Cracks in the Cap

How the "Offsets" Loophole Undermines the Control of Global Warming Pollution from Power Plants

In 2005, Northeast states from Delaware to Maine worked on creating a regional system to limit global warming pollution from power plants, known as the Regional Greenhouse Gas Initiative (RGGI). At the outset, the states agreed to focus on reducing global warming pollution from in-state electric power generators. However, negotiators began to consider five categories of offset measures—pollution cuts outside the regional electricity sector that would “offset” excess power plant pollution. Cracks in the Cap explores how these offset measures would erode the integrity of the program and undermine its benefits.

Report

In 2005, Northeast states from Delaware to Maine worked on creating a regional system to limit global warming pollution from power plants, known as the Regional Greenhouse Gas Initiative (RGGI). At the outset, the states agreed to focus on reducing global warming pollution from in-state electric power generators. However, negotiators began to consider five categories of offset measures—pollution cuts outside the regional electricity sector that would “offset” excess power plant pollution. Cracks in the Cap explores how these offset measures would erode the integrity of the program and undermine its benefits.

Authors

Travis Madsen

Policy Analyst

Tony Dutzik

Associate Director and Senior Policy Analyst, Frontier Group

Tony Dutzik is associate director and senior policy analyst with Frontier Group. His research and ideas on climate, energy and transportation policy have helped shape public policy debates across the U.S., and have earned coverage in media outlets from the New York Times to National Public Radio. A former journalist, Tony lives and works in Boston.

Rob Sargent