{ "id": "R41836", "type": "CRS Report", "typeId": "REPORTS", "number": "R41836", "active": true, "source": "EveryCRSReport.com, University of North Texas Libraries Government Documents Department", "versions": [ { "source": "EveryCRSReport.com", "id": 602551, "date": "2019-07-16", "retrieved": "2019-07-20T22:15:49.035744", "title": "The Regional Greenhouse Gas Initiative: Background, Impacts, and Selected Issues", "summary": "The Regional Greenhouse Gas Initiative (RGGI) was the nation\u2019s first mandatory cap-and-trade program for greenhouse gas (GHG) emissions. RGGI currently involves nine states\u2014Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. New Jersey is to rejoin the program in 2020. The RGGI cap-and-trade system applies only to carbon dioxide (CO2) emissions from electric power plants with capacities to generate 25 megawatts or more\u2014165 facilities in the region. The RGGI emissions cap took effect January 1, 2009, based on an agreement signed by RGGI state governors in 2005.\nThe experience and results of the RGGI program may be instructive to federal policymakers. If Congress were to consider establishing a program to reduce GHG emissions, several of RGGI\u2019s design elements may be of interest. For example, the program\u2019s emissions cap has received particular attention. When the original cap took effect in 2009, the emissions cap exceeded actual emissions by a wide margin, limiting its ability to compel regulated entities to make internal emission reductions or purchase emission credits from other sources (see Figure). Several factors led to this outcome: RGGI\u2019s cap design, an economic downturn, and a shift to less carbon-intensive fuels.\nPursuant to RGGI\u2019s 2005 agreement, the RGGI states examined the program\u2019s effectiveness in 2012. To address the disparity between the cap and actual emissions, RGGI states agreed to reduce the existing cap by 45% so that the cap level would match actual emissions. The revised cap took effect in January 2014. Following a second RGGI design review, which was completed in 2017, RGGI states agreed to extend the cap through 2030 (see Figure).\nObserved Emissions and the Original and Revised Caps\n/\nSource: Prepared by CRS; observed state emission data (2000-2018) provided by RGGI.\nAlthough RGGI\u2019s actual emissions were well below the original emissions cap during the program\u2019s initial years, the cap\u2019s existence attached a price to the regulated entities\u2019 CO2 emissions. Because the cap level was above actual emissions, the allowance price acted like an emissions fee or carbon tax. \nThe RGGI states sold, in aggregate, approximately 80% of their budgeted emission allowances through quarterly auctions between 2008 and 2019. The auction proceeds\u2014$3.2 billion to date\u2014have provided a new source of revenue, which has been used to support various policy objectives. RGGI states (as a group) have distributed the vast majority of the emission allowance value to support energy efficiency, renewable energy, other climate-related efforts, or electricity consumer assistance. Although the cap likely had limited direct impact on the region\u2019s power plant emissions, the revenues generated from the emission allowance sales likely had some impact on emission levels in the region.\nAssessing the impacts of the RGGI program presents challenges. Multiple factors play a role in the region\u2019s CO2 emission levels, including economic developments and state-specific energy and environmental policies that may directly or indirectly complement or counter the objectives of RGGI. Several studies have assessed RGGI\u2019s impacts. A 2015 study found that the RGGI program as a whole, which includes the allowance price, distribution of allowance value, and related complementary effects, was the dominant factor in the observed CO2 emissions decrease. A 2017 study concluded that the RGGI program\u2019s air quality improvements led to public health benefits with an estimated value of $5.7 billion. A 2018 study estimated that during the first three compliance periods (2009-2017) the RGGI program yielded a net benefit of $4.7 billion to the RGGI states and more than 40,000 job-years. \nAs a group, the total CO2 emissions from the nine RGGI states account for approximately 7% of U.S. CO2 emissions and 16% of U.S. gross domestic product. RGGI\u2019s aggregate emissions rank in the top 20 among all nations. From a practical standpoint, the RGGI program\u2019s contribution to directly reducing the global accumulation of GHG emissions in the atmosphere is arguably negligible. However, RGGI\u2019s activities may stimulate action in other states or at the federal level. Compared to a patchwork of state and regional requirements, industry stakeholders may prefer a single national policy. For a number of reasons, experiences in RGGI may be instructive for policymakers seeking to craft a national program.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "https://www.crs.gov/Reports/R41836", "sha1": "93c37eed15dd611017ec4eef1b42d601dfa3a7ac", "filename": "files/20190716_R41836_93c37eed15dd611017ec4eef1b42d601dfa3a7ac.html", "images": { "/products/Getimages/?directory=R/html/R41836_files&id=/4.png": "files/20190716_R41836_images_ce0f5577026ec98a91b77a14fd8d6b562350fdc7.png", "/products/Getimages/?directory=R/html/R41836_files&id=/2.png": "files/20190716_R41836_images_627a7599ad1acbad601af9fb23139b237246223b.png", "/products/Getimages/?directory=R/html/R41836_files&id=/3.png": "files/20190716_R41836_images_bcf97c2d47f260c89115a05e35de3f49a10da466.png", "/products/Getimages/?directory=R/html/R41836_files&id=/1.png": "files/20190716_R41836_images_896b69357523046e617f8fba387e74460325f2c4.png", "/products/Getimages/?directory=R/html/R41836_files&id=/6.png": "files/20190716_R41836_images_62c59ce1b70cdca52fafc28ee6acf08e7607c131.png", "/products/Getimages/?directory=R/html/R41836_files&id=/5.png": "files/20190716_R41836_images_c4727019d982d5b723aa7644897dec622431d381.png", "/products/Getimages/?directory=R/html/R41836_files&id=/0.png": "files/20190716_R41836_images_e0565e75b65c04b8e527ff80a077758abc2c120f.png" } }, { "format": "PDF", "encoding": null, "url": "https://www.crs.gov/Reports/pdf/R41836", "sha1": "4c6cb1e704ebb892ee410fb4ed735726324a797f", "filename": "files/20190716_R41836_4c6cb1e704ebb892ee410fb4ed735726324a797f.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4842, "name": "Climate Change" }, { "source": "IBCList", "id": 4935, "name": "Energy Tax" } ] }, { "source": "EveryCRSReport.com", "id": 461304, "date": "2017-05-16", "retrieved": "2017-08-22T14:46:28.647334", "title": "The Regional Greenhouse Gas Initiative: Lessons Learned and Issues for Congress", "summary": "The Regional Greenhouse Gas Initiative (RGGI) was the nation\u2019s first mandatory cap-and-trade program for greenhouse gas (GHG) emissions. RGGI involves nine states\u2014Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. The RGGI cap-and-trade system applies only to carbon dioxide (CO2) emissions from electric power plants with capacities to generate 25 megawatts or more\u2014approximately 168 facilities. The RGGI emissions cap took effect January 1, 2009, based on an agreement signed by RGGI governors in 2005. \nThe results of the RGGI program may be instructive to policymakers. Several of RGGI\u2019s design elements generated considerable interest during the development and debate of federal proposals to address GHG emissions. In particular, the program\u2019s emissions cap has received particular attention. When the original cap took effect in 2009, it did not compel regulated entities to make internal emission reductions or purchase emission credits from other sources. Several factors led to this outcome: RGGI\u2019s cap design, an economic downturn, and a substantial shift to less carbon-intensive fuels. For instance, in 2005, RGGI states generated 33% of their electricity from coal and petroleum, sources of energy with relatively high carbon intensity. In 2016, these sources generated 7% of RGGI\u2019s electricity.\nTo address the disparity between the cap and actual emissions, RGGI states agreed (in 2013) to reduce the existing cap (by 45%) so that the cap level would match actual emissions. The revised cap took effect in January 2014. RGGI\u2019s revised cap may have vastly different effects than its predecessor. It is uncertain how this new development may impact electricity use and prices in the RGGI region and, in turn, the perception and support for the program.\nAlthough actual emissions were ultimately well below the original emissions cap, the cap\u2019s existence attached a price to the regulated entities\u2019 CO2 emissions. Because the cap level was above actual emissions, the allowance price acted like an emissions fee or carbon tax. Although the cap likely had limited direct impact on the region\u2019s power plant emissions, the revenues generated from the emission allowance sales likely had some impact on emission levels in the region.\nThrough 2016, RGGI states, as a group, have sold 91% of their emission allowances through quarterly auctions. The auction proceeds\u2014over $2.7 billion to date\u2014have provided a new source of revenue, which has been used to support various policy objectives. RGGI states (as a group) have distributed the vast majority of the emission allowance value to support energy efficiency, renewable energy, other climate-related efforts, or electricity consumer assistance. Several RGGI studies indicate that supporting energy efficiency provides multiple benefits: emission reduction, consumer savings via lower electricity bills, and job creation.\nAs a group, the total CO2 emissions from the nine RGGI states account for approximately 7% of U.S. CO2 emissions (and 16% of U.S. gross domestic product). RGGI\u2019s aggregate emissions rank in the top 20 among all nations. But from a practical standpoint, the RGGI program\u2019s contribution to directly reducing the global accumulation of GHG emissions in the atmosphere is arguably negligible. However, RGGI\u2019s activities may stimulate action in other states or at the federal level: Compared to a patchwork of state/regional requirements, industry stakeholders may prefer a singular national policy. For a number of reasons, experiences in RGGI may be instructive for policymakers seeking to craft a national program.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41836", "sha1": "5c6dfc5debf564be558b39ba2919ea0f0f808807", "filename": "files/20170516_R41836_5c6dfc5debf564be558b39ba2919ea0f0f808807.html", "images": { "/products/Getimages/?directory=R/html/R41836_files&id=/4.png": "files/20170516_R41836_images_df6755b63b84c4fb5171dbd3ef9cbe9a569d31eb.png", "/products/Getimages/?directory=R/html/R41836_files&id=/2.png": "files/20170516_R41836_images_698f922059c81499163e318a14615c28167465fb.png", "/products/Getimages/?directory=R/html/R41836_files&id=/1.png": "files/20170516_R41836_images_891dca9efeadc113fded4882b0e6eb88eb4f664c.png", "/products/Getimages/?directory=R/html/R41836_files&id=/3.png": "files/20170516_R41836_images_815dedff5e9d8c7c84c38bb95b56295dbce9bef7.png", "/products/Getimages/?directory=R/html/R41836_files&id=/0.png": "files/20170516_R41836_images_44f263bd8c3aed7d29a3eda14f85a96f87813b0e.png" } }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41836", "sha1": "039e1e701abca5f54e45449a57ecdfb4c01e57fb", "filename": "files/20170516_R41836_039e1e701abca5f54e45449a57ecdfb4c01e57fb.pdf", "images": {} } ], "topics": [ { "source": "IBCList", "id": 4842, "name": "Climate Change" }, { "source": "IBCList", "id": 4935, "name": "Energy Tax" } ] }, { "source": "EveryCRSReport.com", "id": 452091, "date": "2016-04-27", "retrieved": "2016-10-17T20:05:07.229531", "title": "The Regional Greenhouse Gas Initiative: Lessons Learned and Issues for Congress", "summary": "The Regional Greenhouse Gas Initiative (RGGI) is the nation\u2019s first mandatory cap-and-trade program for greenhouse gas (GHG) emissions. RGGI involves nine states\u2014Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. The RGGI cap-and-trade system applies only to carbon dioxide (CO2) emissions from electric power plants with capacities to generate 25 megawatts or more\u2014approximately 168 facilities. The RGGI emissions cap took effect January 1, 2009, based on an agreement signed by RGGI governors in 2005.\nThe results of the RGGI program may be instructive to policymakers. Several of RGGI\u2019s design elements generated considerable interest during the development and debate of federal proposals to address GHG emissions. In particular, the program\u2019s emissions cap has received particular attention. When the original cap took effect in 2009, it did not compel regulated entities to make internal emission reductions or purchase emission credits from other sources. Several factors led to this outcome: RGGI\u2019s cap design, an economic downturn, and a substantial shift to less carbon intensive fuels. For instance, in 2005, RGGI states generated 33% of their electricity from coal and petroleum, sources of energy with relatively high carbon intensity. In 2015, these sources generated 8% of RGGI\u2019s electricity.\nTo address the disparity between the cap and actual emissions, RGGI states agreed (in 2013) to reduce the existing cap (by 45%) so that the cap level would match actual emissions. The revised cap took effect in January 2014. RGGI\u2019s new, more-binding cap may have vastly different effects than its predecessor. It is uncertain how this new development may impact electricity use and prices in the RGGI region and, in turn, the perception and support for the program.\nAlthough actual emissions were ultimately well below the original emissions cap, the cap\u2019s existence attached a price to the regulated entities\u2019 CO2 emissions. Because the cap level was above actual emissions, the allowance price acted like an emissions fee or carbon tax. Although the cap likely had limited direct impact on the region\u2019s power plant emissions, the revenues generated from the emission allowance sales likely had some impact on emission levels in the region.\nThrough 2015, RGGI states, as a group, have sold 91% of their emission allowances through quarterly auctions. The auction proceeds\u2014over $2.4 billion to date\u2014have provided a new source of revenue, which has been used to support various policy objectives. RGGI states (as a group) have contributed the vast majority of the emission allowance value to support energy efficiency, renewable energy, other climate-related efforts, or electricity consumer assistance. Several RGGI studies indicate that supporting energy efficiency provides multiple benefits: emission reduction, consumer savings via lower electricity bills, and job creation.\nAs a group, the total CO2 emissions from the nine RGGI states account for approximately 7% of U.S. CO2 emissions (and 16% of U.S. gross domestic product). RGGI\u2019s aggregate emissions rank in the top 20 among all nations. But from a practical standpoint, the RGGI program\u2019s contribution to directly reducing the global accumulation of GHG emissions in the atmosphere is arguably negligible. However, RGGI\u2019s activities may stimulate action in other states or at the federal level: When confronted with a growing patchwork of state/regional requirements, industry stakeholders may support a singular national policy. To that end, experiences in RGGI may be instructive for policymakers seeking to craft a national program.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41836", "sha1": "6fb7b0cefe708b93629f30a5a409780133f2409b", "filename": "files/20160427_R41836_6fb7b0cefe708b93629f30a5a409780133f2409b.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41836", "sha1": "dfc8b5435c48debf6353728bd1fada0251d21249", "filename": "files/20160427_R41836_dfc8b5435c48debf6353728bd1fada0251d21249.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 4842, "name": "Climate Change" }, { "source": "IBCList", "id": 4935, "name": "Energy Tax" } ] }, { "source": "EveryCRSReport.com", "id": 442700, "date": "2015-07-02", "retrieved": "2016-04-06T18:51:11.102905", "title": "The Regional Greenhouse Gas Initiative: Lessons Learned and Issues for Congress", "summary": "The Regional Greenhouse Gas Initiative (RGGI) is the nation\u2019s first mandatory cap-and-trade program for greenhouse gas (GHG) emissions. RGGI involves nine states\u2014Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont. The RGGI cap-and-trade system applies only to carbon dioxide (CO2) emissions from electric power plants with capacities to generate 25 megawatts or more\u2014approximately 168 facilities. The RGGI emissions cap took effect January 1, 2009, based on an agreement signed by RGGI governors in 2005.\nThe results of the RGGI program may be instructive to policymakers. Several of RGGI\u2019s design elements generated considerable interest during the development and debate of federal proposals to address GHG emissions. In particular, the program\u2019s emissions cap has received particular attention. When the original cap took effect in 2009, it did not compel regulated entities to make internal emission reductions or purchase emission credits from other sources. Several factors led to this outcome: RGGI\u2019s cap design, an economic downturn, and a substantial shift to less carbon intensive fuels. For instance, in 2005, RGGI states generated 33% of their electricity from coal and petroleum, sources of energy with relatively high carbon intensity. In 2013, these sources generated 10% of RGGI\u2019s electricity.\nTo address the disparity between the cap and actual emissions, RGGI states agreed (in 2013) to reduce the existing cap (by 45%) so that the cap level would match actual emissions. The revised cap took effect in January 2014. RGGI\u2019s new, more-binding cap may have vastly different effects than its predecessor. It is uncertain how this new development may impact electricity use and prices in the RGGI region and, in turn, the perception and support for the program.\nAlthough actual emissions were ultimately well below the original emissions cap, the cap\u2019s existence attached a price to the regulated entities\u2019 CO2 emissions. Because the cap level was above actual emissions, the allowance price acted like an emissions fee or carbon tax. Although the cap likely had limited direct impact on the region\u2019s power plant emissions, the revenues generated from the emission allowance sales likely had some impact on emission levels in the region.\nThrough 2014, RGGI states, as a group, have sold 91% of their emission allowances through quarterly auctions. The auction proceeds\u2014over $2.2 billion to date\u2014have provided a new source of revenue, which has been used to support various policy objectives. RGGI states (as a group) have contributed the vast majority of the emission allowance value to support energy efficiency, renewable energy, other climate-related efforts, or electricity consumer assistance. Several RGGI studies indicate that supporting energy efficiency provides multiple benefits: emission reduction, consumer savings via lower electricity bills, and job creation.\nAs a group, the total CO2 emissions from the nine RGGI states account for approximately 7% of U.S. CO2 emissions (and 16% of U.S. gross domestic product). RGGI\u2019s aggregate emissions rank in the top 20 among all nations. But from a practical standpoint, the RGGI program\u2019s contribution to directly reducing the global accumulation of GHG emissions in the atmosphere is arguably negligible. However, RGGI\u2019s activities may stimulate action in other states or at the federal level: When confronted with a growing patchwork of state/regional requirements, industry stakeholders may support a singular national policy. To that end, experiences in RGGI may be instructive for policymakers seeking to craft a national program.", "type": "CRS Report", "typeId": "REPORTS", "active": true, "formats": [ { "format": "HTML", "encoding": "utf-8", "url": "http://www.crs.gov/Reports/R41836", "sha1": "f8f26ffc46fdc3d7bd4c7e9465cedb0654071de2", "filename": "files/20150702_R41836_f8f26ffc46fdc3d7bd4c7e9465cedb0654071de2.html", "images": null }, { "format": "PDF", "encoding": null, "url": "http://www.crs.gov/Reports/pdf/R41836", "sha1": "6ce4d51d35518ad27d7169eb5f3a5d19d37a4b8f", "filename": "files/20150702_R41836_6ce4d51d35518ad27d7169eb5f3a5d19d37a4b8f.pdf", "images": null } ], "topics": [ { "source": "IBCList", "id": 3878, "name": "Climate Change Science, Technology, and Policy" }, { "source": "IBCList", "id": 3905, "name": "Energy Tax Policy" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc491501/", "id": "R41836_2014Nov14", "date": "2014-11-14", "retrieved": "2015-01-27T19:40:46", "title": "The Regional Greenhouse Gas Initiative: Lessons Learned and Issues for Policy Makers", "summary": "The first section of this report provides an overview of the RGGI cap-and-trade program and the participating RGGI states. The subsequent sections discuss selected issues raised by RGGI that may be of interest to policy makers. The final section provides some final observations that may be instructive to policy makers.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20141114_R41836_8386b53cd0ae89ad866b67fea2d551324076e0eb.pdf" }, { "format": "HTML", "filename": "files/20141114_R41836_8386b53cd0ae89ad866b67fea2d551324076e0eb.html" } ], "topics": [ { "source": "LIV", "id": "Greenhouse effect", "name": "Greenhouse effect" }, { "source": "LIV", "id": "Air pollution", "name": "Air pollution" }, { "source": "LIV", "id": "Air pollution control", "name": "Air pollution control" }, { "source": "LIV", "id": "Environmental protection", "name": "Environmental protection" } ] }, { "source": "University of North Texas Libraries Government Documents Department", "sourceLink": "https://digital.library.unt.edu/ark:/67531/metadc463430/", "id": "R41836_2013May21", "date": "2013-05-21", "retrieved": "2014-12-05T09:57:41", "title": "The Regional Greenhouse Gas Initiative: Lessons Learned and Issues for Policymakers", "summary": "This report discusses recent actions taken by state and local governments to address greenhouse gas (GHG) emissions. The first section of this report provides an overview of the Regional Greenhouse Gas Initiative (RGGI) cap-and-trade program and the participating RGGI states. The second section discusses selected issues raised by RGGI that may be of interest to policymakers who are considering developing a federal program. The final section provides some final thoughts concerning the RGGI program.", "type": "CRS Report", "typeId": "REPORT", "active": false, "formats": [ { "format": "PDF", "filename": "files/20130521_R41836_efd7147d5e867edce87fda1ea88edf3c938cffe9.pdf" }, { "format": "HTML", "filename": "files/20130521_R41836_efd7147d5e867edce87fda1ea88edf3c938cffe9.html" } ], "topics": [ { "source": "LIV", "id": "Air pollution", "name": "Air pollution" }, { "source": "LIV", "id": "Greenhouse gases", "name": "Greenhouse gases" }, { "source": "LIV", "id": "Environmental protection", "name": "Environmental protection" }, { "source": "LIV", "id": "Air pollution control", "name": "Air pollution control" }, { "source": "LIV", "id": "Environmental policy", "name": "Environmental policy" } ] } ], "topics": [ "Economic Policy", "Energy Policy", "Environmental Policy" ] }