RICHMOND, Va.– As concern for energy reliability surges nationwide, the Propane Education & Research Council (PERC) is marking National Propane Day by encouraging school transportation directors to explore propane autogas as a reliable, on-site energy solution that can support greater peace of mind during power outages or severe weather.
October 7 marks the fourth annual National Propane Day, and this year’s theme, “Prepare with Propane,” is a reminder of propane autogas’s reliability. A recent report from the U.S. Department of Energy warns that blackouts in the United States could increase 100-fold by 2030 as the electric grid struggles to meet growing demand. For school transportation directors that rely on a rigid energy source, that could mean the difference in keeping school buses running or grounding the fleet. Because propane autogas is stored on site, never degrades, and isn’t reliant on the power grid for distribution, it remains ready even during widespread power disruptions.
“As someone who spent years managing school transportation, I understand firsthand how critical it is to keep vehicles moving,” said Joel Stutheit, senior manager of autogas business development at PERC. “When a fleet goes down, everything stops. Propane autogas gives transportation directors a level of control that other energy sources can’t. It’s dependable, affordable, and always ready no matter what’s happening with the grid.”
Today, more than 22,000 propane autogas school buses are in operation across the United States at more than 1,100 school districts. The energy source is not only resilient but also clean, producing up to 96 percent fewer nitrogen oxide (NOx) emissions than diesel. It offers lower fuel and maintenance costs, supports better air quality, and contributes to more consistent uptime.
In addition to propane autogas vehicles, the energy source is also helping electric school bus fleets become more resilient with propane-powered EV charging systems. Powered by a propane generator, and in some cases wind and solar, these off-grid charging solutions can be installed in remote locations, disaster zones, or depots without permanent infrastructure ensuring school buses stay charged even when the grid is down.
Now in its fourth year, National Propane Day is not only a celebration of propane’s energy benefits, but also a moment to recognize the propane professionals who make clean transportation possible.
“From bobtail delivery drivers who make sure customers have energy when they need it to propane autogas service technicians that keep school buses operating safely on the road, National Propane Day is also a celebration of them,” said Joel Stutheit. “We depend on these professionals to keep clean, reliable transportation running every day. And their dedication is what helps fleets stay prepared, no matter what challenges come their way.”
To learn more about propane’s role in providing reliable energy solutions for school transportation, visit propane.com/buses.
About PERC: The Propane Education & Research Council is a nonprofit that provides leading propane safety and training programs and invests in research and development of new propane-powered technologies. PERC is operated and funded by the propane industry. For more information, visit Propane.com.
Workers install fiber optic cables for a school in Harrisburg, Pa. The Trump administration’s changes to a federal grant program meant to expand broadband access have disqualified hundreds of thousands of locations — including homes, businesses and community buildings — from receiving internet access. (Photo by Spencer Platt/Getty Images)
LEFT HAND, W. Va. — The residents of Roane County, West Virginia, enjoy living among the rolling mountains and winding, two-lane roads. Situated between Charleston and Parkersburg, two of the state’s largest cities, the rural county is known for its small towns and historic buildings.
That’s how Sherry Husted, the director of the Roane County Public Libraries, described her native community as she worked last week at Geary Public Library in Left Hand, West Virginia. Each of the county’s three library branches has at least three public computers and free internet access, among other services.
These services are essential to residents living in Roane — where less than 32% of the county’s households, businesses and community buildings — have reliable internet connectivity, according to the Federal Communications Commission’s National Broadband Map.
“We love our rural area,” Husted said. “But there’s always the catch. You love your rural area, but then access to things is always more limited there.”
Members of the library staff regularly help patrons fill out job applications and build resumes. They also help those who have never used a desktop computer before — many of the county’s residents rely on their cellular devices and spotty mobile service, Husted said. Most residents still use landline phones, she added.
And those with internet access at home are paying a steep price. Husted’s plan with Frontier, which includes fiber internet and a landline, comes to $170 a month.
“If you work from home, you need reliable internet,” she said. “Frontier does the best they can. But this is a very rural area, so the trees and terrain are constantly messing up the internet. And because of the demand on these older lines, your internet may not be reliable enough to host things like meetings or classes.”
Roane County is one of the areas federal officials hoped to support through the Broadband Equity, Access, and Deployment Program, or BEAD, a federal grant program meant to expand broadband access. The $42.45 billion initiative, created under the Biden administration’s Infrastructure Investment and Jobs Act of 2021, aimed to close the digital divide — with a focus on rural communities.
The Trump administration’s changes to the program, however, have disqualified hundreds of thousands of locations — including homes, businesses and community buildings — from receiving internet access. And the program’s new technology-neutral approach will also shift a large portion of the federal funds toward satellite internet companies, including Elon Musk’s Starlink, that cost less to build but havemore uneven service than underground fiber optic cable. That means households and businesses that were looking forward to reliable, high-speed internet will no longer get support from the BEAD program.
While some experts were initially skeptical about the program’s goals, every state utilized its allocated funds to develop plans to provide high-speed fiber internet to nearly every home and business in the country, said Christopher Mitchell, the director of the Community Broadband Networks Initiative with the Institute for Local Self-Reliance, an anti-corporate advocacy group.
Most states are expected to get started on deployment projects in 2026. But the Trump administration’s changes have undermined the major investment for rural areas, Mitchell said.
“I think everyone should care about it — even though most people don’t live in rural America — because when we electrified the entire country, the entire economy grew,” Mitchell said. “We will all benefit from this when everyone has more options to share their knowledge, their gifts and their productivity in the economy.”
Even West Virginia, ranking last in internet connectivity, would have effectively achieved universal broadband under the state’s original proposal, according to an unreleased draft of the state’s plan obtained by The Benton Institute for Broadband and Society, a policy group. West Virginia has about 78% connectivity, the only state with less than 80%.
But under West Virginia’s updated final proposal, submitted to the National Telecommunications and Information Administration earlier this month, tens of thousands of households and businesses will no longer have access to BEAD funding.
West Virginia Republican Gov. Patrick Morrisey said he is still optimistic about the rollout, telling reporters recently that some of the decrease in coverage was because of inaccurate information. Some areas had just a few homes, or addresses only had a barn on the property, he and an aide said.
“We’ve been trying to target all the available locations that are eligible,” the governor said Sept. 18 at a news conference at the West Virginia State Capitol. “It’s a pretty fulsome application, and so obviously there were some changes made to accommodate some of the responses from the administration. And in a positive way, they’re trying to save money.”
There are other changes: States and Washington, D.C., may no longer set rates for low-cost residential service options, raising worries that internet providers will put forward plans they say meet the low-cost requirement, no matter the price. And under the “technology-neutral” approach, some locations will no longer be receiving fiber internet, which the federal government previously emphasized due to its speed and durability.
You love your rural area, but then access to things is always more limited there.
– Sherry Husted, director of the Roane County Public Libraries
The new guidelines also remove provisions that encouraged states to work with companies and representatives from minority communities. Requirements related to labor, the environment and climate change also were cut.
West Virginia isn’t alone. Under the new rules, thousands of households, businesses and community buildings across the country will be disqualified from the federal government’s push to provide internet access to the areas that need itmost. And those locations that are still eligible for funding may not receive the best service available — or be able to afford it.
West Virginia has one of the country’s worst workforce participation rates. Internet access is key to changing that, said Bill Bissett, chairman of the West Virginia Broadband Enhancement Council.
“We are hopeful that this new proposal will be supported because we need to get started on this development as soon as possible,” Bissett said. “Because the longer we wait, the less people will be connected because of increased costs in deployment and infrastructure.”
Sherry Husted, the director of the Roane County Public Library, poses in front of a desktop computer earlier this month. The library’s free computers and internet service are essential to residents living in Roane. (Photo by Amelia Ferrell Knisely/West Virginia Watch)
Following the required revisions, West Virginia fared well compared with other states, said Drew Garner, the director of policy engagement at the Benton Institute. But Garner said he expects frustration in other states.
“West Virginia, because it did a good job with its restructuring, is still going to have a lot of strong outcomes,” Garner said. “But across the country in some of these other states, I think there’s going to be a lot of frustration with these changes and the way it walked back from what was going to be a very promising outcome.”
BEAD restructuring
In June, the Trump administration revised the rules of the BEAD program in what the U.S. Department of Commerce said was an effort to lessen regulatory burdens, reduce costs and streamline the process.
As of Sept. 18, 41 states had submitted their updated final proposals, according to a database from Connected Nation, a nonprofit that advocates for expanded broadband access.
In December 2022, when the FCC released its updated National Broadband Map, nearly 12 million locations across the country were in need of internet service. Over the years, that number has decreased because of private investments, continued deployment by existing internet providers and additional support from other federal programs.
States originally identified 4.86 million locations that would be eligible for getting internet connectivity through BEAD funds. But that number is projected to fall to 4.19 million locations following revisions initiated by the Trump administration, according to an analysis from Broadband Expanded, a project from the New York Law School.
West Virginia was originally slated to deploy broadband to approximately 110,000 locations. Now, 73,560 of those locations will receive BEAD funding, according to the state’s new proposal. Connecticut, Massachusetts, Maryland, Nebraska and Rhode Island could see more than half of the locations in their state disqualified from the program.
But some of those locations may still be in need of internet, said Garner, of the Benton Institute.
The National Telecommunications and Information Administration (NTIA), which is part of the U.S. Department of Commerce, directed states to remove certain locations from the BEAD program because they’d acquired internet access from another source.
But, in an effort to save taxpayer money, states also had the option to say they were “financially incapable” of serving a location.
“One of the changes the administration made to the BEAD program is that states and the NTIA now have a way to simply say that these locations are just too expensive,” Garner said. “They can say, ‘It is just going to cost too much, so now we’re going to say they’re ineligible.’”
The BEAD program’s new technology-neutral approach poses another challenge. The original program favored fiber because of its speed, reliability and ability to reach remote locations. But some argue that other technologies would be cheaper.
This change has opened the door for satellite internet providers, including Elon Musk’s Starlink, to receive money from the program. Starlink could be awarded approximately $10 billion, according to The Wall Street Journal.
In West Virginia, Starlink will serve more than 4,100 locations, according to the governor’s office.
“Based on the technology and based on all the evidence we have, some of these technologies — unlicensed fixed wireless especially — are not really a reliable internet service that’s going to meet the needs of a 21st century household,” Garner said.
Rural advocates speak up
In Nebraska, more than half of the counties in the state have signed onto letters to federal officials objecting to the changes, including the disqualification of nearly half the state’s eligible locations.
“It’s very frustrating. We have all these holes in our county, and BEAD was going to bring service to those areas,” Milford County Commissioner Misty Ahmic told the Nebraska Examiner.
Critics in Pennsylvania have said directing funds toward satellite companies is “shortsighted.” Satellite companies Starlink and Project Kuiper, an Amazon subsidiary, were awarded a combined $19.2 million to expand internet access in Pennsylvania.
And in Oklahoma, critics noticed the updated plan would not be using $225 million of the state’s allocated BEAD funds.
The state’s head broadband official said the new proposal would still serve everyone, but critics told the Oklahoma Voice that it would be wrong to send back any federal money while people across the state continue to struggle with internet access.
Originally, states were allowed to use these leftover funds to pay for things other than broadband deployment, such as West Virginia’s plans to improve cellular service and streamline the permitting process for broadband projects. But the federal telecommunications agency has not released guidance on how the leftover funds are to be used under the restructured program.
“There’s a lot of fear right now that NTIA may try to call that money back, which would be a big shame,” Garner said. “That leftover money is the state’s, according to the law. And these ancillary funds would play a huge role to support the BEAD program.”
Affordability also will be a barrier for some households. States may no longer set low-cost service option rates for low-income households. And the federal Affordable Connectivity Program ended last year without additional funding from Congress.
Morrisey said his administration is being aggressive, collaborating with the Trump administration to get internet access to eligible areas.
“I applaud the Trump administration for working with us, but once again, I am not going to do a victory lap until we actually get this all done,” the governor said.
Providing internet to every person in West Virginia was always a lofty goal, said Husted, the Roane County Public Library director. Other initiatives have promised to connect rural residents over the years, Husted said, and she remains skeptical about this outcome.
“In rural areas, you’re going to need to plan for things, and sometimes that puts us at a disadvantage compared to the cities,” Husted said. “With the internet or with other supplies, sometimes we have to decide what is more important to us.”
Editor’s note: This story has been corrected to read that internet providers will have to offer low-cost residential service options under the revised BEAD program, but that states and Washington, D.C., may no longer set those low-cost rates.
This story was originally produced by Stateline, which is part of States Newsroom, a nonprofit news network which includes Wisconsin Examiner, and is supported by grants and a coalition of donors as a 501c(3) public charity.
Electric school bus manufacturer GreenPower Motor Company signed a multimillion-dollar contract with New Mexico for a pilot program at the same time it is facing obstacles with a similar West Virginia project and perilous corporate finances.
The company announced Aug. 4 that the $5 million-plus New Mexico contract resulted from an award made by the state under a request for proposals published in May for participation in a two-year, all-electric school bus pilot project. GreenPower stated the project would deploy three Type A Nano BEAST school buses during the 2025-2026 school year, and three Type D BEAST and Mega BEAST school buses in the coming months.
Those vehicles, the first three scheduled for deployment the week of Sept. 15, are expected to “rotate around the state in five pilot rounds each school year with each round lasting six weeks.” The company, which is partnering with Highland Electric Fleets to install and implement the necessary charging infrastructure, will also provide training for the school bus drivers, mechanics and the community’s first responders to “help ensure a seamless testing period.”
GreenPower President Brendan Riley said via a press release that the New Mexico project is “leveraging the successful pilot that GreenPower conducted in West Virginia but also has a concentration on evaluating charging options and infrastructure.”
At the same time, GreenPower has faced several headwinds this year in West Virginia with a similar contract that also began with a pilot. The electric school bus manufacturer took ownership of its South Charleston plant in August 2022 and eight months later entered into an agreement with the state to sell $15 million worth of BEAST and Nano BEAST models. The state also agreed to pay GreenPower a $3 million deposit.
Separately, GreenPower and the state signed an agreement for an additional $18.6 million in ESBs awarded by the EPA Clean School Bus Program in 2024 to seven county school districts.
But West Virginia Metro News reported last month GreenPower had only delivered about a dozen of the promised 41 ESBs as of this past spring.
The state claims breach of contract. GreenPower CEO Fraser Atkinson said the reality is far more nuanced. During a phone call Thursday, Atkinson told School Transportation News several factors have hindered the company’s ability to deliver the ESBs.
“We have either delivered or we had vehicles ready to go, to be delivered to every single one of those counties,” he said.
Among the issues, Atkinson added, some school districts have not signed required documents with the EPA and GreenPower’s West Virginia dealer, Matheny, to accept the ESBs. In at least one other case, Atkinson said a county did not have available the older diesel school bus EPA required to be scrapped, so the new ESB couldn’t be delivered.
“Even if the dealer came forward and said, well, don’t worry about this other part, let’s just deliver the vehicle, you still have to worry about it,” he added. “We [would not be] compliant with the program.”
He also noted some counties still don’t have electric infrastructure installed. While GreenPower could still deliver those school buses, Atkinson noted that ESBs can’t sit in a parking lot for months on end without being operated like internal combustion vehicles can.
“There’s a much higher level of ongoing maintenance that you need to have on these vehicles if you’re not using them almost every day,” he added.
A West Virginia official contacted by STN declined comment because the issue is ongoing, and a request for comment from Gov. Patrick Morrisey’s office had not been answered at this report.
Hiccoughs With State Inspections and Maintenance
Meanwhile, Atkinson said some counties are having success with GreenPower. But not all say they are. Tony Harris, transportation director for the Monongalia County Schools serving the Morgantown and surrounding area, said the state’s second-largest district received a GreenPower Beast and a Nano Beast, which met his expectations at first.
However, he added, “We have been working with the West Virginia Department of Education, Department of Transportation and GreenPower in regard to a few issues where the buses do not meet the state specifications for a school bus.”
Harris clarified that the unmet state specifications center on failed state inspections for items such as the parking brake release, the color of loading light switches, non-working window defroster fans, and controls for exterior mirrors not working.
Atkinson said GreenPower has worked closely with the state on specifications but commented that not all state inspectors may have the same perspective on what constitutes an out-of-service item, especially as this could be their first experience with an electric school bus.
Still, he noted that any issues keeping school buses sidelined are “a concern.”
“Is there an educational process? I think you’re absolutely right. In hindsight, if all the parties had been in the same room 2 1/2 three years ago and worked through [the issues] …,” he said. “But the flip side is, until you’re actually in the field looking at these things in real time, you probably couldn’t have guessed what all the different issues or potential considerations that needed to be discussed are at the outset. It is a bit of trial and error.”
Harris also expressed disappointment about school bus-related services, which is “an area that has not come close to meeting expectations set for all vendors.”
“We have not been able to obtain stock inventory to have on-hand when something breaks on one of the buses,” he continued. “We have requested training several times for our mechanics on how to service the buses for our preventative maintenance schedules. The mechanics have received some training when representatives have been onsite to address issues when they have been onsite, but no formal training has been provided.”
He said training has so far consisted of what to do in the case of a battery issue or fire.
“A lot of the preventive maintenance items are typical in all school buses, but there are some unique things when it comes to EV school buses,” he said. “Also, we have no access to software or manuals to diagnose problems when they arise. We have requested these products at different times. We have these products for other bus types.”
Atkinson commented that GreenPower is very concerned about any high-voltage work necessary on its school buses.
“Our approach is, until they’re up to speed with the basics, we like to or prefer to take responsibility for anything that could be related to the high-voltage battery system,” adding dealer Matheny has limited experience working with GreenPower’s technology.
Harris said that the district has had to adjust its operations “considerably” after the delivery of the buses.
“We have two of the Nano BEAST buses in our fleet that have run no more than a month on routes since we took delivery of them. These buses have less than 3,000 miles on each of them,” he said, adding the school buses serve special needs and McKinney-Vento student populations. “We have four of the BEAST buses in our fleet, and one has been off the road since June due to defects found during an annual state inspection of the bus. The other three BEAST buses have been taken off the road [last] week due to issues that do not allow us to continue to use them at this time. By taking these buses off the road, it has impacted our bus routes due to the capacity of the buses and not having the same size buses in our spare bus fleet. The one BEAST bus has just over 4,000 miles on it, and this is because it was part of the state pilot program. The other three have less than 3,000 miles on them.”
Meanwhile, John Droppelman, director of support services with the Mineral County Schools, said in an email, “We have not received our two GreenPower buses. We have not received any information from GreenPower in quite some time. I do not expect to ever receive the promised buses. Information about the production and distribution of the GreenPower buses is scarce.”
Atkinson commented, “It’s the early days and there are things that have to get sorted out.” But he continued that, across the electric school bus market, he sees some school districts that have yet to buy-in to electrification, which complicates matters.
“If you have a good partner, they’ll work with you, and they’ll get the vehicles to a place where they’re just not encountering many issues or problems,” he said.
At the same time, GreenPower has been unable to fully staff its South Charleston manufacturing facility. The agreement with West Virginia listed the goal of 900 jobs filled by the end of last year.
“We don’t get paid a cent until a bus is delivered,” Atkinson told STN.
In turn, he added, the company cannot promise its plant workers the necessary weekly hours.
The West Virginia MetroNews Network reported May 26 that confirmed more than a dozen employees had been notified by email three days earlier that they had been laid off. The company did not confirm the exact number of employees who had been laid off, but the network quoted GreenPower’s Riley saying, “The imposition of new tariffs has significantly increased our operational costs and disrupted our ability to build and deliver buses in a timely manner.”
He added that restructuring and other cost-cutting measures were not sufficient to prevent the layoffs.
MetroNews reported last month that GreenPower indicated it employed fewer than 100 workers even before the spring layoffs.
Resulting Financial Uncertainty
Amid all of this, BDO Canada LLP released its independent audit of GreenPower as of March 31, which stated that “the company has suffered recurring losses from operations and has an accumulated deficit that raises substantial doubt about its ability to continue as a going concern.”
A statement by GreenPower issued in July of its financial status at the time noted that revenues for the fiscal year that ended March 31 fell 49.5 percent from the previous year — down from $39,271,839 to $19,847,279 — and experienced a total comprehensive loss of $18,511,895.
GreenPower contends that tariffs are “causing much harm to the entire school bus manufacturing sector. This business instability and the significantly increased costs impacts all school bus manufacturers whether they are producing electric, diesel, propane, or gas school buses. The implications are staggering. If a school bus manufacturer were able to pass these costs on to a school district, it would amount to a tax on the government as the cost would be paid by either local, state or federal government funding.
“But a school bus original equipment manufacturer (OEM) cannot pass on the increased cost since there are state contracts in place for the purchase of school buses,” the company continued. “The new tariffs leave no pathway for a school bus OEM to build vehicles in the U.S., and it completely halts GreenPower’s efforts to on-shore and friend-shore the supply chain, especially non-Chinese battery cells and components.”
An interim Q1 2026 earnings statement released Aug. 15 for the period ending June 30 showed gross revenue fell by 48 percent from the same period last year to $1.549 million, with gross profit at $361,682 after deducting the cost of sales, which actually represents a 63 percent increase from June 2025.
But the statement notes Greenpower anticipates it will not be in compliance with the minimum debt service coverage ratio at the end of the current fiscal year because it has not generated positive EBITDA in the previous four quarters. The outstanding balance on the term loan facility was $3.59 million as of June 30.
The interim statement echoed the warning of the auditor this spring.
“The company’s ability to achieve its business objectives is subject to material uncertainty, which casts substantial doubt upon the company’s ability to continue as a going concern,” it says.
RICHMOND, Va. – According to a recent nationwide survey conducted by the nonprofit Propane Education & Research Council (PERC), 87 percent of parents and K-12 educators say it’s important that their children get to and from school in low-emissions school buses. The survey asked respondents about their awareness and attitudes toward school bus emissions and alternative fuels like propane, and the results illustrate the overwhelming demand for cleaner school buses.
However, that desire doesn’t match reality as most students still ride to school on diesel buses despite nationwide programs to fund cleaner transportation options. A June 2025 report from the U.S. Government Accountability Office (GAO) found that, while billions in federal funding have been committed to electric and other alternative-fuel buses, many of those buses remain delayed in deployment — often due to charging infrastructure and delivery challenges keeping older, higher-polluting diesel buses on the road longer.
Diesel exhaust is a known carcinogen that causes lung cancer and increases the risk of bladder cancer. With propane school buses, that risk is eliminated. In fact, propane school buses reduce harmful nitrogen oxide (NOx) emissions by up to 96 percent compared with diesel and emit near-zero particulate matter (PM) emissions. Both NOx and PM emissions are known triggers for issues like asthma, bronchitis, and other respiratory problems, according to the Environmental Protection Agency.
“Every child deserves a safe, clean, healthy ride to school,” said Joel Stutheit, senior manager of autogas business development at PERC. “The way children ride to school today is like how I rode to school – in an aging, dirty diesel bus. Parents will remember that cloud of black smoke from the exhaust pipe, the smell of the diesel, the headaches, and the noise. With propane, all of that is gone, so children arrive safely and ready to learn.”
While 76 percent of parents agreed that the biggest benefit of low emissions buses is cleaner air for children, the survey results indicated that parents didn’t want to use funding from other academic areas to pay for cleaner transportation. Propane school buses address this issue as an affordable option that costs marginally more than a diesel bus but can reduce operating costs by half. Compared with electric school buses, propane buses cost one-third the price, allowing districts to replace their aging diesel fleet three times faster.
“I am often asked, ‘what about electric buses?’”, Stutheit said. “While electric buses may not have tailpipe emissions, we need to remember that 65 percent of the grid is still powered by coal and other fossil fuels emissions are generated when those buses charge. There is no such thing as a zero-emissions vehicle. And when you compare the full lifecycle emissions, propane buses hold their own as a clean energy and at an affordable cost to replace diesel buses and reduce emissions more quickly.”
Currently, 1.1 million children across the country ride to school every day in 22,000 propane autogas school buses. Those buses operate in more than 1,000 school districts in 48 states.
Once presented with the facts that propane school buses reduce emissions while saving school districts money, 90 percent of parents surveyed said they would be at least somewhat likely to support their use. Parents and educators who are interested in learning more on how to talk to their school district about adopting clean propane school buses can visit BetterOurBuses.com.
About PERC: The Propane Education & Research Council is a nonprofit that provides leading propane safety and training programs and invests in research and development of new propane-powered technologies. PERC is operated and funded by the propane industry. For more information, visit Propane.com.
A trailblazing regional greenhouse gas partnership on the East Coast is considering possible changes or expansion that would allow it to keep building on its success — and the stakes grew higher last month with the reelection of Donald Trump.
The 11-state Regional Greenhouse Gas Initiative, established in 2005, is the country’s first regional cap-and-invest system for reducing carbon emissions from power generation. Since 2021, administrators have been conducting a program review, analyzing its performance since the last review in 2017 and weighing potential adjustments to make sure it continues to deliver benefits to member states.
The role of such programs is more crucial as Trump’s pledges to roll back federal climate action leaves it up to cities, states, and the private sector to maintain the country’s momentum on clean energy over the next four years. In RGGI, as the regional initiative is known, states have a potential model for scaling their impact through collaboration.
“RGGI has not only been an effective climate policy, it’s been an extraordinary example of how states can work together on common goals,” said Daniel Sosland, president of climate and energy nonprofit Acadia Center. “It is a major vehicle for climate policy now in the states, more than it might have seemed before the election.”
How RGGI works
RGGI sets a cap for total power plant carbon emissions among member states. Individual generators must then buy allowances from the state, up to the total cap, for each ton of carbon dioxide they produce in a year. The cap lowers over time, forcing power plants to either reduce emissions or pay more to buy allowances from a shrinking pool.
States then reinvest the proceeds from these auctions into programs that further reduce emissions and help energy customers, including energy efficiency initiatives, direct bill assistance, and renewable energy projects. Since 2008, RGGI has generated $8.3 billion for participating states, and carbon dioxide emissions from power generation in the nine states that have consistently participated fell by about half between 2008 and 2021, a considerably faster rate than the rest of the country.
“It has really thrived and been really effective across multiple administrations,” said Jackson Morris, state power sector director with the Natural Resources Defense Council. “RGGI is a winning model. It’s not theoretical — we’ve got numbers.”
Currently, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island, and Vermont are part of the program. Virginia joined RGGI in 2021, but in 2023 Gov. Glenn Youngkin repealed the state’s participation, a move immediately challenged in court; a judge ruled last month that the governor lacked the authority to withdraw the state from initiative, though a spokesman for the governor has declared the state’s intention to appeal.
There is widespread agreement that RGGI will endure despite likely federal hostility to climate measures. There was no attempt to take direct action against it during Trump’s first term, nor has there been any concerted industry opposition, said Conservation Law Foundation president Bradley Campbell, who was involved in the founding of RGGI when he was commissioner of the New Jersey Department of Environmental Protection.
Supporters also note that the program has historically had broad bipartisan support: Participating states have been led through the years by both Republican and Democratic governors and legislatures.
Politics has had some influence over the years, though only at the margins. New Jersey, a founding member of RGGI, left in 2011 when Chris Christie was governor, but returned in 2020 following an executive order from his successor. Pennsylvania joined in 2022 through an executive order from the governor, but its participation is now being challenged in court.
Still, RGGI’s foundations are solid and will remain so, experts said.
“The basic infrastructure has weathered the political winds over the decades,” Campbell said.
Looking forward
Nonetheless, RGGI will need to make some carefully thought-out program design decisions during its current review to make an impact in the face of falling federal support for decarbonization.
One question under consideration is whether to maintain the existing trajectory for the overall emissions cap for the program — a reduction of 30% between 2020 and 2030, then holding steady thereafter — or to continue lowering the limit after 2030.
The RGGI states are also contemplating a possible change to the compliance schedule that would require power generators to acquire allowances worth 100% of their carbon emissions each year, and certify compliance annually. The current system calls for certification every three years, and only mandates allowances equivalent to half of carbon emissions for the first two years of each period.
The program is looking for ways to appeal to potential new participant states that have less aggressive decarbonization goals than current member states without watering down the program’s overall impact on decarbonization, said Acadia Center policy analyst Paola Tamayo. Acadia suggested possible program mechanisms such as giving proportionately more allowances to states with more stringent emissions targets to incentivize tighter limits.
“At this point it is critical for states to maintain a high level of ambition when it comes to programs like RGGI,” Tamayo said. “There are different mechanisms that they can implement to accommodate other states.”
The program review is expected to yield a model rule some time over the winter, though updates may be made into the spring as the RGGI states receive and consider feedback on how to accommodate potential new participants.
States will also need to maintain and strengthen their own climate policies to magnify the impact of RGGI, Campbell said. He pointed to Massachusetts, where Gov. Maura Healey needs to show “bolder leadership,” he said, and Maine and Vermont, where the Conservation Law Foundation has filed lawsuits in an attempt to compel the states to meet their own carbon reduction deadlines.
“It’s especially important that the states that have strong emissions reduction mandates speed up the implementation of their climate laws,” he said. “State leadership on these issues is going to be more important than ever.”
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