Regional Greenhouse Gas Initiative Announces Results from Second Allowance Auction

On December 17, 2008, members of the Regional Greenhouse Gas Initiative (RGGI) conducted their second allowance auction for the cap-and-trade program. The compliance obligations under the RGGI program take effect on January 1, 2009 and apply to carbon dioxide emissions from the power sector in the ten participating New England and Mid-Atlantic states: Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont. Through RGGI, these states will stabilize carbon dioxide emissions levels in the power sector from 2009-2014 and decrease emissions by 2.5 percent per year from 2015-2018.

Potomac Economics, the RGGI market monitor, has released an auction report and has confirmed that it took place in a fair, competitive, and transparent manner. Sixty-nine entities submitted bids for 108,709,000 allowances; 31,505,898 were ultimately sold to 46 entities at the clearing price of $3.38.

The auction raised $106,500,000, which will be distributed to the states for clean energy and energy efficiency programs. The third auction will take place on March 18, 2009, and future auctions will occur on a quarterly basis.

Press Release
Post-Settlement Auction Report