Global warming agreement nets millions for Maryland

On Sept. 25, Environment Maryland staff celebrated as they watched Maryland earn $16 million at its first cap-and-trade auction. The auction was one of the requirements of the Healthy Air Act.

Maryland earned more money than any other state in America’s first-ever global warming pollution credit auction.

This was particularly gratifying for Environment Maryland staff, who worked for six years to help make it happen. It underscores how much time it can take to win major policies and how beneficial it can be to stick with one issue over a long period of time.

From 2003 to 2005, Environment Maryland took a lead role in passing the Healthy Air Act. Among other things, this bill requires Maryland to join a regional agreement to reduce global warming pollution from large power plants. The act also aims to reduce mercury emissions by 90 percent, sulfur dioxide by 85 percent and nitrogen oxide by 75 percent.

Leading up to the auction

Environment Maryland helped the state negotiate the details of signing the agreement, which Gov. Martin O’Malley did soon after taking office in 2007.

Then in 2008, Environment Maryland successfully lobbied in favor of creating the Strategic Energy Investment Fund, a fund that will use the money generated from cap-and-trade auctions to lower energy rates, avoid blackouts and reduce Maryland’s carbon footprint.

It is estimated that Maryland will generate between $70 and $140 million annually from cap-and-trade auctions. Sixty percent of that will be used to promote energy efficiency and other clean energy initiatives. The rest will go toward lowering people’s utility bills.

The Maryland Energy Administration has been charged with creating specific program proposals. Our State Director Brad Heavner was appointed by the governor to serve on the advisory council to oversee program development.

Progress on all fronts

The Regional Greenhouse Gas Initiative (RGGI ) will save Maryland money while reducing global warming pollution. And our economy is predicted to grow as we invest in more energy efficiency and clean energy. By creating the Strategic Energy Investment Fund, Maryland can provide short-term rate relief for consumers, as well as a long-term strategy to address future energy issues.

New programs made possible by this funding include incentives for high-efficiency appliances, workforce training for energy efficient construction techniques, loans to institutions for clean energy upgrades, alternative fuel vehicle programs and public education campaigns.

“I can’t tell you how many meetings I’ve been to on this issue, but it’s all worth it in the end,” said Heavner. “This is a win-win breakthrough for Maryland’s environment and economy.”