf)

NYSERDA RAFA - Part 507 (22kb .pdf)

NYSERDA JIS - Part 507 (16kb .pdf)

Useful Links and Documents

DEC RGGI site:  http://www.dec.ny.gov/energy/rggi.html

Regional Greenhouse Gas Initiative:  http://www.rggi.org

For more information

For more information please email: rggi@nyserda.org

17 Columbia Circle, Albany, NY 12203-6399    Toll-Free: 1-866-NYSERDA or Local: 518-862-1090    Fax: 518-862-1091
New York City and Buffalo Regional Offices

© 2004 New York State Energy Research and Development Authority