For Immediate Release
Contact: Jeff Tittel, NJ Sierra Club, 609-558-9100
Today [April 17], New Jersey unveiled the final Regional Greenhouse Gas Initiative (RGGI) Strategic Funding Plan. RGGI is made up of ten Mid-Atlantic and New England states that uses a reduction and auction process to encourage more market efficiencies, investments in renewable energy, and improvements in power-plant technology to reduce power plant emissions. The plan establishes how the State will spend the proceeds from the quarterly RGGI CO2auctions, emphasizing projects that will support disproportionately burdened communities.
“This is a step in the right direction. It is critical that we have RGGI funds that are going out to reduce pollution and create green jobs. $82 million can go a long way to help reduce greenhouse gas emissions in New Jersey. What’s even more important is that they are targeting a lot of this money towards overburdened and Environmental Justice communities. These communities have some of the worst air quality in the nation. People in our state have seen the impacts of climate change firsthand and demand action. This shows the benefits of rejoining RGGI” said Jeff Tittel, Director of the New Jersey Sierra Club.“It is even more important to reduce greenhouse gases during the current health emergency because a recent Harvard study linked coronavirus risk with air pollution. These communities already suffer from high levels of asthma, and now are also being hit hardest by the pandemic.”
According to the Funding Plan, RGGi is expected to bring in $82 million. About $60 million will be directed to clean transportation projects, especially in overburdened communities. The NJ Department of Environmental Protection will get 20% of the funds, the Board of Public Utilities will get 20%, and the NJ Economic Development Administration will get 60%.
“We would like to see a lot more than 20% of the money going to energy efficiency, especially for low- and moderate-income communities and funding programs like multifamilies. This is critical because we have some of the worst air quality in the nation. Most of our counties are still receiving ‘F’ designations from the American Lung Association. Energy efficiency is the most cost-effective way to reduce greenhouse gases and pollution while creating green jobs,” said Jeff Tittel.“When we commented on the Global Warming Solutions Fund Rule we were concerned that the money could go to some fossil fuel projects. It is good that they are using this money for clean projects that will help reduce our emissions.”
Out of the funding that DEP receives, 10% will go to grants and incentives for local governments to electrify their transportation sector and 10% will go toward carbon sequestration. The funding that BPU receives will go toward charging stations and building infrastructure for clean transportation across the state.
“This is a win-win because we are taking money from polluters and using that money to reduce pollution in New Jersey. Under the New Jersey RGGI law, which we have serious concerns about, these funds could go to combined heat and power, carbon capture and sequestration, two-cycle natural gas plants, and other fossil fuel projects. We are glad to see this money go to clean transportation targeting EJ communities rather than those projects. DEP will use some of the funds for local efforts to electrify transportation, and 10% of the funds for sequestration projects. This should be directed toward urban forestry, replanting trees, and restoring wetlands in urban, overburdened communities,” said Jeff Tittel.“BPU will use 20% of the funds for electrification projects, and we hope that the rest of the money that BPU gets will go toward energy efficiency.”
New Jersey has committed to participate in the Transportation and Climate Initiative (TCI). This is a regional collaboration of 12 Northeast and Mid-Atlantic states and the District of Climunia that focuses on reducing emissions from the transportation sector. When that program comes to fruition it is likely to generate proceeds for decarbonizing the transportation sector. At that point, we believe that RGGI funds would be better directed to accelerating decarbonization of the electric sector and building electrification.
“A large portion of this money is going toward electrifying our transportation sector, especially in overburdened Environmental Justice communities. This will help reduce greenhouse gases in communities that are choking on exhaust fumes. This should only be temporary until we join the Transportation Climate Initiative, which is a multi-state climate initiative similar to RGGI designed to reduce greenhouse gases and pollution from the transportation sector. Funds from TCI will go to electric vehicle and clean transportation programs, at which time RGGI funds would be better spent on energy efficiency,” said Tittel.“When New Jersey joins the Transportation Climate Initiative, we will be able to use TCI money for clean transportation and RGGI funds can go toward energy efficiency. We need to make sure we are maximizing the impact of these funds.”
The EDA will set up a Green Bank that will leverage private investment in a range of decarbonization projects using available technologies. They will have revolving loans and grants matched up against private capital that can go toward projects like charging stations, electric fleets for businesses, electrification of ports and cargo airports, package delivery services, and local transportation services.
“The EDA will be allocated 60% of the funds. The EDA will be able to issue grants and revolving loans to businesses that will be matched with private capital to finance projects like infrastructure, electric fleets for businesses and electrifying package delivery and van services. They will set up a Green Bank, which will be critical for funding clean energy technologies. These investments will be targeted to areas where pollution reduction benefits public health the most. For example, electrifying ports and garbage trucks,” said Tittel.“These communities not only need the environmental benefit, they also need the economic benefits. This will encourage the development of clean jobs in Environmental Justice communities.”
New Jersey’s past participation in RGGI created $151 million in economic value and almost 1,800 jobs in our state. Throughout the region, RGGI saved customers $1.1 billion on their electric bills and $174 million on gas bills, offsetting the $912 million paid by customers. RGGI’s energy efficiency programs helped keep $765 million in the regional economy instead of going to out-of-state fossil fuel interests, including natural gas and coal.
“Now that we are back in RGGI, it is important that this money is going to the right places. This plan will help us reach 100% renewable and zero carbon by 2050. More importantly, these funds will help Environmental Justice communities at a time when these communities are suffering even more from the coronavirus pandemic. Going forward, we need to make sure RGGI funds go toward energy efficiency because TCI funds will target transportation. We also need to make sure that the rules are fixed so that future funding plans cannot allocate money to programs with no actual climate benefits,” said Jeff Tittel, Director of the New Jersey Sierra Club.“In the past, RGGI worked to create jobs and reduce pollution in New Jersey. Now that we are back in, RGGI will help drive us to reduce greenhouse gases and move us toward a green economy.”