Global Warming Solutions News

BOSTON-With Massachusetts Governor Mitt Romney conspicuously absent, governors of seven other Northeast states today 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.

“These seven states have a great opportunity to demonstrate how to reduce global warming pollution while actually making energy more affordable for consumers,” said Frank Gorke, Energy Advocate for MASSPIRG. “Massachusetts has a long tradition of leading the region on environmental issues. It is outrageous that Gov. Romney is putting us on the sidelines while this historic agreement moves forward without us.”

Massachusetts Governor Mitt Romney 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 decided 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.

Last week, Governor Romney also announced significantly weakened draft rules to reduce carbon dioxide pollution from the state’s “Filthy Five” most polluting power plants. The state requirement was initially set in 2001 by then-Governor Jane Swift as part of precedent-setting multi-pollutant standards also designed to reduce emissions of smog- and soot-forming pollutants as well as the neurotoxin mercury.

“By attempting to scuttle this regional pollution plan and weakening state requirements to reduce global warming pollution from the dirtiest power plants in the Commonwealth, Governor Romney is breaking core promises he has made to the voters of Massachusetts,” said Cindy Luppi, Clean Water Action Organizing Director. “We urge him to reconsider – breaching the public’s trust to this extent is not how presidential candidates get elected.”

The plan has national and international ramifications. Although the Bush administration has steadfastly rejected concrete cuts in emissions – and last week caused a stir when the US 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.

Known as the Regional Greenhouse Gas Initiative (RGGI), the accord takes effect in 2009, and is designed to 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.

“The governors of these Northeastern states are sending a strong signal to other states and other nations that Americans are ready to implement innovative solutions to meet the challenge posed by global warming,” said Dr. Peter C. Frumhoff, Senior Scientist and Director of the Union of Concerned Scientists’ Global Environment Program. “In the face of the Bush administration’s adamant refusal to cut heat-trapping pollution, this is a bold act of bipartisan leadership.”

Business Backing

Leading companies operating in the region including Bank of America, Staples, Keyspan, National Grid, Pfizer, 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 power plant owners gnashing their teeth because they have a vested financial stake in business as usual,” said Seth Kaplan, a senior attorney at 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.

Market-Based Strategy Unleashes Innovation

Under RGGI each participating 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.

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 states to re-join the pact.

"Disappointed is an understatement," said Lori Ehrlich, who proudly served on Governor Romney's environmental transition team. “Romney began with such promise. In a sudden about face, he's sold out voters in favor of raising funds from corporate contributors to fuel his ambitions for President."

“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 Marc Breslow, Director of the Massachusetts Climate Action Network. “We will be working in all of the states to ensure that the final rules deliver on this promise.”

The governors’ announcement comes just days after scientists with the World Meteorological Organization revealed that 2005 is one of the hottest years 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
Marc Breslow, 781.643.5911
Seth Kaplan, 617.850.1721
Cindy Luppi, 617/640-2779
Peter Frumhoff, 617.547.5552