Description: Challenge to state regulations implementing Regional Greenhouse Gas Initiative.
Indeck Corinth, L.P. v. Paterson
Filing Date Type File Action Taken Summary 12/23/2009 Consent Decree Download Consent decree announced. A settlement was reached concerning a lawsuit that had been brought by the operator of a New York power plant against several New York State agencies concerning the state’s implementation of the Regional Greenhouse Gas Initiative (RGGI). According to the New York State Energy Research and Development Authority (NYSERDA) and the New York State Department of Environmental Conservation (DEC), the settlement left intact the mechanisms to achieve the goals of the RGGI program. Under the settlement, the plaintiff company will withdraw the lawsuit and in return the utility Con Edison will pay the company and other power producers for the amount of pollution allowances that they do not receive directly from DEC from a pool of allowances that were set aside under the regulations for qualifying power generators bound by long-term contracts. In addition, NYSERDA will allot a portion of the RGGI proceeds to offset Con Edison’s costs. 01/29/2009 Petition Petition filed. Plaintiff, the operator of a 128-megawatt natural gas-fired cogeneration plant, sued New York to overturn the state regulations implementing the Regional Greenhouse Gas Initiative (RGGI). In its complaint, the company claimed that the regulations were unconstitutional and were implemented without the necessary statutory authority from the state legislature. In addition, the lawsuit alleged that RGGI should be declared void because it was never approved by Congress and was therefore in violation of the Compact Clause of the U.S. Constitution. The company’s main claim was that, under the RGGI regulations, it was unable to pass through the costs for purchasing carbon dioxide allowances because it was obligated to a long-term fixed-price contract for electricity with Consolidated Edison. The lawsuit was initially filed in Saratoga County (Index No. 369-2009) but was later transferred to Albany County.