“The Department of Defense is the largest user of energy in this country and is aggressively working to reduce their carbon bootprint because they know our national security is directly linked to our climate security,” said Phyllis Cuttino, who directs the Pew Environment Group’s Climate and Energy Programs. “Forums like this will help engage our nation in an informed conversation on a clean energy future that makes America more secure.”

Numerous expert reports have documented the security challenges that unchecked global climate change could cause. The Central Intelligence Agency’s long-term forecasting arm, the National Intelligence Council, recently reported that global warming could directly impact the United States by threatening energy supplies, damaging military bases, increasing food and water shortages and stressing the economy.

“There are serious risks to doing nothing about climate change,” said Admiral John B. Nathman, USN (Ret.), CNA Military Advisory Board Member. “We can pay now or we’re going to pay a whole lot later. The U.S. has a unique opportunity to become energy independent, protect our national security and boost our economy while reducing our carbon footprint. We’ve been a model of success for the rest of the world in the past and now we must lead the way on climate change.”

With the national focus on building manufacturing jobs in the alternative energy sector what makes Maine more attractive than other states to investors?

“Maine has three major ports, which recently received recovery act funds for improvements. Our three-port strategy connects our ports to railroads, as well as overseas markets by ship. We have a capable productive workforce. We are conducting ground-breaking research in composite wind technology with Dr. Habib Dagher, and his team, at the University of Maine. Bath Iron Works are looking to develop ships to carry the windmills for deployment at sea. Maine industries have built wind power expertise erecting land based wind farms, which generate the most wind power in New England. On top of all that, we have the most offshore wind potential in New England.

“Key to it all is location. A company building a wind farm in New England doesn’t want to ship them from Iowa. Maine is the most North Easterly state in the United States. Everyone coming from overseas lands in Maine first. It’s all about location, location, location.

“We are central to the region. To the north Canada needs a way to get their energy to market. Companies there will lease some transmission corridor land, which will benefit businesses, consumers and homeowners in the state because the revenues will be put into the Energy Efficiency Trust Fund to be used, in part, to weatherize every home and half of all business facilities in Maine over the next 20 years. To the south we can feed the power hungry needs of the Boston and New York markets. And at home we can take care of our own needs. This is why the electrical transmission corridors are so important.

“We’re taking advantage of our location and the real-estate that we hold. We’re using it in a smart way within a regional plan that will benefit all the people of Maine.”

Do you believe that Maine now has a more compelling case to the federal government, because of your energy transition infrastructure corridor law, to become part of a major artery on the National grid?

“We have strengthened our case. The New England Governor’s and Renewable Energy Blueprint and the Eastern Interconnection planning process have given us an important regional approach, which is key.

“What we have done is provide a blue print that allows all the New England states to fully maximize their energy potential along with opening up the Eastern Canadian provinces, so we won’t be taken over by the Midwest, and their extension cord. They want to ship their wind and coal power to the Northeast and usurp New England.

“The most recent US Department of Energy 2009 National Electric Transmission Congestion Study was very favorable stating that we have shown we can permit, site, and finance, cost-allocate and build new generation and transmission, while encouraging new demand-side resources.

“Our agreement with Central Maine Power with the $1.4 billion Maine Power Reliability Program is also a major part of this process. The MPRP contains plans to build a new 345,000-volt transmission line from Orrington to southern New Hampshire.

“Maine’s Energy Infrastructure Development law clarifies our approach to sitting major energy corridors and indicates Maine’s willingness to host transmission corridors. It also makes sure that the people of Maine will benefit from the revenues the state receives from leasing the land that will be designated as corridors. Those funds go into the Energy Efficiency Trust to help on energy and weatherization efforts.

“We’re rebuilding the transmission infrastructure for the 21st century. We’re developing our renewable energy portfolio and becoming coordinated as a region. The law creates the foundation where Maine becomes the lighthouse amongst all the New England States.

What type of job potential and economic development is possible because of Maine’s green energy revolution?

“The MPRP project is expected to create more than 2,000 jobs, and more than $60 million in salaries for each year of construction for the project. Dr. Habib Dagher is projecting 15,000 yearly jobs in the manufacturing of offshore windmills and their deployment starting in 2020. Then there are weatherization and energy efficiency jobs. You have a portfolio of jobs and opportunities for contractors, auditors, and installers.

“I don’t think energy is the end all be all, but it is a significant part of the economic future for Maine. Businesses interested in developing in Maine need to know what sectors are growth sectors, energy is right at the top.”

The Ocean Energy law establishes the goal of 5 gigawatts of ocean energy by 2030. Within the law are there provisions for fisherman who have to deal with platforms in their fishing grounds?

“The law sets the legal foundation for offshore wind development and wave technology development in Maine waters, and shows the state’s long-term commitment to ocean energy, which helps with potential investment. It’s a major piece of legislation based on the great work of the Ocean Energy Task Force.

“The environmental permitting laws have been broadened to affect any ocean energy project. So fisherman will gain in environmental protection.

“Any projects in state waters are governed by Maine’s ‘public trust’ doctrine, which ensures that natural resources and related human resources, such as fishing of the State’s submerged lands are not harmed. It’s likely that ocean energy wind projects will be sited away from important fishing grounds, for our fishing heritage is strong and should continue. I hope fishermen will not be adversely affected.

“But in case they are the Ocean Energy law establishes a Renewable Ocean Energy Trust. Rent fees from the use of state waters or submerged lands would go to the Trust. Half of the funds would be used to avoid, minimize and compensate for adverse effects of renewable ocean energy projects on commercial fishing and related activities. So, we are looking out for the interests of our hardworking fishermen.”

Maine could become a green energy hub of manufacturing and electric transmission if all goes according to plan. How will companies around the world know Maine is a good place to come to and invest in?

“There is an aggressive marketing campaign, and the industry with its partners are attending important conferences. We hosted the successful EnergyOcean International conference last year in Rockland. This year the conference is in Florida and the DeepCWind Consortium will be represented. Then there is the largest wind energy event in the world, WindPower 2010, with 25,000 attendees. Reed and Reed, DeLorme, Cianbro, Kenway, BIW, and other Maine companies along with representatives from the Maine Port Authority, UMO’s Advanced Composite Center, The Maine Composites Alliance, and the Department of Economic and Community Development, and others from Maine, will attend. Some will have booths, as well as hold a reception. The DeepCWind Consortium includes all these partners, and others. They will continue to put the word out about the opportunities Maine offers.”

Governor Baldacci at the Kibby Wind Farm

When will alternative energy and weatherization efforts begin to lower energy costs?

“We are the most oil dependent state in the union. At the same time we are shifting that paradigm, so we are becoming less dependent.

“We have taken major steps, last year and during the most recent session of the Legislature, to put in place incentives, and to lower or eliminate barriers to the generation of renewable energy in Maine. As these are implemented, I fully expect to see more renewable energy from wind, biomass, solar and water produced at lower cost in Maine.

“The savings to Maine people and businesses resulting from energy efficiency and weatherization will save our people and businesses billions of dollars every year that would otherwise be sent to the Middle East and elsewhere to buy fossil fuels. These dollars will stay in Maine – generating jobs and income for Maine people and Maine businesses.

“If oil prices go higher and higher we will be able to use less and less, so fossil fuels won’t be able to put a strangle hold on our tourism industry, businesses and family budgets.

“These billions of dollars, in savings, will help stabilize our energy prices because renewable energy supplies will increase and our demand for oil will be reduced. This change in supply and demand will lead to a downward pressure on energy prices.

“All these things combined will see our economy strengthened with activity. It will be a real sea change.”

Do you think the oil spill tragedy will put more power into wind energy offshore as a better alternative?

“Yes, the oil spill is horrific. People’s appetite for drilling has changed. Wind power is clean power. We’re also talking about creating other sources of energy like pneumonia and hydrogen with wind turbines; it’s an exciting multi-purpose, multi-pronged approach. People will look at the structures we will build and see the smart way we are doing it in Maine.”

Governor John E. Baldacci at home in his office talks about clean energy issues

The National ‘Power Act’ for energy independence and climate change was unveiled April 12th. A critical insights survey found that 72 percent of those polled would like to see our Senators sign onto the proposal. Do you think they will?

“The work Sen. Snowe and Collins did helping the University of Maine with Statoil, (the Norwegian Company that has the world’s floating wind turbine) obtain a long term contract which is built into Maine’s legislation, was critical. That also needs to be a part of the national legislation and the only way to do that is to pass National renewable standards, which feed into all of the climate change issues. They have to support that. It’s a critical link to make all this happen. Companies need national standards on renewable sources of energy to make long-term commitments.

Do you feel that Maine has set the stage, as much as it can for the green energy economy?

I think we’re pretty teed up. The Federal government has already recognized us with recovery act grants for our weatherization efforts for people with incomes at all levels, and for offshore wind research. We’ve had visits from dignitaries looking at our home energy programs, and what we are doing with our credit unions for weatherization efforts. And more visits are scheduled.

They are looking to us to be a leader, and using Maine as an example to other states. I’m proud of that.

We are showing the way on how best to use our location and our natural resources sustainably for clean energy. Maine is increasingly becoming a show place, a model, in weatherization, energy efficiency, and renewable energy— for the rest of the country.

Are you confident that any successor as governor in Maine will carry on with promoting and progressing the green energy economy you started?

“Based on their responses in the newspaper and what I have hard they also recognize what a key opportunity energy represents for Maine’s future.”

The projects not only are expected to reduce dependency on fuel oil, but also to create new green jobs and to support Maine’s forest-products industries.

“Maine has tremendous sustainable natural resources,” said Governor John Baldacci. “It’s critical we continue to put them to work to reduce our dependency on foreign oil. Doing so strengthens our economy as more green jobs are created. These grants help us to do that.”

According to figures from the Maine Forest Service the projects combined will annually avoid the burning of almost 263,000 gallons of oil, re-circulate $600,000 in fuel dollars into Maine’s economy, and stop more than 5 million pounds of emissions being created from fossil fuels.

“Developing markets for wood grown in Maine is an important achievement,” said MDOC Commissioner Eliza Townsend. “I am proud of the role that this department has played in keeping our forests as forest while developing jobs in Maine.”

The six funded projects include:

• MSAD 17– Oxford Hills High School; awarded $750,000 for the installation of a wood chip boiler to supplement the current heating system. The boiler will supplant approximately 90 percent of the current oil consumption at the high school. The estimated total project cost is $1,747,551.

• University of Maine Cooperative Extension — Presque Isle Office; awarded $16,575 for the installation of a pellet boiler to replace the current oil boiler. The pellet boiler will displace approximately 1,850 gallons of fuel oil at the Presque Isle Extension office. The estimated project cost is $40,169, with the remainder of the project funded by a grant from the Maine Economic Improvement Fund.

• Greenville School Department — awarded $750,000 for the installation of a chip boiler to replace the current oil system. The chip boiler will displace approximately 36,000 gallons of fuel oil at the high/middle-school building and adjacent gymnasium. The total project cost is $1.8 million.

• MSAD 58 — Phillips Middle School, Phillips, ME; awarded $325,933 for the installation of a pellet boiler to supplement the current oil system and displace approximately 25,000 gallons of fuel oil. The total cost of the project is $419,039.

• RSU 16 — Poland Middle/High School; awarded $636,372 for the installation of a multi-fuel boiler to supplement current oil system and displace approximately 46,000 gallons of fuel oil. The total cost of the project is $712,785.

• RSU 29 — Houlton Junior/Senior High School; awarded $750,000 for the conversion of an oil boiler to a wood chip boiler to heat the school and the SAVE Vocational Technical Center, displacing 65,000 gallons of fuel oil. The total project cost is $1,374,650.

“These awards demonstrate the role that sustainable management of Maine’s forests can play in bolstering rural economics while also reducing the dangers posed by climate change as they both keep Maine monies in Maine and reduce atmospheric greenhouse gas levels,” said Maine Forest Service Director Alec Giffen.

A total of $11.4 million was made available to the state for the grants, with funding coming from the USDA Forest Service – Northeastern Area, State and Private Forestry Division, to help primarily rural, economically depressed counties.

The Maine Forest Service called for proposals in October 2009. A total of 41 applications were received and reviewed by a six-member panel consisting of representatives of the Maine Forest Service, MDOC Commissioner’s office, USDA Forest Service and the Maine Bureau of General Services.

The awards are one-time recover act funds that must be spent or committed within two years.

Another round of applications will be called for this spring. Projects not receiving awards in this round will be able to reapply for the second round.

For more information, go to: http://www.maine.gov/doc/mfs/arra/

Instilling confidence that Maine is the right partner to work with in producing wind turbines was a clear objective of Maine’s delegation that hosted the Norwegian company’s visit. Another stop along their tour was the soon-to-be decommissioned Naval Air Station Brunswick.

“We came in by helicopter; the landscape is beautiful,” said Knut Steen, Statoil’s chief engineer on the project, “There is a great willingness here to get this going. Right now we’re getting to know each other and seeing opportunities. It’s impressive.”

Last September, UMaine professor Habib Dagher and the State signed an agreement with Statoil, pledging to work together on offshore wind-turbine development. That agreement helped UMaine win an $8 million grant to help create an offshore research and development wind site.

“We beat out 42,” said Professor Dagher. “The federal government is looking at Maine to move the country forward in offshore-wind development.”
Statoil created the Hywind, which is the world’s first floating turbine tethered to the ocean floor with cables.

“We’re working with Statoil to jointly benefit Norway and Maine,” said the professor.

“We are working with a variety of technologies. With the research and development piece, we are looking to make turbines better; faster to erect and deploy, more reliable, and easier to maintain.”

The Hywind floats in 650 feet of water, seven miles off the coast of Norway. “It’s a prototype,” said Steen. “One that is working extremely well. We’re looking to build bigger turbines, for wind farms, possibly with Maine.”

China and Japan are also possible partners for Statoil.

MRRA director Steve Levesque, Lisa Read of BIW, and Rep. Seth Goodall view Hanger 5 at BNAS. Levesque said there are 47 companies interested in redevelopment of the base.

Sjur Bratland, the asset manager for Hywind, and Steen came here to see the expertise, industrial infrastructure, communities, and government support Maine has in wind development.

“I’ve been impressed by the capacity to build structures like this, actually. We’ve also looked at possible construction sites, and discussed possible methods of getting the products deployed in deep water,” said Steen.

Professor Dagher was Statoil’s guide over their two-day visit. The first day was spent at UMaine’s Advanced Composites Center.

“We had 30 people from all over the state give presentations on wind development,”
said Dagher. “People from industry, the Port Authority, Maine Composites Alliance, the Wind Energy Industry Initiative, and federal and state permitting officials answered questions. In Maine we have the ability to take a turbine from a research and development stage to manufacturing.”

At UMaine’s composite center, the Norwegians were able to see how composite technologies can make structures stronger, more durable, and whether resistant.

“We discussed using that technology for projects. I was impressed by the center’s technology and the day’s presentations,” said Steen.
Bratland, Steen, and members of the Midcoast Regional Redevelopment Authority (MRRA) toured Hangar 5 at Brunswick Naval Air Station, a possible place to build wind-tower components.

“It’s a 175,000-square-foot job generator,” said Steve Levesque, executive director of the MRRA, talking about the capacity of Hanger 5. “This could be an ideal turbine manufacturing complex. The building we saw on the trip to Europe where they were building turbines was half the size of this.”

The base has nearly two million square feet of industrial and commercial space, as well as 13 miles of electric transmission lines. The single-mode fiber network connecting most buildings at BNAS can conservatively operate at 1 to 5 gigabits per second, which is 10 to 30 times faster than the best multimode fiber-optic cabling available in the marketplace.

Along with wetlands, base housing, and an eight-mile, recently resurfaced runway, equipped with massive hangers, the area would make an ideal green-energy hub.

“That’s the goal,” said Levesque.

And education plays a key role. The Legislature approved an extension of UMaine that will teach engineering along with Southern Maine Community College’s composite programs at BNAS. Currently, the base has Embry-Riddle Aeronautical University, a school teaching aeronautics.

Levesque said at least 47 companies have expressed and interest in the redevelopment of BNAS.

“We’re looking for multiple companies in the renewable-energy sector to locate here. It’s one of Maine’s key economic targets. Our vision is really an energy-centered business and living complex. This will be the epicenter,” said Levesque. “It will be a living laboratory for research and development, manufacturing, prototype development, and company incubation around the renewable sector. It can become a place where people will produce green-energy technology products and services.”

Earlier in the day, Statoil representatives visited Cianbro in Brewer to view their technical capabilities. Dagher said he believes the Statoil officials have learned that Maine has the industrial base, the expertise, and the commitment to wind power to make a continued partnership beneficial to both parties.

Iberdrola, a company that the governor and Dagher met with on the trade mission, also visited the state recently. Other companies interested in the offshore wind projects have been talking to the Governor’s Office and Dagher.

“Maine will become the place the world comes to for offshore-wind energy technologies,” concluded Dagher.

Some of those veterans traveled from Montana to Maine on a biodiesel bus tour, talking about the dangers climate change poses to national security. After 21 states and 72 cities, they completed the bus tour at Bowdoin College in Brunswick. There, Operation Free members were joined by officials, members of Repower Maine, and close to 200 supporters.

“We are a coalition of veterans and national security organizations that have come together because we believe national security and climate change are related. We need to take control of our energy future for our national security,” said Rep. Alexander Cornell du Houx, a spokesman of Operation Free.

With the threat of ocean levels rising, droughts, and mammoth storms, countries could become destabilized. The CIA, the Pentagon, and leading international organizations have concluded that climate change is a national security risk.

“The ecological effects of climate change can cause drought, famine, and migration shifts, which create refugees,” said Cornell du Houx. “It’s a threat multiplier.”

America’s dependency on foreign oil is continuing to put American solders at risk.

In Iraq IEDs, roadside bombs, are the most common threat to American troops. During a mission, Marine Sergeant Cornell du Houx was suddenly jolted from his seat in an armored vehicle which had been struck by an IED.

“Luckily, the farmer that placed the IED wasn’t experienced. He was displaced because of the war. He could not farm, so he was easily recruited by terrorists for a couple hundred dollars,” said Rep. Cornell du Houx. “I remember seeing trucks and cars waiting in line for gas and diesel in 130ºF. When curfew time came, we had to break up the line. A riot ensued. These people were so desperate, they risked their lives for that single source of energy. The same source we as a nation are dependent on.”

“We don’t want to continue to put our young men and women in harm’s way to fight over oil,” said Governor John Baldacci. “These veterans are leading the charge to fight back.”

That fight has also led members of Operation Free to lobby the Senate for a comprehensive climate change bill, and to Copenhagen in support of an international climate change treaty.

“In July of 2009, according to the Energy Information Administration. We bought, every single day, over one million barrels of oil from Saudi Arabia,” said Maine veteran Andrew Campbell. “Everyday.”

Operation Free promotes the use of solar, wind, and other alternative technologies that would diminish and could eventually replace oil usage. Maine is on that road with Governor Baldacci’s push for the state to become an alternative-energy producer.

“We have the power and innovation needed to become independent of foreign fuels,” said the governor. “Together we can take the action needed.”

Veteran Mike Breen said, “American ingenuity has not failed us to this day. Technological innovation, skilled labor, and self-sufficiency are American core values. We can end our dependency on oil.” According to Breen, a fraction of what we spend at the gas pumps goes into bullets that find their way into the hands of terrorists. “Then those bullets are fired right back at our troops in Iraq and Afghanistan,” he said.

On June 26, the United States House of Representatives passed the American Clean Energy and Security Act of 2009.

U.S. Rep. Chellie Pingree said, “The passing of that bill was one of my favorite moments of my freshman year in Congress. Were it not for our dependence on foreign oil, we never would have gotten involved in the conflicts in Iraq and Afghanistan. We will to do something about this. We want to take energy issues into our own hands. We can do this together.”

With an international treaty forged in Copenhagen and an Environmental Protection Agency report declaring that human activity is a root cause of global warming, it’s hopeful that the U.S. Senate will pass its version of the climate change bill.

“We can take charge of our security. We can take charge of our energy future. We can take charge by setting the direction for other countries to follow around the world,” said U.S. Rep. Mike Michaud. “We have the power to begin change this year in the United States Congress, but we must push the U.S. Senate in the right direction for clean American power.”

Operation Free members asked the audience to take political action to help the progress of the bill in the Senate, by calling or writing Maine’s senators.

“It doesn’t matter what political party you are with. Everybody wants America to be secure; we need to take back our energy future,” said Army Iraq veteran Robin Eckstein.

“The cost of energy and transportation puts Maine at a disadvantage. This gives Maine companies and citizens more affordable energy choices. The more we use less foreign oil the more we strengthen our economy. This will help bring more businesses to Maine,” said Governor John Baldacci at the opening celebrations for the Brewer compressor station. “We’ve been too dependent on oil. We need a diversified energy portfolio, with wind, tidal, solar, wood, and natural gas. They all need to be in play. We’ve been over a barrel too long. Today marks a great stepping stone towards energy independence for Maine.”

The project puts Maine in a unique position, at the beginning of the United State’s interstate natural gas pipeline network.

The Maritimes & Northeast Pipeline president Tina Faraca said, “The expanded Maritimes & Northeast Pipeline has created a real opportunity for more Mainers to have access to natural gas. It’s the cleanest-burning conventional fuel. As we bring more supplies to the state, it will bring more opportunities for use. This project also enables the state of Maine to gain access to new suppliers and ensures reliability of our supply.”

“What they celebrated today doubled the workforce on the pipeline,” said Ken Sokoloski, area supervisor. “Everyone was hired in Maine.”

The Brewer natural gas compressor station is deliberately located off the beaten track, so residents or wildlife aren’t disturbed by its operations. “We conducted extensive studies to determine the right location for the compressor station, always working with the community,” said Faraca.

The buildings from the outside look smaller than many town sheds. The dust-free compressor room looked like the inside of a NASA test building. The compressor itself resembled parts of a lunar module. It is in fact an impressive 18,000 rpm turbine jet engine. What is more astonishing is what is not visible on a tour, and that is what lies underground.

Under the feet of participants at the ribbon cutting were massive pipelines filled with gas being pumped into the station to be compressed before traveling out along other pipelines to destinations south. Hence there were no heaters in the celebration tent.

“There probably wouldn’t have been a problem, but safety is always first here. It’s hard to imagine what we do at this site, but if you took a huge balloon in the air, and pulled it all together compressing it into the size of a baseball, that process is similar to how we compress natural gas at this facility,” said Sokoloski. “A billion cubic feet of gas goes down our line a day. Without compressing it, we would only be able to transmit 200,000 million cubic feet of gas a day.”

That’s a substantial amount of natural gas being compressed.

The company began shipping natural gas between Nova Scotia and Massachusetts in 1999.

When Governor Baldacci was still a Congressman, the plan to build this natural gas pipeline infrastructure through Maine to reach the bigger markets in Massachusetts was proposed. The then congressman backed the plan, understanding that businesses would locate in proximity to the gas lines, for reasonable energy costs.

“Since then there are five to six power plants in Maine that run on natural gas — that wouldn’t be here if our pipelines weren’t here,” said Sokoloski.

In November, Old Town Canoe expanded and switched from oil to natural gas, and they have cut energy costs by half. All along the pipelines, other businesses have set up over the years.

The pipeline system goes through numerous communities across the state, which had to be satisfied that the project was right for them. To handle the increased capacity, five new compressor stations were needed in Eliot, Westbrook, Searsport, Wood Chopping Ridge, and Brewer. Upgrades were made to two existing stations in Baileyville and Richmond. An additional 1.7 miles of transmission line was also added for the Baileyville line.

“There was a lot of forward thinking involved with this project. Maritimes & Northeast held community information sessions and worked with environmental agencies long before they began construction. They listened to the concerns in our communities, and the project was on budget and on time. In Maine, that’s how you do things,” said Baldacci.

Faraca said the project would not have been possible without the support of the governor, Brewer, state legislators, regulatory agencies, and the other communities in Maine where the pipeline is located.

“You helped us all build a better pipeline. We’re proud to be an important part of the communities where we operate. In many towns, we’re the largest taxpayer. Being part of this community is very, very important to us,” she said.

With the construction of the compressor station, valued at just over $50 million, the company pays more than $900,000 in taxes to Brewer.

The expansion also has provided access to liquefied natural gas, imported into Canada through the Canaport LNG terminal in Saint John, New Brunswick, a project that was built in a partnership between Repsol Energy North America and Irving Oil.

Maritimes & Northeast is owned by U.S.-based companies Spectra Energy, formerly known as Duke Energy Corp., and Exxon Mobil Corp., and Canadian-based energy company Emera, Inc.

“RGGI” stands for the Regional Greenhouse Gas Initiative, which works to reduce carbon dioxide emissions in two ways:

It places a cap on the total amount of carbon dioxide (CO2 – a ‘greenhouse’ gas) RGGI power plants can collectively emit and requires those power plants to purchase allowances from RGGI for their emissions. This provides an incentive to reduce emissions – doing so saves money because fewer allowances are required to cover plant operations.
2. It issues a set number of allowances to the 10 participating RGGI states; those states in turn can sell the allowances at quarterly auctions. In Maine, the proceeds are used to reduce green house gas emissions by funding projects that save both energy and money.

“RGGI auctions continue to run like clockwork,” said David Littell, Commissioner of the Maine Department of Environmental Protection and Chair of the Regional Greenhouse Gas Initiative, Inc. Board of Directors. “Six successful auctions, more than 100 bidders and $494 million for green energy and green jobs – RGGI is showing that cap-and-trade works.”

“The responsible use of RGGI auction proceeds in Maine is providing energy savings and has potential to spur millions of dollars of private investment in energy efficiency and conservation projects. We look forward to the continued success of the Energy and Carbon Savings Trust and Efficiency Maine programs,” said Sharon Reishus, Chair of the Maine Public Utilities Commission.

The major benefit of RGGI is a reduction in greenhouse gas emissions throughout the state and the region – reducing our contribution to global climate change. But there will be other benefits, including reduced reliance on foreign oil and a greater investment in energy efficiency and renewable energy.

6th RGGI Auction pricing:

The 2009 vintage allowances offered in Wednesday’s auction sold at a price of $2.05, the 2012 vintage sold at $1.86.

About the RGGI power plants:

There are 6 power plants in Maine participating in RGGI; Casco Bay Energy in Veazie, Rumford Power, FPL Energy in Wyman, Westbrook Energy Center, and Verso in Androscoggin and Bucksport.

About the Regional Greenhouse Gas Initiative

The 10 Northeast and Mid-Atlantic states participating in RGGI (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at current levels through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.

A CO2 allowance represents a limited authorization to emit one ton of CO2, as issued by a respective participating state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year compliance period. The first compliance period for fossil fuel-fired electric generators under the 10-state CO2 Budget Trading Programs took effect on January 1, 2009 and extends through December 31, 2011. For more information about RGGI, turn to: www.rggi.org .The complete Market Monitor Report for Auction 6 is available at: http://www.rggi.org/states/program_investments