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. 

Delaware CO2 Budget Trading Program - REGIONAL AUCTION

To support the state CO₂ Budget Trading Program, the RGGI participating states have implemented a regional auction platform to sell CO₂  allowances.  On June 5, 2013, Delaware as a participating state, will offer 1,445,307 (allocation year 2013) CO₂  allowances for sale in the twentieth auction 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.

Amendment to Regulation 1147 - 2012 Program Review Amendments Under Consideration 

As called for in the original RGGI Memorandum ofg Understanding, The Participating States conducted a program review of the CO₂ Budget Trading Programs.  Proposed amendments to the program have been incorporated in an Updated Model Rule (released February 7, 2013) that will guide Delaware as it follows its own statutory and/or regulatory procedures to propse updates to 7 DE Admin. Code 1147 - CO₂ Budget Trading Program.

PATH FORWARD
Delaware's anticipated schedule for adopting the 2012 RGGI Program Review amendments to Regulation 1147 is:

• Start Action Notice - Approved on April 23, 2013
• Workgroup Meetings
• May 14, 2013 (1-3 pm) BHCC
• Agenda
• Presentation
• RGGI Fact Sheet
• Model Rule Summary
• June 18, 2013 (1-3 pm) BHCC
• Discussion Draft Regulatory Language Available - May 14, 2013
• Public Workshop - 3Q13
• Proposed Draft Regulatory Language Published in Delaware Register - 3Q13
• Public Hearing - 3Q13
• Secretary's Order - 4Q13
• Final Regulatory Language Published in Delaware Register - 4Q13
• Effective Date - 4Q13

Amendment to Regulation 1147 - Refinery Amendments FINAL March 1, 2013 

The Department of Natural Resources and Environmental Control, Division of Air Quality will hold a public hearing on a proposed amendment to 7 DE Admin. Code 1147– CARBON DIOXIDE (CO2) BUDGET TRADING PROGRAM  (i.e., the RGGI program), as it relates to petroleum refineries.  The proposed amendments require that petroleum refinery units purchase CO2 allowances to cover its reported emissions each year that are directly associated with the electricity generated and exported to the electrical grid.  Petroleum refinery units participating in the CO2 Budget Trading Program will be required to report emissions, as required by other Electric Generating Units, and accept enforceable permit conditions.

The public hearing on this proposed amendment to 7 DE Admin. Code 1147 was held Wednesday, January 23, 2013, at the Delaware City Library located at 250 5th Street, Delaware City, DE 197060.

The proposed regulation and amendments may be inspected at the Department’s offices located at 655 South Bay Road, Suite 5N, Dover and 715 Grantham Lane, New Castle, or on the Division of Air Quality’s website.

Public Hearing Documents:

• Department Presentation
• RGGI Fact Sheet
• Proposed Amendments
• Final Amendment
• Secretary's Order

For additional information, please contact Valerie Gray in Dover at (302) 739-9402, or at valerie.gray@state.de.us.

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

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 electricity generation.

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