UPDATE: RENEWED ENERGY: Budget Pressure Eats At State Programs - WSJ.com:
By Mark Peters
Of DOW JONES NEWSWIRES
NEW YORK (Dow Jones)--Hefty budget deficits are tempting Northeast U.S. states to tap money earmarked for efficiency and renewable-energy programs.
Elected officials in New Jersey and Connecticut may divert hundreds of millions of dollars collected through electric rates into state coffers. Environmentalists are closely watching New York and Rhode Island, among other states, to see if they do the same with money raised through a regional, market-based program to cut emissions of the greenhouse gases blamed for climate change.
Many states are struggling to balance their annual budgets as the recent recession continues to hit tax revenue, with the energy funds in Northeast states looking particularly vulnerable. Unlike the federal government, no state except Vermont can run a deficit, so elected officials face tough choices as the fiscal year ends and budgets are finalized this spring.
Environmentalists warn diverting money away from renewable projects and efficiency programs is short-sighted. The move would inject uncertainty into fragile retail markets taking shape for solar panels and other renewable-energy technologies. Reduced funding could curb in-state research while scaling back popular efficiency programs that provide environmental benefits and consumer savings at relatively low costs.
'We feel very strongly this is a dangerous precedent,' said Matt Elliott, global warming and clean energy advocate for Environment New Jersey"
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