Three states raid anti-pollution funds

By NORMA LOVE

The Associated Press

Last modified: 12/20/2010 12:00:00 AM

Two of the 10 Northeast states that agreed to dedicate millions of dollars to reduce carbon emissions and promote green energy have reneged on their promise, instead diverting substantial funds to saving their budgets.



New York and New Jersey over the past year have raided accounts set up under the Regional Greenhouse Gas Initiative, the first mandatory U.S. cap-and-trade program for carbon dioxide. The accounts were created to pay for energy-efficiency programs aimed at reducing the region's pollution by 10 percent by 2018.



Citing their example, New Hampshire dipped into its fund in June to help balance its budget.



New York took $90 million last fall - roughly half of its fund; New Jersey zeroed out its fund, taking all $65 million; and New Hampshire, a much smaller state, took $3.1 million in June. In all three states, the money was used to pay the state's bills.



Defenders of the raids say that in tough economic times, resources should be diverted to the most pressing needs.



But critics argue the moves are shortsighted, saying everyone benefits more in the long run from reductions in energy demand from efficiency programs.



RGGI is a 10-state compact begun two years ago to reduce air pollution by large fossil-fuel power plants.



The amounts paid to the three states were to go into special funds to pay for such energy efficient programs as weatherization and rebates on newer appliances.



New Hampshire did not touch its $2.2 million share of the $66 million in proceeds from the latest auction Sept. 8.



Participating states are Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont.



The remaining RGGI states have continued to fund their energy efficiency programs. And New Hampshire diverted federal stimulus money to pay for similar initiatives.



New Hampshire lawmakers also argued higher spending priorities had to be funded.



"Right now, although I believe the situation is improving, the state is very short of enough funds to meet essential survival services," said retiring New Hampshire House Finance Chairwoman Marjorie Smith.



Democratic Gov. John Lynch, who signed the memorandum with the other states and signed New Hampshire's law, also cited the difficult economic times as reason to raid the fund. He did not rule out tapping the fund again and insisted the overall goal to reduce emissions is being met.



"I don't think the issue is where the money comes from. I think the issue is what are the goals and are we addressing the goals as a state. We're spending a lot more money on energy efficiency projects than we ever have as a state," he said.





