Earth Equity News

Paterson to Increase Free RGGI Allowances. By Danny Hakim, NYTimes, March 5, 2009."At the urging of the energy industry, Gov. David A. Paterson has agreed to reconsider a key rule New York adopted as part of a 10-state pact aimed at reducing the threat of global warming by cutting power plant emissions. Mr. Paterson appeared to overrule the State Department of Environmental Conservation in making the move, which would reopen state regulations to provide power plants leeway to release greater amounts of emissions at no additional cost. Administration officials said the governor was concerned the rule might unfairly burden the energy industry. His decision infuriated environmental groups, which learned of Mr. Paterson's decision just this week, though he met with energy executives privately last fall and assured them he would take the step... The Regional Greenhouse Gas Initiative, which New York signed onto four years ago, established a system whereby power producers were required to obtain what are called allowances, which permit them to release certain levels of carbon dioxide emissions. They typically obtain the allowances by buying them at auction or trading them. The requirement for utilities to obtain the allowances in this way was established not only as a financial disincentive to discourage them from polluting, but as a way for states to raise money for greener energy initiatives. Mr. Paterson does not plan to withdraw from the climate accord, but has agreed to increase the number of free allowances provided by the state, which would lower the industry's costs of compliance."