Very exciting news today on the clean energy front! Many of you are familiar with "RGGI" (the Regional Greenhouse Gas Initiative). NRCM played a leading role in helping Maine join this innovative 10-state program to reduce climate changing emissions from power plants. Since then, several studies have documented RGGI’s results. (You can see a fact sheet and case study on the benefits of RGGI in Maine on our webpage.)
Today, one of the most comprehensive studies of RGGI was released. It found that RGGI has yielded $1.6 billion in net benefits to the region’s economy. The biggest benefit was from reduced energy costs and associated economic benefits—keeping that money circulating in the Maine economy instead of being sent out of state for imported fossil fuels. Here are some the highlights from the report, which focused on the first three years of RGGI (2009-2011):
- RGGI led to a net increase in Maine’s economy of approximately $92 million.
- RGGI reduced the flow of money out of New England for imported fossil fuels by $210 million.
- Maine’s participation resulted in an increase of 918 “job-years,” a mix of permanent and temporary jobs.
- Electricity bill reductions from RGGI-funded energy efficiency investments totaled $120 million in Maine. These savings far outweighed the incredibly small price increase that comes from requiring power plants to pay a small cost for carbon pollution.
- The report found energy efficiency was the most beneficial use of RGGI dollars—something we know because Maine has invested a relatively high percentage (84 percent) of RGGI dollars in energy efficiency, through new and existing Efficiency Maine programs.
Efficiency Maine used a portion of initial RGGI dollars to support a grant program for large energy consumers in Maine. (RGGI money also boosted efficiency programs for residential and smaller business consumers.) The new report included a success story from Maine: a multi-million dollar set of energy efficiency improvements at Twin Rivers Paper in Madawaska that will save 6 million kwh/year—as much as used by 1000 homes. “We are reinventing ourselves as a low-cost specialty papers manufacturer,” said Phil Nadeau, their engineering manager. “Being a sustainable company means saving money on every front. We are a new company and these projects would not have happened without support from these grants.” (You can read another case study from Maine’s industrial sector—Madison Paper—on our website.)
Part of why RGGI has been so beneficial is because it is supporting energy efficiency investments and programs. One of the best ways to further reduce fossil fuel pollution and reduce energy bills is with more energy efficiency. That’s one reason we are so excited about a new clean energy ballot initiative that would significantly increase energy efficiency investments in Maine.
A legislative proposal to withdraw Maine from RGGI failed in the 2011 session, and just last month, the bipartisan Legislative Council rejected a similar bill from being considered in 2012. Today’s report is yet another indication that RGGI is working and providing significant benefits to Maine, in terms of our economy, environment, and energy independence.
- Dylan Voorhees, NRCM Clean Energy Director