Regional Greenhouse Gas Initiative Local Environmental Action Conference March 5th, 2017 Jordan Stutt Policy Analyst, Clean Energy Initiative Acadia Center RGGI 101 Briefing for Senator Casey’s Office   Peter Jordan

Acadia Center Environmental Policy, Research, and Advocacy Boston, MA / Providence, RI / Rockport, ME / Portland, ME / Hartford, CT / Ottawa, ON, Canada / New York City, NY Program Areas Energy Policy Climate Change Transportation and Diesel Forest Practices and Land Use ACEEE Summer Study August 2008 3

Overview RGGI’s History RGGI Performance To-Date 2016 Program Review Aligning RGGI with Long-Term Goals

RGGI’s History 2003: Governor Pataki (R-NY) sends a letter to Governors throughout the region Increase the region’s energy security by reducing dependence on imported fuels; Improve local air quality; and Stem the growth of greenhouse gas emissions. 2005: Memorandum of Understanding (MOU) 7 states (CT, DE, ME, NH, NJ, NY, VT) 2007: Additional states sign the MOU MA, MD and RI join 2009: Compliance begins Initial discussions as to whether allowances should be auctioned or given away for free

RGGI Model – Cap and Invest Setting a Cap on CO2 Emissions Align cap with environmental goals Original goal: stabilize emissions New goal: TBD Account for impacts on energy bills Auctions Held quarterly since September, 2008 Open to all bidders Independent monitoring $2.63 billion raised to-date Use of Auction Revenue Initial MOU: >25% for “consumer benefit” or “strategic energy purpose” States use auction revenue to meet local objectives Clean energy investments help to achieve triple bottom line Initial discussions as to whether allowances should be auctioned or given away for free

RGGI Performance - Economics First 2.5 Years 2012-2014 Net Economic Growth $1.6 billion $1.3 billion Energy Bill Savings $1.1 billion $460 million Job-Years of Employment 16,000 14,200 Source: Analysis Group, available at: http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/analysis_group_rggi_report_july_2015.pdf Update Source: RGGI, Inc.: The Investment of RGGI Proceeds Through 2014

RGGI Investment Impacts Source: RGGI, Inc.: The Investment of RGGI Proceeds Through 2014

RGGI Performance - Emissions Basis for setting initial cap Emissions were high in 2005, served as basis for initial 2009 cap level Emissions had fallen substantially by the time RGGI was underway Part of that reduction is attributable to RGGI – recognizing costs in the future, generators starting acting early

RGGI Performance - Health Cumulative RGGI Health Benefits, 2009-2014 Emissions were high in 2005, served as basis for initial 2009 cap level Emissions had fallen substantially by the time RGGI was underway Part of that reduction is attributable to RGGI – recognizing costs in the future, generators starting acting early

RGGI Performance - Health Emissions were high in 2005, served as basis for initial 2009 cap level Emissions had fallen substantially by the time RGGI was underway Part of that reduction is attributable to RGGI – recognizing costs in the future, generators starting acting early

2016 RGGI Program Review Opportunity to discuss program, receive stakeholder input, conduct modeling and implement improvements Previous Program Review resulted in 45% reduction of the RGGI cap Key items for discussion at the current Program Review: Determining future RGGI cap levels Addressing flexibility mechanisms Considering RGGI’s broader role

Achieving Long-Term Targets All 9 RGGI states have long-term, economy-wide greenhouse gas (GHG) reduction targets Meeting these targets will be dependent on significant reductions from the electric sector RGGI State 2030 Economy-Wide GHG Target 2050 Economy-Wide GHG Target Connecticut 35-45% below 1990 80% below 2001 Delaware 30% below 2008 - Maine 75-85% below 2003 Maryland 40% below 2006 90% below 2006 Massachusetts 80% below 1990 New Hampshire New York 40% below 1990 Rhode Island 75-80% below 2002 Vermont 75% below 1990 2015 RGGI Emissions: 83.2 million 2030 CPP target: 78 million

RGGI Emissions and Scenarios for Modeling Paths Forward RGGI Emissions and Scenarios for Modeling Lowest cost pathway to achieving 2030 goals

RGGI’s Broader Role States must determine goals, with stakeholder input Achieve Greenhouse Gas targets Long term targets in place for 2030 and 2050 Create in-state benefits Consumer impacts, health and economic benefits Ensure equitable benefits Targeted investments in low-income communities Environmental justice analysis Lead by example Identify and promote best practices Expand the program Other regions? Other sectors? Last fall, Cuomo announced that he was directing his admin. to explore linkage options Prices economy-wide vs electric sector only

Policy Analyst, Clean Energy Initiative Contact Information Jordan Stutt Policy Analyst, Clean Energy Initiative (617) 742-0054 x105 jstutt@acadiacenter.org Boston, MA • Hartford, CT • New York, NY • Providence, RI • Rockport, ME • Ottawa, ON, Canada www.acadiacenter.org