New Hampshire lawmakers heard testimony today on a proposal that would limit greenhouse gases in nine northeastern states.
The Regional Greenhouse Gas Initiative aims to reduce carbon dioxide emissions from the region’s power plants over the next 15 years.
The proposal has been welcomed by PSNH and is supported by New Hampshire’s Department of Environmental Services and the Public Utilities Commission.
Some critics, however, say the proposal goes too far, others not far enough.
New Hampshire Public Radio’s Carolyn Sawin has this story:
The multi-state Regional Greenhouse Gas Initiative, or “ReGGIeâ€, is the first of its kind in the nation.
In their recent draft proposal, “ReGGIe†negotiators outlined a regional cap-and-trade program to stabilize CO2 emissions at current levels through 2015.
That would be followed by a 10% reduction in those emissions by 2020.
Power plants would be encouraged to reduce their emissions through a combination of strategies.
They could adopt renewable energy sources.
Or they could use what are called offset credits, in which more efficient plants could sell excess emission credits to less efficient facilities.
ReGGi negotiator Joanne Morin is with the Air Resources Division of the Department of Environmental Services.
She says the initiative aims to develop an energy policy that improves fuel diversity, encourages renewable energy sources, reduces dependence on foreign oil, and helps the development of new energy markets.
Again, DES’s Joanne Morin:
“We really look at something like this as a market approach for a more sound energy policy that is also sound in a fiscal way, that is, economically efficient for the future, so that’s how I would summarize it.â€
New Hampshire’s Clean Power Act already sets a cap on CO2 emissions.
But the current restrictions apply only to PSNH, the largest provider of electricity in the state.
The new proposal would apply to all energy providers.
“And we like that because it levels the playing field.â€
Martin Murray of PSNH:
“It’s not just PSNH customers who will bear the cost of these emission caps, but it will be customers of all generators of power, and to us that makes a good law even fairer.â€
While PSNH might welcome the proposal, some environmental groups are less enthusiastic.
Erica Staaf is with the New Hampshire Public Interest Research Group:
She says the proposed recommendations do not do enough to protect the environment, nor do they explicitly promote energy efficiency as a way of reducing CO2 emissions.
"There should be a large section devoted to talking about energy conservation, how we can use energy conservation to its greatest benefit to lower the cost of reducing global warming pollution, and I don’t see that in there, explicitly.â€
Just how much the proposal will cost the state or consumers is unclear.
New Hampshire's "ReGGIe" negotiators estimate the cost to residential consumers could range from 80 cents to more than 10 dollars a year.
Again, PSNH spokesman Martin Murray:
“And you can imagine that with any plan as complex as this, one has to take into consideration certain assumptions. And one of the assumptions used is, what is the cost of fuel? And that is such a dynamic question right now, that no one can answer it.â€
This question is echoed by Amherst Representative Lee Slocum, who sits on the House Energy Committee.
He worries that the projected costs of "ReGGIe" are unrealistic:
“And I think we’ll find that we’ll have trouble, again, with electric rates in New Hampshire. It will affect our economy, and you know, it’s not something that we should commit to without a thorough investigation.â€
The House Science, Technology, and Energy Committee plans to discuss the proposal again at their next meeting.
A public hearing on the initiative is also scheduled for Monday afternoon at the Public Utilities Commission in Concord.
If New Hampshire signs on and approves the "ReGGIe" recommendations, phase 1 reductions could start in 2009.
For NHPR news, this is Carolyn Sawin
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Reducing Utility CO2 emissions is a fundamental step in managing global warming. But lets keep in mind that our utilities are the suppliers of energy and represent a relatively small fraction of the consumption of that energy. The obvious key is to focus on the Demand side. Consumers. If consumers implement known conservation measures, the Supply side will take care of itself. New Hampshire has a solid and growing energy services industry that is capable of getting the job done.
Jim Grady
President
LighTec, Inc.
Merrimack