Global warming auction revenue to stimulate state clean energy, efficiency programs

On Saturday, Governor Rell announced the transfer of $14 million in Regional Greenhouse Gas Initiative revenue into state clean energy and energy efficiency programs. RGGI is a 10 state program which went into effect this January that requires power plants to reduce their global warming (CO2) emissions 10% by 2019. Under this program Connecticut requires power plant owners to take part in quarterly auctions to buy "allowances" to emit each ton of global warming pollution.

"Governor Rell's timely transfer of global warming revenue into our state clean energy programs will put people to work weatherizing homes and installing solar panels," stated Roger Smith, campaign director for Clean Water Action. "We applaud the governor for her leadership in creating green jobs and supporting energy programs which will cut energy bills for families and businesses. There's no better time than Earth Day to make it easy to be green."

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"Economic analysis done for the Regional Greenhouse Gas Initiative demonstrated that energy efficiency is the best way to reduce the cost of global warming programs. Connecticut's Energy Efficiency Fund saves $4 for every dollar invested," said Smith. "Connecticut's congressional delegation needs to lead the fight in Congress to make polluters pay for their emissions and reinvest the revenue to help consumers cut their fossil fuel use. Done right, federal global warming legislation will provide a stimulus year after year to support renewable energy, energy efficiency and modern public transit."

How the Regional Greenhouse Gas Initiative auction works:

• Under the CT regulations, power plants are legally required to pay for their pollution by buying "permits" (also known as allowances or credits) for each ton of their global warming emissions. Connecticut will sell roughly 10.6 million permits this year.
• Making power plant owners pay for their pollution gives them a financial incentive to modernize their plants to run more efficiently, or switch to less polluting fuels
• Connecticut and nine other states hold four auctions per year. The price to emit one ton of carbon dioxide in the first three auctions was just over $3 dollars and to date, Connecticut raised approximately $14 million. State law, and subsequent DEP regulations, require that this revenue be used for clean energy, energy efficiency and climate planning.
• From the first three auctions, $9 million will go to CT Energy Efficiency Fund programs, $3 million to the CT Clean Energy Fund and $1 million to the DEP for climate planning and implementation, and addressing impacts of global warming.
• Governor Rell's announcement about the transfer of RGGI revenue