<article><p>New natural gas pipeline and transmission capacity is needed to ensure the Regional Greenhouse Gas Initiative (RGGI) remains inclusive and satisfies federal greenhouse gas emission targets without compromising grid reliability, the program's top official said yesterday.</p><p>RGGI officials are already considering what is needed to sustain the nine-state cap-and-trade program, particularly as other states contemplate joining as a compliance option with the Environmental Protection Agency's (EPA) Clean Power Plan for emissions from existing power plants. But as states consider their options, demand for natural gas and integration of renewables in the northeast and mid-Atlantic regions will require infrastructure to support a less carbon-intensive generation mix. "Because we made such a rapid transition to natural gas-fired generation [in New England], we have work to do to get gas pipeline infrastructure developed to serve that gas generation," RGGI chairwoman and Connecticut Department of Energy and Environmental Protection deputy commissioner Katie Dykes said at an event hosted by the Center for Strategic and International Studies in Washington, DC. </p><p>Some RGGI states issued solicitations this year for long-term renewable energy and natural gas supply agreements. The role of such agreements could be key in locking in emissions reductions consistent with EPA's plan. The issue will likely play a role in the RGGI program review set for next year.</p><p>"Long-term procurements and contracting have not been reflected in previous program reviews," Dykes told <i>Argus </i>afterward. "But it will be coming up more as we look for into 2016."</p><p>The Clean Power Plan would require each state to meet a CO2 emissions rate target by 2030, with interim targets for 2020-29. EPA says states will be allowed to use a wide range of measures for compliance, including mutli-state emissions trading.</p><p>It is not clear if other states will join RGGI, although Pennsylvania's new governor is in favor of the idea and Virginia officials say they will give consider it. Informal meetings are underway with some states, Dykes said during the event. Implementation of the Clean Power Plan should sync-up with the RGGI program review, which would help smooth the way for other states to join. EPA's proposal called for states to submit compliance plans to the agency 13 months after the rule is finalized, with two more years available for multi-state programs. "These two things are coinciding at a really opportune time, and we are engaging with stakeholders and thinking through how to adapt our program to work with multi-state implementation plans," she said.</p><p>lb/ee</p><p><br> Send comments to <a href="mailto:feedback@argusmedia.com" target="_parent"> feedback@argusmedia.com </a></p><p><u><a href="http://www.argusmedia.com/Info/General/News" target="_TOP"> Request more information </a></u> about Argus' energy and commodity news, data and analysis services. </p><p><i> Copyright © 2015 Argus Media Ltd - <a href="http://www.argusmedia.com/" target="_TOP"> www.argusmedia.com </a> - All rights reserved. </i></p></article>
