{"id":3805,"date":"2013-02-15T18:09:11","date_gmt":"2013-02-15T23:09:11","guid":{"rendered":"http:\/\/blogs.edf.org\/climate411\/?p=3805"},"modified":"2026-04-02T15:46:34","modified_gmt":"2026-04-02T20:46:34","slug":"capping-pollution-from-coast-to-coast","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/climate411\/2013\/02\/15\/capping-pollution-from-coast-to-coast\/","title":{"rendered":"Capping Pollution from Coast to Coast"},"content":{"rendered":"

(Originally posted earlier today on EDF’s Market Forces<\/a> blog<\/em>)<\/p>\n

As the second auction in California\u2019s landmark cap and trade program approaches, a coalition of states on the opposite side of the country \u2013 that have been cost-effectively reducing their carbon pollution while saving their consumers money \u2013 announced plans to strengthen their emission reduction goals.\u00a0 Last week, the Regional Greenhouse Gas Initiative (RGGI)<\/a> \u2013 the nation\u2019s first cap and trade program which sets a cap on carbon dioxide pollution from the electric power sector in 9 Northeastern states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) \u2013 released an updated Model Rule<\/a> containing a number of improvements to the program, primarily a significantly lower (by 45%) overall cap, realigning it with current emissions levels.<\/p>\n

Since the program took effect in 2009, emission reductions in the RGGI region have occurred faster and at lower cost than originally expected.\u00a0 This has primarily been the result of increased electric generation from natural gas and renewables which have displaced more carbon-intensive sources like coal and oil, as well as investments in energy efficiency that lower overall electricity demand.\u00a0 These reductions have been accompanied by lower electricity prices in the region (down 10% since the program began<\/a>) and significant economic benefits:\u00a0 a study from the Analysis Group<\/a> estimated that electric consumers would save $1.1 billion on their bills over 10 years from the energy efficiency improvements funded by allowance revenue, and further, that these savings would generate over $1.6 billion in economic benefits for the region.<\/p>\n

The new lower cap allows RGGI to secure the reductions already achieved, and push forward towards more ambitious pollution reduction goals.\u00a0 The changes to the program are the result of a transparent and comprehensive program review<\/a> process set in motion through RGGI\u2019s original Memorandum of Understanding \u2013 a mechanism that is successfully fulfilling its original intention by allowing the states to evaluate results and make critical improvements.<\/p>\n

While the changes will go a long way to fortify the program, there is room in the future for the RGGI states to look to California\u2019s strong program design<\/a> for additional enhancements.\u00a0 For example, RGGI\u2019s updated Model Rule creates a Cost Containment Reserve (CCR) \u2013 a fixed quantity of allowances which are made available for sale if allowance prices exceed predefined \u201ctrigger prices\u201d.\u00a0 A CCR is a smart design feature which provides additional flexibility and cost containment \u2013 however, RGGI\u2019s CCR allowances are designed to be additional to the cap, rather than carved out from underneath it as in CA\u2019s program (ensuring the overall emission reduction goals will be met).\u00a0 California\u2019s program has displayed enormous success already, with a strong showing in their first auction<\/a>.<\/p>\n

In the meantime, the RGGI states should be commended for their success thus far, and for their renewed leadership as they take important steps to strengthen the program.\u00a0 These states have achieved significant reductions in emissions of heat-trapping pollutants at lower costs than originally projected, all while saving their citizens money and stimulating their economies, transitioning their power sector towards cleaner, safer generation sources, and laying a strong foundation for compliance with the Carbon Pollution Standards for power plants being developed under the Clean Air Act.\u00a0 Such impressive achievements provide a powerful, concrete example of how to tackle harmful carbon pollution and capture the important co-benefits of doing so.<\/p>\n

The bottom line is that cap and trade is alive and well on both coasts as the states continue to lead the charge on tackling climate change in the U.S. while delivering clear economic benefits.<\/p>\n","protected":false},"excerpt":{"rendered":"

(Originally posted earlier today on EDF’s Market Forces blog) As the second auction in California\u2019s landmark cap and trade program approaches, a coalition of states on the opposite side of the country \u2013 that have been cost-effectively reducing their carbon pollution while saving their consumers money \u2013 announced plans to strengthen their emission reduction goals.\u00a0 …<\/p>\n","protected":false},"author":4696,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[43,202,44],"tags":[],"coauthors":[108141],"class_list":["post-3805","post","type-post","status-publish","format-standard","hentry","category-economics","category-greenhouse-gas-emissions","category-policy"],"acf":[],"yoast_head":"\nCapping Pollution from Coast to Coast - Climate 411<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/blogs.edf.org\/climate411\/2013\/02\/15\/capping-pollution-from-coast-to-coast\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Capping Pollution from Coast to Coast - 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