Division of Air and Waste Management

Introduction                                                                             
Regulation 1147 establishes Delaware's portion of a multi-state Carbon Dioxide (CO 2) cap-and trade program. The cap-and-trade program was developed by the Regional Greenhouse Gas Initiative, or RGGI, which is a cooperative effort among a number of Northeastern and Mid-Atlantic States. The RGGI Memorandum of Understanding (MOU) was originally signed by Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York and Vermont and subsequently by Maryland, Massachusetts, and Rhode Island. The purpose of RGGI is to reduce the emissions of CO₂ from EGUs (electric generating units). CO₂ is a greenhouse gas that contributes to global warming. 

Between 2009 and 2015 the emissions of CO₂ from any EGU with a maximum rated heat input capacity of equal to or greater than 25 megawatts that is located in a RGGI state would be stabilized at current levels (approximately 7.5 million tons). After 2015 the carbon dioxide emissions would be reduced incrementally to achieve a 10 percent reduction by 2019. Under the cap-and-trade program one allowance will be issued for each ton of CO₂ emissions allowed by the cap. Each subject EGU will be required to have enough allowances to cover its reported emissions for the 3-year control period. The EGUs may buy or sell allowances, but individual EGU emissions shall not exceed the amount of allowances it possesses. The total amount of the allowances will be equal to the emissions cap for the RGGI states. 

Delaware CO2 Budget Trading Program

To support the state CO₂ Budget Trading Program, the RGGI participating states have implemented a regional auction platform to sell CO₂  allowances.  On March 14, 2012, Delaware as a participating state, will offer 1,267,273 (allocation year 2012) CO₂  allowances for sale in the fifteenth auction of of CO₂ emissions allowances . (Read the Auction Notice for more information.)  Information can be found on the RGGI Executive Summary and the RGGI Web site. 

If you have questions about the RGGI auction, information can be here at Auction FAQs.

Additional information on the RGGI program is available at the following websites:

Regional Greenhouse Gas Initiative website

DNREC's Climate Change website

RGGI Auction FAQs

Final Regulation 1147 – CO2 Budget Trading Program 

CO2 Permit Application

Regulation 1147 Development History

Offset website

Clean Fuel Standard

On January 5, 2009 Delaware and 10 other Northeast and Mid-Atlantic states announced their commitment to developing a regional Low Carbon Fuel Standard in order to reduce greenhouse gas emissions from fuels for vehicles and other uses. 

A Low Carbon Fuel Standard is a market-based, technologically neutral policy to address the carbon content of fuels by requiring reductions in the average lifecycle greenhouse gas per unit of useful energy.  Such a standard is potentially applicable not only in transportation, but also for fuel used for heating buildings, for industrial processes, and for electricy generation.

Developing a low carbon fuel standard for application regionally is a logical next step in our stategic work with other states to reduce greenhouse gas emissions.