Green News and Opinion

The RGGI pact would create a 'market-driven system' of tradable carbon dioxide emissions permits for hundreds of electric generators in the seven northeastern states. Each state would have its own emissions cap, and power plant operators would each be permitted to emit carbon dioxide up to a certain level. The intent is to promote the use of the cleaner plants in order to stay under the limits; operators would be allowed to sell excess allowances. A recent study commissioned by the states found that if money raised by the sale of the excess pollution allowances were invested in energy efficiency programs, consumers could save up to $108 a year by the year 2021.

"We're calling for all carbon emission permits under RGGI to be auctioned off, rather than most of them to be given free to existing carbon polluters," said Mark Dunlea, former chair of the Green Party of New York State and former national coordinator of the Campaign for Safe Energy. "The hundreds of millions of dollars raised annually through the auction process would be used to offset the regressive nature of any 'energy tax', for example, through state supplements to the low-income Home Energy Assistance Program. The rest would be invested in energy efficiency, conservation, and development of renewable energy technologies."

A recent report by Redefining Progress shows that auctioning off the permits rather than giving them away free would reduce the costs of the initiative by 75%. A grandfathered permit system would reduce employment, investment, and competitiveness in northeastern states, while an auctioned permit system would increase employment.