New York Proposes Regulations to Strengthen RGGI Emissions Cap

The New York State Department of Environmental Conservation on April 29 proposed regulations to advance the state’s portion of the 30 percent emissions cap reduction from 2021 to 2030, under the Regional Greenhouse Gas Initiative, or RGGI, which established the nation’s first regional program to cap and reduce power sector emissions.

Following the program update, the regional cap in 2030 will be 65 percent below the 2009 starting level. The department underscored that New York is including smaller peaking power plants sized less than 25 megawatts in the program, going beyond other RGGI members. The inclusion recognizes that most of these smaller sources are near New York’s environmental justice communities that bear an undue burden of air pollution.
Another important change, according to the department, is the creation of the “Emissions Containment Reserve” designed to achieve additional emissions reductions ​by auctioning fewer allowances when the cost is less than anticipated. Further, the proposal would remove all offset categories except for emissions from livestock operations, in a bid to simplify the program and ensure that reductions from power plants continue. The department’s proposal will be open for public comment until June 29.

The New York State Energy Research and Development Authority, which is responsible for administering auctions for the sale of emissions allowances, proposed regulations to ensure that investment of auction proceeds provide equitable benefits to disadvantaged communities. The proposed revisions are consistent with the recent RGGI program review, following which member states announced a proposal to lower the emissions cap to approximately 75 million tons in 2021, declining 3 percent a year through 2030. NYSERDA’s proposed regulations will be published in the State Register on May 13 and will be open for comment until July 13.

NYSERDA’s revisions complement changes that the department will make, which is the primary mechanism for regulation of emissions throughout New York. In 2014, participating states set a cap of 91 million short tons of carbon dioxide. Since 2015, the cap has declined by 2.5 percent each year through the end of 2020, indicating a steady decline in emissions from the electricity sector.

The proposed regulations support the requirements under the 2019 Climate Leadership and Community Protection Act, which established a goal of achieving 85 percent emission cuts by 2050. In his 2017 State of the State address, Democratic Governor Andrew Cuomo challenged the RGGI states to further strengthen the program, which yields environmental, health, and economic benefits. The proposed regulations would fulfill this challenge.