Albany -- Governor Eliot Spitzer Wednesday unveiled new draft regulations to carry out a regional program that will cut greenhouse gases emitted by New York power plants. Today, New York issued draft regulations for implementing the Regional Greenhouse Gas Initiative.

RGGI is an agreement by 10 Northeastern states to reduce greenhouse gas emissions. Under RGGI, participating states will each issue their own regulations, and when fully implemented RGGI will achieve a 16 percent reduction in emissions from projected business-as-usual emissions. Under the groundbreaking draft regulations established by Governor Spitzer, a power plant would have to buy enough carbon credits or allowances (one allowance per ton of emissions) to cover its emissions in a flexible, market-based system that are similar to those used to combat acid rain.

The state will not simply give away allowances to power plants. From the start, companies will have to buy allowances through an auction for every ton of carbon dioxide they emit. New York was the first state to advocate auctioning off 100 percent of its pollution allowances – a strategy that most other RGGI states will likely follow.

Power plants pump out 25 percent of the total annual carbon dioxide emitted in New York State. For the initial six years of the RGGI program, carbon emissions will be capped at current levels. In 2015 and in each of the subsequent three years, the cap will be reduced by 2.5 percent for an overall reduction of 10 percent.

Proceeds from the auction would go toward energy efficiency programs and renewable energy projects. The program would also provide opportunities for power companies to offset their emissions through other “green” investments.