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February 8, 2013

Northeast coalition OKs 45% carbon-cap cut

Maine and the other eight states comprising the Northeast cap-and-trade program Regional Greenhouse Gas Initiative have agreed to cap carbon emissions in the region by 45%.

The latest move by the coalition agrees to cut emissions from 165 million tons down to 91 million tons.

RGGI was established in 2009 to reduce the amount of carbon emitted into the regional atmosphere by power plants. Whenever electric generators exceed the RGGI cap, they must auction off credits to continue emitting greenhouse gases. The proceeds from those RGGI auctions are distributed to the participating states, which must use them for clean energy programs such as energy efficiency assessments of homes.

The states agreed Thursday to lower the cap to 91 million tons from 165 million tons, gradually meeting the new goal over six years starting in 2015. Each state must individually approve the new cap before it takes effect.

Gov. Paul LePage is expected to introduce legislation next month that would use RGGI proceeds to reduce electricity rates and residential heating costs rather than clean energy projects, according to the Maine Public Broadcasting Network.

Those funds are administered by the Efficiency Maine Trust to help businesses and other consumers save money.

The RGGI states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. New Jersey used to participate in the program but pulled out in 2011.

-Reporting from the Hartford Business Journal

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