An Act to Update the Regional Greenhouse Gas Initiative
Maine Legislature, Session 132, LD 2037
Sponsors: KESSLER
Amends: 38 MRSA §580-B, 38 MRSA §580-C

Legislative Document
No. 2037
H.P. 1367
House of Representatives, December 5, 2025
An Act to Update the Regional Greenhouse Gas Initiative 
Allowances
Submitted by the Department of Environmental Protection pursuant to Joint Rule 203.
Received by the Clerk of the House on December 3, 2025.  Referred to the Committee on 
Environment and Natural Resources pursuant to Joint Rule 308.2 and ordered printed pursuant 
to Joint Rule 401.
ROBERT B. HUNT
Clerk
Presented by Representative KESSLER of South Portland.
Be it enacted by the People of the State of Maine as follows:
Sec. 1.  38 MRSA §580-B, sub-§3, as amended by PL 2017, c. 323, §1, is further 
amended to read:
3.  Base annual budget.  Until January 1, 2014, the base annual carbon dioxide 
emissions budget is established at 5,948,902 tons of carbon dioxide.  For the year 2014, the 
base annual carbon dioxide emissions budget is established at 3,277,250 tons of carbon 
dioxide. Beginning with the year 2015, the annual carbon dioxide emissions budget must 
decline by 2.5% each year through the year 2020.  For the year 2021, the department shall 
establish the base annual carbon dioxide emissions budget in accordance with the model 
rule and with rules adopted pursuant to subsection 4.  Beginning with the year 2022, the 
annual carbon dioxide emissions budget must decline by 2.5% of the 2014 base annual 
carbon dioxide emissions budget each year through the year 2030 2026. Beginning with 
the year 2027, the base annual carbon dioxide emissions budgets are as follows.
A.  For the year 2027, the base annual carbon dioxide emissions budget is 2,065,595 
tons.
B.  For the year 2028, the base annual carbon dioxide emissions budget is 1,807,395 
tons.
C.  For the year 2029, the base annual carbon dioxide emissions budget is 1,549,196 
tons.
D.  For the year 2030, the base annual carbon dioxide emissions budget is 1,290,997 
tons.
E.  For the year 2031, the base annual carbon dioxide emissions budget is 1,032,797 
tons.
F.  For the year 2032, the base annual carbon dioxide emissions budget is 774,598 tons.
G.  For the year 2033, the base annual carbon dioxide emissions budget is 516,399 
tons.
H.  For the year 2034, the base annual carbon dioxide emissions budget is 442,627 
tons.
I.  For the year 2035, the base annual carbon dioxide emissions budget is 368,856 tons.
J.  For the year 2036, the base annual carbon dioxide emissions budget is 295,085 tons.
K.  For the year 2037 and each subsequent year, the base annual carbon dioxide 
emissions budget is 221,314 tons.
Sec. 2.  38 MRSA §580-B, sub-§4, ¶C, as enacted by PL 2007, c. 317, §17, is 
repealed.
Sec. 3.  38 MRSA §580-B, sub-§10, ¶D, as repealed and replaced by PL 2009, c. 
652, Pt. A, §61, is repealed.
Sec. 4.  38 MRSA §580-C, sub-§1, as enacted by PL 2007, c. 317, §17, is amended 
to read:
1.  Withdrawal by State.  The ability of this State to withdraw from the regional 
greenhouse gas initiative; or.
Sec. 5.  38 MRSA §580-C, sub-§2, as enacted by PL 2007, c. 317, §17, is repealed.
SUMMARY
This bill amends certain provisions governing the regional greenhouse gas initiative. It 
amends the amount of carbon dioxide emissions allowances the State may auction as a 
participant in the regional greenhouse gas initiative for the year 2027 and each subsequent 
year. It also eliminates requirements for establishing and developing carbon dioxide offset 
project categories.