Regional Greenhouse Gas Initiative - RGGI

New York State is a member of the Regional Greenhouse Gas Intiative (RGGI). http://www.rggi.org/index.htm

The goal is to limit greenhouse gasses through a cap and trade program. As explained on the site:

A Cap-and-Trade Program would cap the total amount of greenhouse gas (GHG) emissions to meet a specific environmental target. GHG emissions would be allocated to individual companies. The total number of emission permits (also known as allowances) allocated adds up to the total emissions cap for the region.
A Cap-And-Trade Permit System controls the right to emit by setting a cap, but allows companies to trade permits. This provides flexibility to companies with differing abilities to reduce emissions in a cost-effective manner. For example, if Company A has a variety of low-cost emissions reduction opportunities, it may have surplus permits available to sell. Company B, however, may not have enough permits to account for its expected emissions. Company B may choose to purchase surplus permits on the market to cover excess emissions instead of paying fines. At the end of the year, permits are submitted to the government. The requirement to reduce GHG emissions creates a demand for permits.