Md. Joins Greenhouse Gas Pact: Next Steps Crucial, Says UMD Expert

Today's decision by Governor O'Malley to join an interstate initiative limiting carbon dioxide emissions has major national significance, says a University of Maryland expert, but next steps will decide how effective it will be as a response to climate change. Maryland will join the Regional Greenhouse Gas Initiative, or RGGI, a cooperative agreement among nine Northeast and Mid-Atlantic states.

Matthias Ruth, director of the University of Maryland Center for Integrative Environmental Research (CIER) recently studied the economic and environmental impact of Maryland joining RGGI. The CIER study was conducted for the Maryland Department of Environment under a legislative mandate, and released in February. Based on the study's economic projections, Ruth and the research team concluded that Maryland's participation in the compact would have a modest positive environmental impact that would not translate into higher bills for electric customers. It was the first study to look at the economic and environmental effects of having a heavy coal-based electric generation state like Maryland join RGGI.

Ruth served as principal investigator of the CIER study, and is an economist specializing in environmental policy projections. He is available for media interviews, and may be reached directly at: 01149-171-789-0669; mruth1@umd.edu. (Dr. Ruth is in Bremen, Germany, EDT + 6 hours). Or, contact Neil Tickner at 301-405-4622; ntickner@umd.edu.

RUTH QUOTES

Regarding the governor's decision to join RGGI, Ruth says:

"The move of Maryland to join RGGI places the state at the forefront among a handful of states, including California, and opens the door for more and more ambitious legislation to limit carbon emissions."

"This is yet another major step in the recent trend toward state-level action in the absence of federal leadership on climate change. But the real test of its long-term environmental and economic benefits lies in the way the program is actually implemented, which has not yet been fully determined."

"The next challenge will be to define the specifics of the current program in order to get the most environmental and economic benefits from it, then to build on it so that the state continues to cut its emissions and to restructure its energy sector. Along the way, Maryland must use its leadership role and partner with others nationally and internationally to find new ways to cut costs and improve benefits to society."

"The many decisions that now confront us must be made on the basis of the best available science, as well as on a broad consensus among stakeholders that current energy use and emissions are unsustainable and that desirable alternatives can be found. The complexity, urgency and irreversibility of climate change demand this. The new administration in Maryland seems to understand this and needs to make sure that the resources are there to follow through on it."

RGGI STUDY DETAILS

Key Findings of RGGI Study:

At the direction of the legislature, the Maryland Department of Environment commissioned the study to assess the economic and energy impact of the global warming provision of the state's 2006 Healthy Air Act. The law calls for Maryland to join RGGI this year.

As a member, Maryland will be given an annual budget, or a cap, for carbon dioxide emissions. The state will then give electricity generating companies carbon dioxide emissions allowances. In the study, the researchers assumed that 75 percent of all the allowances will be divided among electricity generating companies for free, while 25 percent will be sold to generators in an auction run by the state. The proceeds from this auction are expected to fund energy efficiency measures.

Resources

As an entity within the University of Maryland Division of Research, CIER's unique strengths lie in its ability to reach across all colleges of the university to effectively assemble the states best researchers to address pressing environmental, technological, economic and policy issues. CIER's unique role also helps leverage input from the many research organizations and other universities outside the University of Maryland.