State Senate
FOR IMMEDIATE RELEASE
Thursday, May 15, 2008
Contact: Senator Martha Fuller Clark (603) 271-6933
SENATE REAFFIRMS SUPPORT FOR REGIONAL GREENHOUSE GAS INITIATIVE
CONCORD - The Senate reaffirmed its support today for legislation allowing New Hampshire to participate in the Regional Greenhouse Gas Initiative.
The Regional Greenhouse Gas Initiative, or RGGI, is a market-based program that involves nine other states and is expected to reduce carbon pollution, improve energy efficiency and ultimately save ratepayers money. House Bill 1434 passed 16-8 today after returning from the Senate Finance Committee with a recommendation of ought-to-pass. The Senate will now seek the concurrence of the House.
"New Hampshire will be better off economically if we participate in RGGI," said Senator Martha Fuller Clark (D-Portsmouth). "As the rest of the region begins to implement RGGI, electricity costs will increase. If New Hampshire participates, this additional cost can be offset by the sale of RGGI allowances allocated to New Hampshire and their reinvestment in energy efficiency and conservation measures."
RGGI would require electric utilities to buy a carbon allowance for each ton of carbon they emit. Participating in a regional auction of those allowances, New Hampshire would raise millions of dollars for a fund to help businesses and homeowners reduce energy use -- both heat and electricity -- through conservation and improved efficiency. Participation also would reduce the need for expensive upgrades to the state's old fossil fuel-based power plants.
To address concerns from the business community, the Senate approved a $6 limit on what the carbon allowances can sell for in their first year and would require that anything over that cap be rebated to ratepayers. The limit would rise slowly over a period of years. The House bill calls for a $12 cap to start.
The legislation also adds another layer of protection by authorizing the state Public Utility Commission to rebate money from the fund if it's not used for conservation or efficiency.
"There are protections for consumers," said Senator Maggie Hassan (D-Exeter). "If the money isn't used for energy efficiency, it will be rebated to ratepayers."
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