Regional Greenhouse Gas InitiativeThe Regional Greenhouse Gas Initiative ("RGGI") is a cooperative effort by Northeastern and Mid-Atlantic states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) to reduce carbon dioxide emissions – a greenhouse gas that contributes to global climate change. Central to this initiative is the implementation of a multi-state cap-and-trade program with a market-based emissions trading system. The proposed program requires certain electric power generators in participating states to purchase allowances for their CO2 emissions. To support the state CO2 Budget Trading Programs, the RGGI participating states are implementing a regional auction platform to sell CO2 allowances.
Vermont Participation in RGGIVermont committed to participate in RGGI when Governor Douglas signed the RGGI Memorandum of Understanding with the governors of the other participating states. The Vermont Legislature then enacted statutory provisions to implement the RGGI program in Vermont. Both 30 V.S.A. § 255 and the RGGI MOU directed the Public Service Board and the Agency of Natural Resources to participate in the RGGI program.
Under 30 V.S.A. § 255, the Public Service Board (Board) must establish a process to allocate the carbon credits that Vermont receives as part of its participation in the Regional Greenhouse Gas Initiative (RGGI). The Board is also authorized to appoint a Trustee or Trustees to "receive, hold, bank, and sell tradeable carbon credits created under this program."
Board Staff conducted a series of workshops to discuss the activities contemplated in 30 V.S.A. § 255, with the purpose of seeking guidance and recommendations on how to implement these activities.
Board OrderOn July 18, 2008, the Board issued an order for the implementation of the Regional Greenhouse Gas Initiative auction procedures and disbursement of auction proceeds:
Board Staff Report and Recommendation
Based on discussion in the third workshop, Board Staff developed a Staff Report and Recommendation for Vermont implementation of RGGI. Any comments regarding this Report should be submitted, via e-mail, to the distribution list by close of business Friday, July 11, 2008.
Schedule for Workshops
Power Point presentation outlining RGGI basic, by David Farnsworth
Overview of RGGI CO2 Budget Trading Program
Auction Study link
Notice of December 7, 2007, Auction presentation in Boston
Brookings Paper on Cap-and-Trade System