Attempt to undermine RGGI fails
Jul 13, 2011 by Seth Kaplan | Bio | Leave a Comment
A judge in New Jersey has determined, after an exhaustive legal proceeding, that RGGI, the regional program to regulate emissions of Carbon Dioxide (the primary pollutant causing global warming) from power plants, can and must keep confidential internal market information. All sophisticated auctions and markets, like the stock and commodities markets have very similar rules because the traders who operate in these markets could potentially manipulate and subvert the market if they had internal information, like exactly what other businesses bought and sold, and the exact prices they paid.
When the ideological opponents of climate action filed a lawsuit in New Jersey to force full disclosure of all information about the RGGI auction they were in effect asking to force disclosure of this information, a release that would have created a real risk of market manipulation. Even more suspiciously, it appeared that some of those same opponents were financially backed by businesses who were trading in the RGGI market and would have financial interests in the release of that information.
Now that lawsuit has been dismissed by a wise judge in New Jersey. In a 75 page decision (posted on the website of the organization that brought the lawsuit) the judge determined that “Clearly, the RGGI auction information is often identified as confidential due to the detrimental effect its release would have on the auction process . . . Thus, the court agrees with defendants that the [disclosure] request—including the names of the bidders, individuals bids, and amount and type of allowances requested are proprietary commercial or financial information and should be not be disclosed.”
The bottom line is that RGGI continues to function, acting as a limit on greenhouse gas emissions from power plants and a critical source of support for clean energy development, especially the deployment of energy efficiency. It is a well functioning market and program and should be preserved and enhanced. The judge’s decision was not unexpected as this kind of internal confidentiality is so needed and common and is a complete vindication for the states in the RGGI program and the folks who administer the program for them.


