Regional Greenhouse Gas Initiative Gets Public Hearing

Environmentalists, political leaders, scientists and utility companies were among those who spoke before the House Science Technology and Energy Committee.

Governor John Lynch urged passage of ReGGI legislation, saying it will benefit the state both environmentally and economically.

(the policies established by the initiative will impact us and the energy market here in New Hampshire, if we’re not a member, we’re going to see the costs without any financial benefit)

ReGGI establishes a market-based ``cap and trade'' program to reduce carbon dioxide emitted by power plants.
In New Hampshire, power plants emit about 8.6 million tons of CO2 a year.
Under the program, utilities would buy state-issued pollution “allowances.”
The money generated would go into a fund to be used to improve energy efficiency.
New Hampshire’s Department of Environmental services helped draft the program to cap those emissions and reduce them over a period of years.
Commissioner Tom Burack says it’s time to reduce the Northeast’s impact on global warming.
(this is significant because if you took all the ten states in the RGGI region, collectively our emissions would be equivalent to the seventh highest emitting developed country and if we talk about a ten percent reduction in that, that’s real, that’s measurable)

The majority of people who spoke at the hearing were in favor of the legislation.
Economist Ross Gittell at the University of New Hampshire says passing ReGGI is in the state’s best economic interest and that ratepayers would eventually save money in the long run.
(the effects are rather small but they’re positive if the allowances are auctioned, and the revenue is used for either energy efficiency or corporate tax relief or some combination of the two)

As drafted, five percent of that revenue would be used to assist low income customers with fuel bills and energy conservation.
But Meredith Hatfield, with the Office of Consumer Advocate, urged legislators to make sure energy conservation and weatherization is a priority.
(if you think about just providing people with fuel assistance year after year and never addressing their efficiency needs, I think that’s a short term policy that actually isn’t ever really going to address the question.)

Another concern, particularly among businesses and power companies, is that anyone would be able to participate in the auction of CO2 allowances.
Terry Large is with Public Service Company of New Hampshire.
(the availability of these CO2 allowances to be sold outside of the place where people need them to comply is a concern and it creates the opportunity for the availability of these allowances to be diminished, when availability is diminished the prices go up)

If the market price of allowances goes up with no cap or braking mechanism, critics argue that consumers will shoulder the burden.
But even those with concerns over the legislation agree to its goal of reducing greenhouse gas emissions.
House committee members cut off debate on the issue for the day – but another public hearing on ReGGI legislation is scheduled for next Thursday.
For NHPR news, I’m Amy Quinton.