For Release: Friday, June 19, 2009
Latest Greenhouse Gas Allowance Auction Nets $39.9 Million for NY
Proceeds to Fund Energy Efficiency and Renewable Energy Projects
State Environmental Conservation Commissioner Pete Grannis today declared New York's participation in the sale of carbon dioxide (CO2) pollution allowances another success. This auction, the fourth held by the 10 states participating in the Regional Greenhouse Gas Initiative (RGGI), generated more than $104.2 million to invest in the clean energy economy. New York's share of the proceeds is approximately $39.9 million.
All 30.9 million allowances for the 2009 vintage sold at a clearing price of $3.23 per allowance in Wednesday's auction. In a parallel offering, the RGGI states also auctioned allowances for a three-year compliance period that begins in 2012. The 2.2 million "2012 vintage" allowances sold for $2.06 per allowance. New York sold 11,861,849 of the 2009 vintage allowances and 776,385 of the 2012 vintage. The proceeds will go to energy efficiency, clean and renewable energy technologies and strategies to reduce greenhouse gases and create green jobs.
Potomac Economics, the RGGI market monitor, found strong participation in the latest auction. Fifty-four entities submitted bids to purchase 2.6 times the available supply of 2009 allowances; 13 entities submitted bids to purchase 1.5 times the available supply of 2012 allowances.
"The latest auction is another strong result for the RGGI states, who are leading the fight against climate change," said Commissioner Grannis, who also serves as chairman of the Regional Greenhouse Gas Initiative, Inc. Board of Directors. "As the U.S. House and Senate debate climate and energy legislation, RGGI's success is a reminder of why a national emissions reduction program with allowance auctions is the right approach for addressing climate change."
Francis J. Murray, Jr., President and CEO of NYSERDA, said: "This successful auction is yet another example of New York's commitment to fighting global climate change. We look forward to working with our partners to develop and implement programs that will reduce the emissions of greenhouse gases in New York, while creating thousands of green-collar jobs."
Garry Brown, Chairman of the New York State Public Service Commission, said: "The money raised by this auction will result in a substantial benefit to consumers in New York in terms of energy efficiency, a clean environment, and a further strengthening of renewable resources. Governor Paterson has made the development of clean energy a policy cornerstone, and through his actions we will see the creation of thousands of clean energy jobs and a solid boost to the economy in the state."
New York has developed an operating plan to use RGGI proceeds to fund energy efficiency and renewable energy programs to help families, businesses and local governments reduce their energy bills while investing in the clean energy technologies that will create jobs and lower the state's carbon footprint. In addition, proceeds also will support "green collar" workforce training programs that will enhance a network of highly-skilled workers needed to meet New York's energy challenges and further stimulate the state's economic recovery. Over the lifetime of the projects funded with RGGI program dollars, the operating plan estimates that in-state benefits will include customer energy bill savings of more than $1 billion, creation or retention of approximately 3,000 jobs, and greenhouse gas emissions reductions up to 8.3 million tons - the equivalent of removing approximately 100,000 cars from the road.
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 2008. New York's share is approximately $127.8 million.
About the Regional Greenhouse Gas Initiative
The 10 Northeast and Mid-Atlantic states participating in RGGI (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at current levels through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.
A CO2 allowance represents a limited authorization to emit one ton of CO2, as issued by a respective participating state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year compliance period. The first compliance period for fossil fuel-fired electric generators under the 10-state CO2 Budget Trading Programs took effect on January 1, 2009 and extends through December 31, 2011. For more information about RGGI turn to: www.rggi.org
About Regional Greenhouse Gas Initiative, Inc.
RGGI, Inc. was created in September 2007 to provide technical and administrative services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c) 3 nonprofit organization. For more information about RGGI, Inc. please visit: www.rggi.org/rggi
