Using Global Warming to Raise Taxes

by David J. Starr

Back a few years ago, New Hampshire joined the Regional Greenhouse Gas Initiative (RGGI for short) along with the rest of New England, Quebec, Ontario, New York and Pennsylvania. RGGI put in a carbon cap and started “selling” licenses to emit CO2 to the utilities. The proceeds from the “sale” would be spent on energy efficiency improvements. I put “sale” in quotes because the utilities had no say in the matter, it was “buy ’em or we shut you down”.

Back in January this year, NH budgeted $50 million dollars to “Greenhouse Gas Initiative”.

Somewhere between the budget and the legislature, the $50 million from the RGGI fund was diverted to more pressing needs, namely closing the state budget gap. The legislature plead poverty.

Bottom line, the environmentalists used the global warming scare to slip in a new state tax. It was carefully camouflaged, the money comes from your electric bill, so the ill will gets directed to the electric company, rather than the politicians who slipped one over on us.

NPR did a program on this, here. If you listen to the discussion, you will note that the outrage about the diversion of RGGI funds from energy efficiency programs. None of the commenters on the program note the job killing effects of the RGGI tax.

Businesses planning a new plant ALWAYS check the local electric rates. RGGI jacks up NH electric rates and makes the state less attractive to new industry.