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  • Latest RGGI auction brings in over $1.5 million - $85 million to date for Maine

     

    By Ramona du Houx

    Maine earned $1,555,662 in The Regional Greenhouse Gas Initiative’s (RGGI) 35th 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.

     Since RGGI’s inception Maine has brought in $85,166,608.15 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.

    14,371,300 CO2 allowances were sold at the auction at a clearing price of $3.00. Bids for the CO2 allowances ranged from $2.15 to $13.75 per allowance.

    The March 8th auction was the first auction of 2017, and generated $43.1 million for reinvestment in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs. Cumulative proceeds from all RGGI CO2 allowance auctions for all the 9 states participating exceed $2.68 billion dollars. 

    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.

    “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.

    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.

    “The reinvestment of these auction proceeds will help to build on the RGGI states’ track record of achieving emissions reductions together with economic growth,” said Katie Dykes, Chair of the Connecticut Public Utilities Regulatory Authority and Chair of the RGGI, Inc. Board of Directors.

    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.

    “Year after year, RGGI delivers triple benefits—economic, social, and environmental,” said Jared Snyder, Deputy Commissioner, New York State Department of Environmental Conservation and Vice Chair of the RGGI, Inc. Board of Directors.  “More than a decade ago our states chose to step up in the absence of federal action, and independent reports have found significant payback as a result. RGGI is boosting state economies and lowering consumers’ energy bills while driving down carbon emissions and reducing the harmful health effects of fossil fuel pollution. The RGGI states continue to invest in the health of our communities while providing a clear market signal to power producers.”

     

     

    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.