NJBIA today is launching a “Rethink RGGI” awareness campaign to promote an important policy solution that would lower energy costs for New Jersey consumers, improve the state’s air quality, while also maintaining reinvestment dollars in state clean energy and environment programs.

New Jersey is a participant in the Regional Greenhouse Gas Initiative (RGGI), a cooperative effort among 10 Mid‑Atlantic and Northeast states that use a “cap‑and‑trade” system to limit CO₂ emissions through the purchase of allowances.

But while New Jersey operates some of the most efficient, lower emitting power plants in the region, they are in a drastic competitive disadvantage to non-RGGI participating states such as Pennsylvania, Ohio and West Virginia that continue to rely on higher‑emitting coal‑fired generation.

“CO2 emissions have gone up because of New Jersey’s continued participation in RGGI, not down as intended,” said NJBIA Deputy Chief Government Affairs Officer Ray Cantor. “At a time of great affordability challenges in the energy space, this solution can be a win-win to help lower costs and improve the environment.”

Throughout the campaign, Cantor is detailing a solution to suspend New Jersey’s involvement in RGGI allowance auctions and to replace it with a flat, $7-per-ton fee on all generators in the state.

According to a recent study by Tabors, Caramanis, and Rudkevich, a reputable energy and economics consulting firm, this approach would yield the following results starting in 2027:

• Direct consumer savings of $279 million on New Jersey energy bills annually
• 5 million fewer tons of CO₂ emissions annually
• $135 million in state allowance revenue annually.

These estimates assume a $29‑per‑ton RGGI allowance price. With RGGI prices now exceeding $40 per ton, the emissions reductions and consumer savings under a $7/ton flat RGGI fee would be substantially greater.

The state Legislature established a $7‑per‑ton threshold as a trigger to review RGGI if prices ever reached that level, recognizing that figure would present affordability and potential CO₂ leakage issues.

The $7-per-ton fee could replace current RGGI prices through executive order or legislation.

“RGGI allowances now function as a tax on New Jersey’s fossil‑fuel generators,” Cantor said. “More importantly, they act as a tax that generators in non‑RGGI states do not have to pay.

“As a result, our highly efficient generators are struggling to compete with less efficient and mostly coal generators in those states, which New Jersey is downwind from.

“Effectively, New Jersey is paying more to participate in RGGI, and our air quality is worsening as a result.”

Cantor said, on average, this tax has increased the cost of producing power for New Jersey gas generators by roughly 100% and in the coming months is expected to increase as much as 200%.

Those higher costs, he said, are to a large extent, passed on to consumers who are now effectively subsidizing the operation of coal‑fired generation outside New Jersey—while regional greenhouse gas emissions increase by 2.9 million tons annually.

NJBIA’s Rethink RGGI campaign will include advertising and social media posts with #rethinkRGGI references.

On the NJBIA landing page, njbia.org/rethinkRGGI, New Jersey residents can watch a brief explainer video and also sign a letter to Gov. Mikie Sherrill and state lawmakers to consider the proposal, which is expected to be backed by legislation in the near future.