Labor, Environmental Leaders Urge Connecticut Action on Offshore Wind

HARTFORD, CT — More than sixty labor, religious, environmental and business leaders gathered on Wednesday to discuss the development of offshore wind energy in New England and to call for Connecticut to act quickly to secure a share of the jobs and economic activity.

The half-day forum, hosted by the International Brotherhood of Electrical Workers (“IBEW”) Local 90 in Wallingford, was organized by the CT Roundtable on Climate and Jobs and Acadia Center, with co-sponsorship from the Connecticut Port Authority and the Greater Hartford-New Britain Building and Construction Trades Council.

Following the gathering, the CT Roundtable on Climate and Jobs is submitting a letter, endorsed by more than 120 people representing more than 55 towns across the state, as a public comment on the state’s Draft Comprehensive Energy Strategy (“CES”). The letter urges the CT Department of Energy and Environmental Protection (“DEEP”) to revise the draft CES to incorporate a meaningful commitment to offshore wind energy, taking advantage of planned development in pre-designated federal waters south of Massachusetts and Rhode Island.

“By taking advantage of lessons learned from neighboring states, Connecticut can develop a robust offshore wind strategy that leverages our modern port facilities and skilled labor pool to capture a share of the benefits of this emerging regional resource,” said John Humphries, organizer for the CT Roundtable on Climate and Jobs.

“Under legislation passed this year, DEEP now has the authority to procure offshore wind energy. Rather than including any recommendation that Connecticut take advantage of even that limited authority, however, the draft CES downplays the opportunity,” said Kerry Schlichting, Policy Advocate at Acadia Center. “The state must establish a clear path to securing a share of the regional economic and environmental benefits from offshore wind or risk losing out to its neighbors like New York and Massachusetts.”

So far Connecticut has lagged behind its neighboring states in creating a long-term energy strategy that embraces offshore wind. The Block Island Wind Farm off the coast of Rhode Island is operational, Massachusetts is actively reviewing offshore wind project bids, and New York, Maryland, and New Jersey are all developing their own ambitious programs. The scale of this offshore wind development presents an enormous economic opportunity for Connecticut’s deep-water ports, coastal communities and workers. To catch up and capture its share of this new economic opportunity, the state needs to develop a sound policy framework for offshore wind procurement.

The coalition’s CES comment builds on this week’s forum and argues that the final CES should ensure alignment of the state’s energy strategies with its mandated climate goals, while also envisioning a clean energy future that prioritizes local economic development and job creation.

Wednesday’s forum featured a panel discussion with labor leaders from Rhode Island and New York. Construction of the region’s first offshore wind farm off the coast of Block Island employed more than 300 union workers, including some from Connecticut. Advocacy by New York’s labor movement was critical in securing Governor Cuomo’s January 2017 executive order addressing the procurement of offshore wind energy.

For more information on Connecticut’s offshore wind opportunity and steps for state policy makers, please see Acadia Center’s analysis.

The letter submitted to DEEP by the CT Roundtable on Climate and Jobs, including the list of endorsers, is available at bit.ly/RTstatement9-17prn.

Media Contacts:
Kerry Schlichting, Policy Advocate, Acadia Center
kschlichting@acadiacenter.org, 860-246-7121 ext. 208

John Humphries, Organizer, CT Roundtable on Climate and Jobs
john@ctclimateandjobs.org, 860-216-7972

Public Service Commission Decision Undermines Consumer-Friendly Future for Solar Power and Clean Distributed Energy

NEW YORK — The Public Service Commission (PSC) issued an important Implementation Order on September 14, 2017, in the Value of Distributed Energy Resources (VDER) proceeding (Case 15-E-0751). Unfortunately, this order will impede the advancement of solar energy in New York and impose unnecessary barriers on the ability of consumers, businesses and communities to benefit from this clean energy resource. The structure laid out by the PSC in March of 2017 promised to reform and update New York’s approach to valuing solar energy and expanding consumer solar markets. The Order undermines the new VDER net metering structure because it undervalues distributed resources on the basis of unvetted utility studies that minimize solar’s economic value. In doing so, the Commission’s Order conflicts with the distributed energy future envisioned by New York’s historic and ambitious Reforming the Energy Vision (REV) future.

“The promise of a modern energy system that allows clean energy to flourish depends upon a fair determination of the economic value of solar and other clean energy resources,” said Daniel Sosland, president of Acadia Center, which has provided detailed comments on solar values in the PSC case. “Defining solar power’s economic future solely on information provided by electric utilities, who want to tilt the playing field towards investments that benefit the utility and its shareholders, is not a formula for short-term or long-term success.”

Mark LeBel, Associate Director of Acadia Center’s Grid Modernization Initiative, said, “The Commission has made a major mistake by approving unvetted marginal cost of service studies from Central Hudson, NYSEG and RGE. These studies all improperly limited the potential values provided by distributed energy resources. In addition, Central Hudson used a new and untested methodology that has never been put forward before in an adjudicated proceeding, and the Commission failed to address several detailed critiques brought forward by Acadia Center and other parties.”

Cullen Howe, Acadia Center’s New York Director, noted, “Acadia Center supports the overall vision that has been laid out by the Commission and the Cuomo Administration over the last several years. However, implementation of this vision cannot ignore the details and the practical realities of how to animate markets for energy efficiency and clean energy.”

RGGI Auction Prices Rebound in Response to Proposed Changes

BOSTON — Prices increased in the first Regional Greenhouse Gas Initiative (RGGI) auction since the participating states proposed a set of changes to the program. This is an initial indication that the market expects the program to be stronger in the future. All 14,371,585 available allowances were sold at a clearing price of $4.35, generating $62,516,395 in revenue for reinvestment. This brings the program’s total revenue to $2.78 billion—most of which has been used to fund energy efficiency and other consumer benefit programs. The Auction 37 clearing price is 72% higher than the previous auction and 4% lower than the clearing price from one year ago. This marks an end to the steady decline in auction clearing prices that began in early 2016.

The key changes announced by the states include:

• Reducing the emissions cap by 30% from 2020 to 2030;
• Conducting a full adjustment for banked allowances;
• Strengthening the existing Cost Containment Reserve; and
• Establishing an Emissions Containment Reserve

“We applaud the RGGI states for working together to improve the program, and the Auction 37 results show that these changes should make RGGI stronger,” said Acadia Center President Daniel Sosland. “After nearly two years of negotiations, the states have put RGGI on a course for long-term success.”

“Proposed policy changes have driven prices upward in this auction, but implementing RGGI reforms is the only way to ensure that prices won’t dive again,” said Jordan Stutt, Policy Analyst with Acadia Center. “Emissions continue to fall rapidly—each of the first two quarters in 2017 resulted in record low quarterly emissions—and even the new cap may not decline quickly enough to keep up with decarbonization in the electric sector. Fortunately, the new addition of an Emissions Containment Reserve should help the states reduce emissions further, at low costs to consumers.”

“The increase in allowance prices is a testament to the leadership of the RGGI states,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “By following through on proposed reforms, the nine RGGI states can demonstrate the power of bipartisan action to address climate change.”

Information on RGGI’s performance to date can be found in Acadia Center’s latest RGGI Status Report:

• Part I: Measuring Success

Additional information on the benefits of RGGI can be found at https://www.cleanenergyeconomy.us/

RGGI Overview:
The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Nine northeastern and mid-Atlantic states reduce CO2 emissions by setting an overall limit on emissions “allowances,” which permit power plants to dispose of CO2 in the atmosphere. States sell allowances through auctions and invest proceeds in consumer benefit programs: energy efficiency, renewable energy, and other programs.

The official RGGI web site is: www.rggi.org

Media Contacts:

Jordan Stutt, Policy Analyst, Clean Energy Initiative
jstutt@acadiacenter.org, 617-742-0054 x105

Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, 617-742-0054 x103

Major Climate Success in Northeast: World’s 6th Largest Economy Filling the Void of Federal Inaction

Boston, MA – A bipartisan coalition of Northeast and Mid-Atlantic Governors today committed to extending and strengthening their landmark climate cooperative, the Regional Greenhouse Gas Initiative (RGGI). The agreement places RGGI states – which collectively comprise the 6th largest economy in the world, ahead of France, India and Brazil 1 – in the vanguard of climate action following the Trump administration’s misguided decision to withdraw from the Paris Accord.

“RGGI governors today showed what real leadership looks like,” said Daniel Sosland, president of Acadia Center. “The Trump Administration has turned the federal government’s back on the historic opportunity to build a clean energy future that reduces climate pollution, and the need to safeguard consumers and the climate has shifted to the states and regions. Strengthening RGGI is critical to demonstrating the benefits of climate action and filling the void of irresponsible federal policy.”

RGGI governors announced a number of improvements that will reduce carbon pollution by over 132 million tons through 2030, the equivalent of taking over 28 million cars off the road for a year:

• Extending the pollution cap to 2030, when it would decline 30% from 2020 levels
• Conducting a further downward cap adjustment of approximately 25 million tons to account for surplus banked emissions allowances
• Higher ceiling prices for emissions allowances
• Creation of an innovative Emissions Containment Reserve to soak up extra allowances that go unsold at regional auctions

“Strengthening RGGI is one of the most effective and important steps to tackle climate pollution,” said Peter Shattuck, Director of Acadia Center’s Clean Energy Initiative. “Market based policies unleash the innovation and investment needed to achieve state climate targets and the goals of the Paris Agreement, and RGGI has shown just how well smart climate policy works.”

Since its inception, RGGI has been an unparalleled success.

• Carbon dioxide emissions from power plants in the region have dropped 40%, while participating states’ economies have grown by 25%. 2
• Electricity prices have declined 3.4% in RGGI states since the program launched, compared with a 7.2% increase in electricity prices for states yet to act on climate. 3
• RGGI has added over 30,000 jobs to the regional workforce. 4
• Declining emissions from CO2 have been accompanied by reductions in other hazardous pollutants, making the air cleaner and avoiding $5.7 billion in healthcare impacts. 5

“State and regional action is delivering major success through RGGI,” said Jordan Stutt, Policy Analyst at Acadia Center. “RGGI is helping to create the clean electric sector that will provide the backbone to a wider clean economy. We applaud Governors Baker, Cuomo, Raimondo, Scott and Malloy on this decision, and look forward to continuing climate leadership, including steps to tackle transportation – the region’s largest source of climate pollution.”

1. RGGI on the World Stage, Acadia Center, June 2017, available at: http://acadiacenter.org/document/rggi-on-the-world-stage/
2. The Regional Greenhouse Gas Initiative Status Report: Measuring Success, Acadia Center, July 2016, available at: http://acadiacenter.org/document/measuring-rggi-success/.
3. I.d.
4. The Economic Impacts of the Regional Greenhouse Gas Initiative on Ten Northeast and Mid-Atlantic States, Paul Hibbard et al., Analysis Group, November 2011, available at: https://web.archive.org/web/20170313223228/http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/economic_impact_rggi_report.pdf and The Economic Impacts of the Regional Greenhouse Gas Initiative on Nine Northeast and Mid-Atlantic States, July 2015, available at: https://web.archive.org/web/20170313223308/http://www.analysisgroup.com/uploadedfiles/content/insights/publishing/analysis_group_rggi_report_july_2015.pdf.
5. Analysis of the Public Health Impacts of the Regional Greenhouse Gas Initiative, 2009-2014, Michelle Manion et al., Abt Associates, January 2017, available at: http://abtassociates.com/RGGI.

Media Contacts:
Dan Sosland, President
dsosland@acadiacenter.org, 207.236.6470

Peter Shattuck, Director, Clean Energy Initiative
pshattuck@acadiacenter.org, 857.636.2502

$12.5 Million Raid to Energy Efficiency Fund Threatens to Hurt Rhode Island Consumers and Economy

Joint release with People’s Power & Light

Providence, RI – Since the House Finance Committee released its proposed state budget, energy and environmental organizations have expressed serious concerns about the dangerous precedent that the House will set if their budget is enacted. The proposed plan would raid $12.5 million from ratepayer funded, cost-effective energy efficiency programs. Groups emphasize that these are not state funds, they are rate-payer funds collected specifically to bring much-needed energy savings to all Rhode Islanders. Diverting the funds from the efficiency programs will cost Rhode Island ratepayers more money.

Nonprofit organizations Acadia Center and People’s Power & Light (PP&L) are urging state representatives to support an amendment deleting Budget Article I, Section 16, in the Fiscal Year 2018 budget now before the General Assembly. Over thirty organizations and individuals – representing business, community, consumer, low-income, public health, environmental, and clean energy interests – signed a letter to the General Assembly vigorously opposing the raid. This letter highlights that by diverting ratepayer funds, the proposed budget is in effect taxing consumers for the use of their energy instead of using those funds to secure consumer savings.

“Imposing a new energy tax would be extremely unfair to Rhode Island’s already burdened ratepayers, who have been promised tangible benefits in return for their efficiency funding,” said the letter.

The letter goes on, “Rhode Island’s energy efficiency programs generate immense economic value for the state. They bring millions of dollars in electricity and natural gas bill savings to all our residents and businesses, drive our growing clean energy economy, help low-income families reduce the difficult burden of high energy costs, and protect the health and prosperity of our local communities. Rhode Island’s Least Cost Procurement law – first implemented a decade ago and extended another five years in 2015 – is primarily responsible for the state’s continued leadership on economic efficiency. The General Assembly has unanimously recognized that the electric and natural gas distribution utility must invest in the lowest cost energy resource, energy efficiency, before more expensive energy supplies from outside Rhode Island. This is an economic strategy, not a social benefits program.”

“Given that saving energy costs less than buying it and it creates far more jobs than making energy from imported gas and oil, it seems weird to tax energy consumers. There must be better ways,” says Larry Chretien, Executive Director of People’s Power & Light.

Recently the Office of Energy Resources released a report showing the importance of efficiency to the state’s economy. The report shows that clean energy jobs have grown 66% since 2014. In addition, according to the Energy Efficiency & Resource Management Council’s 2016 annual report, “Every $1 million invested in this sector leads to the creation of 45 job-years of employment, and every $1 invested boosts Gross State Product by $4.20.”

“Rhode Island’s ratepayer-funded energy efficiency programs have provided $2.3 billion in economic benefits to residents and businesses since 2008, a fourfold return on investment,” said Erika Niedowski, Policy Advocate at Acadia Center. “Rhode Island has worked hard over the last decade to become a national leader on energy efficiency, and diverting these funds would cost ratepayers money and represent a big step backwards for our economy.”

As the House members prepare to vote today, Acadia Center, People’s Power & Light, and numerous local organizations and constituents are urging state representatives to delete Budget Article I, Section 16 to do right by ratepayers and all Rhode Islanders.

Media Contacts:

Erika Niedowski, Acadia Center
eniedowski@acadiacenter.org, 401-680-0056

Larry Chretien, People’s Power & Light
larry@ripower.org, 617-686-7289

Governor Raimondo Nominates Acadia Center’s Abigail Anthony to the Rhode Island Public Utilities Commission

Providence, R.I. — Today, Abigail Anthony, Ph.D., will appear before the Rhode Island Senate for hearings to confirm her appointment by Governor Gina Raimondo as commissioner on the Rhode Island Public Utilities Commission (RIPUC). Dr. Anthony is currently director of Acadia Center’s Rhode Island Office and its Grid Modernization Initiative.

Since Dr. Anthony began at Acadia Center in 2007, she has had a leading role in advancing Rhode Island’s energy efficiency policies and grid modernization to achieve a sustainable and consumer-friendly energy system. This work will continue as she joins the Rhode Island PUC, which is working at the behest of Governor Raimondo to develop a more dynamic regulatory framework that will enable Rhode Island and its utilities to advance a cleaner, lower-cost energy system.

“In the decade that Abigail has been leading Acadia Center’s work in Rhode Island, the state has become a national leader in energy efficiency and adopting reforms to advance clean energy,” said Daniel Sosland, president of Acadia Center. “Abigail’s efforts have been instrumental in this progress and have helped build the foundation for a cleaner, more consumer-friendly and lower-cost energy system for Rhode Island’s businesses and residents. Governor Raimondo’s recent directive to take steps to modernize the power grid indicates that the state is serious about building a clean energy future. RIPUC will play a central role in determining Rhode Island’s energy future. Acadia Center will miss Abigail, but we are excited that she will bring her thoughtful, reasoned approach to the challenging issues before the PUC.”

In collaboration with the Office of Energy Resources and Division of Public Utilities and Carriers, the Public Utilities Commission is currently working to draft regulations that will allow clean energy resources to be integrated into the grid more easily. To comply with the Governor’s directive, they will explore utility function and compensation, the effects of adopting electric vehicles and electric heating, and means of expanding customer and third-party participation.

Today’s Senate committee hearing has been scheduled to confirm Dr. Anthony’s nomination. Acadia Center looks forward to continuing its work in Rhode Island to advance a clean energy future that will build a stronger economic future, improve public health and reduce climate pollution through initiatives expanding energy efficiency, clean energy and transportation, power grid modernization and community energy.

Media Contacts:
Daniel Sosland, President
dsosland@acadiacenter.org, 207.236.6470

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617.742.0054 ext. 107

Acadia Center
144 Westminster Street, Suite 203
Providence, RI 02903
401.276.0600

State and Regional Climate Action Critical as the Trump Administration Turns Its Back on a Clean Energy Future

BOSTON — Today, as President Donald Trump announces he will pull the United States out of the Paris climate agreement, Acadia Center is calling for redoubled action at the state and local level to counter the damaging effects of this move by the administration. Studies, including a recent report by Acadia Center, show that the states have the capacity to build a low-carbon energy system that empowers consumers and advances economic growth. As the federal government increasingly turns against consumer-friendly climate policies, the states must act to advance this clean energy future.

“The economic and environmental future of the United States depends upon growing a clean energy economy,” stated Daniel Sosland, president of Acadia Center. “Advancing clean energy technologies improves public health, lowers energy costs, makes the U.S. more energy independent, keeps energy dollars here at home, builds jobs in this booming industry and reduces climate pollution. While the Trump Administration’s decision to leave this historic multi-national agreement will disadvantage the U.S. economically and cede leadership of the clean energy economic powerhouse to China, India and other nations—state, regional and community leadership can and must fill the gap left by this ill-informed decision,” Sosland said.

“The Northeast region has successfully proven the benefits of pursuing a clean energy, low polluting economy: states have reduced climate pollution while enjoying greater economic growth, job creation and public health benefits. This significant progress on clean energy under both Republican and Democratic leadership at the state and federal level serves as a prime example of what is possible across the nation.”

From increasing investments in energy efficiency that reduced energy bills to the Regional Greenhouse Gas Initiative (RGGI), the Northeast’s cap-and-invest program to reduce climate pollution, states have acted to embrace the clean energy future through regional cooperation. Since 2008, RGGI has helped the region reduce emissions nearly 40% and supported over $2 billion in clean energy programs that have allowed consumers to save billions in energy costs as well as from avoided health costs associated with emissions.

Acadia Center’s recent analysis of the Northeast’s energy system, EnergyVision 2030, shows that the states can achieve a clean energy future for all of their residents and dramatically reduce emissions by embracing available technologies. If states follow the recommendations in EnergyVision 2030, they will reduce emissions 45% by 2030 and be on track to cut emissions 80% by 2050—roughly the same target with which the U.S. was set to comply under the Paris accord.

Media Contacts:
Dan Sosland, President
dsosland@acadiacenter.org, 207-236-6470

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054 x107

Analysis Shows Direct Sales of Electric Vehicles Have Not Negatively Impacted Car Dealership Employment Levels

HARTFORD, CT — Acadia Center today released a new analysis that shows there has been no negative impact on car dealership employment levels in states that allow the direct sales of electric vehicles (EVs) to consumers. Over the past several years, Connecticut has debated whether to permit the direct sale of EVs by manufacturers. Connecticut is one of only a few states that prohibit this practice. The Connecticut General Assembly is currently deciding whether to advance H.B. 7097, a bill that would allow direct sales of EVs in the state.

“EV direct sales are a smart move with no downside for Connecticut,” said Bill Dornbos, Connecticut Director and Senior Attorney at Acadia Center. “Not only does it help open the EV market for consumers, but it will also help reduce the state’s increasing greenhouse gas emissions while bringing in more sales tax revenue. We need new policies like direct sales that remove barriers to EV market penetration so we can realize their immense economic and climate benefits.”

Progress on EV direct sales has been stalled over the speculation that direct sales could negatively impact employment at existing Connecticut car dealerships. Today’s empirical analysis shows that this concern has not materialized in other states that have EV direct sales.

“This research puts to rest the main argument against EV direct sales in Connecticut,” said Emily Lewis O’Brien, Policy Analyst at Acadia Center. “We hope the debate can now move forward and EV manufacturers can bring more of these clean vehicles to the state. Direct sales are just another tool to promote EVs and give consumers more clean transportation options.”

With today’s energy mix in the Northeast, EVs emit about 75% less greenhouse gases than conventional vehicles. EVs also cost about half as much to fuel, even with low gas prices, and provide major benefits to public health, energy independence, and the regional economy. Recognizing these benefits, Connecticut committed with other states in the Northeast to put 1.4 million zero-emission vehicles, primarily EVs, on the road by 2025.

Acadia Center analyzed employment data in the auto dealer industry from the U.S. Bureau of Labor Statistics for 2012-2016 and the New York Department of Labor for 2009-2016. The report is available here.

Media Contacts:

Emily Lewis O’Brien, Policy Analyst
elewis@acadiacenter.org, 860-246-7121 x207

Bill Dornbos, Connecticut Director & Senior Attorney
wdornbos@acadiacenter.org, 860-246-7121 x202

Proposed Budget Raid Would Cost Connecticut Jobs, Economic Growth and Consumer Trust

HARTFORD, CT — A budget proposal released late yesterday by Senate Republicans would divert $160 million annually from Connecticut’s award-winning energy efficiency programs over the next two fiscal years—a staggering 64% cut in ratepayer funding levels that would devastate energy efficiency services for all residents and businesses. If enacted, a raid of this severity would cause significant and immediate job losses in Connecticut’s energy efficiency sector, deprive many consumers—especially residents with low or fixed incomes—of their best protection against high energy costs, stall Connecticut’s efforts to reduce carbon pollution and other air pollution, and force the state’s struggling economy to bear the increased burden of costly energy waste and higher grid infrastructure costs.

“This shortsighted budget proposal would effectively end Connecticut’s energy efficiency programs for the next two years, and perhaps beyond,” said Bill Dornbos, Connecticut Director and Senior Attorney at Acadia Center. “Cost-effective energy efficiency is at the center of any modern clean energy strategy, and so this troubling cut would be a needless step backwards for Connecticut, almost certainly crippling the emerging clean energy economy that will be so crucial to our future.”

Evaluated annually for cost-effectiveness by state regulators, Connecticut’s energy efficiency programs, also known as its Conservation & Load Management programs, have produced significant economic, public health, and environmental benefits for almost two decades now. Energy efficiency investments made in 2016, for instance, will save consumers approximately $961.8 million in lifetime bill savings, meaning every $1 invested in energy efficiency will save another $3.89 on utility bills. Energy efficiency, which replaces imported fossil fuels with in-state labor, also creates local jobs, and the 2016 investments alone generated approximately 12,000 jobs in Connecticut’s energy efficiency sector. The 2016 investments will also help protect public health and the environment, reducing carbon pollution by 3.3 million tons, SOx pollution by 2,916 tons, and NOx pollution by 1,556 tons.

“Labeling these productive energy efficiency investments as ‘taxes currently paid on energy bills’ does a real disservice to the thousands upon thousands of people and businesses that they help each and every year. This funding is how the state’s utility companies procure the lowest-cost energy resource, efficiency,” said Dornbos. “The irony here is that raiding these electric ratepayer funds for the General Fund deficit actually does create the very electricity tax that some claim as the justification for this harmful proposal.”

For more on the performance of Connecticut’s energy efficiency programs, please see the most recent Annual Legislative Report issued by the Connecticut Energy Efficiency Board. Acadia Center currently serves as the Vice Chair of the Energy Efficiency Board and has been an appointed member since the Board’s creation in 2000.

For more on the jobs and economic growth generated by cost-effective investments in energy efficiency, please see Acadia Center’s report Energy Efficiency: Engine of Economic Growth.

Media Contacts:

Bill Dornbos, Connecticut Director & Senior Attorney
wdornbos@acadiacenter.org, 860-246-7121 x202

Krysia Wazny, Communications Director
kwazny@acadiacenter.org, 617-742-0054, x107

RGGI States Can Save Billions on Healthcare with Stronger Program

BOSTON—New research from Acadia Center shows that a strengthened RGGI program would drive $2.1 billion in avoided health impacts. A stronger cap on carbon pollution would drive reductions in regional emissions of harmful pollutants like SO₂, NO_X, and particulate matter, which would lead to fewer emergency room visits, missed work and school days and premature deaths. The burdens of these co-pollutants fall disproportionately on low-income communities and communities of color, meaning that a stronger RGGI program will provide the greatest benefit to underserved populations.

“RGGI has created jobs, economic growth and climate benefits while improving the region’s air quality,” said Daniel Sosland, President of Acadia Center. “The RGGI states should build on that success by establishing ambitious cap levels through 2030 which would deliver substantial health benefits for the participating states.”

The new analysis shows that a 5 percent annual decline in the RGGI cap from 2020 to 2030—the most ambitious cap the RGGI states have modeled—would result in over $2 billion in avoided health savings, more than double the benefit of a continued annual cap decline of 2.5 percent.

“A stronger emissions cap over the next decade can help keep Springfield’s kids out of emergency rooms and in their classrooms,” said Sarita Hudson, Manager at Pioneer Valley Asthma Coalition. “Reducing pollution would make a huge difference in the everyday wellbeing and lives of this community.”

Environmental groups, health professionals and low-income advocates have called on the RGGI states to seize the opportunity provided by the program to look out for the communities burdened by pollution in a way that dramatically improves local air quality and generates revenue for the entire state. “The RGGI states can help low-income communities breathe easy, and strengthen them by re-investing RGGI proceeds into projects that spur local economic activity and create jobs,” said Jesse Lederman, Director of Public Health and Environmental Initiatives at Arise for Social Justice.

“Good state and regional policy needs to use this kind of smart thinking, to avoid inadvertent cost shifting from energy to health care. We support this forward-thinking effort” said Paul Lipke, Senior Advisor for Energy and Buildings, Health Care Without Harm.

Information on the 2016 RGGI Program Review, including meeting materials and stakeholder comments, can be found at: http://www.rggi.org/design/2016-program-review

Additional information on RGGI’s performance to date and needed reforms through the 2016 Program Review are described in Acadia Center’s 2016 RGGI Status Report:

• Part I: Measuring Success
• Part II: Achieving Climate Commitments

RGGI Overview:

The Regional Greenhouse Gas Initiative (RGGI) is the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions. Nine northeastern and mid-Atlantic states reduce CO2 emissions by setting an overall limit on emissions “allowances,” which permit power plants to dispose of CO2 in the atmosphere. States sell allowances through auctions and invest proceeds in consumer benefit programs: energy efficiency, renewable energy, and other programs.

The official RGGI web site is: www.rggi.org

Media Contact:
Jordan Stutt, Policy Analyst, Clean Energy Initiative
617-742-0054 x105, jstutt@acadiacenter.org