A new op-ed from the New Jersey Business and Industry Association argues the state should leave the Regional Greenhouse Gas Initiative (RGGI) and replace it with a fixed $7 per ton carbon fee on in-state power generators. The piece claims RGGI allowance costs have risen sharply since New Jersey rejoined in 2020, putting the state's natural gas plants at a competitive disadvantage against plants in non-member states like Pennsylvania and Ohio. The proposal cites a study from Tabors, Caramanis, and Rudkevich that estimates a $7 per ton fee could cut carbon emissions by 5 million tons annually, save consumers $279 million on energy bills, and generate $135 million in state revenue by 2027. The NJBIA has launched a campaign urging the governor to reconsider RGGI participation, framing the switch as a way to lower electricity costs while still funding clean energy programs. Critics may question whether a flat fee would maintain the same emissions reduction pressure as a cap-and-trade system. The article does not address how the $7 figure was chosen or whether it would adjust over time. The debate highlights ongoing tensions between carbon pricing mechanisms and energy affordability in the Northeast.
