Gov.
Carcieri Abandons Regional Pollution Plan, Bucks Enviro Groups, Bank of
America, Staples, Keypsan, National Grid, Pfizer, & Entergy
Governors
of seven Northeast states on December 20 unveiled a pioneering bipartisan accord
that will cut heat-trapping global warming emissions from the region’s
power plants and create new investment in cleaner, more efficient
energy technology. Along with new pollution limits, the plan will use a
market-based strategy that rewards smart companies for outperforming
the new pollution limits and lowers overall compliance costs.
“The
states have a great opportunity to demonstrate how to reduce global
warming pollution while actually making energy more affordable for
consumers by promoting energy efficiency,” said Chris Wilhite, Clean
Water Action Campaign Organizer. “But Governor Carcieri is making a
serious mistake by moving Rhode Island away from this visionary plan
and its benefits that Rhode Island consumers need.”
Rhode
Island Governor Donald Carcieri attempted to stall negotiations last
week citing a need for more time. But after careful development for
more than two years, governors from Connecticut, Delaware, Maine, New
Hampshire, New Jersey, New York, and Vermont were ready to move forward
with the plan. Pennsylvania, Maryland, the District of Columbia, and
five Canadian provinces have been close observers in the process, and
states including California, Oregon and New Mexico have all announced
plans to pursue a similar approach.
“Rhode
Islanders need a smarter energy system and a healthier environment,”
said Matt Auten, Advocate for Rhode Island Public Interest Research
Group. “It’s a shame that Rhode Island won’t be among the group of
states leading the nation towards those ends.”
The
plan also has federal ramifications. Although the Bush administration
has steadfastly rejected concrete cuts in emissions – and last week
caused a stir when its hand-picked delegation walked out of an
international climate treaty negotiating session – there is growing
pressure within in both parties to adopt national legislation limiting
heat-trapping pollution.
Business Backing
Leading
companies operating in the region including Bank of America, Staples,
Keyspan, National Grid, Pfizer, Entergy, and the association of large
energy users called The Energy Consortium have all backed the idea.
Resistance came mainly from the owners of large coal-fired power plants
who will now be required to clean up their emissions, or finance
somebody else who can.
“It’s
the same story we’ve seen a thousand times before: A small group of big
energy companies gnashing their teeth because they have a vested
financial stake in business as usual,” said Cynthia Giles, of the
Conservation Law Foundation. “It’s a handful of special interests
saying that progress is a bad thing. Well, progress is a good thing for
the Northeast economy and the people whose jobs depend on it.”
A
recent analysis commissioned by the governors predicted the state
climate accord would actually save typical residential customers about
$50 per year at current levels of state energy efficiency investment.
And the researchers concluded that states could more than double those
household savings by using funds raised by the new initiative to
increase efficiency investment and incentives even further.
Getting Ahead of the Curve
Known
as the Regional Greenhouse Gas Initiative (RGGI), the accord takes
effect in 2009, and will reduce carbon dioxide pollution to a level 10
percent below current emissions by 2019. The policy is expected to
lower utility bills by helping consumers and businesses use energy more
efficiently. It will also give industry in the Northeast a competitive
edge as national global warming pollution limits take shape.
“By
putting forward this plan that will stabilize and begin to reduce
global warming pollution from power plants, the seven Northeastern
governors are setting a remarkable precedent. We look forward to Rhode
Island officials rejoining the process to ensure the final rules
achieve the promise of reducing pollution from power plants while
maximizing the economic and environmental benefits to the region we get
from the smart and efficient use of our energy sources,” said Matt
Auten, Advocate for the Rhode Island Public Interest Research Group.
Market-Based Strategy Unleashes Innovation
Under
RGGI each state will have its own emissions limit based on an overall
regional objective, and will regulate only the power plants located
within its boundaries. Companies that find ways to reduce pollution
cheaply will need fewer pollution permits and can sell excess
“allowances” at a profit to companies that can’t – an incentive
structure that rewards rapid innovation while cutting overall costs for
everyone.
This
approach is similar to the highly successful program introduced by
President George H.W. Bush in the early 1990s to address the acid rain
problem. That program has achieved better results at a much lower cost
than even optimists estimated at the time of its launch.
“We
applaud the policymakers, environmental leaders, and businesses who
worked so hard to develop this landmark agreement that will spur
investments in the emerging clean energy economy.” said Mindy Lubber,
President of Ceres, and Director of the Investor Network on Climate
Risk (INCR), whose members manage more than $3 trillion.
The
Northeast program would also allow states outside of the region to
participate, and might eventually be extended to cover not just power
plant carbon dioxide emissions, but all stationary global warming
pollution sources, as well as additional heat trapping emissions such
as methane and sulfur dioxide.
Next Up: The Details
A
great many of the finer details of the plan remain to be worked out,
and groups will be working to make sure regulators hold firm against
special interest pressures. Consumer and environmental groups that have
worked hard to make sure government negotiators didn’t yield to special
interest demands say they will continue bird-dogging regulators to make
sure that RGGI achieves maximum results.
Advocates in Massachusetts and Rhode Island will continue working hard to encourage their Governors to re-join the pact.
“We
are in touch with the DEM and Governor’s staff and continue to urge
them to do the right thing for Rhode Island,” continued Wilhite. “They
need to understand that Rhode Islanders cannot afford to lose access to
energy efficiency funding and miss the opportunity to take steps to
stop global warming.”
The
governors’ announcement comes just days after scientists with the World
Meteorological Organization revealed that 2005 is the second hottest
year on record, continuing a dangerously rapid warming trend that
experts say can only be explained by rising levels of heat-trapping
pollution in the atmosphere.
Additional Contacts
Chris Wilhite, Clean Water Action, (401) 331-6972
Cynthia Giles, Conservation Law Foundation, (401) 351-1102
Josh Dorner, (202) 628-7772
