21 NYCRR Part 507

The Carbon Dioxide (CO₂) Budget Trading Program, as enacted by the Department of Environmental Conservation (DEC), is implemented through New York State’s commitment to the Regional Greenhouse Gas Initiative (RGGI). RGGI is a program among ten northeastern states to reduce greenhouse gas emissions and to address the significant challenge of our changing climate. The CO₂ Budget Trading Program creates a Cap-and-Invest program to reduce carbon dioxide emissions from power plants, which are required to purchase emission allowances equivalent to their emissions. The CO₂ Allowance Auction Program implements the sale of emissions allowances by establishing auctions. The CO₂ Allowance Auction Program, which is administered by NYSERDA, creates the Energy Efficiency and Clean Energy Technology Account, into which CO₂ emissions allowances are allocated. From that account, emissions allowances are auctioned to entities that must comply with the CO₂ Budget Trading Program requirements and other market participants. This regulation establishes the rules and procedures to implement auctions. The proceeds of the auctions are used to promote energy efficiency and the deployment of clean energy.

On November 17, 2025, the NYSERDA Board approved publication of the proposed revision to the CO₂ Allowance Auction Program, which is also known as Part 507. On December 10, 2025, the proposed rule was published in the New York State Register. Public comments on the proposal will be accepted through February 17, 2026.

• Revised Part 507 [PDF]