On 11 March 2020 New Jersey participated in the first 2020 auction of the Regional Greenhouse Gas Initiative (RGGI) after rejoining as of January 2020. New Jersey is the 10th US east coast state to become a member of RGGI.

The reentry follows the adoption of the final legislation for establishing a power sector ETS and rejoining RGGI on 17 June 2019. The legislation is consistent with the RGGI Model Rule and sets a 2020 emissions cap of 18 million short tons of CO2 for the state, increasing RGGI’s overall cap to 96.4 million short tons of CO2 from 80.2 million short tons in 2019.

New Jersey will release a Strategic Funding Plan by April 2020 governing how the state will use its RGGI auction proceeds. According to the Auction Proceeds Scoping Document, the priorities for using the revenue are to provide meaningful benefits to communities most affected by pollution and climate change as well as catalyzing the electrification of the various modes of transportation in the state.

New Jersey was a founding member of RGGI but in 2011 left the program and scrapped its ETS under former Governor Chris Christie. Current Governor Phil Murphy issued an executive order after taking office in January 2018, which began the process of rejoining RGGI.