New Jersey was a founding member of the Regional Greenhouse Gas Initiative (RGGI)—the nation’s first mandatory, market-based program to reduce emissions of carbon dioxide. However, after participating for three years (2009-2011), Governor Chris Christie withdrew the state from the program. Governor-elect Phil Murphy has pledged to “immediately restore New Jersey’s place” in RGGI. Additionally, the Democrat-controlled New Jersey Legislature has strongly supported New Jersey’s reentry to the RGGI program and has recently introduced several bills to do so. As New Jersey considers participating in RGGI again, this issue brief explores possible cap scenarios for the state as well as the implications for the broader regional trading program.