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# Regional Greenhouse Gas Initiative an initiative of the Northeast and Mid-Atlantic Sta tes of the U.S. RGGI, Inc. RGGI Benefits CO Auctions, Tracking & Offsets Program Design News & Updates Documents Home > Program Design > Program Overview > The RGGI CO Ca p Program Overview > The RGGI CO Cap Regulated Sources Allowance Allocation State Statutes & Regulations 2012 Program Review Program Design Archive 

## The RGGI CO Cap The RGGI CO cap represents a regional budget for CO e missions from the power sector. A CO allowance represents a limited authorization to emit one short ton of CO from a regulated source, as issued by a participating state. Following a comprehensive 2012 Program Review , the nine RGGI states implemented a new 2014 RGGI cap of 91 million short tons. The RGGI cap then declines 2.5 percent each year from 2015 to 2020. The RGGI states include two interim adjustments to the RGGI cap to account for banked CO allowances. Th e first – the First Control Period Interim Adjustment for Ban ked Allowances – is a reduction to the RGGI cap equi valent to the private bank of first control period (2009-2011) CO allowances. The adjustment is applied to each state 's annual CO allowance budget for 2014-2020. The second – the Second Control Period Interim Adjustment for Banked Allowances – is a reduction to the RGGI cap equivalent to the private bank of CO allowances for CO allowance allocation years 2012 and 2013 that arein addition to the total quantity of 2012 and 2013 CO e missions. The adjustment is applied to each state'sannual CO allowance budget for 2015-2020. The first control period adjustment is 57.4 million CO allowances for 2014-2020. The second control period adjustment is 82.1 million CO allowances for 2015-20 20. The RGGI cap and RGGI adjusted cap for the years 20 14-2020 are as follows: 2014: RGGI cap is 91,000,000, RGGI adjusted cap is 82,792,336 2015: RGGI cap is 88,725,000, RGGI adjusted cap is 66,833,592 2016: RGGI cap is 86,506,875, RGGI adjusted cap is 64,615,467 2017: RGGI cap is 84,344,203, RGGI adjusted cap is 62,452,795 2018: RGGI cap is 82,235,598, RGGI adjusted cap is 60,344,190 2019: RGGI cap is 80,179,708, RGGI adjusted cap is 58,288,301 2020: RGGI cap is 78,175,215, RGGI adjusted cap is 56,283,807 In addition, New Jersey sold 279,758 CO allowance al location year 2014 CO allowances in 2011, and an est imated 180,894 CO allowances for CO allowance allocation yea rs 2012 and 2013 in state set aside accounts will b e distributed or auctioned after the second control p eriod interim adjustment. For additional information, see the First Control Period Interim Adjustment for Banked Allowances Announcement and the Second Control Period Interim Adjustment for Banked Allowances Announcement. From 2009-2011, the cap was 188 million short tons per year for the ten-state region (Connecticut, Del aware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont). From 2012-2013, the cap was 165 million short tons per year for the nine-state region (Connecticut, De laware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont). Cost Containment Reserve The RGGI states have also established a Cost Contai nment Reserve (CCR) of CO allowances that creates a fixed additional supply of CO allowances that are only ava ilable for sale if CO allowance prices exceed certai n price levels – $4 in 2014, $6 in 2015, $8 in 2016, and $1 0 in 2017, rising by 2.5 percent each year thereafter. The CCR is replenished at the start of each calenda r year. The CCR is 5 million CO allowances in 2014 a nd 10 million CO allowances each year thereafter. For addi tional information on the CCR see Auction Materials
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# Page 1 of 1 Regional Greenhouse Gas Initiative (RGGI) CO2 Budget Trading Program
- The RGGI C
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6/9/2014 http://www.rggi.org/design/overview/cap