Lawmakers reaffirm Maine's Regional Energy Compact

Democrats stop extreme Republican proposal to drop out of RGGI

AUGUSTA – The Maine Legislature’s Energy, Utilities and Technology Committee unanimously re-affirmed Maine’s place in the Regional Greenhouse Gas Initiative (RGGI) on Tuesday, May 12.  RGGI is a ten-state market-based program to reduce global warming pollution from power plants and foster investments in energy efficiency and clean energy. After Democratic lawmakers and other Maine citizens fought conservative legislator’s efforts to force Maine to completely withdraw from the program, the committee unanimously rejected the original language of the bill proposed by Sen. Tom Saviello of Wilton.

“Given that RGGI works for Maine by increasing our energy efficiency, security and independence, it only stands to reason that we reaffirm Maine’s participation,” said Hinck.  “This unanimous support of RGGI is an example of a good committee process in which all interested parties are heard and respected and reason prevails over partisan rhetoric.”

Maine’s legislature voted by overwhelming bipartisan majorities to join RGGI in 2008, if sufficient other states were involved to allow the regional market to work effectively. On Tuesday the committee made a narrow change to the law to clarify that Maine’s participation remains contingent on the same threshold of participation by other states in the region.

The committee’s vote came on the same day that the New Hampshire Republican controlled Senate rejected a bill to withdraw from RGGI, thus reaffirming that state’s commitment to the program as well.

Since being initiated by Governor George Pataki (R-NY), RGGI has had the support of a bipartisan group of Governors across the region, and the program continues to enjoy broad support across the northeast. In fact, RGGI is increasingly seen as a model for other regions and even nationally and internationally.

Since the program began in late 2008, Maine has received approximately $25 million from the sale of carbon credits, which are spent on energy efficiency under Maine law. Approximately $10 million of the RGGI funds to-date have been spent on efficiency grants for industrial businesses.

Several of those companies, including Twin Rivers Paper in Madawaska, Jackson Laboratory in Bar Harbor and Irving Forest Products in Dixfield, sent a letter to the energy committee commending RGGI as an effective way to reduce their energy costs and leverage private investment in Maine facilities.

Energy savings from RGGI investments so far total roughly $100 million for Maine people and businesses. Analysis has show that, like other investments in energy efficiency, the RGGI money helps decrease electricity rates for all consumers by reducing peak demand.

“RGGI is delivering significant new investments in energy efficiency and clean energy programs that reduce energy costs, increase and protect jobs, grow the economy, and help Maine become more energy independent,” said Sen. Phil Bartlett, D-Cumberland, the Democratic Senator on the committee.  “This unanimous vote by the Energy Committee reaffirms Maine’s commitment to a common sense approach in dealing with the negative impacts of climate change for Maine people, Maine’s environment and Maine’s businesses.”

The committee will meet again to do a final language review of the amended bill before it is sent to the Senate and House for votes. Legislative rules do not allow significant changes during the language review without re-opening the bill for a new vote by the entire committee, so it assumed that the unanimous support of the current language will not change.