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DEC Issues a Preliminary Draft RGGI Proposal for Public Review
Comment Period and Public Meetings To Be Held on Proposal To Implement Historic Program
New York State Department of Environmental Conservation (DEC) Commissioner Denise M. Sheehan today announced the release of a preliminary draft set of rules to implement the Regional Greenhouse Gas Initiative (RGGI) in New York. The proposal represents the first step toward completing the implementation of the landmark program to help address the challenge of climate change in New York and the Northeast region.
RGGI is a flexible, market-based cap-and-trade program to reduce carbon dioxide emissions from power plants in the Northeast, and the first of its kind in the United States. Carbon dioxide is the principal greenhouse gas that is already causing New York's climate to warm and which has the potential to cause significant environmental, public health, and economic impacts. Other states that have agreed to take part in the program include Connecticut, Delaware, New Hampshire, New Jersey, Maine, and Vermont. Maryland is expected to join in 2007 and California also recently announced its intent to work with RGGI states to reduce greenhouse gas emissions.
"New York State has proposed an innovative, consumer-friendly approach to distributing the emissions allowances that power plants will need to help curb pollution that contributes to climate change," Commissioner Sheehan said. "Allowance auctions would enable consumers to see direct benefits of RGGI by promoting important environmental and energy-saving investments."
"The proposal announced today demonstrates our commitment to RGGI and will involve the public and our stakeholders in the development of the proposal that will implement this historic program. We encourage the public to continue participating during this part of the process."
The development of the RGGI program and the finalization of the Model Rule by the participating states in August 2006 were preceded by extensive public comment opportunities and stakeholder meetings. The model set of regulations to assist States in their individual rulemaking to implement RGGI incorporated many of the comments received as part of this process. New York is continuing this collaborative effort by announcing a preliminary draft proposal for discussion and input that will help shape the State's draft regulation.
The proposal would begin taking effect in 2009, with emissions of carbon dioxide (CO2) from power plants in the region being capped at current levels — approximately 121 million tons annually — and with this cap remaining in place until 2015. The states would then begin reducing emissions incrementally over a four-year period to achieve a 10 percent reduction by 2019. Compared to the emissions increases New York and other participating States would see from the sector without the program, RGGI will result in an approximately 35 percent reduction by 2020.
Under the cap-and-trade program, New York will issue one allowance, or permit, for each ton of CO2 emissions allowed by the cap. Each plant will be required to have enough allowances to cover its reported emissions. The plants may buy or sell allowances, but an individual plant's emissions cannot exceed the amount of allowances it possesses. The total amount of the allowances will be equal to the emissions cap for the region with a capacity of 25 megawatts or more will be included under RGGI.
New York's preliminary draft rule announced today also includes the auction of 100 percent of emissions allowances, and represents one of the first proposals of its kind. The emissions allowances would be sold on the open market, and the proceeds of the sale would support energy efficiency and clean energy technology investments in the State.
A copy of the preliminary draft proposal can be found at: www.dec.state.ny.us/website/dar/index.html and www.dec.state.ny.us/website/dar/rggi.html on the DEC website. DEC is seeking public comments on the proposal and holding two public meetings. Following the close of the comment period, DEC will review the comments, make necessary changes, and propose a draft regulation that will also be subject to public review and input before being finalized.
Comments on the preliminary draft rule are due by January 12, 2007, and can be emailed to nyrggi@gw.dec.state.ny.us. DEC will also be holding two public meetings at which comments can be submitted. They will be held on December 14, 2006, and January 12, 2007, from 10 a.m. to 12 p.m. at DEC's Headquarters, Room 129A, 625 Broadway, Albany. Those planning to attend these meetings must pre-register (for security purposes) at nyrggi@gw.dec.state.ny.us. For more information about RGGI, go to www.rggi.org .

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