New Hampshire to Consider Withdrawing from RGGI

RGGI is the Regional Greenhouse Gas Initiative, created by a group of ten northeastern states. RGGI runs a carbon trading scheme with the primary goal to reduce CO₂ emissions. Permits are auctioned off quarterly, September’s auction only sold 75% of the permits available, and December’s sold only 57%. The sale price has a $1.86 per ton floor, and that’s what they sold at.

The money raised goes to the state governments as a function of their population size. The intent is that money then goes to various projects ranging from improving insulation on homes to heat exchangers at a paper mill, to an organization that helped create RGGI and then got grants from it.

The “poor” auction performance in the last two auctions is due in part to the recession and also to increased natural gas supplies. There is work afoot to bring in another Hydro-Quebec DC power line that will carry as much power as a large power plant, and proceeds from future auctions are expected to remain low.

The recession brings a secondary hit on energy efficiency spending. Three states, New Hampshire, New York, and New Jersey, have tapped RGGI funds for unrelated expenses such as school aid and general fund assistance. Not surprisingly, critics point to this as more evidence that RGGI is just another tax and not a program to benefit rate payers. Even without the diversion RGGI is an energy tax. The New Hampshire fuel tax is written into the state constitution as being for highway maintenance. The State Highway Patrol have managed to be considered maintenance, but that’s as far astray as the fuel tax goes.

Like most states, New Hampshire has had a sizable turnover in the state legislature, and there is a move afoot to withdraw. A story in the Dec 26 Manchester Union Leader (on paper or subscription only) reports on the effort to find supporters before writing the bill. Some supporters say there’s enough support to make passage likely.

There’s no conclusion to this post, this effort is currently a work in progress and I may write a few updates before I can write a conclusion.

Other sources of information for this post not linked above:

http://www.environmentalleader.com/2010/12/06/rggi-permit-price-remains-low-43-go-unsold/

http://www.istockanalyst.com/article/viewiStockNews/articleid/4723555

The climate data they don't want you to find — free, to your inbox.
Join readers who get 5–8 new articles daily — no algorithms, no shadow bans.
0 0 votes
Article Rating
28 Comments
Inline Feedbacks
View all comments
Greg, San Diego, CA
December 27, 2010 7:51 am

“The intent is that money then goes […] to an organization that helped create RGGI and then got grants from it.”
Can someone start digging into the background and players of that “organization” and let WUWT readers know what the story is?

Tucci78
December 27, 2010 9:36 am

In response to my post of 8:59 PM on 26 December (see above), at 5:49 AM on 27 December, kcrucible had written:

Yes, but….
Government exists to do that which is beneficial to the vast majority, but which isn’t feasible to be done by solitary actors. Police and military are one example, which you cite.

Other examples would include the paved road system. Corporate entities would have no incentive to build or maintain the road system (which was a HUGE boon to the US) back when created, and even today with modernization, every single road out there would be a toll road. While it might be cheaper in total dollar amounts collected to service it, additional expenses would accumulate from wasted gas sitting in lines, lost productive time, etc. Cheaper isn’t always better (though cheaper doesn’t always mean inferior either!)

.
And there’s a lamentable lack of perspicuity on the part of krucible.
I’m not just a libertarian, but I’m also a military history buff – indeed, a wargamer with a history of work in wargames design and development – resident in New Jersey, an area of critical military importance during the early years of the American Revolution. “Light Horse Harry” Lee earned his nickname roaming the countryside where I grew up and now live.
Roads – and how they get built, krucible – are items which lifelong military history types like me tend very strongly to learn about. Tactically, strategically, and especially logistically, roads are critically important, especially when considering the military conflicts conducted over the portion of these United States east of the Appalachians during the 18th and 19th Centuries. Bear with me.
Come to New Jersey or Virginia or Pennsylvania, and you will find a helluva lot of roads named “turnpike” or “pike” or “plank road.” Apart from modern constructions – like the famous New Jersey Turnpike – every damned one of these roads was originally laid out, built, and operated by private industry intent upon making some kind of profit.
They were only taken over by county and state governments much later.
Many of these privately-constructed roads figured large in America’s military history. On 2 May 1863, for example, Jackson’s corps of the Army of Northern Virginia hit the flank of the northern aggressors’ Army of the Potomac at Chancellorsville and rolled up XI Corps like a cheap rug. The axis of their assault was the Orange Plank Road, a considerably corduroy’d wagon road that had been constructed by private businessmen to bring lumber and produce to the river port of Fredericksburg, whence shipment could be made by way of the Rappahannock to Chesapeake Bay and markets beyond.
Yes, many of these privately-constructed and operated thoroughfares were run as toll roads charging user fees. But just what the hell makes you think that government-built and government-operated roads are free, anyway? The plain fact of the matter – ever heard the expression “TANSTAAFL? – is that the costs are not only paid but exorbitantly overpaid (a tremendous source of graft and cause of government corruption all over the nation but particularly here in “the Soprano Strate”), chiefly by way of huge excise taxes levied on the sale of petrochemical fuels, with subsequent expenditure wastage on scales which ought to beggar your imagination.
To give you a starting point, the Cato Institute has been focusing upon the arguments for and against the privatization of government-mismanaged “public goods” for decades. They’ve aggregated historical and current information on the roles played by private businesses in road building and operation throughout that time, including a 2005 Policy Analysis paper on the federal highway system. Their stuff is freely accessible online. All you need invest is a bit of time and effort.
My personal concerns with civil governments handling road building and maintenance run beyond any purely ethical consideration (why in hell are armed thugs operating public thoroughfares and – in the bargain – collecting funds at gunpoint to do such a lousy job at it?) and into the simple and straightforward conclusion that by taking decisions for an economically critical activity out of the private sector and into the realm of politics, they’re making abysmally wrong decisions which waste resources and leave genuine needs unmet.
In short, government road-building doesn’t do – hell, it cannot do – what really could and should be done with regard to getting people and materials from one place to another. Worse, government usurpation of the road-building function forecloses the options which can be provided by private enterprise.
Hmph. Not that privately owned and operated roads must charge tolls for their use. Take note of how private businesses operate parking lots (at malls and such) for the convenience of their customers. They don’t charge for parking space. In the past half-century the growth of shopping malls (and the stark decline of inner-city commercial districts) illustrates how the easy availability of such parking has been figured into consumer preferences. When was the last time you dropped a quarter (and more) into a downtown city-operated parking meter in order to shop there?
Many businesses in the past have built roads to suit their own purposes – to convey resources into their shops, to conduct finished products out, and to give access to their customers. They don’t give a damn about free riders, generally because anybody driving the roads they’d built was certain (in one way or another) to serve the builders’ commercial benefit.
For pity’s sake, krucible, learn something about a subject like this before you write stuff like:

I have libertarian leanings, but there are some things which are clearly the provenance of government, simply because they can afford to take the “big picture” approach to a problem and not have to tell shareholders that it will take 30 years for a project to pay for itself, when the shareholders are concerned about the quarter-to-quarter profits of the company.

.
In fact, it is the officers of civil government who – by making decisions based preponderantly upon considerations of political advantage – obliterate “the ‘big picture’ approach to a problem” and reduce every activity they pervert to the realm of economically nonviable waste.
Your adverse perception, krucible, of “shareholders…concerned about the quarter-to-quarter profits of the company” appears to be the result of inadequate education on the subject, almost certainly compounded by your largely uncritical receipt of duplicitous propaganda foisted upon you by your teachers (probably government-paid thugs) and the complicit consciously collectivist government-worshiping lamestream media.

woodNfish
December 30, 2010 8:25 am

Norm Milliard: New Hampshire is a hope for the rest of the nation; almost half the unemployment rate of the nation, relatively low taxes…
Sorry Norm, but there is nothing low about our taxes. License fees for autos and boats have tripled over the last year and property taxes have grown as well. It is as expensive or even more expensive to live in NH as it is to live in MA.
While we’ve had a state budget crisis over the ridiculous increase in the size of state government at all levels, not once have they done anything to cut the size of any of those government at the state, county or municipal levels. This fraud with the RGGI pork barrel is just more of the same. I have a little hope the new legislature may reverse this and actually cut the bloat, but the slimeball republicans have been as bad as the commie dems, so we shall see. I was very disappointed that do-nothing Lynch was returned to office. He sucks in every way just like most of the government police state we live in (local and federal).