New Jersey to Leave Greenhouse Gas Initiative Amid Rising Utility Bills, Governor Candidate Promises Savings
The Garden State is poised to pull out of the Regional Greenhouse Gas Initiative (RGGI), a multistate compact aimed at reducing greenhouse gas emissions by levying penalties on fossil fuel plants. Republican gubernatorial candidate Jack Ciattarelli has made withdrawing from RGGI a key plank in his campaign, touting it as a way to save ratepayers $500 million annually.
Ciattarelli's stance is that the initiative, created in 2005, has failed to deliver on its promise of cleaner air and lower electricity rates. Instead, he argues that the program has driven up costs for New Jerseyans, as generators are forced to buy tradable emission allowances at auction. This surcharge is then passed on to consumers, driving up utility bills.
Under RGGI, member states require fossil fuel plants within their borders to purchase tradable emission allowances, which are then sold in auctions to other states. The revenue generated from these sales is distributed back to participating states, often used for environmental initiatives and renewable energy projects.
Critics argue that the program has had unintended consequences, such as driving up emissions in neighboring states due to changes in the price of natural gas. A study by Richard Tabors, president of Tabors Caramanis Rudkevich, found that carbon dioxide emissions would rise by 2.9 million tons and electricity spending would increase by a net $436 million across RGGI states if New Jersey were to withdraw.
However, supporters argue that withdrawing from the program could lead to lower utility costs for ratepayers. The revenue generated from the sale of emission allowances is used to fund initiatives such as electric vehicle infrastructure and carbon sequestration. Ciattarelli's campaign argues that the state could still prioritize these programs without RGGI revenue.
The decision to withdraw from RGGI would likely have implications for neighboring states, particularly Pennsylvania, which has sought to join the compact. The impact on the competitiveness of New Jersey plants is also uncertain, as the financial benefits of withdrawing from the program would be spread along the entire PJM grid.
With elections looming, the prospects for a gubernatorial victory are uncertain, but Ciattarelli's campaign emphasizes that he can prioritize spending and make key programs more sustainable without RGGI revenue. The fate of New Jersey's participation in RGGI remains to be seen as the state prepares to make its decision.
The Garden State is poised to pull out of the Regional Greenhouse Gas Initiative (RGGI), a multistate compact aimed at reducing greenhouse gas emissions by levying penalties on fossil fuel plants. Republican gubernatorial candidate Jack Ciattarelli has made withdrawing from RGGI a key plank in his campaign, touting it as a way to save ratepayers $500 million annually.
Ciattarelli's stance is that the initiative, created in 2005, has failed to deliver on its promise of cleaner air and lower electricity rates. Instead, he argues that the program has driven up costs for New Jerseyans, as generators are forced to buy tradable emission allowances at auction. This surcharge is then passed on to consumers, driving up utility bills.
Under RGGI, member states require fossil fuel plants within their borders to purchase tradable emission allowances, which are then sold in auctions to other states. The revenue generated from these sales is distributed back to participating states, often used for environmental initiatives and renewable energy projects.
Critics argue that the program has had unintended consequences, such as driving up emissions in neighboring states due to changes in the price of natural gas. A study by Richard Tabors, president of Tabors Caramanis Rudkevich, found that carbon dioxide emissions would rise by 2.9 million tons and electricity spending would increase by a net $436 million across RGGI states if New Jersey were to withdraw.
However, supporters argue that withdrawing from the program could lead to lower utility costs for ratepayers. The revenue generated from the sale of emission allowances is used to fund initiatives such as electric vehicle infrastructure and carbon sequestration. Ciattarelli's campaign argues that the state could still prioritize these programs without RGGI revenue.
The decision to withdraw from RGGI would likely have implications for neighboring states, particularly Pennsylvania, which has sought to join the compact. The impact on the competitiveness of New Jersey plants is also uncertain, as the financial benefits of withdrawing from the program would be spread along the entire PJM grid.
With elections looming, the prospects for a gubernatorial victory are uncertain, but Ciattarelli's campaign emphasizes that he can prioritize spending and make key programs more sustainable without RGGI revenue. The fate of New Jersey's participation in RGGI remains to be seen as the state prepares to make its decision.
Remember when you could actually afford a decent internet connection? Now it feels like they're taking all our money 
And this RGGI thingy... I don't know, man. It just seems like another way for politicians to make promises they can't keep 
But at the same time, if saving us $500 million is really what we need, then I'm all for it 
The problem is, we'll probably just end up paying more in other ways... but what do I know? 
I mean, who doesn't love saving money on their utility bills, right? $500 million is a pretty sweet deal! 
so like I know some ppl r worried bout climate change & all, but this whole RGGI thing just seems like a money grab 2 me. like, yeah we wanna reduce emissions, but is it really worth $500m in savings for ratepayers? 
also $500 million is a big chunk of change... gotta consider the bigger picture 
. It seems like each state is trying to find a way out (or in) of reducing emissions, but it's getting messy. I think withdrawing from RGGI might save ratepayers some cash, but it also means they won't be contributing to the cause as much. I mean, $500 million annually can make a big difference in people's lives, but is it worth sacrificing our planet's future? 
and i'm trying to figure out how to use it rn, my old one died on me 
but i guess if it means higher utility bills then i can understand why some ppl would want out of it. and what's with all these new "candidates" trying to be governor, seems like a lot of drama going on in nj right now 
anyway, 500 million is a pretty big number, hope jack ciattarelli can really make a difference if he wins 
let's see how that breaks down... 
according to tabors study, if NJ withdraws it'll cost 436 mil in increased electricity spending, but who knows what other factors come into play? 
and carbon sequestration initiatives 
because let's be real, those are some important programs! 
so yeah, lets keep an eye on this whole thing... 
what do u guys think? should NJ stick with RGGI or bail? 
️ total revenue generated from RGGI auctions since 2010: $1.4 billion (source: nj.com) 
He's gonna save us so much $$$ on our utility bills!!! 
Can't wait to see him as governor! 
#TeamCiattarelli
! I get that utility bills are a real pain, but RGGI was supposed to help us reduce our carbon footprint and save money in the long run. The fact that it's causing some issues with neighboring states is just a bonus problem for someone like him to fix 
. New Jersey can do better than this 
!
Or will it all work out in the end? Only time (and a new governor) will tell 
It's gonna be interesting to see how this plays out, especially with elections coming up #RGGIRepeal #NJPolitics #GubernatorialElection
We should be focusing on creating jobs and driving economic growth, not throwing cash at green initiatives that don't deliver. 
It's definitely interesting to see how this plays out, especially with PA trying to join the compact next...
!