Massachusetts Becomes RGGI Signatory
Beveridge & Diamond, P.C., February 2007
On January 18, 2007, Governor Deval Patrick signed a memorandum of understanding committing Massachusetts to the Regional Greenhouse Gas Initiative (RGGI), placing the state back into the large group of Northeast states that has committed to achieving greenhouse gas (GHG) emissions reductions under a uniform set of emission trading rules. The state had opted out of the RGGI program under previous governor Mitt Romney.
The Romney administration had overseen the adoption by MassDEP of the first GHG trading program in the nation, applicable to the six oldest and largest electric generating facilities in Massachusetts. The six facilities were previously subject to phased carbon dioxide emission reductions, and the trading program allows these facilities to either reduce their own GHG emissions or purchase credits from off-site projects that reduce, avoid or sequester greenhouse gases.
Former Governor Romney opted not to join the RGGI program, citing concerns that the RGGI process did not contain economic relief provisions if the cost of GHG emission credits were to increase significantly. This decision to separate from the RGGI process was reversed by Governor Deval Patrick in one of his first significant environmental decisions upon assuming his position in January.
With the inclusion of Massachusetts, the RGGI program now has eight participating Northeast states. The program will cap emissions from all power plants with at least 25 megawatts of generating power for five years beginning in 2009, and then will require incremental reductions over each of the next five years. All qualifying power plants will be required to purchase emission allowances for every ton of their GHG emissions. While state regulations for the previous program instituted under the Romney administration are in place and effective, the Massachusetts RGGI rules have not yet been either proposed or adopted.
For further information, please contact Steve Richmond at srichmond@bdlaw.com.
