2. 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

3. 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

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

5. 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

6. 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

7. RGGI Performance - Economics
First 2.5 Years
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:
Update
Source: RGGI, Inc.: The Investment of RGGI Proceeds Through 2014

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

9. 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

10. RGGI Performance - Health
Cumulative RGGI Health Benefits,
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

11. 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

12. 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

13. 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

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

15. 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

16. Policy Analyst, Clean Energy Initiative
Contact Information
Jordan Stutt
Policy Analyst, Clean Energy Initiative
(617) x105
Boston, MA • Hartford, CT • New York, NY • Providence, RI • Rockport, ME • Ottawa, ON, Canada