Gov. John Baldacci of Maine has signed a bill which establishes how the state will implement its cap and trade program as part of the Northeast Regional Greenhouse Gas Initiative. The bill passed the House 130-7, and passed the Senate unanimously.
Maine is the third of the 10 Eastern states in the initiative to enact a law with a plan to reduce emissions and where to use the money generated by company allowances – payments to the state for emitting CO2.
Maine produces 3% of U.S. CO2 emissions. It will cap its emissions at 5.9 million tons in 2009, and reduce them 10% by 2019.
Under the new law, six power plants will begin to pay allowances to the state in 2009. One allowance will pay for one ton of CO2 emissions – the price will set by a market where companies buy and sell the allowances.
The first $5 of each allowance will be put in an energy efficiency trust. If rates rise higher, the additional funds will be reimbursed to utility customers.
The bill also allows utilities to charge customers for energy efficiency programs.
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