Search Results for: RGGI

PA supreme court hands environmental groups large RGGI victory

The Pennsylvania Supreme Court issued a landmark decision on July 18, 2024, recognizing the right of environmental groups to defend Pennsylvania’s participation in the Regional Greenhouse Gas Initiative (RGGI) and upholding the importance of the state’s Environmental Rights Amendment.

Environmental Groups Gain Right to Defend RGGI

The court overturned a Commonwealth Court decision that had denied PennFuture, Clean Air Council, Sierra Club, and Environmental Defense Fund the right to intervene in a legal challenge to RGGI. These groups argued that participation in RGGI would benefit Pennsylvanians by lowering emissions, improving air quality, creating clean energy jobs, and saving consumers money.

Environmental Rights Amendment Takes Center Stage

This decision recognizes the environmental groups’ argument that they have a right to defend the RGGI regulation because it protects their members’ constitutional right to a clean and healthy environment, as enshrined in Pennsylvania’s Environmental Rights Amendment. The Supreme Court found that the Pennsylvania Department of Environmental Protection (DEP) had not adequately addressed this amendment in its previous defense of the RGGI regulation.

Quotes from Environmental Leaders

  • Jessica O’Neill, PennFuture’s Managing Attorney for Litigation: “Today’s decision shows that the Pennsylvania Supreme Court not only recognizes Pennsylvanians’ constitutional right to clean air and a healthy, stable environment, but respects their right to fight for it. The RGGI Regulation is a critical step for Pennsylvania to protect the air and environment for Pennsylvanians today and for our future generations.”
  • Alex Bomstein, Executive Director of Clean Air Council: “The RGGI Regulation is the most important step Pennsylvania has taken to-date to fight the deepening climate crisis, which makes the Court’s decision to allow public interest voices to defend the Regulation all the more important.” (Similar quotes from the remaining leaders can be added following this format)
  • Tom Schuster, Director of the Sierra Club Pennsylvania Chapter: “We are very pleased with the Court’s decision, which affirms that our members have a keen interest in defending their constitutional right to a clean and healthy environment,” said . “This ruling underscores the importance of our Environmental Rights Amendment, particularly as it relates to protections against climate disruption, the defining environmental issue of our time.”

The court’s decision is the latest development in the ongoing legal battle over RGGI in Pennsylvania. The Supreme Court is still expected to issue a final ruling on the merits of the challenge to the RGGI regulation.

Opinions in full:
https://www.pacourts.us/assets/opinions/Supreme/out/J-30B&C-2023mo.pdf?cb=1
https://www.pacourts.us/assets/opinions/Supreme/out/J-30B&C-2023co.pdf?cb=1
https://www.pacourts.us/assets/opinions/Supreme/out/J-30B&C-2023cdo1.pdf?cb=1
https://www.pacourts.us/assets/opinions/Supreme/out/J-30B&C-2023cdo.pdf?cb=1

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Republicans in Pa. find one more way to slow adoption of RGGI

Jared WickerhamHomes in front of the Cheswick coal-fired power plant in Cheswick, Pa.


By Stephen Caruso Pittsburgh City Paper

A statewide program to limit carbon emissions from Pennsylvania power plant operators is set to become law — but slower than environmental advocates would like.

The state’s entry into the multi-state compact known as the Regional Greenhouse Gas Initiative, or RGGI, calls for 58 fossil fuel-burning plants to buy at auction a credit for each ton of carbon they release into the atmosphere. The average price of a credit at the most recent auction was $13 per-ton of carbon.

The policy received a final stamp of approval from Attorney General Josh Shapiro’s office this week, the last step before it would typically be published and enacted.

However, this final step may be delayed until, at latest, early January 2022 due to a technical dispute between Gov. Tom Wolf’s administration and the legislative agency that circulates new laws and regulations, an important, albeit bureaucratic, step.

In a letter sent to the Department of Environmental Protection Nov. 30, the Legislative Reference Bureau — which publishes the new rules in the Pennsylvania Bulletin  — said it would not publicize RGGI, pending an ongoing push by the Republican-controlled General Assembly to block it.

State law allows the Legislature to block proposed regulations by passing a resolution and sending it to the governor’s desk.

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Pennsylvania set to join New Jersey, 10 other states in carbon-discouraging RGGI compact

 The Homer City Generating Station, a coal-fired power plant in Indiana County, is one the plants locals are concerned could shutter under RGGI, a proposed cap-and-trade program to limit carbon emissions. (Capital-Star photo by Stephen Caruso)


By Stephen Caruso, Pennsylvania Capital-Star

Electricity generators will have to pay for the carbon they release into the atmosphere after the state’s regulatory review board approved Pennsylvania’s entrance into an interstate initiative to address climate change. 

The compact, known as the Regional Greenhouse Gas Initiative, or RGGI, will apply to 58 power plants across Pennsylvania, mostly coal and gas burning, that accounted for 75 million metric tons of carbon into the atmosphere in 2017, according to the most recent state data. That’s roughly a third of the state’s total annual carbon emissions.

It was approved in a 3-2 vote by the Independent Regulatory Review Commission on Wednesday, which has a final say on all state regulations, after hearing nearly six hours of testimony.

Before the policy is enacted, the Republican-controlled state Legislature could still attempt to overrule Democratic Gov. Tom Wolf on the measure. And legal challenges appear likely.

RGGI opponent, State Rep. Pam Snyder testified before the Independent Regulatory Review Commission on the Regional Greenhouse Gas Initiative. Snyder says RGGI will close down the coal plants in Greene County and leave hundreds without jobs.

“I don’t think anyone would be willing to bet that there won’t be court actions on either side, depending on what the final result is,” the panel’s chairperson, George Bedwick, said.

However, environmental groups still cheered the approval, saying that it would be the most important action the state has taken to date to tackle climate change.

“We hope that polluters and their political allies stop attempting to put up roadblocks to participating in this program and get on the bandwagon in support of strong policies that will reduce our carbon footprint to solve the climate crisis,” PennEnvironment Executive Director David Masur said in a statement.

Related energy/environment news:
Pa.’s RGGI rule, which would put a price on carbon dioxide, nears finish line after oversight board vote

The rule will require plant owners to purchase a credit for each ton of carbon they release each year. At the most recent auction, they averaged almost $8 per ton of carbon.

Those credits are purchased at auction every year, and fewer credits are offered each time, gradually lowering the amount of carbon that can be legally released.

Revenue from the auction is then split among the states, which can spend it on environmental and energy initiatives. 

Read the full story here

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Environmental Quality Board approves RGGI rule, moving Pa. a step closer to joining carbon emissions program

Members of the Environmental Quality Board are seen in this screenshot during the July 13, 2021 meeting. Courtesy PAcast live stream


[Editor’s note: New Jersey rejoined the RGGI compact in 2019 after being withdrawn in 2012 by then-governor Chris Christie. Other RGGI member states are: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, Vermont, and Virginia]

By Rachel McDevitt, StateImpact

Pennsylvania is set to become the first major fossil fuel-producing state to put a price on carbon emissions. 

The Environmental Quality Board voted 15-4 this morning to adopt the final regulation that would have Pennsylvania join the Regional Greenhouse Gas Initiative, a cap-and-trade program that targets carbon dioxide emissions in the power sector. 

Related environmental news stories:
Clean Air Council applauds vote to join RGGI
As Pa.’s crucial RGGI vote nears, here’s a quick look at the program
Report: RGGI Could Provide Financial Boost to PA Coal Communities
Democrats unveil RGGI investment plan while Republicans move to block

EQB’s vote is a significant step in the regulatory process. 

The rule now goes to the Independent Regulatory Review Commission and the Attorney General’s Office for final review before publication. The Wolf Administration hopes to join the program in early 2022.

IRRC determines whether a proposed rule is in the public interest, as defined by state law. The board is made up of three Democratic appointees and two Republican appointees. 

The Attorney General must determine whether a proposed regulation complies with existing law. 

There could be other hurdles. DEP Secretary Patrick McDonnell has said he anticipates a legal challenge.

Rep. Daryl Metcalfe (R-Butler) said during the EQB meeting that lawmakers will bring up a bill this fall that would require legislative approval to join a cap-and-trade program. Wolf vetoed a similar bill last year. 

Gov. Tom Wolf signed an executive order starting the RGGI process in October 2019, as part of his overall climate goals of reducing state greenhouse gas emissions 26 percent by 2025 and 80 percent by 2050, compared to 2005 levels.

Pennsylvania is one of the country’s top five carbon-emitting states. The Department of Environmental Protection says emissions from the state’s power sector are greater than total emissions from some small countries.

Scientists say emissions must be cut dramatically in the next decade to avoid the worst effects of climate change. 

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Pennsylvania looking to join other RGGI states

Pennsylvania is the nation’s No. 2 natural gas producer, and No. 3 in coal. Its governor says ‘we need to get serious’ about the climate crisis.

Pennsylvania Gov. Tom Wolf, a Democrat. Credit: Mark Makela/Getty Images
“If we want a Pennsylvania that is habitable for our children and grandchildren, where temperatures aren’t in the 90s in October … where flooding doesn’t destroy homes and businesses over and over again, we need to get serious right now about addressing the climate crisis,” Pennsylvania Gov. Tom Wolf said. Photo credit: Mark Makela/Getty Images

Marianne Lavelle reports for Inside Climate News

Pennsylvania, one of the nation’s largest coal and natural gas-producing states, is moving to join the Northeast’s carbon market. It would mark the largest expansion of the multistate initiative since its inception a decade ago and a milestone in the drive-by states to counter the impact of the Trump administration’s retreat from climate action.

Pennsylvania would become the largest member in terms of carbon emissions of the Regional Greenhouse Gas Initiative (RGGI), now a nine-state compact to curb pollution from the electricity sector.

Democratic Gov. Tom Wolf said Thursday that joining RGGI would be a necessary step for achieving the targets for cuts in greenhouse gas pollution he set earlier this year.

“If we want a Pennsylvania that is habitable for our children and grandchildren, where temperatures aren’t in the 90s in October … where flooding doesn’t destroy homes and businesses over and over again, we need to get serious right now about addressing the climate crisis,” Wolf said.

It is not clear how far Wolf can go to join RGGI without action by the Republican-controlled state legislature. As buzz grew in the state capital earlier this year on a possible RGGI move, the Wolf administration reportedly floated a proposal that indicated legislative action would be needed to authorize spending the hundreds of millions of dollars per year in proceeds from carbon fees that the state stands to receive from its involvement in RGGI. But Wolf signed an order Thursday to begin the process of establishing the rules to govern the state’s entry to the RGGI market without waiting for the legislature.

“This is the beginning of the process,” he said. “I’m looking forward to a robust conversation with environmental advocates, the General Assembly, Pennsylvanians all across the state to figure out how we do this right.” 

Wolf said he expects Pennsylvania to be a RGGI member within the next two years.

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New Jersey, an original RGGI member that dropped out under former Republican Gov. Chris Christie, is currently moving forward with establishing the rules to rejoin RGGI, a months-long process that it expects to have in place by Jan. 1, 2020. Virginia Gov. Ralph Northam, also a Democrat, tried to bring his state into RGGI but was blocked earlier this year by the state’s Republican-controlled legislature. 

Map: RGGI Member States

Pennsylvania’s move is significant because it would bring the first major fossil fuel producer into the RGGI fold. The state is second only to Texas in natural gas production, and third behind Wyoming and West Virginia in coal. Because RGGI puts a price on carbon in the electricity marketplace, it reduces demand for those fuels—with coal taking the biggest hit at first.

Wolf talked about joining RGGI during his first campaign for governor, but after taking office in 2015, it has not been a priority for his administration. Even earlier this year, when he signed an executive order setting the state’s first economy-wide targets for reducing greenhouse gas emissions, he did not move to join RGGI. “What I try to make sure is that what I do is not too much, but not too little,” Wolf said at the time.

But a number of issues may have changed the calculus for Wolf, increasing the appeal of RGGI.

Chart: RGGI States' Electricity Generation

Pennsylvania gets 40 percent of its power from nuclear energy, about twice the national average, and the state’s nine nuclear power stations have struggled in the region’s competitive electricity market competing against abundant, cheap natural gas. Some Pennsylvania lawmakers have been pushing the idea of a direct ratepayer subsidy to bail out the nuclear industry—a move that would raise electricity prices throughout the state.

Participation in the RGGI market, in theory, would make it easier for carbon-free energy, including nuclear power, to compete against natural gas. And a recent analysis by researchers at the University of Pennsylvania’s Wharton School found that electricity rates could decrease under RGGI. Wolf noted that electricity prices have fallen in the RGGI states, while rising overall in the nation.

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Pennsylvania looking to join other RGGI states Read More »

Will Virginia become the first southern state to join emissions-trimming RGGI?

The Virginia City Hybrid Energy Center, shown above in Lebanon, is a 600-megawatt station said to be one of the cleanest coal-fired plants in the country. (Michael S. Williamson/The Washington Post)

Gregory S. Schneider reports for the Washington Post
April 19, 2019

RICHMOND — Virginia regulators have voted to join a regional carbon cap-and-trade program, becoming the first Southern state to do so. The effort could lead to a 30 percent reduction in carbon emissions from the state’s largest power plants.

But there’s a hitch.

Republican lawmakers put language into the state budget that effectively prevents Virginia from participating.

Gov. Ralph Northam (D) could veto the language but must do so by a May 3 deadline.

Several environmental groups, which have supported Northam on conservation issues but have clashed with him on energy policy, turned up the pressure on him to act.

“Gov. Northam must now demonstrate leadership by vetoing the General Assembly’s procedural roadblock of the plan,” Walton Shepherd, Virginia policy director for the Natural Resources Defense Council, said via email.

Friday’s 5-to-2 vote by the State Air Pollution Control Board would put Virginia into the Regional Greenhouse Gas Initiative, or RGGI, a cap-and-trade program among nine other states in the northeast, including Maryland.

It puts limits on carbon emissions from the biggest power generators and sets up the trading of allowances on a market. Emitters that come below the cap can sell allowances to those who exceed it.

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Will Virginia become the first southern state to join emissions-trimming RGGI? Read More »

NJ Gov. Murphy to RGGI: Hey, guys, we’re back

Gov. Phil Murphy has notified governors of states that belong to the Regional Greenhouse Gas Initiative of his administration’s commitment to rejoining the regional climate-change compact.
“As a founding member of RGGI, New Jersey is eager to rejoin your state as a partner in reducing greenhouse gas emissions, improving the health of residents, and growing the economy in our region,” Murphy wrote in a letter sent last week to the governors of nine RGGI states in the Mid-Atlantic and New England regions.
The 2005 memorandum of understanding that established RGGI requires member states to agree to the admission of another state as a member. Murphy has instructed the Department of Environmental Protection and Board of Public Utilities to open discussions with the member states as soon as practical.
The moves come roughly a month after Murphy signed an executive order directing the New Jersey Board of Public Utilities to implement the Offshore Wind Economic Development Act fully and begin the process of moving the state toward a goal of 3,500 megawatts of offshore wind energy generation by the year 2030.

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New Jersey rejoining carbon-taxing compact RGGI

By Frank Brill

EnviroPolitics Editor


Early in his first term as governor, Chris Chris Christie withdrew New Jersey from the multi-state Regional Greenhouse Gas Initiative, better known as RGGI.

Environmental critics charged at the time that Christie made the move to gain financial support from big fossil fuel interest like the Koch Brothers for his then-developing Republican presidential campaign. 


Since May of 2011, the Democratically controlled New Jersey legislature passed several pieces of legislation calling for the state’s reentry to RGGI. Christie vetoed each of the bills.


NJ Governor Phil Murphy

Today, those bill sponsors got their reward for persistence, as the state’s new governor, Phil Murphy, a progressive Democrat, signed an executive order directing the state’s return to the RGGI compact. 


At a public event overlooking Sandy Hook Bay, Murphy signed the order that the New Jersey Department of Environmental Protection and the Board of Public Utilities begin the reentry process, claiming that the Christie decision “forced New Jersey to fall behind on the critical goals of reducing greenhouse gas emissions and mitigating the impacts of global climate change.”

“New Jersey has not been a partner to our neighbor states in advancing the goal of reducing greenhouse gas emissions since pulling out of RGGI,” Governor Murphy said. “Pulling out of RGGI slowed down progress on lowering emissions and has cost New Jerseyans millions of dollars that could have been used to increase energy efficiency and improve air quality in our communities. With this Executive Order, New Jersey takes the first step toward restoring our place as a leader in the green economy.

“By withdrawing from RGGI, New Jersey has foregone an estimated $279 million in revenue that could have been realized as a result of participation in RGGI’s carbon budget trading program. The RGGI carbon cap program represents a regional budget for carbon emissions generated by the power sectors in participating states. Participants can allocate, award, and transfer carbon allowances. Revenue is generated through quarterly auctions of carbon allowances.”

“Five years ago, New Jersey faced Superstorm Sandy,” Governor Murphy said. “That storm and the devastation it brought to our state was an all-too-real look at our new normal if we do not take climate change seriously. As the densest state in the nation, we cannot afford to keep our heads in the sand any longer. Climate change is real, and a real threat to our state. Doing nothing is not an option.”

 Below is a full copy of Executive Order Number 7   

     WHEREAS, as the State of New Jersey has long recognized in its statutes and laws, including the Global Warming Response Act of 2007, the scientific community has reached an overwhelming consensus that human activity has contributed and continues to contribute to global climate change; and

     WHEREAS, the effects of global climate change have contributed to devastating natural disasters worldwide, with several storm events in the New Jersey region, most notably Superstorm Sandy in 2012, ravaging large portions of New Jersey and resulting in significant financial loss throughout the State; and

     WHEREAS, as highlighted by Superstorm Sandy, New Jersey is particularly susceptible to the risks presented by global climate change due to its location on the Atlantic Coast and the destruction resulting from the confluence of coastal and inland flooding; and

     WHEREAS, in spite of the federal government’s current lack of leadership on global climate issues, both regional and global efforts are underway to curb emissions of greenhouse gases that contribute to global climate change, including the Paris Agreement within the United Nations Framework Convention on Climate Change and, more locally, the Regional Greenhouse Gas Initiative (“RGGI”); and

     WHEREAS, RGGI is a cooperative effort among nine states in the New England and Mid-Atlantic region to reduce greenhouse gas emissions through the operation of a carbon dioxide budget trading program; and

     WHEREAS, New Jersey was an original member of RGGI at the time of its creation in 2005 and successfully participated in the budget trading program for several years; and

     WHEREAS, on November 29, 2011, New Jersey unilaterally declared its withdrawal from RGGI as of January 1, 2012; and

     WHEREAS, since withdrawing from RGGI, studies indicate that the State of New Jersey has sacrificed access to an estimated $279 million in funds that would have been realized from participation in the budget trading program, funds that could have been invested in the development of clean energy, alternative fuels, and the overall betterment of New Jersey communities; and

     WHEREAS, the undeniable effects of global climate change disproportionately impact economically disadvantaged communities, and any agreement or other effort designed to combat global climate change must consider and address these effects, including by giving due consideration in the siting of facilities and by making appropriate investments in protecting disadvantaged communities; and

     WHEREAS, in connection with regional partnerships and other coordinated efforts to reverse global climate change, New Jersey must modernize its energy production profile to shift away from reliance on fossil fuels and other production methods that contribute to climate change and instead shift towards clean and renewable energy sources; and

     WHEREAS, the shift towards clean and renewable energy sources will strengthen New Jersey’s position in a 21st-century economy and enable New Jersey to be competitive both nationally and internationally;

     WHEREAS, in an effort to correct past missteps and realign the State’s priorities with those based on sound science designed to mitigate the impacts of global climate change, and more specifically to address the particular impacts of climate change on at-risk communities, it is appropriate for the State of New Jersey to rejoin RGGI in an expeditious manner;

     NOW, THEREFORE, I PHILIP D. MURPHY, Governor of the State of New Jersey, by virtue of the authority vested in me by the Constitution and the Statutes of this State, do hereby ORDER and DIRECT:

     1. The Commissioner of the Department of Environmental Protection (the “Commissioner”) and the President of the Board of Public Utilities (the “President”) are directed to take all necessary regulatory and administrative measures to ensure New Jersey’s timely return to full participation in RGGI. To this end, the Commissioner and the President shall lead New Jersey’s efforts to rejoin RGGI, and shall serve as the State of New Jersey’s appointees to the Board of Directors of the RGGI after New Jersey rejoins.

     2. The Commissioner, in consultation with the President, shall immediately begin any necessary discussions and negotiations with RGGI’s member states for the purpose of arranging New Jersey’s re-entry into RGGI and its carbon dioxide budget trading program.

     3. The Department of Environmental Protection shall initiate the administrative rulemaking process for promulgating regulations for the administration of New Jersey’s participation in RGGI, as set forth in this Order, within 30 days of the issuance of this Order.

     4. Pursuant to N.J.S.A. 26:2C-52, the regulations promulgated pursuant to Paragraph 3 of this order shall, in addition to the factors set forth in N.J.S.A. 26:2C-52(b) and consistent with N.J.S.A. 26:2C-51, include specific guidelines for the allocation of funds realized by the State as a result of New Jersey’s participation in RGGI. Such guidelines shall include, as a primary consideration of the State agencies charged with allocating said funds, factors that will ensure that funds are allocated to projects that will serve communities that are disproportionality impacted by the effects of environmental degradation and climate change, and which will alleviate the negative effects on human health and the environment resulting therefrom.

     5. Should any part of this Order be declared to be invalid or unenforceable, or should the enforcement of or compliance with any part of this Order be suspended, restrained or barred by the final judgment of a court of competent jurisdiction, the remainder of this Order shall remain in full force and effect.

     6. This Order shall take effect immediately.

     GIVEN, under my hand and seal this 29th day of January, Two Thousand and Eighteen and of the Independence of the United States the Two Hundred and Forty-Second. 

/ s / Philip D. Murphy
Governor

Related news story: The right and left debate RGGI 

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NJ lawmakers take yet another shot at RGGI participation

Tom Johnson writes for NJ Spotlight: 


Regional effort to curb greenhouse-gas emissions could be critical, some lawmakers say, if Trump rolls back initiative to reduce power plant pollution

power plant

With a new administration in Washington pulling back on climate-change initiatives, New Jersey lawmakers are reviving an effort to rejoin a multi-state initiative to curb greenhouse-gas emissions.
The Senate Environment and Energy Committee yesterday approved a bill that would have New Jersey rejoin a regional program to reduce carbon pollution from power plants, a venture Gov. Chris Christie pulled out of early in his first term.
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Not even its proponents believe the governor will sign the bill if passed, but they argue it is important to make clear the state’s intentions once a new executive takes office.

“The timing couldn’t be more important,’’ Doug O’Malley, director of Environment New Jersey told the committee, citing reports that the Trump administration could dismantle a plan to reduce power plant emissions adopted by former President Barack Obama as early as this week.
Jeff Tittel, director of the New Jersey Sierra Club, agreed, saying the best way to implement that effort, dubbed the Clean Power Plan, is by joining the multistate effort known as the Regional Greenhouse Gas Initiative. “It’s important to send a message,’’ he said.
The program has become a political football in New Jersey since Christie pulled the state out of it, calling the initiative a tax on utility customers and ineffective in its goals.
Sen. Bob Smith (D-Middlesex), the sponsor and chairman of the committee, disagreed, citing reports from a consultant that claimed it’s boosted economic activity in the region, lowered customers’ bills, and returned more than $113 million to New Jersey.
“It’s a great program. I think we should never have left it,’’ said Smith, a course his latest bill would prevent. “If we are in, we’re in; we can’t pull out afterwards.’’
After Christie pulled out, the Legislature tried to get New Jersey back in, but the executive branch ignored those efforts. The matter also was litigated in the courts, with the Christie administration losing on procedural grounds, which it later corrected by adopting a formal withdrawal through a rule-making process.
The move to rejoin the regional initiative was opposed by business lobbyists yesterday, who said the state is doing a fine job reducing emissions contributing to climate change.
“We have the lowest emissions in PJM (the regional power grid stretching from the Eastern Seaboard to Illinois) from our power plants,’’ said Sara Bluhm, a lobbyist for the New Jersey Business & Industry Association. She expressed concerns that rejoining the multi-state program would increase electricity bills.
The power sector is the second-largest source of greenhouse gas emissions, behind the transportation sector, in New Jersey. The state gets nearly half of its electricity from nuclear power, which does not produce pollution contributing to global warming.
Nonetheless, a plan put together by the state Department of Environmental Protection to achieve an 80 percent reduction in carbon pollution by 2050 identified RGGI as one of the three main components to realize that goal. The others include a program to encourage low- and zero-emission vehicle adoption in New Jersey, and steps outlined in the state’s Energy Master Plan.
The vehicle-emission program, which has been adopted in California and nine other Northeast states, is reportedly also targeted for elimination by the new administration in Washington.
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Maryland could leave RGGI over tighter carbon reductions

Fenitt Nirappil reports for The Washington Post:

Maryland officials are resisting a push to deepen carbon-emission cuts as part of a regional agreement to reduce power-plant pollution.
The nine East Coast states that make up the Regional Greenhouse Gas Initiative are negotiating new terms for the pact, set to expire in 2020. Massachusetts has joined environmental advocates pushing for a cap on carbon emissions from power plants that would fall 5 percent a year for the next decade, or twice the current rate.
Maryland Secretary of the Environment Ben Grumbles said the proposal could result in higher power bills for Marylanders and harm the state’s economy. If adopted, he said, Maryland would consider pulling out of the regional pact for the first time since it formed in 2008.

“I’m sure every single state could agree if the caps are too stringent for that particular state . . . then those states would be very vocal in saying, ‘We can’t accept that,’ ” Grumbles said.
Maryland Secretary of the Environment Ben Grumbles, second from the right. (Katherine Frey)
The Regional Greenhouse Gas Initiative creates a local cap-and-trade system that limits how much plants can pollute, and holds auctions where energy producers bid against each other for rights to emit carbon. Proceeds from the auctions fund clean-energy initiatives aimed at combating climate change.
In addition to Maryland and Massachusetts, the pact includes Connecticut, Delaware, Maine, New Hampshire, New York, Rhode Island and Vermont. New Jersey pulled out of the pact in 2011.
The Boston Globe was the first to report that Maryland was reconsidering its role in the regional pact. Grumbles says leaving is a last resort, and called the greenhouse-gas reduction program a success that should be expanded with additional states.
Unlike other states in the agreement, Maryland is on the same power grid as coal-heavy states that never signed on to the initiative, including West Virginia, Pennsylvania and Kentucky. That means energy companies in Maryland are competing against producers in nearby states who aren’t abiding by the same restrictions on emissions and use cheaper, non-renewable energy sources.
Complicating matters further is the Obama administration’s Clean Power Plan, which would require each state to draw plans to shift away from fossil-fuel powered plants. The plan would reduce the pressure of intra-state competition, but it’s on hold pending a U.S. Supreme Court challenge and could be changed under the next president.
[Supreme Court freezes Obama plan to limit emissions]
“While we are pushing for environmental leadership in the state . . . we want to reduce the risk of having other neighboring states being able to provide dirtier and cheaper energy to the citizens of Maryland,” said Grumbles, a member of Gov. Larry Hogan’s cabinet.
Officials in the administration of Massachusetts Gov. Charlie Baker (R) have indicated that they don’t want to derail the pact by going too far with emission cuts.
“We’re definitely not strong-arming anyone to do anything,” Energy Secretary Matthew Beaton told the Massachusetts State House News Service last week.
A spokesman for Beaton said the state is committed to reducing carbon emissions and power bills, but wouldn’t say if it would continue pushing for steeper cuts to carbon emissions.
But in Maryland, local environmental advocates are continuing to make that case. Scores of activists urged lower emissions at a meeting last week seeking feedback on the greenhouse-gas initiative at the Department of Environment offices in Baltimore.
“With the support of neighboring states, we hope Maryland steps up to the plate to help the region meet the goals it needs to create good-paying, clean-energy jobs and curb climate disruption,” said Johana Vicente, an organizer for the Maryland League of Conservation Voters.
Democratic lawmakers have also expressed support for 5 percent annual cuts in allowable emissions.
“We have to be sensible about [reductions] and we have to phase it over a period of time in order to be affordable, but it’s always preferable to be ambitious,” said Del. Kumar Barve (D-Montgomery), who chairs the House of Delegates committee that oversees environmental issues.
Carbon emissions from states in the pact have fallen dramatically, from 122 million tons in 2009 to 83 million tons in 2015.
[Cap-and-trade is alive and well in the Northeast]
The reduction is 16 percent greater than in states that haven’t joined the initiative, according to an analysis by the Acadia Center, which advocates for clean energy. The analysis also says electricity prices have decreased 3.4 percent on average for participating states, while rising elsewhere.
Industry observers say lower demand for energy during the economic downturn and the rise of natural gas, which results in lower carbon emissions than coal, also drove the decrease.
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