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New York, Other Northeast States Agree to Reduce Power Plant Emissions

By Mark Scott

Albany, NY – New York and six other Northeast states have agreed to set up a first-of-its-kind system designed to cut greenhouse gas emissions from power plants.

The system to reduce carbon dioxide emissions would cover electric generating units with a capacity of 25 megawatts or more. Other states joining New York in signing the regional memorandum of understanding for a Regional Greenhouse Gas Initiative are Connecticut, Delaware, Maine, New Hampshire, New Jersey, and Vermont.

Christine Vanderlan of the group Environmental Advocates of New York says emissions of carbon dioxide would be capped. "The plan calls for stabilizing emissions during the first phase through 2015," Vanderlan said. "Then, during the next four years, carbon dioxide emissions will be reduced by ten percent."

A news conference that had been planned for last Thursday to announce a pact was canceled amid expressions of concern by some southern New England state officials over its potential economic effects. Massachusetts and Rhode Island ultimately decided they weren't ready to sign the agreement.

Key to the plan is its market-based strategy. It calls for states to issue one allowance, or permit, for each ton of CO2 emissions allowed by the cap. Companies that do not have enough allowances to cover CO2 emissions must either reduce their emissions or purchase allowances from other sources.

In a statement, Governor Pataki said this joint program with the other northeastern states will also spur the development of innovative technologies that will reduce the region's dependence on foreign energy sources.