39th RGGI auction brings Maine close to $2Million - All auctions total close to $94Million
$93,893,930.64 million to date for Maine from RGGI
By Ramona du Houx
Maine earned $1,984,834.37 in The Regional Greenhouse Gas Initiative’s (RGGI) 39th auction of carbon dioxide allowances. RGGI is the nation’s first market-based regulatory program to reduce greenhouse gas (GHG) pollution and is viewed as a model for other regions.
“RGGI is still working and still helping Mainers reduce our energy bills and reduce emissions. It is a win-win and a model for the entire nation,” said State Representative Seth Berry, the House chair of the Legislature’s Energy, Utilities and Technology Committee.
Since RGGI’s inception Maine has brought in $93,893,930.64 for weatherization and alternative energy projects, for businesses and homes. Many of these programs and projects are managed through the Efficiency Maine Trust, set up by the Baldacci administration.
13,553,767 CO2 allowances were sold at the auction at a clearing price of $3.79. Bids for the CO2 allowances ranged from $2.20 to $5.80 per allowance. The auction generated $51.4 million for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs.
“While actions to address climate change are stalled at the federal level, the RGGI states continue to demonstrate leadership in reducing pollution while boosting a clean energy economy.” said Jared Snyder, Deputy Commissioner, New York State Department of Environmental Conservation and Vice Chair of the RGGI, Inc. Board of Directors.
Cumulative proceeds from all RGGI CO2 allowance auctions for all states amount to $2.89 billion.
"RGGI’s quarterly allowance auctions send a signal to the market, while at the same time generating proceeds for reinvestment,” said Katie Dykes, Chair of the Connecticut Public Utilities Regulatory Authority and Vice Chair of the RGGI, Inc. Board of Directors. “States’ investments of RGGI proceeds have generated consumer benefits through programs including clean and renewable energy, energy efficiency, and direct bill assistance. The flexibility afforded to the states to invest according to state-specific needs and goals is an important feature of the RGGI program.”
In Maine, the program first started when Governor John Baldacci pushed for it’s implementation and had lawmakers introduce a bill. The legislation won unanimous support in Maine’s Senate and House.
With ocean acidification on the rise Maine’s lobstermen are worried and have become proponents of RGGI. “Since RGGI’s inception in 2009, we have seen a 35 percent reduction in carbon emissions from power plants and substantial investments in energy efficiency across Maine,” said Richard Nelson a lobster fisherman and member of the Maine Ocean Acidification Commission and the Maine Regional Ocean Planning Advisory Group.
“Since its launch in 2005, the nine RGGI states have cut emissions from the electricity sector nearly in half while stimulating the creation of thousands of clean energy jobs and reaping more than a billion dollars in public health benefits providing a model for the nation for reducing the greenhouse gas emissions that contribute to climate change,” said Jared Snyder, Deputy Commissioner, New York State Department of Environmental Conservation and Vice Chair of the RGGI, Inc. Board of Directors. “While actions to address climate change are stalled at the federal level, our states are enjoying the benefits of a transition to clean energy and we will continue to invest in preserving our environment and our economy for future generations.”
Photo: Dr. Dagher talks with Gov. John Baldacci about the next steps for offshore wind farm implementation - increasing wind energy was a big part of Baldacci's energy adgenda.
During Governor John Baldacci’s tenure his energy office developed a 50-year energy plan to help make the state energy independent. Many of the plans components of were implemented before Governor LePage took office, like becoming a member of RGGI.
Baldacci's clean energy plan focused on how to get Maine off fossil fuels while bringing clean energy jobs to the state. His administration created grants for weatherization of homes and to help new alternative energy innovations like the floating offshore wind platforms and windmills developed at the University of Maine.
Photo: The prototype VolturnUS offshore floating wind platform and tower designed at UMaine with Dr. Dagher's team and initially funded by state bonds.
RGGI History —
The first pre-compliance RGGI auction took place in September 2008, and the program became effective on January 1, 2009.
In 2003, governors from Maine, Connecticut, Delaware, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, and Vermont began discussions to develop a regional cap-and-trade program addressing carbon dioxide emissions from power plants.
On December 20, 2005, seven of those states announced an agreement to implement RGGI, as outlined in a Memorandum of Understanding (MOU) signed by the Governor's of Maine, Connecticut, Delaware, New Hampshire, New Jersey, New York, and Vermont. The MOU, as amended, provides the outlines of RGGI. New Jersey is the only state to opt-out of the program under Governor Christie’s leadership, missing out on millions of revenues.