In December 2005, the governors of seven northeastern states signed a Memorandum of Understanding (MOU) outlining an agreement to implement the Regional Greenhouse Gas Initiative (RGGI).
A key feature in the design of the program as set forth in the MOU is the guidance for the initial distribution of emission allowances. Each state retains the ability to distribute allowances initially, except all states agree that at least 25% of their allowances shall be allocated for consumer benefit or strategic energy purposes.
On July 20, 2006, Resources for the Future convened a workshop to provide technical assistance to states for the development of a plan to satisfy the requirement for an allocation of emission allowances to benefit consumers or for strategic energy purposes. The workshop provided a crucial stepping-stone in the planning process among the states in RGGI.
