On 30 December 2009, 11 eastern states in the USA signed an agreement to develop a plan to reduce greenhouse gas emissions from vehicle fuels. The memorandum of understanding or MOU was signed by the ten states that make up the Regional Greenhouse Gas Initiative, partners in a regional cap and trade? program to reduce GHG emissions from power plants, and the state of Pennsylvania.

Part of the agreement included committing to evaluate alternative fuel options and study the costs of such a program, which will promote using cleaner fuels. The memorandum said that developing alternatives to their regional continued reliance on petroleum-based fuels would foster economic growth and enable increases in fuel security and reliability. The memorandum said that the development, commercialization and use of fuels that have low carbon intensity could support the growth of jobs, businesses, and services in a clean energy economy.

The states participating in the agreement are: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania, Rhode Island and Vermont.

The memorandum calls for a proposed program framework to be completed by early 2011.