DEC and NYSERDA Finalize Regulations to Strengthen Regional Greenhouse Gas Initiative
The New York State Department of Environmental Conservation (DEC) and New York State Energy Research and Development Authority (NYSERDA) today announced the adoption of regulations to strengthen the Regional Greenhouse Gas Initiative (RGGI) to achieve affordable and effective emissions reductions through 2037. The regulatory updates follow a multi-state program review decided by consensus to confirm the states’ long-term commitments to energy affordability, public health, and environmental protection.
DEC Commissioner Amanda Lefton said, “RGGI is a longstanding and successful example of multi-state collaboration that delivers real benefits to New Yorkers, including affordability, decreased emissions and improved public health. Implementing these regulations as part of the program review with the rest of the RGGI participating states, will further enhance New York’s ability to deliver clean and affordable energy solutions and healthy communities.”
NYSERDA President and CEO Doreen M. Harris said, “Strengthening RGGI reinforces New York’s leadership in lowering emissions while generating resources that help make clean energy more affordable and accessible for New Yorkers. Through these investments, NYSERDA is expanding access to clean transportation options, more efficient and comfortable homes and buildings, and job opportunities across the state – delivering benefits to communities from Long Island to Buffalo.”
The adopted RGGI program updates will help ensure New Yorkers continue to enjoy cleaner air while creating jobs and boosting the economy. The amended regulations build upon the progress already achieved by RGGI, including reducing carbon dioxide emissions from New York’s power sector by 50% from 2005 levels and generating more than $3 billion in RGGI auction proceeds that support investments in energy efficiency, renewable energy, and electrification that ultimately provide savings to utility ratepayers.
RGGI has a long history of providing economic and environmental benefits across the region, including through the states’ investments of auction proceeds, which have directly benefitted over 8 million households and 400,000 businesses in the region to date, and will save ratepayers over $20 billion on their energy costs. In New York alone, RGGI will save participating ratepayers nearly $12 billion on their energy bills across the state. RGGI’s market-based design enables cost-effective emissions reductions while returning real savings to consumers.
RGGI, which includes 11 participating states, is the nation's first regional program to cap and reduce greenhouse gas emissions from the electricity sector. The finalized regulatory revisions will result in regional carbon dioxide emissions decreasing approximately 10% annually through 2033, and in 2034 would decrease more gradually approximately 3% annually through 2037. The regional emissions cap established under RGGI will lower to 69.8 million tons in 2027 then decline about 89% relative to the 2024 cap through 2037.
The program updates also expand the Cost Containment Reserve (CCR), providing additional flexibility and cost containment for the program, adding an additional tier of allowances to the CCR. The first tier of CCR matches the existing CCR price in 2027 at $19.50 and increases 7% annually with a maximum amount of allowances available at auction each year increasing to about 11.75 million. The second tier of CCR would be set at $29.25 in 2027 and increase 7% annually with a maximum amount of allowances set at about 11.75 million.
The revisions also remove the Emissions Containment Reserve (ECR), which increases the minimum reserve price to $9 in 2027 and increasing at 7% annually. RGGI updates also eliminate all offset project categories. Any offset allowances awarded by a participating state prior to January 1, 2027, will remain for compliance purposes.
The RGGI updates announced today, which will be effective January 1, 2027, are designed to provide stability and protect against cost volatility, ensure allowances are available to meet expected energy demand, and bolster price protection for consumers. The updated cap trajectory is designed to achieve affordable emissions reductions more quickly, while ensuring long-term availability of allowances under the program.
Net savings are expected to reach nearly $12 billion (PDF) over the lifetime of the investments, providing a nearly 6-to-1 benefit based on investment of about $2 billion to date. An Abt Associates (PDF) analysis found all RGGI states also realized $5.7 billion in public health benefits over its first six years alone (2009-2014), including fewer premature deaths, heart attacks, and respiratory illnesses thanks to cleaner air, and added 48,000 job-years.
Updates to NYSERDA’s auction rule were approved by the NYSERDA board on June 23, 2026. The adopted regulations and auction rule are available on DEC’s website. The proposed regulations were announced in December 2025, with public comments accepted from December 2025 through February 2026, with two virtual public hearings previously held in February. Additional details can be found on DEC’s RGGI webpage.
In July 2025, the states participating in RGGI, including New York, announced the finalized program updates (PDF) to strengthen the regional emissions cap. The updated program review secures progress through the tightened cap while providing additional flexibility if extra price protection is needed. The next program review is expected to begin no later than 2028.
New York State's Climate Agenda
New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 40 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy, including in the energy, buildings, transportation, and waste sectors. The State is also working to disburse the historic $2 billion Sustainable Future Program, which will deliver targeted funding to lower emissions, reduce household energy costs, and spur green job growth.
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