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PCCA Journal|3
rd
Quarter 2015
23
of the Regional Greenhouse Gas Initia-
tive on Nine Northeast and Mid-Atlantic
States,” found that implementing RGGI
from 2012-2014 adds $1.3 billion in
economic value to the nine-state RGGI
region, leads to the creation of more
than 14,000 new jobs, and cuts electric-
ity and heating bills, saving consumers
$460 million. Each individual state sees
economic benefits as the region cuts an-
nual carbon emissions by about a third
from 2008 (140 million metric tons) to
2014 (90 million metric tons).
Under RGGI, six New England states
plus New York, Delaware, and Mary-
land establish a regional cap for carbon
emissions. States then create their own
individual plans to cut carbon and offer
a declining number of carbon emission
allowances for sale through regional
auctions. Power plant owners buy those
allowances at auction—which gives
them the right to emit specific amounts
of carbon dioxide—or find ways to clean
up carbon emissions. Auction proceeds
go back to the states, which have rein-
vested billions of dollars back into their
economies.
Each state decides how to spend that
money. The report examined individual
state strategies to invest that revenue,
including funding energy efficiency pro-
grams, building community-based renew-
able power projects, helping low-income
customers pay their electricity bills, putting
greenhouse-gas reduction measures in
place, educating consumers, and offering
training for clean-energy jobs.
“RGGI is a job creator. Investments
made during the last three years will
lead to 14,200 new jobs,” said Analysis
Group Senior Advisor Susan Tierney.
“And while electric rates can increase
as power plants recover compliance
costs, total electric bills have gone down,
thanks largely to the states’ investment
in energy efficiency increases. Over time,
the past three years of RGGI’s operations
helps families, businesses, and institu-
tions save $460 million on electricity
bills.”
The report also found that RGGI has
helped keep more dollars circulating
in the local economy, as the amount of
money sent outside the region to pay for
imported energy has dropped. RGGI re-
duced dollars flowing out of state to pay
for fossil fuels imported from outside the
region by more than $1.27 billion, from
2012 to 2014. Meanwhile, the states’ use
of RGGI auction proceeds has boosted
the purchase of goods and services in
the regional economy for everything
from solar panels and insulation to
engineering services for energy audits to
labor for efficiency retrofits.