Greenhouse gas initiative explained
Q. What is RGGI?
A. The Regional Greenhouse Gas Initiative, or RGGI, was originally a nine-state proposal to limit power plant emissions of carbon dioxide, the main factor in global warming. The plan would freeze emissions at current levels and then reduce them 10 percent by 2020. Massachusetts and Rhode Island withdrew from the pact Wednesday because of concerns it will cause energy prices to rise. Connecticut, New York, New Jersey, Vermont, Maine, New Hampshire, and Delaware are still in the pact.
Q. How does RGGI work to reduce emissions?
A. Power plants that emit more carbon dioxide than allowed can buy credits from plants that pollute less. Demand from power plants will determine the price of the credits. The system is designed to encourage dirtier power plants to invest in cleaner fuels and technologies.
Q. Will RGGI cost electricity customers more money?
A. Two analyses for the RGGI states show that electricity rates for households will rise between $3 and $34 a year for 20 years. But business trade groups dispute that modeling, saying they expect energy prices to increase much more.
Q. What is Governor Mitt Romney's separate state plan to reduce carbon dioxide emissions from power plants?
A. In 2001, the so-called Filthy Five rules were passed to limit carbon dioxide and other pollutants from the state's six dirtiest power plants. The carbon dioxide portion of the rule takes effect next month. Romney has proposed a price cap on how much the power plants would have to pay to emit a ton of carbon dioxide. The program is not designed to allow the trading of credits among power plants.
Q. How does the Massachusetts plan work?
A. To meet limits on carbon dioxide, the power plants would have to become more energy efficient, invest in cleaner fuels and technologies -- or pay for carbon dioxide reductions elsewhere. For example, they could plant a forest, trees absorb carbon dioxide, equal to the amount of pollution they must reduce. Power plants would have to pay for these kinds of projects in the Northeast until the price of them hits the equivalent of $6.50 per ton of carbon dioxide for 12 months.
Then, the power plants could fund projects worldwide, where the price might be lower. Once the price hits $10 per ton, the power plants can avoid further emission reductions by paying into a fund for carbon dioxide reduction projects.
If the price escalates too quickly or there aren't enough reduction projects to invest in locally, the Department of Environmental Protection commissioner could allow reduction programs to go worldwide or power plants to pay into the fund earlier.
