Massachusetts Power Plants To Pay Emissions Penalties

deval PatrickDeval Patrick, the governor of Massachusetts, has wisely rejoined a north east energy pact that requires power plants to emit less co2. Fines from power plants could raise millions to spend on energy conservation. His predecessor Mit Romney has pulled out of the agreement because of fears of higher energy costs.

From here.

Patrick agreed to rejoin the seven-state Regional Greenhouse Gas Initiative, which aims to gradually reduce the production of greenhouse gases in the Northeast. Reversing his predecessor Mitt Romney, who pulled out of the pact over concerns that the emissions fee would drive up the already-high price of electricity, Patrick predicted that electricity costs would ultimately drop because the penalties would generate up to $125 million a year to spend on conservation.

“Climate change is one of the most pressing challenges of our time,” Patrick said at a press briefing at the University of Massachusetts at Boston. “On this day, we want everyone to know that Massachusetts will not stand on the sidelines.”

The new governor also announced that he would set aside $17 million to increase the purchase of renewable energy for use by state government.

Patrick’s announcement puts him at the forefront of a growing movement in states and the new Congress to take stronger action against global warming, which scientists say is largely driven by human releases of carbon dioxide from burning coal, oil, gas, and other fuels.

Under the agreement Patrick signed, Massachusetts power plants with a capacity of 25 megawatts or more would face an overall cap of 26.6 million tons of carbon dioxide released into the air in 2009, a limit that would require little, if any, immediate cuts in emissions. Plant owners, however, would have to buy credits at a regional auction for each ton of carbon dioxide they release. Though no one knows what the price will be, a credit for a ton of carbon dioxide now sells for about $4 in Europe, which already has a carbon dioxide-control system.

This cap and trade type system that has shown itself successful in reducing other types of emissions. It uses market forces to make it artificially cheaper to be cleaner. Massachusetts is now once again a leader in sustainable development. The money raised from the system will be put towards reducing over all energy demand. A one two punch for global warming.

We can only hope that this bodes well for the embattled Cape Wind project. The project to be located in Nantucket sound would provide 75% of Cape Cod’s energy needs. If Patrick is serious about renewable energy he should be trying to fully support America’s first offshore wind farm. The ability to lock into a long term energy contract with the wind farm would make great strides towards lowering the areas need for oil.