IMPROVING AIR QUALITY IN A COMPETITIVE ELECTRICITY MARKET
 

Statement of Policy

The Coalition of Northeastern Governors (CONEG) believes that particular attention must be paid to improving air quality to protect public health and the environment. CONEG supports competition in the electric industry which would reduce rates and provide greater choice for all customers. However, increased electric generation from sources with limited controls, whether from changes in the industry or other causes, could exacerbate the existing problem of the air transport of pollutants to the Northeast. Equitable environmental requirements should apply across the country, and one region should not adversely impact another.

The CONEG Governors support the ongoing efforts of the Ozone Transport Assessment Group (OTAG) to develop science-based control strategies which effectively address the transport of pollutants which contribute to violations of national ambient air quality standards. The Governors also support flexible pollution prevention and compliance assistance measures which ensure that the recommendations of the OTAG and other collaborative initiatives reduce transported pollutants sufficiently to achieve these air quality standards.

The CONEG Governors have long supported collaborative regional efforts such as the Ozone Transport Commission. The Northeast states have taken significant steps to reduce emissions, and will continue to work cooperatively on restructuring initiatives and on collaborative efforts to attain air quality standards. Timely and coordinated actions to achieve these objectives are needed to ensure the benefits of competition and clean air across the country.

The CONEG Governors support the development of a competitive marketplace for electricity in the states. Furthermore, they are prepared to address current and future air quality issues, and believe that federal action or joint collaborative action is necessary for a national strategy to reduce the transport of pollutants.

Principles for Action

Any legislative or other approach to address current and future air quality issues must adhere to the following principles:

• Timeliness: Action should be taken quickly and in coordination with other concurrent efforts, such as OTAG and EPA State Implementation Plan (SIP) calls.
   
• Comprehensive Control of Ozone Precursors and Other High Priority Pollutants: Control of ozone precursors and other high priority pollutants which are subject to long range transport must be addressed in a comprehensive strategy.
   
• Regional Equity: Comprehensive strategies must promote equitable environmental controls throughout the OTAG region and address the transport of air emissions.
   
• Market Efficiency: Market-based solutions, such as allowance "cap and trade" programs and other such measures, should be pursued to achieve the most cost-effective solutions.
   
• Source Equity: Ultimately, sources should be treated equitably by using standardized comparisons for allocation methods.
   
• Air Quality Analysis: Strategies should fully use the results of the most current and accurate air quality studies, such as the modeling, monitoring and other air quality analysis carried out for OTAG.
   
• Environmentally Sustainable Technologies: Emission control strategies should recognize the benefits of clean technologies such as renewable energy resources and market-based energy conservation programs.

Adopted: February 4, 1997