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ALBANY — New York has joined a regional system to reduce carbon dioxide emissions from the state’s power plants.

The state Environmental Board voted to implement the Regional Greenhouse Gas Initiative, which creates a mandatory cap-and-trade program designed to cut pollution that contributes to global warming, while simultaneously raising funds for “green” energy programs in New York.

“Today’s action is the culmination of extensive work by the Department of Environmental Conservation and our state partners to respond to the challenges posed by climate change,” said Alexander B. “Pete” Grannis, DEC commissioner and Environmental Board chairman, in a press release. “With the approval of the RGGI regulations today, we have enacted a key component of Gov. David A. Paterson’s plan to move New York towards a clean energy economy and ensure a healthier environment for our entire region.”

In order to stay in business, power plant operators will have to purchase carbon dioxide allowances, either through a quarterly auction or from each other in a secondary market, to cover every ton of carbon dioxide they emit. Plants must be in compliance by Jan. 1, 2009.

New York’s power plants will first be required to participate in this December’s auction, although allowances they purchase from other states in the Sept. 25 auction will count toward their compliance.

Auction proceeds will fund energy efficiency improvement programs, projects to create renewable energy, and efforts to develop “innovative non-carbon emitting technologies,” DEC said in a statement. Plant operators will also be able to offset a portion of their emissions with investments in “green” technology.”

“Gov. Paterson has made fighting global climate change one of the hallmarks of his comprehensive energy policy,” said Robert G. Callender, vice president, New York State Energy Research and Development Authority. “We look forward to working with our partners to develop new technologies and implement energy efficiency programs that will reduce the emissions of greenhouse gases and provide real and lasting energy savings for consumers throughout New York state.”

DEC spokeswoman Maureen Wren said that the minimum “reserve price” at the quarterly auctions will be $1.86 per ton of emissions. Companies may sell unused credits on a secondary market to other carbon dioxide emitters.

In 2005, according to a DEC regulatory impact statement on RGGI, New York’s power plants produced approximately 61 million tons of carbon dioxide, representing one-quarter of the state’s total greenhouse gas emissions. Assuming this emission level stays constant, the auctions could generate almost $113.5 million next year.

The price is expected to increase to approximately $2 per ton in 2009, to $3 per ton in 2015, and to $4.45 per ton in 2021, the impact statement said. This will mean more money for the state, as well as rate increases for New York’s power consumers.

“For a typical New York residential customer, using 750 kilowatt/hours per month, the projected increase in wholesale electricity prices in 2015 — 1.6 percent — translates into a monthly retail bill increase of about 0.7 percent or 78 cents,” according to the impact statement. “In 2021, the projected increase in wholesale electricity prices — 2.4 percent — translates into a monthly residential retail bill increase of about 1 percent or $1.13.

“For commercial customers, the projected retail price impact of RGGI is about 0.9 percent in 2015 and 1.2 percent in 2021,” the statement continued. “For industrial customers, the projected retail price impact of RGGI is about 1.7 percent in 2015 and 2.4 percent in 2021.”

“The Environmental Board’s approval of regulations designed to implement the nation’s first carbon cap-and-trade program is a landmark step for New York state,” said Garry A. Brown, chairman of the state Public Service Commission. “By taking this bold and innovative action, the Board is helping turn Governor Paterson’s vision of a clean energy economy into reality.”

Besides New York, the other RGGI member states are Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut, New Jersey, Maryland and Delaware.

The 16-member Environmental Board, which is comprised of state agency chiefs, along with members of environmental and citizens’ organizations and business and industry representatives.

More information about RGGI is available online at: www.rggi.org.

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