Maine receives $2.5M through ‘cap and trade’ program
The State of Maine received $2.49 million through the auction of carbon dioxide (CO2) emission allowances, the Maine Public Utilities Commission reported.
The funding comes through the Regional Greenhouse Gas Initiative (RGGI), a cap and trade program that reduces CO2 emissions from power plants generating more than 25 megawatts. Nine New England and Mid-Atlantic states participate in the program.
How it works is the participating states limit, or “cap,” CO2 emissions from power plants to reduce air pollution. Companies then purchase allowances at auction. The auction, or trade, component of the program generates revenues for all nine participating states.
This latest auction, the 45th, reached the historic milestone of selling the one billionth CO2 emission allowance. RGGI Chair Phil Bartlett said the program has provided Maine residents with significant benefits, including reduced greenhouse gas emissions and investment in energy efficiency through the auction revenues.
The revenues go into the Efficiency Maine Trust (EMT) where they are used to finance rate relief, energy efficiency, and renewable energy projects. Since 2007, Maine has now received a total of $108.6 million. Also, the nine participating states have reduced CO2 emissions from eligible power plants by over 50 percent since 2007.
