Regional Greenhouse Gas Initiative
Information on RGGI Allowances and Compliance
RGGI is an initiative of 10 New England and Mid-Atlantic states, to reduce greenhouse gas emissions from the power sector while generating economic growth. Together Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York Rhode Island and Vermont cap and reduce their power sector carbon dioxide (CO2) emissions. This is achieved by setting a regional cap or limit on carbon dioxide (CO2) emissions from electric power plants in the participating states.
Support for RGGI
Qualifying power plants must acquire CO2 allowances equal to the amount of CO2 emitted. And while each state has its own allowance budget, the only firm cap is the regional one. Entities in each of the qualifying states can purchase and trade allowances- allowing for the most efficient and cost-effective emissions reductions. Also since RGGI is a market-based approach, the quarterly auction sets the price for the purchase of allowances- ensuring transparency. Furthermore the revenue from the quarterly auctions are returned to the states for reinvestment in efficiency, and other GHG reduction programs that further reduce power sector emissions.
Governor Wolf states that climate change is the most critical environmental threat confronting the world, and given that power generation is one of the largest contributors to greenhouse gas emissions, it is time to take concrete, economically sound and immediate steps to reduce emissions. The
Pennsylvania Climate Action Plan detailed the many steps to reduce emissions and recommended that Pennsylvania create a cap-and-trade program for the electricity generation sector. To do so,
Governor Wolf recently signed an Executive Order that directed DEP to begin a rulemaking process that will allow Pennsylvania to participate in the Regional Greenhouse Gas Initiative (RGGI), with the goal of reducing carbon emissions from the electricity sector.
Joining RGGI will lower Pennsylvania's CO2 emissions by between 97 and 225 million tons by 2030. Emission of other harmful pollutants like nitrogen oxides, sulfur dioxide, and particulate matter emissions will also drop significantly. These reductions will particularly benefit those most often impacted by marginal air quality, such as children and at-risk seniors, especially in low income and environmental justice communities.
Air pollution reductions:
Carbon pollution – between 97 and 225 million tons
Nitrogen Oxide pollution – 112,000 tons
Sulfur Dioxide pollution – 67,000 tons
Reducing carbon pollution isn’t the only benefit of RGGI. The health benefits of the reduced sulfur dioxide and nitrogen oxide emissions are significant - up to $6.3 billion by 2030, averaging between $232 million to $525 million per year. Additionally, DEP estimates that through 2030:
- Up to 639 premature deaths from respiratory illnesses will be prevented due to emission reductions resulting directly from RGGI participation
- 30,000 fewer hospital visits for respiratory illnesses like asthma for children and adults
- Adults would be healthier as well which results in over 83,000 avoided lost workdays due to health impacts
Explore the Health Benefits Data here.
DEP’s modeling estimates that from 2022 to 2030, participating in RGGI would lead to an increase in Gross State Product of nearly $2 billion and a net increase of over 30,000 jobs in this Commonwealth. The results also show that overall citizens of this Commonwealth could see a cumulative increase in Disposable Personal Income of $3.7 billion by 2050.
Support for RGGI
Many groups and individuals from across Pennsylvania support reducing climate change pollution by linking up with RGGI.
RGGI Modeling Results
The Department has hired an expert modeling consultant to identify how Pennsylvania would be affected by RGGI participation. Explore the data and presentations below to see how Pennsylvania will benefit by participating in RGGI.
Read about the Department’s modeling process in this
Modeling Report. You can further explore the data and presentations below to see how Pennsylvania will benefit by participating in RGGI.
Expand AllClick here for a more accessible version
The Department received comments and feedback on the power sector modeling through our extensive advisory committee meetings, webinars, public hearings, and the formal public comment period. Some concerns were raised regarding the pandemic’s potential impact on Department modeling, and as such the Department conducted a second round of modeling to ensure that the modeling was as up to date as possible, specifically to confirm that the starting CO2 allowance budget for 2022 and other components of this final-form rulemaking were still appropriate. In February of 2021, the Department updated the power sector modeling assumptions and inputs previously included in the 2020 round of modeling. These assumptions and inputs include the following: updated PJM electricity demand forecast, 2021 AEO Natural Gas Prices, updated capacity additions and retirements, updated technology costs and revisions to State law and policies which encompasses the new in-state generation requirement for Tier II resources under the Alternative Energy Portfolio Standards Act (73 P.S. §§ 1648.1—1648.8). The full modeling results for both the reference and RGGI cases are available below.
2020 RGGI + Investment Modeling Results
Stakeholder Engagement and Public Outreach
In Executive Order 2019-07, Governor Wolf explicitly directed the Department to conduct a robust public outreach effort while developing this rulemaking. The Department is doing so in many ways, including the events below that, although only reflecting a portion of the outreach being conducted, are useful in following the progress of this proposed rulemaking.
The Department’s outreach and engagement effort is being guided by a set of RGGI Equity Principles, developed in coordination with the
DEP’s Office of Environmental Justice and various environmental and community groups.
Expand AllClick here for a more accessible version
The Commonwealth will strive to develop a power sector carbon-reduction program and investment strategy, through the Regional Greenhouse Gas Initiative (RGGI) that embodies the following equity principles:
- Inclusively gathers public input using multiple methods of engaging the public, especially environmental justice communities and meaningfully considers that input in making decisions related to the design and implementation of the power sector carbon-reduction program and disseminates any final decisions that are made that affect such impacted communities in a timely manner.
- Protects public health, safety and welfare, mitigating any adverse impacts on human health, especially in environmental justice communities and seek to ensure environmental and structural racism are not replicated in the engagement process.
- Works equitably and with intentional consideration to distribute environmental and economic benefits of auction proceeds in communities that have been disproportionately impacted by air pollution.
- Seeks to address legacy impacts related to emissions and pollution in vulnerable populations and among environmental justice communities.
- Develops and provides data about emissions in environmental justice communities to inform the investment process.
- Provides access to investment programs for all members of the community, especially low-income communities.
You can learn about how the Department will continue to engage through the rulemaking process in our
Guide to the Environmental Regulatory Process in Pennsylvania or view the
Spanish version here. If you have questions, you can email
Expand AllClick here for a more accessible version
On September 1, 2021, the Independent Regulatory Review Commission (IRRC) adopted the regulation for Pennsylvania to participate in RGGI.
DEP’s statement is here.
The Department submitted the CO2 Budget Trading Program final-form rulemaking to the IRRC for review and consideration, as well as to the Pennsylvania House and Senate Environmental Resources and Energy Committees, on July 28, 2021. The documents included in the rulemaking package are linked below, including the Face Sheet, Preamble, Annex A, Comment and Response Document, List of Commentators, List of Commentators Requesting a Copy of the Rulemaking, Regulatory Analysis Form, and Forms Required to Implement the Regulation.
The Department presented the details of the final-form CO2 Budget Trading Program regulation (RGGI) at the Environmental Quality Board (EQB) meeting on July 13, 2021. The presentation was accompanied by a number of documents, linked below, including the Executive Summary, Annex A, Regulatory Preamble, Regulatory Analysis Form, and Comment and Response Document. In total, the presentation and accompanying documents detailed a summary of the public comment period and changes to the proposed rulemaking. The EQB meeting was available to be attended virtually by the public through the livestream link below.
Watch the PACast Livestream Recording
The Department hosted a virtual meeting with the Small Business Compliance Advisory Committee on Wednesday May 19, 2021 at 10:00 a.m. The Department provided a presentation to the committee on the public comment period, updated power sector modeling, and the draft final-form rulemaking detailing Pennsylvania’s CO2 budget trading program.
The Department hosted a virtual meeting with the Citizens Advisory Council on Wednesday May 19, 2021 at 1:00 p.m. The Department provided an update to the committee on Pennsylvania’s CO2 budget trading program.
The Department hosted a virtual meeting with the Air Quality Technical Advisory Committee on Monday May 17, 2021 at 9:15 a.m. The Department provided a presentation to the committee on the updated power sector modeling and the draft final-form rulemaking detailing Pennsylvania’s CO2 budget trading program.
The Department hosted a virtual meeting with the Citizens Advisory Council on Tuesday April 20, 2021 at 12:30 p.m. The Department provided an update to the committee on Pennsylvania’s CO2 budget trading program.
Event address for attendees
Date and time: Tuesday, April 20, 2021 12:30 pm Eastern Daylight Time (New York, GMT-04:00)
Duration: 4 hours
Audio conference: +1-415-655-0003
Access code: 132 862 3136
The Department hosted a virtual meeting with the Air Quality Technical Advisory Committee on Thursday April 8, 2021 at 9:15 a.m. The Department provided a presentation to the committee on the draft Annex detailing Pennsylvania’s CO2 budget trading program.
The Department announced a set of guiding equity principles to help inform the public on the implementation of RGGI and investments of the program’s proceeds. DEP has also partnered with the Delta Institute to engage with impacted communities and workers to identify ways to ensure a just and equitable transition for all Pennsylvania residents.
The Department hosted a virtual meeting with the Environmental Quality Board on September 15, 2020. The Department provided a presentation to the Board on the CO2 budget trading program proposed rulemaking.
The Department held an informational presentation on how Pennsylvania can reduce climate pollution by participating in RGGI via webinar on Thursday August 6, 2020. The presentation outlined how participating in RGGI will lower greenhouse gas and other air pollution emissions from electric power plants. The presentation also covered benefits of the program, including health and economic benefits.
The Department hosted a virtual meeting with the Small Business Compliance Advisory Committee on Wednesday July 22, 2020. The Department provided a presentation to the committees on the draft Annex detailing Pennsylvania’s CO2 budget trading program.
The Department hosted a virtual meeting with the Citizen’s Advisory Council on Tuesday, May 19, 2020. The Department provided a presentation to the committees on the draft Annex detailing Pennsylvania’s CO2 budget trading program.
The Department hosted a virtual meeting with the Air Quality Technical Advisory Committee on Thursday May 7, 2020 at 9:15 a.m. The Department provided a presentation to the committees on the draft Annex detailing Pennsylvania’s CO2 budget trading program.
In response to requests to provide more opportunities to learn about the Carbon Dioxide Budget Trading Program at the last meeting, the Department hosted a virtual special joint informational meeting with the Air Quality Technical Advisory Committee and the Citizen’s Advisory Council on Thursday April 23, 2020 at 1:00 p.m. The Department provided a presentation to the committees on the modeling results associated with Pennsylvania’s participation in a CO2 budget trading program.
DEP unveiled preliminary draft regulations to allow Pennsylvania to participate in the Regional Greenhouse Gas Initiative (RGGI). Members of the Department’s Air Quality Technical Advisory Committee (AQTAC) heard details about the preliminary rulemaking which designs a carbon dioxide trading program in Pennsylvania using the RGGI Model Rule and also incorporating revisions and additions specific to Pennsylvania including:
- A waste coal generation set-aside allowance allocation
- Flexibility for on-site generation tied to manufacturing facilities
- Adds a qualifying offset for abandoned well plugging
- Adds a provision to allow a PA-only auction if economically beneficial
The preliminary draft regulation was presented to members for informational purposes only.
On February 3, 2020 DEP had the opportunity to provide testimony at the Joint Legislative Air and Water Pollution Control and Conservation Committee’s (JLCC) hearing focusing on the impacts of the Regional Greenhouse Gas Initiative (RGGI) on Pennsylvania’s Co-Generation Industry. The Secretary testified to the additional flexibility provided in the rule for co-generation tied to Pennsylvania manufacturing facilities. Additionally he highlighted the unique benefits of waste coal generation beyond electricity production and the proposed set-aside option to assist Pennsylvania waste-coal generation facilities with RGGI compliance- thereby avoiding significant compliance costs under the current proposal.
What Does RGGI Mean for PA?