Governor Rell Says Conn. Taking Critical Steps

on Energy Independence and Environmental Protection

RGGI Agreement and New Vehicle Standards Being Adopted

Governor M. Jodi Rell said Connecticut is taking two important steps to address climate change and encourage energy independence by joining with six other states to support a Regional Greenhouse Gas Initiative (RGGI) and by adopting regulations to implement the second phase of the California Low Emission Vehicle (LEV II) program.

 “Governors of the participating states are joining me today in making clear their intention to formally sign the landmark RGGI agreement,” Governor Rell said. “In addition, the General Assembly’s Regulations Review Committee adopted regulations today that will require reduced emissions of green house gases for cars and light trucks sold here beginning with model year 2009.

“With the adoption of both the RGGI agreement and the California LEV II regulations, we are working to combat climate change, encourage energy conservation and stimulate the development of renewable energy sources,” the Governor said.  “These steps demonstrate Connecticut’s continued commitment to the environment and to building a more secure energy future for our state.”

State Department of Environmental Protection (DEP) Commissioner Gina McCarthy said, “With Governor Rell and the other governors in this region supporting the RGGI agreement, we open a new chapter in our effort to address climate change and to develop a more sustainable energy policy.  We know carbon dioxide emissions released by the burning of fossil fuels are directly linked to climate change.  Today we are literally saying let’s ‘put a lid’ on these emissions and let’s commit to the transition to renewable energy sources. 

“When it comes to the California LEV II regulations, Connecticut is again a national leader in confronting vital climate change and energy issues,” Commissioner McCarthy said. “Motor vehicles are responsible for about 40 percent of our ‘home-grown’ air pollution, including greenhouse gases such as carbon dioxide (CO₂), methane (CH₄), nitrous oxide (N₂O) and hydrofluorocarbons (HFCs). Adopting the latest California standard will put a real dent in the level of these emissions."

Donald W. Downes, Chairman of the state Department of Public Utility Control, said, “I believe this agreement continues to build upon the progress we have made here in Connecticut to appropriately balance the advancement of both our energy and environmental needs.  From the energy standpoint, this agreement contains many important safeguards and mechanisms to assist us in managing any future price impact on our state’s electric consumers.”

RGGI Agreement

The Regional Greenhouse Gas Initiative (RGGI) is a cooperative effort by Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont to address climate change while also furthering sound energy policies that foster energy efficiency and energy independence.  

RGGI is the first cap-and-trade program to control carbon dioxide emissions in the United States.  The program is aimed primarily at reducing carbon dioxide pollution through a mandatory emissions cap on the electric generating sector, coupled with a market-based trading program to achieve the lowest possible compliance costs. 

            The RGGI agreement will stabilize carbon dioxide emissions from the region’s power plants at current levels from 2009 to 2015.  This will be followed by a 10 percent reduction in emissions by 2019. 

            Under the “cap-and-trade” portion of the agreement, power plants must hold “allowances” to cover all of their emissions.  Power plants without sufficient allowances can:

• Purchase “allowances” from plants that have reduced their emissions levels
• Use “offset” credits by undertaking carbon dioxide reduction programs outside the energy sector
• Purchase “allowances” from those held by the state – which will provide the public sector with funds to support investments in energy efficiency, clean energy technology and consumer rebates.  have  allowances can purchase additional

The agreement is expected to have a minimal impact on the price of energy for consumers.  It does, however, contain provisions to control the price of “allowances” if there are unanticipated impacts on energy costs. 

California Lev II Program

DEP proposed the regulations that were approved by the legislature’s Regulations Review Committee today that will keep Connecticut in compliance with the so-called California Low Emission Vehicle (LEV II) program.  

The regulations require California-certified vehicles sold in Connecticut beginning with the 2009 model year to reduce emissions of greenhouse gases by up to 30% by 2016. The greenhouse gas emissions reductions will be accomplished by requiring the use of "off-the-shelf" technology, such as more efficient turbocharged engines and air conditioner systems.

The new DEP regulations were drafted in response to passage of Public Act 04-84.  This law directed the DEP to implement the California LEV II program and to revise the state’s emissions standards whenever necessary to keep them identical with California’s requirements.

Existing Connecticut regulations to comply with the California LEV II program already require steps to reduce emissions starting with model year 2008 car, SUVs and light trucks.

In addition to Connecticut, nine other states have adopted or are moving to adopt the more stringent California LEV II program. Those states are: New York, New Jersey, Massachusetts, Rhode Island, Vermont, Pennsylvania, Maine, Washington and Oregon. Experts say these states represent about one-third of the nation’s auto sales.