Chivukula, McKeon Greenhouse Gas Reduction Bill Clears Assembly Panel

CHIVUKULA/McKEON GREENHOUSE GAS REDUCTION BILL CLEARS ASSEMBLY PANEL

(TRENTON) - Legislation Assembly members Upendra J. Chivukula, John F. McKeon, Linda Stender, and Louis Manzo sponsored to reduce greenhouse gas emissions in New Jersey through a regional alliance of 10 Northeast and Mid-Atlantic states was released today by an Assembly panel.

The bill (A-4559) establishes a road map for New Jersey's implementation of the Regional Greenhouse Gas Initiative (RGGI) - the first cap-and-trade program aimed at controlling carbon dioxide emission in the United States.  The plan calls for using credits or allowances to limit the total amount of emissions from power plants.

"Air pollution does not recognize state lines," said Chivukula (D-Somerset).  "If we want to be serious about fighting global warming, then it is absolutely essential that we put creative, cooperative programs like RGGI in place to reduce future greenhouse emissions while protecting the viability of our energy-supply system."

"We're racing against the clock to address global climate change," said McKeon (D-Essex).  "We need to take steps now to ensure the health and welfare of our residents in the future."

The bill (A-4559) would authorize the Department of Environmental Protection (DEP) to sell, exchange, retire, assign, allocate or auction allowances from greenhouse gas emissions as part of RGGI.

The program is aimed primarily at reducing carbon dioxide pollution through a mandatory emissions cap on electricity generators, coupled with a market-based trading system that would encourage suppliers to achieve greater energy efficiency.

Under the RGGI agreement, carbon dioxide emissions from power plants would be capped at current levels starting in 2009, with states eventually reducing emissions incrementally to achieve a 10-percent reduction by 2019.

Price impacts of the program are expected to be minimal. It also is anticipated that RGGI will generate new investments in innovative and cleaner technologies and energy efficiency - which could lower electricity rates.

Initially, RGGI is aimed at power plants in the region, but in the future the initiative may be extended to other greenhouse gas producers and greenhouse gases other than carbon dioxide.

The bill would complement the "Global Warming Response Act" measure that was enacted last summer to set long-term goals for reducing greenhouse gas emissions.

"The Global Warming law basically set New Jersey's emission targets, but RGGI lays the foundation for how we will accomplish those targets," said Stender (D-Union/Middlesex), prime sponsor of the law.

"In the absence of federal leadership on climate change, it's incumbent upon states to take steps to combat rising carbon dioxide levels in the atmosphere," said Manzo (D-Hudson).

In addition to New Jersey, the nine other RGGI states are Maine, Vermont, New Hampshire, Massachusetts, Connecticut, Rhode Island, New York, Delaware and Maryland.

The bill - released 8-4-1 by the Assembly Appropriations Committee - has already been scheduled for a January 7 floor vote.

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