PROVIDENCE – A new report from the Regional Greenhouse Gas Initiative said that the program generated $23.9 million in revenue for Rhode Island from 2015-2017.
The report was conducted by Analysis Group, an economic, financial and strategy consultant group on the most recent three-year compliance period of the greenhouse gas program.
In all three three-year compliance periods of the program so far, combined with the fourth-period allowances sold so far, the state has earned $60.5 million from the RGGI auctions.
The RGGI program was designed to reduce carbon emissions by auctioning off carbon emissions as a carbon-control program. Its members for the latest three-year compliance period were Rhode Island, Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York and Vermont.
The report said that Rhode Island used its RGGI proceeds primarily on energy efficiency in the third compliance period, with $10.7 million dedicated to the effort. The state also spent $9.2 million on direct bill assistance. Approximately $4.9 million was dedicated to renewable energy investment in the state while program administration costs accounted for $3.4 million. Lesser amounts were spent on clean technology research and development ($300,000), and greenhouse gas programs ($100,000).
In total, Rhode Island spent $28.8 million in RGGI revenue in the third compliance period.
The nine participating states generated approximately $901 million at auction for the third period. Massachusetts accounted for $154.3 million each year in auction revenue, while New York had the highest gross revenue from the program at $345.1 million.
In the first and second compliance periods RGGI generated $952 million and $983 million at auction, respectively.
The review estimated that RGGI had a $1.4 billion net positive impact from 2015 to 2017 for the region. The program was also estimated to have created 14,500 job-years in that time, with positive job-year additions in every participating state.
The program’s cumulative net economic impact on the area for all three compliance periods to date was estimated to be $4 billion.
Chris Bergenheim is the PBN web editor.