2008 Woodie Awards
RGGI puts cap on emissions in Mass
Jonathan Terbush
Issue date: 2/1/07 Section: News
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In a move to reduce carbon dioxide emissions statewide, Governor Deval Patrick signed Massachusetts into the Regional Greenhouse Gas Initiative on Jan. 18.
The Regional Greenhouse Gas Initiative (RGGI) places limits on the amount of carbon dioxide that power plants can emit into the atmosphere. Under the initiative, the total carbon dioxide emissions of power plants with a capacity of 25 megawatts or more would be capped at 26.6 million tons per year, beginning in 2009 and lasting through 2014. After that, the emissions cap will be lowered by 2.5 percent each year for the next 4 years.
The initiative also forces such power plants to purchase allowances from the government for every ton of carbon dioxide they emit, with the total amount of allowances equaling the emissions cap. Patrick intends to auction off all the allowances, generating between $25 to $125 million dollars for the state. Patrick also said the revenue would be used to fund programs for renewable energy, energy conservation and energy efficiency.
However, some are skeptical of the initiative because it would raise electricity prices statewide. As power companies are forces to purchase allowances, the cost would simply be passed to the consumers.
"Handled wrong, this could have a devastating effect on all of us here in Masschusetts if we experience higher electricity rates," said Robert Rio, vice president for government affairs as the Associated Industries of Massachusetts.
A fear that the RGGI would raise electricity rates led former Governor Mitt Romney to walk away from signing the initiative in 2005.
Lauren Robbins, a junior WLP major and Earth Emerson president, said that the possibility for environmental change outweighs any future harm to corporate bottom lines.
"In the short term it will negatively affect power companies, but in the large scheme of things it's not a bad thing," she said. "We have to hold them accountable for what they are doing to make the world a worse place."
The Regional Greenhouse Gas Initiative (RGGI) places limits on the amount of carbon dioxide that power plants can emit into the atmosphere. Under the initiative, the total carbon dioxide emissions of power plants with a capacity of 25 megawatts or more would be capped at 26.6 million tons per year, beginning in 2009 and lasting through 2014. After that, the emissions cap will be lowered by 2.5 percent each year for the next 4 years.
The initiative also forces such power plants to purchase allowances from the government for every ton of carbon dioxide they emit, with the total amount of allowances equaling the emissions cap. Patrick intends to auction off all the allowances, generating between $25 to $125 million dollars for the state. Patrick also said the revenue would be used to fund programs for renewable energy, energy conservation and energy efficiency.
However, some are skeptical of the initiative because it would raise electricity prices statewide. As power companies are forces to purchase allowances, the cost would simply be passed to the consumers.
"Handled wrong, this could have a devastating effect on all of us here in Masschusetts if we experience higher electricity rates," said Robert Rio, vice president for government affairs as the Associated Industries of Massachusetts.
A fear that the RGGI would raise electricity rates led former Governor Mitt Romney to walk away from signing the initiative in 2005.
Lauren Robbins, a junior WLP major and Earth Emerson president, said that the possibility for environmental change outweighs any future harm to corporate bottom lines.
"In the short term it will negatively affect power companies, but in the large scheme of things it's not a bad thing," she said. "We have to hold them accountable for what they are doing to make the world a worse place."
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