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For Immediate Release
Contacts:			Click here to return to Press Releases
Dominick Pangallo: (617)722-2575
Email: Dominick@JohnKeenan.org
January 18, 2007

Rep. Keenan, Mayor Driscoll React to Announcement that Massachusetts Will Join RGGI

BOSTON, MA –Salem Mayor Kimberley Driscoll and State Representative John Keenan (D-Salem) reacted today with caution to the announcement from Governor Deval Patrick’s office that Massachusetts will join the Regional Greenhouse Gas Initiative (RGGI). RGGI is an interstate compact between several New England states to design a regional cap-and-trade program covering carbon dioxide emissions from power plants in the region. Representative Keenan and Mayor Driscoll urged Governor Patrick to consider a mitigation package to address the fiscal harm the regulations may impose on Salem.
“While the goals of RGGI in general are laudable, there is a significant potential for these regulations to cause major problems for the City of Salem. The timing of this announcement is disastrous for Salem,” pointed out Representative Keenan, “In addition to the fact that this move will likely result in an increase in consumers’ utility costs, it will severely hamper Salem’s upcoming tax negotiations with Dominion, the company that owns Salem Harbor Station. Fully implemented and coupled with our existing state regulations on emissions, RGGI may sharply decrease the value of the plant, resulting in a lower possible tax agreement and potentially creating a budget deficit for our city.”

“I am very concerned about the impact that RGGI will have on the City of Salem,” Mayor Kimberley Driscoll stated. “The power plant is far and away the city’s largest taxpayer. At over $4 million per year, they represent nearly 4% of our operating budget. To lose that revenue, on top of the $4 million already reduced by the tax agreement, would be devastating to the city of Salem.”

“While I understand and support the goals of RGGI, I am concerned about the impact of this new regulation on city finances,” added Mayor Driscoll. “I had an opportunity to speak with Energy Secretary Ian Bowles last night and informed him of our concerns. He expressed a strong desire to work with local officials to understand and reduce any potential financial impacts to the City. We are at the beginning of this dialogue and it will take some time to evaluate and work through potential implications.”

“To date, I believe we have done a good job balancing the need for reliable energy, the costs of energy, the fiscal stability of Salem, and the need for clean air,” said Representative Keenan. “Salem Harbor Station meets or exceeds the strictest air quality and emissions standards in the nation, including the first in the nation state-levied greenhouse gas limitations that went into effect January 1, 2006, called CMR 7.29. No other RGGI state can make the same claim. I am proud that Massachusetts has led the way in implementing such tough CO2 standards, and I believe we need to give these regulations an opportunity to work.”

“We must continue to find and support methods to improve our air quality in Massachusetts,” said Representative Keenan. Last session, Representative Keenan backed legislation that placed tough new energy efficiency standards on appliances in Massachusetts and a second bill that offered tax credits for energy efficiency improvements in homes and businesses. He strongly supports increasing our Commonwealth’s investment in alternative and renewable forms of energy, including wind farms such as the project proposed for Nantucket Sound. This session, Representative Keenan has cosponsored nearly a dozen bills to promote and encourage renewable and alternative energy development in Massachusetts. He also backs bringing more natural gas into our energy grid in a safe and environmentally-friendly manner. “I believe a diversified energy portfolio is best for our environment, our consumers, and our national security,” said Representative Keenan.