RGGI Expansion - Implications of Additional States Joining RGGI

The Regional Greenhouse Gas Initiative (RGGI) is a regional market-based emissions reduction program, in effect since January 2009, that caps carbon dioxide (CO2) emissions from electric generating units in ten northeastern states. 

While program participation had been static since 2012, that changed at the beginning of this year, when New Jersey rejoined RGGI and began participating in allowance auctions. More recently, Virginia has also completed the regulatory process to join RGGI and will begin participating in 2021. Pennsylvania is also currently advancing a draft regulatory proposal to join the program. This issue brief reviews the status of each state’s process and explores potential impacts on emissions, allowance prices, and generation portfolio mix.

UPDATE: This MJB&A Issue Brief has been updated to reflect several state legislative and regulatory actions that have occurred since the initial publication of this brief on October 11, 2019.