Maryland Joins RGGI Carbon-Cutting Pact
Date: 23-Apr-07
Country: US
The RGGI states aim to reduce carbon dioxide emissions from electric generation using a cap-and-trade program similar to the federal acid rain reduction programs.
Carbon dioxide is a greenhouse gas that scientists link to global warming.
"The fight to prevent global warming crosses state lines, and Maryland is proud to join its neighbors in reducing greenhouse gas emissions, while protecting our electric industry," said Maryland Gov. Martin O'Malley.
O'Malley also signed an executive order creating the Climate Change Commission which, his office said, is "charged with collectively developing an action plan to address the drivers and causes of climate change, prepare for the likely consequences and impacts of climate change to Maryland" and to set benchmarks and timetables to implement the commission's recommendations.
A study issued earlier this year showed that power bills for the typical Maryland customer will drop about US$22 by 2010 if the state joins the RGGI. The study was done by the Center for Integrative Environmental Research at the University of Maryland.
The savings will come in savings from efficiency programs and from the sale of unused emissions allowances.
The same study showed that power generating companies will see their profits drop about 12 percent by 2025 as coal-fired plants are replaced by cleaner-burning but more expensive natural gas- and oil-fired power plants.
Coal is the primary fuel for about 40 percent, or about 5,000 megawatts, of Maryland's generating capacity.
Two companies own most of the coal-fired plants in Maryland -- Constellation Energy Group Inc. and Mirant Corp.
Between 2010 and 2025, Maryland's participation in RGGI would reduce the state's carbon dioxide emissions by roughly 10 percent, the study found.
Maryland will receive an annual cap for carbon dioxide emissions as an RGGI member and give allowances to the generators.
The University of Maryland study assumed the state would give 75 percent of the allowances to the generators free and auction the remaining 25 percent to fund energy efficiency programs.
The states in the RGGI are Maryland, Delaware, New Jersey, New York, Connecticut, Rhode Island, Massachusetts, New Hampshire, Vermont and Maine.
Pennsylvania and the District of Columbia are not full members of are listed as "observers" of the RGGI. Also listed as observers are eastern Canadian provinces.