Beam me to Planet Gore !
Posted on 01/11/2009 6:02:22 PM PST by Coleus
New Jersey raised more than $15 million from power companies and other bidders this week through its participation in a regional auction designed to lower greenhouse gas emissions. The auction is part of the first market-based cap and trade program in the nation to make polluters pay for the right to emit carbon dioxide and ultimately lower emission amounts. Each power company in the 10-state coalition must purchase allowances for every ton of carbon they emit each year. The proceeds will be invested by the states in energy efficiency projects and developing renewable energy sources, such as wind and solar.
The results of Wednesday's auction were released Friday by the 10-state coalition, called the Regional Greenhouse Gas Initiative. The states sold more than 31.5 million carbon allowances at a clearing price of $3.38 per ton – slightly higher than the $3.07 clearing price for the coalition's first auction, held in September. New Jersey and three other states, including New York, did not participate in that initial auction. New York raised nearly $42 million in this week's auction.
The auction raised $106.5 million overall for the 10 states, and the coalition said the demand was three times higher than the supply of allowances. There were 69 participants in the bidding from the energy, financial and environmental sectors. "Once again the results prove that distributing allowances via auctions in a carbon dioxide cap and trade program can be successful," Pete Grannis, chairman of the coalition's board, said in a statement. "We look forward to developing a partnership with the Obama administration to create a strong federal climate action plan."
During his presidential campaign, President-elect Barack Obama called for a cap and trade program on a national scale. That appeals to industry advocates, who say that a regional approach in which only some states charge or tax power companies for emissions creates an uneven playing field and leaves some power generators at a competitive disadvantage.
PSEG Power, which has power plants in New Jersey, New York and Connecticut, participated in both of the regional coalition's auctions and supports a national approach. Jeff Tittel of the New Jersey Sierra Club said the coalition expects the price for allowances ultimately to rise to about $7, which would generate more than $40 million a year for New Jersey to invest in energy efficiency, renewable energy, forestry projects and low-cost loans to build cogeneration plants.
The current price per allowance works out to about a half a percent sales tax on energy generation or just under 2 percent on coal-fired power, Tittel said. "That's not enough of a pinch to prod power companies to shift away from using coal, because coal is still a lot cheaper to use at that rate than natural gas and renewable energy," he said. The price would have to rise to about $20 per allowance to push companies away from coal.
The real benefit of the coalition's project is its usefulness as a model on which to build a national cap and trade program, Tittel said. A second benefit is the money it raises to invest in other projects that will reduce emissions. Through the program, the 10 states aim to stabilize the amount of carbon emissions from their power plants at a capped level through 2014. The cap will then be reduced by 2.5 percent in each of the following four years for a total reduction of 10 percent by 2018. Power companies that reduce their emissions can resell their allowances to other companies who need them.
Power plants in New Jersey produce about 20 million metric tons of carbon emissions a year, the state Department of Environmental Protection says. "Until now we've essentially been giving power plant owners freedom to pollute," said Dan Sosland, executive director of Environment Northeast, a non-profit that participated in forming the coalition. "Now states can use the funds from these carbon allowances to make our homes, schools and businesses more energy efficient. These are critical elements that should be incorporated into a national carbon dioxide cap and trade program."
In addition to New Jersey and New York, the coalition includes Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, Rhode Island and Vermont.
What’s left to say?
See my new tagline.
I will believe that, when I see windmills on Cape Cod.
***New Jersey raised more than $15 million from power companies and other bidders this week..blah blah blah.***
The power companies paid nothing. These millions will be paid by elderly people on social Security and others who use the electricity.
Sounds to me like these Commie pigs just called Americans who use electricity a bunch of "polluters" since THEY, not the electricity producers, are the ones who are going to pay out this money to make people like Algore and his envirogangsters rich. How do you like the "new direction" America so far?
Tell the politicians they have 2 weeks to repeal that law. Then, after that, the power plants will shut down, and stay down, until the law is changed !!!!
Exactly!
The power companies can't print or create money.
Only the unsubsidized ratepayers do.
Politicians and/or bureaucrats who impose this thinly disguised extortion must be subject to the RICO laws.
Has it ever been challenged in court?
Stealth tax. Obama voters will never understand.
I haven’t a clue anymore. I just can’t fathom a molecule that is the building block of (and necessity for) life is becoming a regulated commodity.
I’m thankful I’m not the one with the heavy responsibility for making laws and regulations. Takes a heavy weight off my shoulders. *phew*
What’s the big deal? The people of NJ will just pay for it. They elected the people who put these regulations in place, they can pay for it in higher utility bills.
The best part of it is that ALL of the people in NJ will have to pay for it. No “targeted tax breaks” here. They’ll pay for it in higher utility rates, as well as higher prices for everything produced or purchased in NJ.
Mark
Creative taxation.
Until the self-appointed Godfathers, elected or not are tar-and-feathered, or worse, this will continue.
Hypothesis: Taxpayers exist for the benefit of politicians, public employees and hidden governmental organizations.
Remember when it was taken for granted that it is the reverse?
The following is available for downloading.
There goes the economy, what dim wits
...and then close the plants down for five weeks...:^)
See how long “cap and trade” lasts then.
The power companies are all for it. They get to charge more for their product. Then they get the government to give them allownces and breaks. All the extra money they get to charge is profit.
A scam.
As a temporary resident of NJ, I can say with complete confidence that the overwhelming majority on NJ voters do not understand they will be the ones footing this bill. Just another rate hike from corrupt power companies making Zillions....
So now the money that would have been used for capital projects within the power company is given to the state?
What a scam.
Capital projects...or raises?
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