I'm a little late on posting this story, but it's a good one. Massachusetts has rejoined the most expansive US policy for reducing CO2 emissions.
The main goal of the bipartisan RGGI is to cut emissions of the greenhouse gases that contribute to global warming. As part of the program, the states are set to begin charging power plants fees for carbon dioxide emissions beginning in 2009.
As part of the agreement, states are given "allowances" for emissions. Electricity generators like power plants will need the allowances for each ton of carbon dioxide they emit. Each state has the discretion to distribute the allowances however it wants.
Patrick said Massachusetts will auction off all of the allowances and use the money -- estimated at between $25 million to $125 million annually -- to create a new program to encourage energy savings.
The money would go to pay for energy efficiency, demand reduction, renewable energy programs, and combined heat and power projects, which use what is normally wasted heat from power generation for efficient heating.
The funds will also be used to manage peak demand for electricity, lowering electric bills for consumers, Patrick said. Customers will have incentives to use technologies like automatic lighting and air conditioning controls that can help minimize peak-time usage.
"Changes in the electricity market are creating new economic incentives for large scale energy efficiency initiatives and programs that cut electricity demand on peak days - the hottest days in the summer when lots of us are using air conditioners," Bowles said.
Critics fear the plan could drastically increase electricity rates because it would force companies to build new plants, or convert plants to use natural gas.
But environmental activists said that without the plan and the new fees for power plants, the state would never meet its carbon dioxide reduction goals.
"What a breath of fresh air from our previous governor who walked away from the climate crisis altogether," said Cindy Luppi of Clean Water Action.
I couldn't agree more.