RGGI, America’s first cap-n-trade agreement, has earned the state over $74 million
By Ramona du Houx
On December 16, 2015, clean energy business leaders gathered in Portland at a solar panel company, ReVision Energy, to release a letter that urges Maine Senators Susan Collins and Angus King to continue their support for the Environmental Protection Agency’s (EPA) finalized Clean Power Plan. If passed the plan will be the biggest national action yet to cut carbon pollution from power plants — power plants are the largest source of this climate-changing pollution in the nation.
The plan, in many ways, is modeled after the Regional Greenhouse Gas Initiative (RGGI), America’s first cap-n-trade agreement, which has earned the Maine over $74 million that has been invested in clean energy and weatherization initiatives.
“Maine people and businesses expect their Congressional leaders to stand up for Maine’s interests, and not be beholden the ideologies and rhetoric from out-of-state corporate polluters,” said Margaret Hoyt of the Natural Resources Council of Maine. “We’re pleased to see that leadership from Collins and King.”
The letter emphasizes the importance of both Senators’ to continue their support as corporate polluters with vested interests in coal and oil, along with their political allies from other regions, repeatedly try to block the plan in Congress.
“Nine years ago, Evergreen Home Performance looked at Maine’s combination of old houses, high oil dependence and natural resources and saw a business opportunity,” said Evergreen Home Performance founder Richard Burbank. “Since then, we’ve transformed hundreds of Maine houses from energy hogs to comfortable, efficient, worry-free homes, giving homeowners a nice buffer against volatile fuel prices, and employed highly trained workers.”
Maine is expected to meet its Clean Power Plan requirements by continuing participation in the RGGI which limits pollution and generates funds through quarterly auctions of carbon credits.
When Portland City Councilor Jon Hinck was a member of the Maine state legislature he worked tirelessly on clean energy initiatives. He helped with the law that made Maine part of RGGI. The legislation had a unanimous vote for implementation during the Baldacci administration. “The RGGI gives Northeast States a start in the worldwide effort to increase efficiency and meet power demand without fueling climate change,” said Hinck.
The transition to renewable energy sources creates jobs and opportunities and RGGI helps.
Farmington’s new Medical Arts Center at Franklin Community Health Network’s is saving energy while delivering critical medical care, in a large part, because of $59,532 in incentives from RGGI funds awarded by the state’s Efficiency Maine — the agency that channels RGGI earnings to clean energy projects.
RGGI estimates a return of more than $2.9 billion in lifetime energy bill savings to more than 3.7 million participating households, and 17,800 businesses. The RGGI states have experienced over a 40 percent reduction in power sector carbon pollution since 2005, while the regional economy has grown eight percent.
“We do about 100 home energy savings projects every year, and we are always happy to make homeowners more comfortable in their homes,” said Josh Wojcik, founder of the family-owned Upright Frameworks. “Thanks to RGGI, incentives are available to homeowners for this work. It’s great that RGGI sets Maine on the right course to meet the Clean Power Plan, too.”
Through RGGI, Maine’s overall economy has grown and energy costs have been reduced.
At the latest RGGI auction, on December 2, carbon credits brought in $4.2 million, primarily for Efficiency Maine to invest in energy improvements for Maine homes and businesses. Efficiency Maine’s annual report, released November 30, shows that RGGI provided almost all of the funds to help homes and large businesses and industry reduce oil and other heating fuel costs. According to that report, in the year ending June 30, 2015, the Home Energy Savings Program yielded $43 million in lifetime home energy savings for nearly 10,000 homes, supporting hundreds of jobs in the clean energy sector at the same time.
However, Congressman Bruce Poliquin voted in favor of the Clean Power Plan repeal. His statements indicated he doesn’t understand or appreciate the fact that independent economists have shown that RGGI has created hundreds of jobs in Maine including a $215 million net benefit to Maine’s economy, and a boon to our environment.
“Power plants should not be given unlimited license to treat our sky like an open sewer,” said Phil Coupe, co-founder of ReVision Energy. “The Clean Power Plan sets basic parameters to limit carbon pollution in the same way that there are limits on other pollutants like arsenic and mercury.”
Climate change poses a serious threat to Maine’s economy, environment, and quality of life. Air pollution carried downwind from dirty power plants harms Mainers’ health and increases cases of asthma, cancer and heart disease. Warmer temperatures increase the number of vector-borne diseases in Maine, specifically causing Lyme disease, carried by deer ticks, to skyrocket.
Climate change also threatens Maine’s nature-based industries like farming, winter guiding, fishing, and skiing, by increasing the severity and frequency of storms and making weather patterns less predictable. In addition, warmer and more acidic oceans threaten the long-term viability of lobsters and other marine fisheries, jeopardizing the culture and economy of Maine’s coastal communities.
“Maine business leaders are already seeing how climate change threatens Maine’s economy, environment, and way of life, and they are already building a cleaner, more efficient economy,” said Hoyt. “Now, the Clean Power Plan will guarantee the rest of the nation follows New England’s lead with power plant carbon limits as strong as ours. Maine’s Clean Energy businesses support these common-sense proposals because they create enormous economic opportunities as we transition to cleaner, more efficient energy solutions.”
So far, the letter has been signed by 46 Maine clean energy businesses, including Reed & Reed president and CEO Jack Parker, Evergreen Home Performance co-owners Elise Brown and Richard Burbank, Solaris owner Suzan Elichaa, ReVision Energy co-founder Phil Coupe, Penobscot Home Performance founder Matt Damon, Upright Framework founder Josh Wojcik, Vice President for State Policy at SunEdision, and Goggin Energy founder and owner Ann Goggin.
In the run up to the global climate talks in Paris, Senate Majority Leader Mitch McConnell (R-Kentucky) pushed through a bill that would repeal the plan, in part to weaken the U.S. position in any climate deal. Collins and King voted against the repeal bill, helping ensure it lacks the votes necessary to override President Obama’s veto.
Since the Paris worldwide agreement of 195 nations to limit carbon emissions happened on December12, 2015, Congress approved an extension for a research and development tax break and extends the Production Tax Credit (PTC) for clean energy projects by five years.
"Getting a five-year PTC extension in this bill was important for clean energy companies in Maine and around the country," said Congresswoman Chellie Pingree. "Before this, companies didn't know from one year to the next whether this tax break was going to be on the books. That makes it very hard to plan the clean energy projects that have created thousands of jobs already in our state."
However, over the coming months, there are likely to be additional attempts by McConnell and his allies to repeal or block the Clean Power Plan. They rejected the Paris treaty, agreeing with 3 percent of so-called scientists that global warming isn't happening.
The Clean Power Plan is an essential part of the commitment the U.S. made in Paris.