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RGGI/ WCI Overview

RGGI/ WCI Overview. Legal Limitations. Compacts Clause “No state shall, without the consent of Congress, . . . enter into any Agreement or Compact with another state, or with a foreign power[.]” U.S. Const. art. I, § 10, cl. 3 Indicia of compact Binding reciprocity Regulatory body.

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RGGI/ WCI Overview

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  1. RGGI/ WCI Overview

  2. Legal Limitations • Compacts Clause • “No state shall, without the consent of Congress, . . . enter into any Agreement or Compact with another state, or with a foreign power[.]” U.S. Const. art. I, § 10, cl. 3 • Indicia of compact • Binding reciprocity • Regulatory body

  3. Equity Implications • Setting the cap: which states/industries should bear the burden? • Allowance distribution: what if only some states agree to an auction? • Offsets: won’t some states benefit more than others?

  4. Legal Limitations • Dormant Commerce Clause • Prohibits states from imposing undue burden on interstate commerce • No facial discrimination or economic protectionism • “undue burden” – based on balancing • Extent of the burden • Justifications for the burden • Whether alternatives exist

  5. Equity Implications • Participants in a regional program cannot exclude non-participants from benefitting through use of offsets (unless the program prohibits offsets entirely) – is this fair? • Can participants regulate products introduced by non-participants into the market? • E.g., RGGI – covers emissions within participating states; what about Penn. Power? • WCI – trying to address this, but how?

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