Connecticut’s
leadership in the fight to stop global warming at sz take in energy debate
Hartford—Environmental advocacy groups call for action on
energy this legislative session to implement key policies in the state CT
Climate Change Action Plan and solidify Connecticut’s national leadership on
global warming.
Legislative Action Needed to Implement Regional Greenhouse Gas Initiative
Friday, June 1st marks the end of an public
comment period on draft regulations to implement the Regional Greenhouse Gas
Initiative (RGGI). RGGI is a 10 state
program to reduce power plant global warming pollution 10% by
2019. Under strong pressure from power
generating companies and the business lobby, the Rell administration recently
issued a weak draft RGGI regulation.[1] In response, both the Senate and House
energy bills contain language to requiring the Rell administration to auction
100% of permits to emit global warming pollution.
RGGI could set a strong national global warming precedent if
power generators are made to pay for each ton of their global warming pollution,
with the proceeds reinvested to benefit consumers through efficiency and
renewable energy. The legislature
must direct the DEP to move forward with RGGI without handing generators profits
at the public’s expense.
National Significance
Power companies plan to build over 100 new coal plants
across the nation before any Federal global warming regulations go into effect
as they assume their plants will be grandfathered in and that they will get
permits for free. A 100% auction sends a signal that high emissions of global warming pollution
are a financial liability, and this will start to change the economics of
building dirty power plants.
Reduce Pollution and
Save Money
The legislature has the power to ensure pollution permits
are sold to CT power plant owners. Doing so could produce an estimated $50
million in revenue each year.
Reinvested in CT's electricity efficiency programs, this would help cut
electricity bills in our homes and businesses an estimated $1.2 billion between
2009 and 2015.[2] The alternative is to hand generators an
additional $50 million per year in windfall profits. Pollution permits have
monetary value as they can be sold or traded, so giving away permits is the
same as handing out ratepayer money.
Neighboring states are moving ahead with 100% auction
· New York has issued draft regulations to auction 100%
of permits to generators and reinvest revenue from permit sales to benefit
consumers.
· Vermont passed legislation for 100% auction.
· Massachusetts Governor Patrick is moving ahead with
100% auction.
· Maine legislation to require 100% auction- ME House
passed legislation 130-7 on 5/31.
Other key global warming and energy policies
Buried in both House and Senate energy bills are policies
which could transform Connecticut’s electricity system.
Energy Planning and Efficiency First Standard
For years many have decried CT’s lack of real energy planning.
Proposed energy bills in both the Senate and the House bring ratepayer
representatives and state agencies charged with planning together under a new
"Connecticut Energy Advisory Board." The new CEAB will submit
comprehensive energy plans to DPUC assessing the potential of energy efficiency
to meet our needs and mandate that investments in efficiency come before
expensive new supply. That shift could stop the rise in load growth and
the need to build power plants for years to come, while slashing pollution and
lowering bills.
Requiring Utilities to Provide More Energy from Clean, Renewable Sources
Connecticut’s Renewable Portfolio Standard (RPS) currently
requires utilities to get a portion of their electricity from clean energy
sources such as wind and solar power. Current law increases amount of clean
energy they are required to provide by a small amount each year, up to 7% by
2010. Both the Senate and House energy bills extend the RPS requirement so that
by the year 2020, utilities would be required to provide a minimum of 20% of
Connecticut’s electricity from clean, renewable energy.
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[2] CT has roughly 10 million
permits, so if each permits costs $5 per ton, the total value of the permits
would be $50 million a year. CT’s efficiency programs (ctsavesenergy.org) save
an average of $4 for every $1 invested, so an investment of $50 million would
reduce our electricity bills roughly $200 million each year!
