{"id":26524,"date":"2026-08-26T13:08:19","date_gmt":"2026-08-26T18:08:19","guid":{"rendered":"https:\/\/blogs.edf.org\/climate411\/?p=26524"},"modified":"2026-08-26T15:05:22","modified_gmt":"2026-08-26T20:05:22","slug":"states-strengthening-rggi-cutting-pollution-saving-ratepayers","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2026\/08\/26\/states-strengthening-rggi-cutting-pollution-saving-ratepayers\/","title":{"rendered":"States are moving forward to strengthen the Regional Greenhouse Gas Initiative, accelerating pollution cuts and investments in clean, cheap energy"},"content":{"rendered":"\n

States across the\u00a0Northeast and\u00a0Mid-Atlantic are working to update their rules for\u00a0the Regional Greenhouse Gas Initiative, implementing\u00a0agreed-upon\u00a0changes<\/a>\u00a0that will strengthen the pollution reduction and investment benefits of the program while ensuring it\u00a0remains\u00a0durable for years to come. New York just became the first state to\u00a0finalize\u00a0its revised rules,\u00a0and others are\u00a0working through\u00a0the regulatory revision process\u00a0and\u00a0expected to follow New York this fall.\u00a0RGGI has been delivering cuts in climate pollution for\u00a0nearly\u00a020\u00a0years,\u00a0investing billions in clean, affordable energy,\u00a0and\u00a0delivering\u00a0major public health benefits\u00a0at the same time.\u00a0\u00a0<\/p>\n\n\n\n

Remind me, what is RGGI again?<\/h2>\n\n\n\n
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Launched in 2009, RGGI caps power sector emissions across 11 states in the Northeast and Mid-Atlantic and requires power plants to purchase allowances for every ton of pollution they emit. Proceeds from the sale of allowances are re-invested by states in programs to scale clean, affordable energy, help residents and businesses make energy efficiency upgrades, and provide direct credits on electricity bills. These investments have lowered electricity bills, improved public health and supported local economies since the program\u2019s inception.<\/p>\n\n\n\n

Since its launch in 2009, this longstanding, proven example of collaborative climate policy has helped cut climate pollution from power plants across the region in half compared with 2005 levels and\u202fgenerated $8.6 billion in auction proceeds as of 2024<\/a>. Participating states have already invested $5.73 billion as of 2024, with another $2.54 billion committed for future investment. Over their lifetimes, these investments are projected to save ratepayers more than $23 billion on their energy bills, about $4 in bill savings for every $1 invested<\/strong>. In its first six years alone, RGGI supported 48,000 job-years<\/a> and yielded over $5.7 billion in public health benefits<\/a>, including fewer heart attacks, mitigated respiratory illnesses, and fewer premature deaths.<\/p>\n\n\n\n

This proven program \u2013 the very first market-based system designed to reduce climate pollution in the U.S. \u2013 underscores the effectiveness of cap-and-invest policies that require polluters to pay for their pollution and reinvest revenue in programs that lower energy bills.\u202f<\/p>\n\n\n\n

What\u2019s happening now? States are putting Program Review updates into regulation<\/h2>\n\n\n\n

Every so often, RGGI states work together to review and revise the rules for the program to ensure it is effectively and efficiently delivering on its goals. Last summer, participating states concluded their Third Program Review and \u202fannounced updates<\/a>\u202fthat strengthen the regional cap on climate pollution, beginning in 2027.\u202fChanges also introduce new measures to protect energy affordability and reaffirm the program\u2019s commitment to cutting pollution, promoting clean energy and supporting local communities.\u202fThe conclusion of the program review means that participating states agreed on a new \u201cmodel rule\u201d that incorporates these changes.<\/p>\n\n\n\n

Importantly, under the new model rule, the emissions cap declines by about 8.5 million tons per year from 2027 through 2033 \u2014 or about 10.5% of the 2025 cap. After 2033, the cap declines by about 2.4 million tons per year, or 3% of the 2025 budget.\u202fThe updated cap reflects a 76% reduction in power sector carbon emissions from 2005 levels by 2030, bringing RGGI more closely into line with the emissions pathway in the power sector needed to meet the climate goals that many climate leadership states<\/a> have committed to.<\/p>\n\n\n\n

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The third RGGI program review was conducted on a 10-state region, as Virginia had not yet re-entered the program when the review was completed. The above trajectory reflects that 10-state cap. Virginia is set to issue regulations to align with the third program review by the start of 2027.<\/em><\/figcaption><\/figure>\n\n\n\n

With the new model rule in hand, each participating state must go through its own administrative process to update its RGGI regulation. This process looks a bit different in each state, but it commonly involves an opportunity for the public and interested stakeholders to review and comment on the revised regulations.<\/p>\n\n\n\n

All participating states are working towards finalizing their updated rules by the end of this year, enabling the program changes including the updated pollution cap to go into effect January 1, 2027.<\/p>\n\n\n\n

New York is leading the pack<\/h2>\n\n\n\n

New York has long been a leader in the RGGI program and is taking up the mantle once again. The state just became the first in the region to finalize its updated regulation<\/a> earlier this month. These changes, alongside updates in other states once final, will ensure the health and bill-lowering benefits of RGGI reach even more New Yorkers in the years to come. The announcement from state agencies emphasized proven benefits of RGGI including pollution cuts and net savings of $12 billion for New York ratepayers, a six-to-one return on $2 billion in investments to date.<\/p>\n\n\n\n

DEC Commissioner Amanda Lefton said<\/strong>,\u202f\u201cRGGI is a longstanding and successful example of multi-state collaboration that delivers real benefits to New Yorkers, including affordability, decreased emissions and improved public health. Implementing these regulations as part of the program review with the rest of the RGGI participating states, will further enhance New York\u2019s ability to deliver clean and affordable energy solutions\u202fand healthy communities.\u201d\u202f<\/p>\n\n\n\n

NYSERDA\u202fPresident and CEO Doreen M. Harris said<\/strong>,\u202f\u201cStrengthening\u202fRGGI\u202freinforces New York\u2019s\u202fleadership\u202fin lowering\u202femissions while generating resources that help make clean energy more affordable and accessible for New Yorkers. Through these investments, NYSERDA is\u202fexpanding\u202faccess to clean transportation\u202foptions,\u202fmore\u202fefficient\u202fand comfortable\u202fhomes and buildings, and job\u202fopportunities across the state \u2013 delivering benefits to communities from\u202fLong Island to Buffalo.\u201d<\/p>\n\n\n\n

A stronger and more durable RGGI program in New York will provide\u202fcritical investments to programs<\/a>\u202fthat lower energy costs for residents. Examples of programs funded by RGGI to date that will be scaled as a result of these updates include:<\/p>\n\n\n\n