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Rule Details
Rule Number:
26P003
Title:
Proposed Amendments to the Vermont CO2 Budget Trading Program Rule.
Type:
Standard
Status:
Final Proposed
Agency:
Agency of Natural Resources
Legal Authority:
30 V.S.A. § 255, 10 V.S.A. § 558, 10 V.S.A. § 554
Summary:
The proposed rule amends the Vermont CO2 Budget Trading Program Rule which implements the Regional Greenhouse Gas Initiative (RGGI) in Vermont. The amendments reflect revisions to the RGGI Model Rule agreed to by participating states (CT, DE, ME, MD, MA, NH, NJ, NY, RI, and VT) during the most recent program review. Most notably, the proposed amendments reduce the regional carbon dioxide (CO2) emissions cap in 2027 to 69.8 million tons of CO2 from 75.7 million tons under the previous rule. Then, from 2034 through 2037, the cap will decline by 2.4 million tons of CO2 annually. The proposed amendments also revise the existing Cost Containment Reserve (CCR) to ensure availability of RGGI allowances to meet grid reliability needs and
mitigate cost volatility; increase the minimum reserve price, the lowest price at which allowances may be sold at auction; eliminate the use of offset allowances; and include other miscellaneous updates.
Persons Affected:
Fossil fuel-fired electric generating units that have a nameplate capacity equal to or greater than 25 megawatts and electricity customers.
Economic Impact:
A macro-economic impact study concluded that RGGI states could see a range of small but generally positive impacts on employment, gross regional product, and real personal income, with increased future availability of renewable energy resulting in greater benefits. In Vermont, over the years 2025 to 2040, employment could increase by up to 0.025, gross state product by up to 0.027, and real disposable income by up to 0.019 as compared to the reference case.
A near-zero percent impact on Vermont electric rates is anticipated. Rates for residential, commercial, and industrial consumers are projected to decrease slightly (1) if renewable energy keeps pace with demand and increase slightly (0.25) if it does not. Investments of RGGI proceeds in energy efficiency programs amplify any decrease or mitigate any increase in consumer costs. Reduced emissions could lead to additional health and environmental benefits and cost savings.
Posting date:
Feb 25,2026
Hearing Information
Information for Hearing # 1
Hearing date:
Location:
Limestone Conference Room
Address:
One National Life Drive, Davis 3
City:
Montpelier
State:
VT
Zip:
05620-3901
Hearing Notes:
Also virtually via MS Teams at: https://www.microsoft.com/en-us/microsoft-teams/join-a-meeting Meeting ID: 287 821 831 757 5 Passcode: oT2Yd36E
