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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.