RGGI sells $55.4M in CO2 allowances at 40th auction

THE REGIONAL GREENHOUSE GAS Initiative completed its 40th auction, selling carbon dioxide allowances for a clearing price of $4.02, generating a total of $55.4 million for the nine participating states. / BLOOMBERG FILE PHOTO/LUKE SHARRETT
THE REGIONAL GREENHOUSE GAS Initiative completed its 40th auction, selling carbon dioxide allowances for a clearing price of $4.02, generating a total of $55.4 million for the nine participating states. / BLOOMBERG FILE PHOTO/LUKE SHARRETT

PROVIDENCE – The nine New England and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative Inc. auctioned 13.7 million carbon dioxide allowances at its 40th auction at a clearing price of $4.02, RGGI announced Friday, bringing a total of $55.4 million to the states for use in energy efficiency, renewable energy, direct bill assistance and greenhouse-gas abatement programs.

Of the total, Rhode Island received just over $1 million in proceeds, bringing the total that the state has received to $61.6 million. Most of the total has been invested in energy efficiency programs as well as supporting the development of the clean-energy industry.

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The other eight states received these amounts in auction proceeds from the 40th auction:

  • Connecticut, $4 million
  • Delaware, $2.8 million
  • Maine, $2.1 million
  • Maryland, $10.4 million
  • Massachusetts, $9.8 million
  • New Hampshire, $3.4 million
  • New York, $21.4 million
  • Vermont, $445,565

Sinice the beginning of the program in 2008, the participating states (which at one point also included New Jersey) have earned a total of $2.9 billion in auction proceeds.

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“The RGGI states’ quarterly auctions provide allowances to market participants, while also generating proceeds for the states to reinvest in a cleaner and more cost-effective energy system,” stated Ben Grumbles, secretary of the Md. Department of the Environment and chair of the RGGI Inc. board of directors.

In this auction, there were just over 3 bids for every allowance from a pool of 43 bidders. All of the regular allowances offered at the auction were purchased. Ten million cost containment reserve allowances were also available but not sold. The CCR is a fixed additional supply of allowances that are only available if the allowance price exceeds certain price levels, ($10.25 in 2018).

In other news, on Monday, RGGI also issued a Request for Proposal for an auction services contractor. The contractor will have to provide pre-auction service, auction implementation services and post-auction services at a minimum.

Responses are due by 5 p.m. on July 23. More details can be found on the RGGI website.  A selection will be announced in October, if any responses are chosen. The first live auction under the contract would occur in June 2019.

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