CONCORD - Gov. John Lynch joined governors from six other Northeast states today in announcing an agreement on a regional climate change and energy program known as the Regional Greenhouse Gas Initiative (RGGI). Gov. Lynch will forward the agreement to the New Hampshire legislature for public debate and consideration.

"Protecting our clean air and clean water is critical to safeguarding the health of New Hampshire citizens, to preserving our beautiful natural environment, and maintaining our state's strong economy," Gov. Lynch said." New Hampshire is already a national leader in addressing climate change and air pollution from power plants. The Regional Greenhouse Gas Initiative offers us a way to work with our neighboring states to reduce pollution even further."

In 2002, New Hampshire enacted the Clean Power Act, the nation ' s first legislation calling for cuts in four pollutants, including carbon dioxide, from existing fossil-fuel fired power plants.

Gov. Lynch is committed to ensuring that the Regional Greenhouse Gas Initiative has a full and inclusive public debate here in New Hampshire, focusing on the concerns and interests of all stakeholders. Rep. Larry Ross, the chair of the Science, Technology and Energy Committee, has submitted an LSR to create a study committee on the Initiative. The Initiative could potentially be brought forward as legislation in 2007.

"We look forward to working with legislators and stakeholders, including ratepayers, the environmental community, the health care community, business, and the electric power industry to continue the discussion about how we can achieve the goals of RGGI and the New Hampshire Clean Power Act in a manner that is cost effective, protects the environment, and encourages energy efficiency and independence," Gov. Lynch said.

RGGI represents a cooperative effort to address one of the most pressing environmental challenges of the day - climate change - while also furthering sound energy policies. By signing the RGGI Memorandum of Understanding, Gov. Lynch is committing to moving forward on this initiative through New Hampshire ' s legislative process.

The Initiative is aimed primarily at reducing carbon dioxide pollution through a mandatory emissions cap on the electric generating sector (i.e., power plants), coupled with a market-based trading program to achieve the lowest possible compliance costs.

Under RGGI, the states of Connecticut, Delaware, Maine, New Hampshire, New Jersey, New York, and Vermont would create a regional cap-and-trade system that uses emissions credits or allowances to limit the total amount of emissions. Beginning in 2009, emissions of CO2 from power plants in the region would be capped at current levels - approximately 121 million tons annually. This cap would remain in place until 2015. The states would then begin reducing emissions incrementally over a four-year period to achieve a 10 percent reduction by 2019.

"By including offsets, we are providing power plant owners the flexibility to meet their commitments in the most cost-effective way possible," said Robert Scott, head of the New Hampshire Department of Environmental Services Air Program. "This will also mean new investment in the region for other projects that yield measurable environmental and energy co-benefits."

Department of Environmental Services and the Public Utilities Commission officials have represented New Hampshire in the RGGI process since 2003.

The participating states plan to issue a draft model regulation for public review and comment in early 2006. Each individual state will then proceed with the required legislative or regulatory approvals to adopt the program. Pending the completion of this process, the RGGI program is slated to begin on January 1, 2009.

In New Hampshire, an extensive stakeholder process will continue to allow affected and interested parties the opportunity to evaluate the impacts of RGGI and work to find the best way to implement this program in New Hampshire.

"This historic agreement demonstrates that, once again, states like New Hampshire are leading the way in developing innovative solutions to address complex environmental and energy programs," Gov. Lynch said.