8. POLITICS:

Can N.J. lawmakers push their state back into greenhouse gas initiative?

Published:

Advertisement

New Jersey's tug of war over the nine-state carbon trading system known as the Regional Greenhouse Gas Initiative (RGGI) escalated last week when the state's Assembly and Senate passed bills that would return the Garden State to the program.

The Legislature easily passed bills that are mirrors to legislation vetoed by Gov. Chris Christie (R) last summer. Christie is bound to renew his veto, meaning attention will soon turn to a legislative override, which could occur anytime between the veto and January 2014.

Proponents of the trading system, which Christie has attacked as a toothless failure, say an override could be within their grasp along the way should Christie decide to leave office or see his political strength erode.

"We have a year and a half to get an override," said Jeff Tittel, of the New Jersey Sierra Club. "It's doable."

Tittel said the pro-RGGI camp would have to get three Republican votes in the Senate and six in the Assembly. He thinks garnering them is possible because many Republicans voted for the trading system, which applies just to the electricity sector, when it first passed.

Tittel added that, technically, the Garden State still has its regulatory framework in place for being an active member of RGGI. Christie's decision to end the state's participation applied to auctions, and taking down the rules underpinning that system at the regulatory level could be reversed by a simple majority in the Democratic-controlled Assembly and Senate.

Still, Tittel acknowledged that auction revenue is the key part of the system, so no matter how one cuts the political dynamic, the reality is New Jersey is no longer trading or raising money through carbon sales to fund clean energy projects.

"We're sort of in a limbo," he said. "But we have the votes to block him from officially pulling out via regulations."

'RGGI is done in New Jersey'

Christie backed out of RGGI auctions at the end of 2011. He had called the system a backdoor carbon tax on electricity consumers in the Northeast and made light of the first-ever U.S. carbon market. He called it a "gimmicky" program that failed to achieve its intended aim since carbon permits were first auctioned in September 2008.

New Jersey Department of Environmental Protection spokesman Larry Ragonese contested the line of thought that says New Jersey's participation is somehow dormant and waiting for an override to bring back the regulations.

"RGGI is done in New Jersey," he said. "It's old news. It's history."

Ragonese added that the state is not a participant in any sense and will not return as long as Christie is the governor.

"Gov. Christie has made his position clear, and I don't think anyone in the administration is considering any change of heart."

Sullivan is based in New York.