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Notice of Rule Proposal
CO2 Budget Trading Program Rules N.J.A.C. 7:27C

Take notice that the New Jersey Department of Environmental Protection (Department) is proposing amendments to N.J.A.C. 7:27-22 (Operating Permits) and N.J.A.C. 7:27A-3 (Civil Administrative Penalties and Requests for Adjudicatory Hearings) and new rules at N.J.A.C. 7:27C-1 through 11. A statement of the substance of the proposal follows:

In his Executive Order No. 7 (2018), Governor Phil Murphy directed the Commissioner of the Department and the President of the New Jersey Board of Public Utilities to take all necessary measures to return the State to full participation in the Regional Greenhouse Gas Initiative (RGGI), a regional, cooperative program to cap and reduce carbon dioxide (CO2) emissions from power plants in the participating states to address the significant challenge of climate change. The proposed new rules and amendments establish the New Jersey CO2 Budget Trading Program, a cap-and-trade program employing a market-based approach to controlling pollution, which is designed to reduce anthropogenic emissions of CO2, a greenhouse gas, from large fossil fuel-fired electricity generating units, referred to as CO2 budget units, in New Jersey. Adoption of the CO2 Budget Trading Program is New Jersey’s commitment to participate in RGGI.

In a simultaneous separate rulemaking, the Department is proposing rules governing how the Department, the Economic Development Authority, and the Board of Public Utilities will distribute the proceeds of the RGGI auctions.

The proposal is scheduled to be published in the New Jersey Register dated December 17, 2018. A copy of the proposal (and the companion Global Warming Solutions Fund rule proposal) is available on the Department’s websites at and, and LexisNexis free public access to the New Jersey Register at

A public hearing concerning the proposal is scheduled as follows:

Friday, January 25, 2019 at 9:00 A.M.
New Jersey Department of Environmental Protection
Public Hearing Room
401 East State Street
Trenton, NJ 08625

Written comments may be submitted electronically by February 15, 2019 at or in hard copy to:

Alice A. Previte, Esq.
ATTN: DEP Docket No. 05-18-11
NJ Department of Environmental Protection
Office of Legal Affairs
401 East State Street, 7th Floor
Mail Code 401-04L; PO Box 402
Trenton, NJ 08625-0402

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Last Updated: February 9, 2021