As the new home of NJPIRG's environmental work, Environment New Jersey can be contacted regarding this news release.
TRENTON—
NJPIRG and other public interest groups in nine northeastern states on August 31, 2005 said the multi-state proposal to cap global warming pollution
from power plants, now in draft form, would amount to a missed
opportunity to protect the northeast from skyrocketing energy costs if
not drastically improved. The groups called on the governors, who are
still negotiating the specifics of the plan, to make conservation the
primary means of achieving the global warming emissions reductions.
“The
northeast is at the epicenter of rising energy costs now rocking the
nation. The governor’s draft global warming plan fails to make energy
conservation, the most cost-effective way to achieve pollution
reductions, the primary vehicle to achieve those reductions. That’s a
big missed opportunity to protect consumers from volatile energy costs
while also achieving the strongest pollution cap possible,” said Dena
Mottola, Executive Director of NJPIRG Law and Policy Center.
To
underscore the important role energy conservation plays in reducing
global warming emissions, the groups also released a new report, “Energy Efficiency: the Smart Way to Reduce Global Warming.”
The report documents that the northeast has the potential to meet most
of its increased energy demand through energy efficiency. It also
details how efficiency programs can help reduce global warming
pollution and save consumers money on their energy bills at the same
time. The report concludes that the economic benefits of efficiency
programs would allow for a tighter carbon dioxide cap without requiring
additional sacrifice by ratepayers.
The report found that:
• Energy demand in the Northeast is forecasted to increase by 23% by 2020.
• A review of university, state and non-profit studies demonstrates
that the northeast has the potential to reduce projected energy demand
in the Northeast by 1.3 percent a year, or 11 percent in the next
decade, keeping demand at 2007 levels. Specifically the New Jersey
Board of Public Utilities and Rutgers University found that New Jersey
could economically save close to 12 million MWh per year in 2020, 17%
of 2004 demand. (The New Jersey Board of Public Utilities; the U.S.
Department of Energy; the Northeast Energy Efficiency Partnership; the
Regulatory Assistance Project; Rutgers University Center for Energy,
Economic and Environmental Policy; the American Council for an Energy
Efficient Economy; the New York State Energy Research and Development
Authority and others.)
•
An 11 percent decrease in energy use would reduce the average price of
electricity by .4 cents per kilowatt hour and natural gas prices by 2.6
cents per 1000 cubic feet. This would add up to 13 billion in savings
for northeast consumers, saving the average energy consumer in the
northeast $1.56 a month.
•
The economic benefits of efficiency programs would allow for a tighter
global warming pollution cap without requiring additional sacrifice by
ratepayers.
•
When consumers spend less on energy – much of which goes outside the
region to pay for fossil fuel – they spend more on local goods and
services, stimulating the economy.
The
northeast governors’ proposal would create a regional cap limiting the
amount of global warming pollution that power companies could emit, and
a market mechanism that would enable trading of pollution “allowances”
among plant owners. Right now the states have only agreed to charge the
power companies for 25% of the tradable pollution allowances. Under
that agreement, the states could allow power companies to make a bundle
by selling pollution credits they got from the states for free. The
proposal also leaves it up to the states to decide whether the funds
collected from 25% of the credits would be invested in energy
efficiency programs that benefit consumers by driving down rates.
“If
states allow power companies to sell pollution credits they’ve gotten
at no-cost, the power companies will pocket a windfall at no benefit to
consumers. There is no guarantee that such a windfall will be passed
onto the consumer in the form of lower energy rates,” said Mottola. She
continued, “Acting Governor Codey and the other northeast governors
must put consumers first by making conservation a priority in this
important pollution control program. We can get deeper pollution
reductions and lower energy rates in the region if we invest dollars
generated by the program into energy efficiency programs.”
Power plants are the second biggest source of global warming pollution in New Jersey behind only cars and trucks.
“It
would be a mistake to create a global warming pollution cap that
doesn’t have explicit and strong policy support for energy efficiency,”
said Mottola. “There are steps we can take today, like expanding
dedicated efficiency programs and improving building codes that will
cut global warming pollution and lower bills. But that won’t happen
unless the governors lead the way.”
Read NJPIRG's Letter to Acting Governor Richard Codey.
