Regional Greenhouse Gas Initiative (RGGI)
The RGGI is the United States’ first regional market-based regulatory program designed to reduce greenhouse gas emissions from the electric power sector. RGGI was established in the northeastern region in 2005 through a Memorandum of Understanding between the governors of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont. In 2007, the program was expanded to include Maryland, Massachusetts, and Rhode Island.
Under RGGI program, participating states are expected to reduce their annual CO2 emissions from the power sector by 45% below 2005 levels by 2020, and by an additional 30% by 2030. RGGI places limits on CO2 emissions from new and existing fossil-fuel-fired electric generating units (EGUs) in the program area with a minimum capacity of 25 MW.
Regulated EGUs must obtain allowances for each short ton of emitted CO2. Allowances are auctioned quarterly and may be sold or traded between EGUs. Auction revenues have been reinvested to accelerate renewable energy use, improve energy efficiency, and support other public benefit programs.
The estimated avoided cases of adverse child health outcomes included 537 asthma cases, 112 preterm births, 98 cases of autism spectrum disorder (ASD), and 56 cases of term low birth weight (TLBW), with an associated avoided cost estimate ranging from $191 to $350 million. In a previous analysis of health benefits of RGGI, the only benefits accruing to children were limited to prevented cases of infant mortality and respiratory illnesses, with a monetized impact of $8.1 million—only 2–4% of the new results attributable to RGGI.
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