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For Immediate Release:
2005-11-03
For More Information:
Contact Christopher Phelps
(860) 231-8842

Region’s Biggest Polluters Holding Up Global Warming Plan: Action Urged on Plan to Reduce Pollution

As the new home of ConnPIRG's environmental work, Environment Connecticut can be contacted regarding this news release.   

HARTFORD—Some of the region’s biggest polluters are working to scuttle a bold global warming proposal by Governor Rell and eight other Northeastern Governors from Delaware to Maine. The plan would place a cap on global warming pollution from power plants and require reductions in those emissions. Power plant owners, including NRG and Dominion, are lobbying against provisions that tighten loopholes in the program and would use the proceeds of the sales of permits to promote energy efficiency and reduce the cost of the program for consumers.

“It is outrageous that power companies are holding up this important program at a time when they are making record profits,” said ConnPIRG Advocate Christopher Phelps. “Doubly so when their demand is to be let off the hook without being required to pay for pollution allowances when the money paid for the allowances would be invested in energy efficiency and other programs to reduce electricity costs for consumers.”

Public interest, consumer and environmental groups have expressed strong support for the Northeast Governor’s regional global warming plan (called the Regional Greenhouse Gas Initiative, or RGGI). However, advocates argued that an earlier draft version of the plan released in August contained numerous flaws that undermined its effectiveness and offered windfall profits to polluters. The groups have called for a strengthened program that achieves significant pollution reductions and lowers costs to consumers by investing in energy efficiency and related programs to reduce energy use. They oppose the power companies’ efforts to change the plan to give away, instead of selling, pollution allowances because doing so would create major windfall profits for the companies at their customers’ expense.

“The region’s biggest polluters do not have a right to pollute and should pay for their pollution,” said Clean Water Action Campaign Director Roger Smith. “The public needs to know that these large national energy companies do not have the interests of the public in mind when they make these outrageous demands, and are looking for any excuse to increase their profits at the expense of their customers.”

State officials from nine Northeastern states, including Connecticut, have met for over two years to develop the proposed global warming plan. In September 2003, they announced a goal of reaching agreement on the regional program by April of this year. The effort was delayed until August, when they released a draft plan that would require a ten percent reduction in global warming pollution from power plants in the Northeast.

“Governor Rell and her colleagues have taken a bold step in proposing this program,” said Smith. “This is a critical step that must be taken if Connecticut is to fulfill its commitment to reducing global warming pollution as part of the state’s climate change action plan. We cannot allow a few energy companies to hold this effort hostage to their unreasonable demands.”

Environmental, consumer and public interest advocates responded to the August draft proposal by urging a number of significant changes to close loopholes in the program. They proposed changes to the program to ensure it results in real, significant pollution reductions from power plants, does not allow power companies to cancel out reductions in emissions from Northeastern power plants by importing dirty power from Midwestern coal plants, and helps electric customers by requiring power plants to buy pollution “allowance” permits and use the money to reduce energy bills through energy efficiency measures and customer rebate programs.

During September and October, state officials continued negotiations on a final agreement. Advocates say they are optimistic that the states are moving towards a strengthened proposal, delivering real reductions in global warming pollution and consumer protections. However, they note that announcement of a final plan continues to be delayed due to intensive lobbying from the power industry.

“Governor Rell and her colleagues have a clear choice: Listen to the power companies and stick with business as usual, or meet the commitment they made to enact a strong, effective plan to reduce pollution,” said Phelps. “A strong, effective cap and trade plan can reduce global warming emissions from power plants while creating investment in energy efficiency programs and other measures to reduce prices for consumers. Now is the time for the states to reject the industry lobbying, roll up their sleeves and tackle the problem of global warming head-on.’