On June 28, 2011, two business women with the assistance of the Competitive Enterprise Institute (“CEI”) and Americans for Prosperity filed a lawsuit against the state of New York for participation in the Regional Greenhouse Gas Initiative (“RGGI”) program because the interstate compact was never approved by the state legislature. Instead, in 2005, New York’s Governor, George Pataki committed the state to RGGI participation. RGGI is a carbon-trading system established by ten states to reduce carbon dioxide emissions from power plants by ten percent over the next decade. CEI alleges the RGGI program will unnecessarily increase taxes and is being implemented by unelected officials.
Another lawsuit challenging New York’s participation was lodged in 2009 (see February 9, 2009 edition of the WER). Notably, New Jersey has announced its intention to leave the RGGI program by the end of the year due to the high cost and tax burden of the program.
A copy of the CEI press release discussing the lawsuit and a copy of the complaint is available here.