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News Release RI Department of Environmental Management 235 Promenade Street, Providence, RI 02908 (401) 222-2771 TDD/(401) 222-4462
REGIONAL GREENHOUSE GAS INITIATIVE (RGGI) AUCTION PROCESS GOES LIVE TODAY Today's Auction Notice opens the process that potential bidders must follow to qualify for and participate in the CO2 allowance auction. Department of Environmental Management Director W. Michael Sullivan, Ph.D. joined the nine other RGGI states in urging prospective bidders to seize this first opportunity to bid for CO2 allowances by downloading final auction documents from: www.RGGI.org/auctions. All potential bidders must have successfully completed the qualification process to gain access to the auction. The 10 Northeast and Mid-Atlantic states pioneering the auction have designed this first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions in a simple and constructive way. The states have committed to cap and then reduce the amount of CO2 that power plants in their region are allowed to emit, limiting the region's total contribution to atmospheric greenhouse gas levels. The auction will generate investment in energy efficiency and renewable energy in the RGGI region and fund programs to combat fuel poverty and support consumers. Opening the auction process, RGGI Executive Director Jonathan Schrag said, "This first RGGI auction is a historic moment. The auctions will spur innovation in the energy sector and we anticipate strong interest from bidders. The qualification process is extremely important, so I urge potential bidders to take advantage of the information and technical assistance being made available online today." The RGGI auction process was designed with input from stakeholders and all 10 participating RGGI states, and will provide a platform for the auctioning of each state's CO2 allowances. The September 25th auction will offer 12,565,387 CO2 allowances, including CO2 allowances issued by Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont. Rhode Island's share of that figure is 438,774 CO2 allowances. Any CO2 allowances purchased at this auction can be used by a regulated facility for compliance in any of the RGGI states, even if that state does not offer allowances in this auction. Under the RGGI process, after the 10 participating states have stabilized power sector carbon emissions at their capped level by 2014, the cap will be reduced each year from 2015 through 2018. By holding this auction and the one planned for December, the 10 RGGI states have exceeded the commitment made in December 2005. By signing the original Memorandum of Understanding, participating states committed to have a program in place by January 1, 2009. That goal will be met and these early auctions will ensure an ample opportunity for bidders to obtain the allowances they will need for compliance across the entire 10-state region. Governor Carcieri signed the Memorandum of Understanding committing Rhode Island to participate in the RGGI program in February 2007. The General Assembly enacted legislation in 2007 that required DEM to participate in RGGI, established that DEM would auction or sell CO2 allowances it issued under the program, and required proceeds from the sale be used for the benefit of energy consumers. Specifically, proceeds can be used for the promotion of cost-effective energy efficiency and conservation, the promotion of cost-effective renewable non-carbon emitting energy technologies, and direct rate relief for consumers, particularly those with low incomes. A limited amount is available for administration of the RGGI program. "RGGI is a major part of Rhode Island's plan to reduce carbon emissions," noted DEM Director Sullivan. "RGGI also will result in increased energy efficiency from selling CO2 allowances, which is the best way to reduce the cost of power and the pollution associated with making it." -30- |
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