RGGI concludes third 2016 CO2 allowance auction

The members of the Regional Greenhouse Gas Initiative (RGGI) on Friday released the results of the 33rd carbon dioxide (CO2) allowance auction, which took place on Wednesday.

The auction raised $67.7 million from the sale of nearly 15 million CO2 allowances, with a clearing price of $4.54 and bids for allowances ranging from $2.10 to $12.65 per allowance.

A CO2 allowance signifies a limited authorization for the emission of one short ton of CO2, and regulated power plants must possess sufficient allowances to cover their emissions for a given three-year control period. The current RGGI control period extends from Jan. 1, 2015, through Dec. 31, 2017.

“I am pleased that the market monitor has reported that Auction 33 was a competitive auction with no indication of market manipulation or collusion,” Maine Public Utilities Commissioner Carlisle McLean said. “RGGI continues to make strides toward a clean, low-cost electricity system while also providing revenue for each state to invest to their advantage.”

RGGI is a mandatory, market-based regulatory program created to reduce greenhouse gas pollution, and is composed of nine Northeastern and Mid-Atlantic member states – Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The money generated by the allowance auctions is allocated among the member states and reinvested in accordance with state laws and rules.