Environment DEC
From the June 2008 issue
Public Comment Period, Hearings Set For Greenhouse Gas Proposal
New York State recently announced a 45-day comment period for the revised draft regulations governing the Regional Greenhouse Gas Initiative (RGGI), a program that will reduce emissions from power plants. The comment period will include two public hearings-one in Albany and the other in Stony Brook on Long Island-scheduled for June 9 (see below for locations and times).
RGGI is an agreement by 10 northeastern states to reduce greenhouse gas emissions, with each participating state issuing its own regulations. Other participating states include: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, Delaware and Maryland. When fully implemented, RGGI will achieve a 16 percent reduction in emissions from projected business-as-usual emissions. Since announcing the first draft of the RGGI regulations last fall, New York has received more than 10,000 public comments. In response, DEC and the New York State Energy Research and Development Authority (NYSERDA) have updated the proposed regulations and outlined rules for the auctioning of pollution credits.
Companies Must Bid for CO2 Credits
Companies will pay a set price for allowances for every ton of carbon dioxide they emit. Proceeds will go towards energy efficiency programs
RGGI states have set auctions for September and December. Through the auction process, companies will have to buy allowances for every ton of carbon dioxide they emit. The auction process is a market-based approach that will cap, then reduce the amount of emissions allowed.
In a major departure from similar programs elsewhere, the state will not simply give power plant owners RGGI allowances. From the start, companies will have to buy allowances through an auction or in a secondary market for every ton of carbon dioxide they emit. The proposed regulations establish a minimum price of $1.86 per ton. Bids below this level will not be accepted. In addition, the state reserves the right to retire unsold allowances. The revised draft regulations also set forth many of the specifics of how and when the auctions will be conducted and the obligations for those wishing to participate.
Proceeds from the auction would go toward energy efficiency programs, renewable energy projects, and innovative, non-carbon emitting technologies. The program would also provide opportunities for power companies to offset their emissions through other "green" investments.
Power Plants are Major CO2 Contributors
RGGI hopes to achieve a 16% reduction in greenhouse gases from business-as-usual emissions by 2019
Power plants that burn fossil fuels pump out 25 percent of the total annual carbon dioxide emitted in New York State. For the initial six years of the RGGI program (2009-2014), carbon emissions of New York power plants that are 25 megawatts or larger will be capped at roughly current levels (64.3 million tons annually). Beginning in 2015, the cap will be reduced by 2.5 percent per year for four years giving an overall reduction of 10 percent. Combined with the reductions from the previous six capped years, this should achieve a 16 percent reduction from projected business-as-usual emissions.
"Global warming is the issue of our time," said DEC Commissioner Pete Grannis. "With these regulations, we will be attacking it in three ways: reducing emissions, fostering energy efficiencies, and spurring the development of clean and renewable sources of energy."
Review and Comment
You can review the draft regulations at DEC's Revised Part 242 Budget Trading Program web page. Comments on the revised regulations will be received until June 23, 2008. The public is invited to submit comments in writing to DEC and NYSERDA or attend one of two public hearings (see schedule below). The state expects to finalize the regulations by the end of this calendar year.
The public hearings are held in places that are reasonably accessible to persons with impaired mobility and are scheduled for Monday, June 9, 2008 at the following locations and times:
At 2 PM at the New York State Department of Environmental Conservation, 625 Broadway, Albany, NY 12233
At 1 PM at the New York State Department of Environmental Conservation, Region 1 Office, 50 Circle Road, Conference Room, Basement Room #002 A/B, Stony Brook, NY 11790
Grannis Congratulates Climate Registry Pioneers
In a related development, DEC Commissioner Pete Grannis recently congratulated 21 public and private organizations in New York State, including DEC, that have enrolled as "founding reporters" to the Climate Registry-a pioneering nationwide effort to track emissions that are causing climate change.
Nationwide, 242 cities, agencies, universities, businesses and other organizations enrolled in the registry by the May 1, 2008 deadline for founding reporter status. With 21 founding reporters, New York State is second only to California in the number of organizations gaining this designation, thereby taking a leadership role in focusing on climate change.
By enrolling, organizations commit to use standardized protocols to inventory their emissions of six types of greenhouse gases (CO2, CH4, N2O, PFC, HFC, and SF6), to have the inventories verified by third parties, and to make the results available for review by the public. An online inventory and reporting tool will be available by July 2008. By enrolling before the program is launched, founding reporters have demonstrated their commitment to support this important program during its development.
"What Gets Measured Gets Managed"
Commissioner Grannis said, "New York continues to provide leadership in the fight against global warming. Although enrolling as a reporter does not require a commitment to reduce greenhouse gas emissions, there is the adage that 'what gets measured gets managed.' We fully expect that the inventory process will help reporters gain a better understanding of their processes and allow them to reduce greenhouse gases and energy consumption."
New York continues to encourage public and private parties to enroll in the Climate Registry. See "Related Links" below for more information. Organizations interested in joining may contact Mark Lowery in DEC's Office of Climate Change by e-mailing climatechange@gw.dec.state.ny.us or by calling 518-402-8027. For the list of founding Climate Registry reporters in New York as well as the comments of other officials, see the full press release.
Related Links:
The Climate Registry (leaving DEC's website)
