Frequently Asked Questions (FAQs)

What is the Regional Greenhouse Gas Initiative?

The Regional Greenhouse Gas Initiative (RGGI) is a response to the challenges posed by global climate change. RGGI is a carbon dioxide (CO 2 ) cap-and–trade program that offers a flexible market-based approach to achieving real greenhouse gas (GHG) emissions reductions at the lowest possible cost. It involves seven states at the moment, all of which have agreed to implement a regional program that will reduce carbon dioxide emissions from fossil fuel-fired power plants in the Northeast. These plants are referred to as RGGI Regulated Power Plants. In addition, it will provide for other sectors, such as agriculture, forestry, waste management, manufacturing, commercial and construction, to benefit from the program.

Who is participating in RGGI?

The seven states that have signed an agreement to implement RGGI are: Maine , Connecticut , Delaware , New Hampshire , New Jersey , New York , and Vermont . Maryland will be a full participant in the process by June 30, 2007, and several other states continue to actively monitor the RRGI process. In addition, in mid-October 2006, the Governor of California issued an executive order decreeing that California 's GHG reduction program will link to RGGI.

Why does climate change matter to Maine?

We now know that the climate is changing, and will continue to change, due in part to increased levels of greenhouse gases in the atmosphere, gases that result from human activities, principally from the combustion of fossil fuels. Since the start of the industrial revolution, concentrations of carbon dioxide in the atmosphere have increased 30 percent. Some symptoms of climate change that Maine is already witnessing include: earlier ice-out dates; changes in precipitation and snow cover; rising sea levels and temperatures; and changes in vegetation bloom dates. Increased global temperatures pose a danger to Maine 's economy, environment and way of life.

How much will RGGI actually reduce GHG emissions?

The first phase of RGGI (2009-2015) will stabilize emissions from the power sector at approximately current levels. From 2015 to 2019, the program will cause emissions to decline by 10% from current levels. In addition, modeling forecasts show that without RGGI, emissions from RGGI Regulated Power Plants in the region would grow by 25% from now until 2019. Thus, RGGI is expected by 2019 to reduce GHG emissions by a total of 35% below what would occur without RGGI.

Why is Maine involved?

A Climate Action Plan developed for Maine in 2004 identified participation in RGGI as one of the most important actions (third in importance out of 54 recommended actions) Maine could take to reduce emissions of GHGs. The Climate Action Plan was produced in response to Public Law 2003 Chapter 237, which required the Maine Department of Environmental Protection (DEP) to develop and submit to the Maine Legislature a plan to reduce GHG emissions in Maine . Maine was the first state in the nation to set a statutory goal for GHG emissions reductions . RGGI will go a long way towards enabling Maine to meet its GHG reduction goals.

For the complete Climate Action Plan , http://www.maine.gov/dep/air/greenhouse/ .

What is RGGI's timetable and what is its current status in Maine?

In December 2005, the governors of the seven RGGI states entered into a Memorandum of Understanding (MOU) that laid out the general policy framework of the program. These RGGI states developed a draft RGGI model rule. As part of the process of developing the model rule, they held numerous public meetings and info rmational sessions across the region to solicit comments and suggestions. A revised model rule was released on August 15, 2006. It is now up to each state to adopt a RGGI rule that can vary in some respects from state to state but must remain consistent with the provisions of the MOU. In Maine , RGGI implementation will begin with the presentation of a bill to the legislature (during the next session – winter 2007) that will specifically authorize the program.

What is the role of the DEP in implementing RGGI in Maine?

The DEP has been working on the RGGI initiative since 2003. Over the next few months, the DEP will host four RGGI Roundtable forums to explain the proposed RGGI program including the draft model rule; answer questions; get feedback; and receive suggestions. The DEP intends to take the comments, ideas, and info rmation received from interested citizens, interest groups, the business community, and others and use them to shape Maine 's RGGI program. Once the legislature authorizes the program, the DEP will undertake a formal rulemaking process and develop other program elements.

The RGGI Roundtables forums will be held:

November 2, 2006: Presque Isle – Northeastland Hotel from 9-12

Directions: http://www.mainerec.com/eastland.shtml

November 28, 2006: Portland – The Abromson Center at USM from 9-12

Directions: http://usm.maine.edu/cce/parking_directions.jsp

November 30, 2006: Bangor – Spectacular Event Center from 9-12

Directions : http://www.spectaculareventcenter.com/directions.html

December 19, 2006: Augusta . – Augusta Civic Center from 9-3

Directions: http://www.augustaciviccenter.org/Accdir.html

What are the anticipated benefits of RGGI?

RGGI will bring a number of benefits to Maine and other participating states. RGGI will:

Start Maine on the path to lowering emissions of CO 2 which is the primary contributor to global warming. It will also result in a reduction in other combustion related pollutants;
Help reduce our dependence on foreign sources of energy and promote cleaner forms of electric generation such as renewable energy;
Achieve lowest cost reductions of CO 2 emissions;
Encourage new investment in alternative energy and energy efficiency projects;
Stimulate the development of new technologies, specifically those that reduce GHG emissions or store carbon where it will not be harmful to the climate;
Establish the cost for reducing GHG emissions; and

Establish a model for an anticipated national CO 2 cap and trade program.

How will RGGI work?

Successful Cap and Trade programs already exist in the US to control emissions of sulfur dioxide (SO 2 ) responsible for acid rain and nitrogen oxides (NO x ) responsible for smog. The design of RGGI, like these programs and any other cap-and-trade program, includes the following basic components:

• First, the states jointly determined the CO 2 emissions sources to be covered by RGGI. These emissions sources are referred to as RGGI Regulated Power Plants;

• Second, the states jointly established the cap or total amount of CO 2 emissions to be allowed from all of the RGGI Regulated Power Plants in the RGGI region, commonly referred to as the “emissions cap”;

• Third, based on extensive calculations the states agreed on how many tons of CO 2 or how many “allowances” each state will be entitled to, referred to as the “state cap” or “state allocation”; and

• Fourth, each state will now decide what methodology to use to make allowances available to the RGGI Regulated Power Plants in its state.

RGGI compliance periods are three years. At the end of every three year compliance period RGGI Regulated Power Plants will be required to show they have enough allowances to cover their CO 2 emissions during that three year compliance period. RGGI Regulated Power Plants that project they will not have enough allowances to cover their emissions in a given compliance period must either reduce their emissions, buy allowances, or secure offset allowances from a RGGI offset project. RGGI Regulated Power Plants that reduce their emissions and have excess allowances may either bank them for future use or sell (trade) them. Emissions trading ensures that cost-effective reductions are implemented across the region.

What are offset allowances?

Offsets allowances are CO 2 emission reductions that take place outside the RGGI Regulated Power Plants. RGGI currently allows for five types of offset projects. The list of offset categories is expected to expand over time as other offset opportunities are identified. The RGGI workgroup has already identified potential new opportunities for the forest products industry and DEP will be seeking suggestions for more, new offset project categories that could be included in the rule in the future. Currently, the offset categories are:

End-use energy efficiency improvements;
Converting non-forested land to forested land;
Landfill gas capture;
Agricultural methane capture; and
Reducing sulfur hexafluoride (SF 6 ) from electric transmission and distribution (T&D).

Which Maine facilities will be regulated by RGGI?

RGGI will regulate electric power generating units with a capacity equal to or greater than 25 megawatts that burn more than 50% fossil fuel. Maine facilities that currently would be regulated by RGGI are:

Florida Power and Light – Falmouth

Calpine – Westbrook

Rumford Power – Rumford

Verso Paper – Androscoggin

Verso Paper – Bucksport

Casco Bay Energy – Veazie

Where can I learn more about RGGI?

http://www.maine.gov/dep/air/greenhouse/rggi.htm

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