RGGI Auction Yields $104.2 Million for Investment
The states participating in the first-in-the-nation cap-and-trade system for greenhouse gases conducted their fourth regional auction of carbon allowances on, June 17, raising $104.2 million for investment in the clean energy economy.
Under the Regional Greenhouse Gas Initiative (RGGI), these 10 partnering states hold quarterly allowance auctions and invest the proceeds in energy efficiency, renewable energy, and other programs that benefit energy consumers and create green jobs.
All of the 30,887,620 allowances for the 2009 vintage offered in the latest auction sold at a price of $3.23. Potomac Economics, the RGGI independent market monitor, found participation in the 2009 offering to be robust with 54 separate entities submitting bids to purchase 2.6 times the available supply of 2009 allowances. Compliance entities and their affiliates purchased 85 percent of the 2009 allowances offered.
In a parallel offering, the RGGI states also auctioned allowances for the second three-year control period beginning Jan. 1, 2012. All of the 2,172,540 allowances for the 2012 vintage sold at a price of $2.06 with 13 entities submitting bids to purchase 1.5 times the available supply of 2012 allowances. Compliance entities and their affiliates purchased 81 percent of the 2012 allowances offered.
"RGGI's reliable auction process continues to set an example for the nation," said Pete Grannis, commissioner of the New York State Department of Environmental Conservation and chair of the Regional Greenhouse Gas Initiative, Inc. Board of Directors.
The states have now auctioned more than 110 million allowances and raised a total of $366.5 million since the first RGGI auction in September of 2008. The states are investing RGGI proceeds in energy efficiency, renewable energy, technology development, and other consumer benefit programs. Overall, the states are investing the vast majority of proceeds in energy efficiency and renewable energy.
Across the region, state energy efficiency programs are engaging municipalities, electric utilities, homeowners, businesses and not-for-profit organizations. Funds are being used to weatherize low-income homes, hire and train energy efficiency auditors, deploy combined heat and power and district heating and cooling systems, subsidize energy efficiency improvements for small businesses, educate contractors about energy efficiency and other initiatives.
The complete Market Monitor Report for Auction 4 is available at: http://www.rggi.org/docs/Auction_4_News_Release_MM_Report.pdf