While Americans were battling cap-and-trade legislation at the national and international levels, global-warming alarmists were quietly building regional systems between state and local governments, private industry, and even foreign governments that basically achieve the same effect — higher energy prices for consumers and more money for governments.

The first and most prominent of these U.S. cap-and-trade systems is known as the Regional Greenhouse Gas Initiative (RGGI). It was created not by the people through their legislatures, but by a so-called “Memorandum of Understanding” between state governors.

Consisting so far of 10 Northeastern and mid-Atlantic states — Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont — the scheme is described on the RGGI website as “the first mandatory, market-based effort in the United States to reduce greenhouse gas emissions.” Its board of directors consists primarily of each participating state’s top environmental bureaucrats.

The “Initiative” works by having each state cap its carbon dioxide emissions at a certain level, then auctioning off emissions permits to the highest bidder. Eventually, the CO₂ limits will be reduced, causing increased energy prices as companies pass along the added costs to consumers. By 2018, the RGGI plans to reduce energy-sector emissions by 10 percent.  

Thus far, the scheme has netted close to a billion dollars by selling “carbon credits” to utility companies and other firms in participating states, earning about $50 million through an auction held on December 1. The first auction was actually held in 2008, and there have been nine since then. Spoils from the emissions permits are then handed out by state governments to companies, environmental groups, and others.

Incredibly, the RGGI has managed to avoid public scrutiny of its operations by incorporating as a non-profit organization and leaving enforcement and regulation to the individual states. The corporation claims it does not have to respond to public requests for information since, technically, it is not actually a government entity.

But the corruption is already coming out in the open. “New Hampshire conservationists had high hopes for how $18 million in funding generated by the Regional Greenhouse Gas Initiative (RGGI) might advance energy efficiency projects,” wrote columnist Fergus Cullen in the New Hampshire Union Leader earlier this year. “Unfortunately, cronyism and corporate welfare hallmark too many grants awarded by the Public Utilities Commission so far.”

Cullen’s piece details, among other things, the outrageous handouts to “environmental” front groups and big businesses that helped push the scheme through. For example, an activist group in New Hampshire called “Clean Air Cool Planet” was incorporated by out-of-state bigwigs to promote global-warming alarmism — including Al Gore’s discredited “documentary,” An Inconvenient Truth.

“Having helped create this pot of money, Clean Air was one of the first in line with its hand out so it can do more alarmist advocacy, paid for with public resources awarded by friends,” Cullen explains. The group has already received almost half of a million dollars. Another example cited by the columnist: “Yogurt on a mission” producer Stonyfield Farm, with $300 million in yearly sales, received nearly $150,000 to upgrade its air-conditioning system.  

Money was basically shoveled out, “creating opportunities for the well-connected and the in-the-know” while “millions of dollars have gone out the window, wasted like heat leaking out of an uncaulked pane,” Cullen concludes.    

But RGGI boss Jonathan Schrage — who after intense public pressure recently disclosed his salary of almost $170,000 per year — thinks the scheme is great. “I look forward to building RGGI Inc. into a dependable administrative ally of each state’s RGGI program,” Schrag said in a press release when he was appointed executive director. “The states have done tremendous work to develop the first CO₂ cap-and-trade system in the U.S.”

Not everyone thinks so, though. And in an e-mail to supporters, the Center for the Defense of Free Enterprise warned of even bigger problems to come. “RGGI is the prototype for more regional cap & tax entities,” wrote the organization’s executive vice president Ron Arnold. “Soon RGGI will expand to every state and stick you with astronomical energy prices.”

Arnold blamed the “corruptocrats in Washington” for the “gigantic waste of tax dollars,” adding that the “crooks behind RGGI must be exposed” and held accountable. He also said that, despite RGGI claims that it is “making a significant impact to combat the threat of global warming,” the data proves otherwise.  

“The only impact RGGI has made so far is they have raised energy prices and created a slush fund for each member state,” Arnold explained. And according to his letter, “the fact that global warming isn’t even real” won’t prevent the “climate change scam” from spreading to other states. And he’s right — it’s already happening.

An even bigger and more ambitious effort that includes Canadian provinces — and even Mexican states — as “observers” is set to go into effect in 2012. Known as the Western Climate Initiative, the scheme is described on its official website as “a collaboration of independent jurisdictions working together to identify, evaluate, and implement policies to tackle climate change at a regional level.”

Among the participating “jurisdictions”: California, Oregon, Washington, Arizona, Utah, New Mexico, Montana, and four Canadian provinces. So-called observers, “jurisdictions” that are likely to join soon, include six Mexican states, an additional six U.S. states, and another three Canadian provinces. The Western Climate Initiative, like the RGGI, was also created by an agreement between state governors — not legislatures.    

A similar scheme for the American Midwest, under the banner of the Midwestern Greenhouse Gas Reduction Accord, is also set to enter into force in 2012. The agreement encompasses Iowa, Illinois, Kansas, Manitoba, Michigan, Minnesota, and Wisconsin — for now. Three other U.S. states and one additional Canadian province are listed on the scheme’s website as “observers.”

One unifying factor between all the regional partnerships is the emphasis on promoting expansion and eventual federal — and even international — involvement. And in Cancun at the global warming summit, state and local-government leaders made it clear that they would continue marching forward with the anti-carbon dioxide schemes at the global level — no matter what the outcome of United Nations climate talks currently underway in Cancun.

"We are proving that while a global agreement is important, we do not need to wait for it to start building the path to a new low carbon future," explained Quebec Premier Jean Charest, the co-chair of the States & Regions Alliance, during a summit at the COP16. "As our national counterparts meet here in Cancun to continue the negotiations, states and regions are continuing to show the leadership necessary to make practical headway on climate action."

And this is all part of the broader global plan. The so-called “States and Regions Alliance” represented by Premier Charest — some 60 state and regional governments accounting for about 15 percent of the world’s Gross Domestic Product — is part of a shadowy but powerful international non-profit known as “The Climate Group.”

The organization works with the United Nations Development Program, the World Economic Forum, the Administrative Center for China's Agenda 21, the U.S. Department of Energy, and other high-profile institutions, agencies and governments to advance the global climate agenda. And it promotes the implementation of global-warming schemes through “sub-national” levels of government — among other things.

“States, regions and cities are where the rubber hits the road in terms of practical action to reduce greenhouse gas emissions,” wrote States and Regions Alliance co-chair and Quebec Premier Charest, along with his fellow co-chair, South Australia Premier Mike Rann.

“The UN Development Program estimates that 50 per cent to 80 per cent of the emissions cuts needed to keep climate change below 2C will need to be delivered at state, regional and city levels,” the co-chairs noted in their joint column for The Australian entitled ‘Think globally, act locally? States already are.’ “This is because regional governments often control regulation for many of the key areas for addressing climate change, such as power generation, the built environment, waste management, transport and land use planning.”

CEO of The Climate Group Steve Howard offered a similar analysis. "A clean industrial revolution is not only possible, but it is well underway in the world's leading states, cities and regions," he told COP16 attendees at the “Climate Leaders Summit” in Cancun Wednesday. "The subnational governments in our Alliance are not waiting for a global agreement but are forging agreements of their own to lead a growing global market for low-carbon goods and services already estimated at $4.7 trillion."

Despite the U.S. Senate’s rejection of cap-and-trade legislation, the carbon-tax agenda is still being implemented in America and around the world. Using the Environmental Protection Agency, the Obama administration is moving forward on regulating emissions of carbon dioxide at the federal level. And through alliances and agreements between states and even foreign governments — unconstitutional under Article 1, Section 10 of the U.S. Constitution — those same forces are building a powerful and expensive carbon regime that could eventually encompass every state in the Union, and beyond.

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An observer said:

They're not stupid People keep trying to convince alarmists that human-caused global warming is not a problem (there is no statistical proof even showing that humans are affecting global climate and lots showing that we've simply been enjoying slight warming after the "Little Ice Age"), amazed that these people just don't get it. But the people running the climate show aren't stupid; it's never been about climate at all. It's about making money through shaking down industry. The global-warming leaders are actually criminal visionaries. In just a matter of years, they could be basically extorting money from every company (and the consumers of every company's products) in the developed world. And they really only got going a decade ago. What a great Return on Investment! Genius!

December 10, 2010

NJConservative said:

Not Quite Right New Jersey's entry into RGGI was paved by the passage of the Global Warming Response Act of 2007 and the legislation that actually created RGGI (A4559). The Memorandum of Understanding is just the icing on the cake - binding the states together.

December 10, 2010

AN said:

Actually, Actually, The Global Warming Response Act was passed in July of 2007. The Memorandum of Understanding was signed by NJ governor Codey in 2005. RGGI was officially incorporated in Delaware less than a week after the act was signed, and at that time, only 3 American states had any legislation dealing with global warming. Therefore, as the article states: "[The RGGI] was created not by the people through their legislatures, but by a so-called 'Memorandum of Understanding' between state governors."

December 10, 2010

AN said:

Also The legislation you are referring to (A4559) did not "create" the RGGI, it merely defined some details of how the previously created structure and cap-and-trade system would be implemented in NJ. The RGGI had been incorporated for 6 months before that bill even got out of committee. "

December 10, 2010

Jake Rodriguez said:

Outrage! I fail to understand how this could have gone almost totally unnoticed by patriots and the constitutionalist community for so long. Why is this the first time I'm hearing about any of this? Is the media asleep at the wheel or worse, a part of the scam?

December 10, 2010

NJConservative said:

Clarifying A4559 established Cap & Trade in NJ. The Memorandum created the alliance of the states into RGGI. This is a technical point, I suppose, but while one might say RGGI itself wasn't created by state legislatures, the various states must have some legislation paving the way into entering RGGI itself. While I am not as familiar with other states, it is clear that A4559 in NJ established Cap & Trade -- and I would be surprised to hear that the other states don't have similar legislation on the books. http://www.njleg.state.nj.us/2006/Bills/A5000/4559_I1.HTM From the bill statement: "This bill would establish in the Department of Environmental Protection (DEP) a carbon dioxide cap-and-trade program for the purpose of reducing carbon dioxide emissions in the State in accordance with the provisions of the “Global Warming Response Act,” P.L.2007, c.112. In implementing the program, the DEP would allocate 100 percent of the annual carbon dioxide emissions allowances for public benefit to produce funds for carbon reduction, energy conservation, as well as other projects that benefit electric users. "The bill would require the DEP, no later than January 1, 2009, to adopt rules and regulations to implement the cap-and-trade program. The rules and regulations would include but need not be limited to (1) the establishment of a system for the annual assignment, sale, and distribution of carbon dioxide emissions allowances consistent with the carbon dioxide emissions budget; (2) the establishment of carbon dioxide budget unit compliance obligation accounts; (3) the establishment of carbon dioxide offset project allowance categories and requirements; (4) the implementation of a licensing process for carbon dioxide budget units; (5) the establishment of a carbon dioxide emissions allowance tracking program; and (6) the management of the carbon dioxide allowance auction developed in coordination with other states and jurisdictions in the Regional Greenhouse Gas Initiative."

December 10, 2010

AN said:

... Again, the RGGI (the regional cap-and-trade regime) was created by the governors' 2005 Memorandum of Understanding. The technical details and state-level implementation was generally worked out by legislatures rubber stamping the commitments made by governors (obviously, since most state governors do not have the power to restructure agencies, fund new departments, appropriate money, etc.) This section from the government of Vermont's webpage describes the process happened well: "Vermont committed to participate in RGGI when Governor Douglas signed the RGGI Memorandum of Understanding with the governors of the other participating states. The Vermont Legislature then enacted statutory provisions to implement the RGGI program in Vermont." http://psb.vermont.gov/docketsandprojects/electric/rggi Again, RGGI was created by state governors through the MOU. State legislatures then implemented necessary state-level provisions required to make the existing RGGI cap-and-trade system. What "paved the way" for the RGGI was, once again, the 2005 MOU. Once the way was paved by the governors, state legislatures basically followed instructions on what provisions needed to be enacted.

December 10, 2010

Mike Proto said:

Chicken and egg? The MOU would have meant nothing without the legislatures passing law(s). I suppose this is what I am quibbling about, if you will. The statement in the article says RGGI was "not created by the people." Well, that's gives the impression each state's representatives had no say and did not pass legislation permitting their state's entry into RGGI when they did. Did not mean for this to degenerate into a prolonged debate. Your article is otherwise excellent and I'm glad you are bringing attention to this issue. More importantly, are you of the opinion that any of the participating states could withdraw tomorrow with the stroke of a governor's pen?

December 10, 2010

AN said:

... Apologies, the intention was not to create a misunderstanding. The point was to emphasize the fact that this is a mechanism created and initiated by executive branch actors - a very unusual situation that I think many Americans would find troubling. Generally, governors are supposed to be executing constitutional laws enacted by their legislatures, not creating policy (other than through the use of their veto power). Having state legislatures enact unconstitutional agreements entered into by the executive branch is not a normal process. If the legislatures had all independently initiated this regional system through legislation and the governor had signed it, while still bad, unconstitutional policy, it could at least be said that it was an effort undertaken by the people through their legislatures. The RGGI was created first, then it was implemented through legislation. As for your question - I suppose one could say that, though not for sure. A governor could theoretically veto any bills authorizing funding, for example. But how it would work at this point seems unclear.

December 10, 2010

C. Thompson said:

Investigations? I just want to know when the investigations into this criminal racket are going to begin?

December 10, 2010

Ken E said:

Wind farms Here in upstate NY, we've seen wind farms popping up EVERYWHERE in the past few years. There is a large Spanish company, Iberdrola, behind most of them. I guess this unconstitutional RGGI is what's being used to perpetrate all this. I thought it was just the feds that were this corrupt! BTW, does anyone know if it was ex-Gov. Spitzer or outgoing Gov. Patterson who signed onto this?

December 13, 2010

Ken E said:

Wind farms everywhere! Her in upstate NY, we have seen wind farms cropping up everywhere in the past few years. There seems to be a large Spanish corporation, Iberdrola, behind all this. I guess this un-constitutional RGGI is what's giving them the hubris to do all this. Does anyone know which Governor in NY signed onto this? Was it Spitzer or Patterson?

December 13, 2010

Ken E said:

... Does anyone know khich NY Governor signed onto this? Ex- Governor Spitzer or David Patterson?

December 13, 2010

Ken E said:

... Does anyone know which NY Governor signed onto this?

December 13, 2010

intel said:

Stealth This is a very big picture. It is by stealth that all evil enters, like cap & trade, wind, solar, ethanol, UNIPCC lies...see Lord Monkton on youtube. Evil or hostaged leaders at all levels. Unknown high tech causes destruction instead of solutions, until all is under control of evil. Then false solutions & peace by accepting cashless "the mark" society, for the price of your soul. The tech solution is energetics, bio energetics, psycoenergetics. now in use by evil, the catch is to change the hearts of millions & use it for all good, instead of turning earth into another Mars, & blaming co2...needed to generate oxygen for all life. For science of global energy solution, go to chenier.com & learn the many applications. For your world sit. report, see youtube ph. interview... Dr. Bill Deagle-project camelot, "If you can't see ___ ______, turn the lights on". Prep for solar mass injection because many will not be prepared. Never follow the crowd !

December 19, 2010

Peter T. Jones said:

Pataki The Memorandum has Pataki's signature on it so I'm assuming it's him. We need to let our state reps and senators know that this crazy cap-and-steal stuff has got to go. Yesterday.

January 01, 2011