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Regional Greenhouse Gas Initiative (RGGI)

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On January 29, 2018, Governor Phil Murphy signed Executive Order 7 (EO 7) directing the Department of Environmental Protection (DEP) and the Board of Public Utilities (BPU) to take all necessary regulatory and administrative measures to ensure New Jersey’s timely return to full participation in the Regional Greenhouse Gas Initiative (RGGI). Specifically, EO 7 directs DEP to initiate rulemaking by February 28, 2018. In addition, Governor Murphy sent a letter on February 16, 2018 to the RGGI states notifying them of New Jersey's intent to rejoin RGGI "as a partner in reducing greenhouse gas emissions, improving the health of residents, and growing the economy in our region."

Press Release on Governor Murphy’s Executive Order No. 7

What is RGGI?

The Regional Greenhouse Gas Initiative (RGGI) is a multi-state, market-based program that establishes a regional cap on carbon dioxide (CO2) emissions and requires fossil fuel power plants with a capacity greater than 25 megawatts (MW) to obtain an allowance for each ton of CO2 emitted annually. Power plants may comply by purchasing allowances from quarterly auctions, other generators within RGGI, or through projects that offset CO2 emissions. States use the proceeds from the CO2 allowance auctions to invest in strategic programs to help further reduce CO2 and other greenhouse gas (GHG) pollution, spur clean and renewable energy, and provide rate relief on energy bills. Currently, nine Northeast and Mid-Atlantic states participate in RGGI to limit GHG emissions generated by fossil fuel-fired power plants. Launched in 2005, RGGI was the first mandatory GHG "cap-and-trade" program in the United States. To learn more about RGGI visit:

New Jersey's Role in RGGI

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The Global Warming Response Act establishes statewide GHG reduction limits for 2020 and 2050 . The Global Warming Solutions Fund Act authorizes the State of New Jersey to implement a market-based CO2 emissions trading program, such as RGGI, and directs where New Jersey’s proceeds from the auctions are deposited and how that money must be used.

fund distribution

Benefits of RGGI

Since the start of the program, RGGI member states have realized numerous benefits including a significant reduction in CO2 emissions and a decrease in electricity prices, and have invested over $1.77 billion in RGGI proceeds in energy and consumer programs.

CO2 Carbon dioxide emissions from power plants in RGGI states have dropped over 45% since 2005.
money sign From its launch through 2015, the nine participating RGGI states have invested over $1.77 billion in RGGI proceeds.

RGGI Public Information

On March 13, 2018, DEP’s RGGI staff attended an expanded Environmental Justice Advisory Committee (EJAC) meeting to provide information about NJ’s path to re-joining RGGI. A link to the presentation from that meeting is provided below. Summary notes from the meeting will be posted soon.


DEP is holding a public information session about RGGI on March 29, 2018 in the Public Hearing Room. Registration is required for this event. Click on the calendar symbol or the link below to register for this event. Please note that each member of an organization planning to attend must register separately. If you are unable to attend the event in person, we will be streaming it live via GoToWebinar. This is a non-participatory way to view the presentations and listen to the discussion.  If you register for the webinar, you will receive a confirmation email from GoToWebinar with more information about joining the webinar.

Daily Calendar

9:30 AM – 3:45 PM (EDT)
Thursday March 29, 2018
DEP Public Hearing Room
Draft Agenda

Register Here to attend in person

Register here to join the webinar

Related Legislation and Other Resources

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For more information about DEP's RGGI Program, contact

RGGI States
RGGI states

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Last Updated: March 20, 2018