For Release: Friday, June 11, 2010
Latest Carbon Auction Yields $29.8 Million for Investments in Clean Energy, Job Creation in NY
RGGI Helps Fund Gov. Paterson's Green Jobs/Green NY Legislation
State Environmental Commissioner Pete Grannis today announced New York's successful participation in another quarterly auction of carbon dioxide (CO2) pollution allowances. This auction, the eighth conducted by the 10 states participating in the Regional Greenhouse Gas Initiative (RGGI), generated $80.5 million to invest in the clean energy economy. New York's share of the proceeds is approximately $29.8 million.
In total, 40,685,585 allowances offered by the 10 RGGI states for the current compliance period (2009-2011) sold at a clearing price of $1.88 per allowance in this week's auction. In a parallel offering, the RGGI states also auctioned allowances for the next three-year compliance period (2012-2014): 2,137,993 of these allowances sold for $1.86 per allowance. New York sold 15,136,022 of the 2009-11 vintage allowances and 756,801 of the 2012-14 vintage.
Overall, the 10 RGGI states have now raised a total of $662.8 million since the first RGGI auction in September 2008. New York's share is approximately $243 million.
States are investing proceeds to improve energy efficiency, accelerate the rollout of renewable energy technology and build the clean energy economy. New York's innovative investments will drive demand for new products and services and help train a new workforce.
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 and implemented 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 188 million short tons per year through 2014. The cap will then be reduced by 2.5 percent in each of the next 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 control period. The first control period for fossil fuel-fired electric generators under each state's CO2 Budget Trading Program took effect on Jan. 1, 2009 and extends through Dec. 31, 2011. Allowances issued by any participating state are usable across all state programs, so that the 10 individual state CO2 Budget Trading Programs, in aggregate, form one regional compliance market for CO2 emissions. For more information go to: www.rggi.org
