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For Immediate Release:
2005-09-27
For More Information:
Contact Chris Kearns
401-787-4748

Northeast States Huddle To Finalize Plan To Cut Global Warming Emissions From Regional Power Plants

Environmentalists and consumer groups urge states to close loopholes and make program a success story

As the new home of RIPIRG's environmental work, Environment Rhode Island can be contacted regarding this news release.

PROVIDENCE– Top officials from nine Northeastern states are meeting in Providence, Rhode Island this week, trying to finalize a plan to cut global warming pollution from the region’s power plants. The plan, known as the Regional Greenhouse Gas Initiative (RGGI), would set up a regional cap and trade system for carbon dioxide emissions from the power sector.

“We are encouraged that the states are moving forward with this program and hope we will able to give the final plan our full support. But we remain concerned that current proposal would not yield any emission reductions from power plants and is far too generous to plant owners,” said Chris Wilhite, Climate Organizer with Clean Water Action in Rhode Island.

The stated goal of RGGI is to cap emissions at current levels and begin reducing them gradually in coming years. Since 2004, the nine Northeastern states have been negotiating the details of a model rule that states could adopt to govern the program. In August the states released a draft of their proposed plan to implement the program, calling for emissions to be capped at 10% below 2009 levels in 2020.

Today the Rhode Island Climate Coalition released a letter from 27 environmental and consumer organizations, detailing specifics of loopholes in the plan that might yield no reductions in power plant pollution by 2020.

“It is critical that there be a tightening of the loopholes to ensure the program achieves greater reductions with more integrity,” said Matt Auten, Advocate with the Rhode Island Public Interest Research Group (RIPIRG). “If the states modify the proposal to incorporate the changes recommended in our letter then we believe RGGI would be a true success story, yielding substantial emission reductions at power plants while minimizing costs to consumers.”

According to the groups there are three facets of the proposal that together could result in no emissions reduction from power plants. They are:

Leakage – Forecasts project that by 2020 40% or more of the pollution-reduction requirements in the RGGI states would be met simply importing more coal-fired power from states such as Pennsylvania, meaning that emission reductions here would lead to more carbon dioxide being released in bordering states.

Offsets – Power plant owners would be allowed to substitute cuts in global warming emissions from other sources than power plants (called "offsets"), such as planting trees or capturing methane from landfills, for 50% of the planned reductions in power plant emissions.

Baseline emissions – The initial emissions level of 150.6 million tons of carbon dioxide, against which the future 10% reduction would be calculated, is well above current levels – which are estimated at around 143 to 144 million tons.

Another contentious issue is how many “pollution credits” power plant owners would receive for free, giving them the right to emit global warming pollution under the cap and trade system. The current plan calls for 80 percent of such credits to be given to power plant operators while the remaining 20 percent would be auctioned for the public good, with the proceeds being invested in energy efficiency, consumer rebates and renewable energy. The groups are calling for at least half the credits initially, and eventually for all of them, to be allocated for the benefit of consumers.

“The Governors need to make sure that energy consumers are protected from the cost of cleaning up power plants,” said Karen Malcolm of Ocean State Action. “Many consumers are struggling enough to make ends meet while some energy providers are making huge profits. We believe a strong model rule can be adopted that achieves greater pollution reductions and does more to protect consumers.”

The nine states involved in this process are, Connecticut, Delaware, Maine, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.