Enviro, Energy Groups Call Foul on NY Gov's $90 Million Raid of State's Clean Energy, Efficiency Funds

• by Environmental Advocates of New York

ALBANY, NY (10/15/2009)(readMedia)-- In response to the budget deficit reduction proposal unveiled by Governor David Paterson today, environmental and energy groups are calling on the Governor not to steal monies generated by auctions under the Regional Greenhouse Gas Initiative (RGGI), the 10-state plan that reduces climate-altering power plant pollution and saves New Yorkers money on their heating and energy bills.

"Raiding revenue generated by the nation's first-ever plan to reduce global warming pollution to plug New York's budget hole hurts consumers and the environment," said Jackson Morris, air & energy program director for Environmental Advocates of New York. "Instead of using the money to reduce utility bills for businesses and consumers, the Governor is throwing this money into the black hole that is New York's general fund."

The Governor proposes sweeping $90 million in revenue generated by the RGGI into the State's general fund. This proposal to steal energy conservation funds for budget relief takes monies away from growing New York's clean energy economy, which the Governor promoted just a few days ago in Syracuse.

"RGGI revenues were specifically designed to move New York toward a clean energy economy encouraging new industries to settle here, create more jobs in our state, and cut costs for consumers. This short-sighted raid robs consumers' pockets, sets the state's progress back several years, and clears the path for other states to beat us to it," said Richard Schrader, New York Legislative Director at the Natural Resources Defense Council. "The nation's first-ever plan to reduce global warming pollution should not be used as the Governor's piggy bank."

"This is no time to steal funds from programs that will save people money on their heating and electricity bills," said Abigail Dillen, staff attorney for Earthjustice.

"This is a shortsighted, desperate measure that will hurt New Yorkers in the long run," said Jamie Van Nostrand, Executive Director of the Pace Energy and Climate Center. "To use RGGI auction proceeds in this manner is a betrayal of the fundamental premise upon which RGGI is basedapplying the proceeds from selling carbon allowances to programs that will reduce the impact of climate change in the future."

The RGGI is a critical piece of the Northeast's overall strategy to address climate change, which includes energy conservation and generating a greater portion of energy from clean, renewable sources. Late last year, New York cleared the way to participate in a December auction of carbon dioxide (CO2) pollution permits. The RGGI regulatory framework will hold CO2 emissions constant through 2014, and then gradually reduce those levels.

RGGI is the most important initiative in place in the United States today to limit carbon dioxide emissions from electric power plants, the largest source of global warming pollution in our country. Any efforts to derail this historic process should be met with strong opposition. Earlier this year, the Governor and his staff reiterated New York State's commitment to keep RGGI revenue dedicated solely to clean energy and energy efficiency programs, thus maximizing the climate reduction program's reduction of climate-altering greenhouse gas emissions.

Years of research related to the development of the RGGI showed that the program's success hinges on the wise use of revenue generated by allowance auctions. The Governor's action today jeopardizes the success of this critical program.

The groups Earthjustice, Environmental Advocates of New York, Natural Resources Defense Council and Pace Energy and Climate Center all contributed to this release.

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