The Regional Greenhouse Gas Initiative (RGGI), a multi-state market-based program designed to cap and reduce carbon dioxide emissions from fossil fuel-fired power plants, has the added benefit of generating auction proceeds to invest in clean energy and greenhouse gas reduction strategies. In New Jersey, these proceeds are credited to a special fund, known as the Global Warming Solutions Fund. From this Fund, RGGI proceeds are legislatively distributed to three state agencies for special uses:
The Global Warming Solutions Fund Rule requires these agencies to work collaboratively to develop a strategic funding plan to achieve New Jersey’s clean energy and greenhouse gas goals by investing in renewable energy and energy efficiency and reducing greenhouse gas emissions. Once the strategic plan is finalized, the agencies will select specific programs and projects to fund.
The strategic funding plan is a report published every three years that; identifies the initiatives each state agency will sponsors, provides information and materials used to identify the initiatives, ranks the importance of each objective for each initiative and summarizes projects/program spending from the prior strategic funding period.
Every three years the agencies will select a group of initiatives that are predicted to collectively advance six key objectives defined by the Global Warming Solutions Fund Act and by Governor Murphy’s Executive Order 7 (EO 7). Each initiative must have at least one objective ranked as critical and each of the six objectives must be ranked as a critical objective for at least one of the initiatives.
- A net reduction in greenhouse gas emissions or a net sequestration of carbon;
- significant reductions in greenhouse gas emissions, reduction of impacts on ratepayers, and a significant contribution to the achievement of the State’s 2050 Global Warming Response Act limit, relative to the cost of the project or program;
- reductions in energy use;
- responsiveness to the recommendations submitted by the Department to the Legislature pursuant to the Global Warming Response Act;
- the provision of co-benefits; and
- be directly responsive to the negative effects on human health and the environment in communities that are disproportionately impacted by the effects of environmental degradation and climate change.
The state agencies receiving RGGI auction proceeds are planning to host a series of public meetings in the fall/winter of 2019. Meeting dates and locations are not yet finalized. To stay informed, join the RGGI funding listserv
Programs and projects are selected for funding via independent, agency-specific processes. Each agency prioritizes funding for those programs or projects that advance the critical objectives of the agency’s chosen initiative(s). When selecting programs or projects, each agency must adhere to the legislatively mandated eligibility criteria. For more Information check out our Frequently Asked Questions (PDF). The state agencies receiving RGGI auction proceeds are planning to host a series of public meetings in the fall/winter of 2019. Meeting dates and locations are not yet finalized. To stay informed, join the RGGI funding listserv.