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N.Y. State Approves Regional Cap and Trade Plan New York’s Environmental Board has approved regulations drafted by the state’s Department of Environmental Conservation as part of the Regional Greenhouse Gas Initiative, a cap-and-trade plan developed by 10 Northeastern and Mid-Atlantic states.
Under the plan, each state must issue its own regulations to support the initiative by January 1, 2009.
The plan will cap and then gradually reduce the amount of CO2 power plants are allowed to emit. The total emissions permitted for the 10-state region will start at 188 million tons and will be gradually reduced from 2015 through 2018.
New York state’s share of that initial allowance will be 64.3 million tons.
Based on the volume of their emissions, companies that own plants in the state will be required to purchase emissions allowances at quarterly auctions, the first of which is scheduled for Sept. 25, or else on the secondary market. Auctions will be open to the public.
Some additional allowances may be earned through offsetting, such as energy-efficiency programs or tree-planting. In New York state, proceeds from the auctions will help fund energy efficiency and renewable energy projects and research.
Power plants will have until March of 2012 to purchase enough allowances to cover their actual emissions from 2009 to 2011.
Trade associations and business interests had called for delays in adopting the initiative, saying it would impose additional costs on energy consumers with little environmental benefit, as well as put New York at a competitive disadvantage with non-participating neighbors Pennsylvania and Ohio. DEC analysis projects that the new regulations will increase average consumers’ monthly electric bills by 78 cents. The agency’s Office of Climate Change indicates safeguards have been built into the auction process to make sure utilities are able to obtain needed allowances. Return to September 2008 Western Energy News To sponsor Western Energy News , please contact WEI at 503 231-1994.
Copyright © 2008. Reuse of this publication or its contents is allowed with credit to Western Energy Institute. WEI - 827 NE Oregon Street, Portland, Oregon 97232-2172
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