Romney favors pact by states on emissions
Governor Mitt Romney signaled his support yesterday for a regional agreement among Northeastern states to reduce greenhouse gas emissions, despite opposition from power companies and other business interests that have been lobbying the administration against the plan.
In opening remarks to a clean-energy conference in Boston, Romney said the first-of-its-kind agreement, under which Massachusetts and eight other states could be required to cut power plant emissions by 2020, will not hurt the economy, as some have charged. He argued that it would spur businesses to develop clean- and renewable-energy technology to market worldwide.
''This is a great thing for the Commonwealth," Romney said, his strongest endorsement of the pact to date. ''We can effectively create incentives to help stimulate a sector of the economy and at the same time not kill jobs."
But some companies are worried that the emissions agreement would send energy prices even higher and make Massachusetts less friendly to business, so Romney's overall support for the initiative could add another wrinkle to his checkered relationship with the corporate community.
''I would certainly hope that the administration would rethink where they're heading on this," said Richard C. Lord, president and chief executive of Associated Industries of Massachusetts. ''We think there will be some serious negative impacts on the business climate here."
Romney said yesterday that he had some concerns about the agreement, known as the Regional Greenhouse Gas Initiative, but he endorsed this and other clean-energy initiatives by saying they would stimulate the development of technology that Massachusetts companies could sell to other states and countries, as the emphasis on climate change grows.
''I'm convinced it is good business," Romney said. He cited analyses showing that the agreement would boost energy prices by just 1 or 2 percent.
Businesses and environmentalists have been lobbying Romney hard for months on the proposed accord, which, according to a draft proposal released in August, would call for the nine states -- the six New England states plus New York, Delaware, and New Jersey -- to freeze power plant emissions and reduce emissions by 10 percent by 2020. The effort, led by Governor George Pataki of New York, is seen as recognition by the states that with the federal government not acting to regulate greenhouse gases, it is up to them to ease global warming.
Organizers in each state continue to hammer out a final agreement, expected soon. They will hold a conference call Thursday to discuss the accord in light of higher-than-expected energy costs anticipated for this winter.
''New York and other states are committed to enacting an effective, regional greenhouse gas program that will reduce carbon dioxide emissions from power plants, combat global warming, and improve air quality," Peter Constantakes, a Pataki spokesman, said in a statement.
Romney won office in 2002 by casting himself as a successful businessman who would draw on his background to turn around the Massachusetts economy and infuse efficiency into state government. But while Romney has launched probusiness policies, he has also drawn criticism from the business community for his closing of corporate tax loopholes and his support for a measure allowing cities and towns to shift more of the property tax burden onto the commercial sector.
On the greenhouse gas proposal, Romney may again choose a course that some may not like.
Kevin Conroy, chief of staff for the New England Council, a business trade group, said that companies are fearful that the agreement will drive up energy prices in Massachusetts, which business leaders say already has the highest energy costs in the country.
The pact has plenty of supporters, including a number of leading New England and Massachusetts companies, including National Grid,
Seth Kaplan, director of the clean energy and climate change program at the Conservation Law Foundation, said the Regional Greenhouse Gas Initiative would be the latest environmental innovation, such as fuel efficiency standards, to come out of the states as the federal government has failed to act.
''We can start to write the game plan for the nation," he said.
The issue could also have political implications for Romney, who is considering a run for president. Pataki and two other possible GOP presidential candidates, Senator John McCain of Arizona and Senator Chuck Hagel of Nebraska, have supported reducing greenhouse gases, and critics worldwide accuse the Bush administration of ignoring evidence of climate change to help big business.
And while Romney may win plaudits from environmentalists if Massachusetts joins the agreement, some critics cite his opposition to a proposed wind farm off Cape Cod as evidence that he's inconsistent in his support for clean energy. A group of protesters demonstrated yesterday outside the Park Plaza Hotel, where the conference was being held.
One thing the greenhouse gas accord would do is create a system where power plants need special credits to emit carbon dioxide; under the plan, those credits would be bought and sold among power companies in the region.
Conroy said businesses want a cap on what those credits could cost, which Romney said yesterday was worth considering. Romney also said he wanted to make sure Massachusetts would get its fair share of the credits.
''Clearly, I want to give our industry a boost and reduce our use of energy," he said, adding that the country needs to reduce its dependence on foreign oil. ''At the same time, I want to get a good deal for Massachusetts."
Scott Helman can be reached at shelman@globe.com. 