The Regional Greenhouse Gas Initiative (RGGI) "Cap & Trade" program has already increased utility bills for ratepayers and extracted over $65M in wealth from New Jersey's private sector.

The authors of the legislation setting up the RGGI "Cap & Trade" scheme envisioned it as a prelude to a federal program. Language in the legislation makes this clear.

The Legislature further finds and declares that any emissions allowance trading program established in the State to reduce emissions of greenhouse gases should transition to any federal program enacted by the federal government that is comparable to the emissions allowance trading program established in New Jersey.

However, last week the prospects of a federal bill diminished as the Senate shelved their effort to craft the "Cap & Trade" bill. While "Cap & Trade" opponents need to be vigilant -- proponents of "Cap & Trade" in Congress may yet to sneak a program through by merging a different Senate energy bill with the House Waxman-Markey bill or try to ram it through in a lame duck session of Congress -- New Jersey is unnecessarily inflicting damage on the state's economy by continuing its participation in the RGGI program.

An article by NJSpotlight.com details how New Jersey is at an economic disadvantage relative to neighboring states because of RGGI. Pennsylvania, for example, is not a participant in "Cap & Trade." Therefore, ratepayers and businesses in that state are not subject to this stealth energy tax. Additionally, since states like Pennsylvania rely more on fossil fuels like coal, energy costs there are already lower - making PA much more business-friendly than New Jersey.

The article states:

In the future, New Jersey ratepayers may question why the Northeast states are going it alone, clean energy advocates warned. “In the next year or two, if we don’t break this logjam in Congress, it could cause a backlash in New Jersey for sticking our necks out," Pringle said.

"Cap & Trade" stands to cost New Jersey thousands of jobs, millions in lost wealth and vastly higher gas and electric bills. This alone is reason enough to kill RGGI. To date, opponents have been able to stave off a federal bill. The fact that our state is participating in this scheme and hurting an already fragile economy while other states are not only serves as a greater impetus for extracting New Jersey from this "Cap & Trade" program.

Read the complete article here.