News from New York State Department of Environmental Conservation

For more information contact: Yancey Roy 518-402-8000

Public Comment Period, Hearings Set For Greenhouse Gas Proposal

New York To Be Part of Nation’s First ‘Cap and Trade’ Program

ALBANY, NY (05/07/2008; 1456)(readMedia)-- New York State today announced a 45-day comment period for the revised draft regulations for the Regional Greenhouse Gas Initiative (RGGI), a program that will reduce emissions from power plants. This will include public hearings in Albany and Long Island.

RGGI is an agreement by 10 Northeastern states to reduce greenhouse gas emissions, with participating states issuing their own regulations. When fully implemented, RGGI will achieve a 16 percent reduction in emissions from projected business-as-usual emissions.

Since announcing the first draft of RGGI regulations last fall, New York has received more than 10,000 public comments. In response, the state Department of Environmental Conservation (DEC) and the New York State Energy Research and Development Authority (NYSERDA) have updated the proposed regulations and outlined rules for the auctioning of pollution credits.

RGGI states have set auctions for September and December. Through the auction process, companies will have to buy allowances for every ton of carbon dioxide they emit. The auction process is a market-based approach that will cap, then reduce the amount of emissions allowed.

“Global warming is the issue of our time,” said DEC Commissioner Pete Grannis. “With these regulations, we will be attacking it in three ways: reducing emissions, fostering energy efficiencies, and spurring the development of clean and renewable sources of energy.”

“Under the leadership of Governor David A. Paterson, New York State is demonstrating its commitment to addressing global climate change,” said Bob Callender, Vice President for Programs at NYSERDA. “The RGGI auction program affords NYSERDA yet another opportunity to help reduce greenhouse gas emissions in New York State, and it helps to strengthen the delivery of our broad range of energy efficiency activities. Furthermore, RGGI’s trail blazing work will help advance the efforts to enact a national cap and trade program. Once again, New York State will lead the way forward on energy and environmental policy.”

Comments on the revised regulations will be received until June 23, 2008. The public is invited to submit comments in writing to DEC and NYSERDA and/or attend one of two public hearings (schedule below). The state expects to finalize the regulations by the end of this calendar year.

In a major departure from similar programs elsewhere, the state will not simply give power plant owners RGGI allowances. From the start, companies will have to buy allowances through an auction or in a secondary market for every ton of carbon dioxide they emit. The proposal regulations establish a minimum price of $1.86 per ton. No allowances will be sold at for bids below this level. In addition, the state reserves the right to retire unsold allowance. The revised draft regulations also set forth many of the specifics of how and when the auctions will be conducted and the obligations for those wishing to participate.

Proceeds from the auction would go toward energy efficiency programs, renewable energy projects, and innovative non-carbon emitting technologies. The program would also provide small opportunities for power companies to offset their emissions through other “green” investments.

Power plants pump out 25 percent of the total annual carbon dioxide emitted in New York State. For the initial six years of the RGGI program, carbon emissions for New York power plants 25 megawatts and larger will be capped at roughly current levels (64.3million tons annually). In 2015 and in each of the subsequent three years, the cap will be reduced by 2.5 percent for an overall reduction of 10 percent. This will achieve a 16 percent reduction from projected business-as-usual emissions.

Other states participating in RGGI include: Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, Delaware and Maryland.

New York’s draft regulations are available at: http://www.dec.ny.gov/regulations/43552.html

The public hearings are as scheduled:

Date: Monday, June 9, 2008 Time: 2 p.m. Place: NYS Dept. of Environmental Conservation 625 Broadway Albany, NY 12233

Date: Monday, June 9, 2008 Time: 1 p.m. Place: NYS Dept. of Environmental Conservation Region 1 Offices 50 Circle Road Conference Room, Basement Room #002 A/B Stony Brook, NY 11790

The public hearings are scheduled in places that are reasonably accessible to persons with impaired mobility. At the hearings, DEC will provide interpreter services for deaf persons at no charge. Written requests for such services are required and should be submitted by May 23, 2008, to Laura Stevens, NYSDEC, 625 Broadway, Albany NY 12233-3250; (518) 402-8451; airregs@gw.dec.state.ny.us .

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