Participatingstates in the Regional Greenhouse Gas Initiative released auction documentsJuly 11 for the program's third quarterly auction of the year, kicking off thebidding process for the Sept. 7 sale.
Partof an effort by nine mid-Atlantic and New England states to cap and reduce CO2emissions from the region's power plants, the 33rd RGGI auction will offer atotal of 14,911,315 allocation year 2016 CO2 allowances for sale. The RGGIstates will use a reserve price of $2.10/ton.
Also,there will be a 10 million allowance cost containment reserve available for theupcoming auction. The reserve will be accessed if the interim clearing priceexceeds the cost containment reserve trigger price of $8.00/ton. Moreinformation about the upcoming September auction will be provided during awebinar held from 2 to 3 p.m. ET on July 14.
AtRGGI's prior quarterly auction held in June,100% of the more than 15.0 million allocation year 2016 CO2 allowances on offerwere purchased at a clearing price of $4.53/ton. The clearing price was down 72cents, or 13.7%, from the Marchauction price.
RGGIis made up of Connecticut, Delaware, Maine, Massachusetts, Maryland, NewHampshire, New York, Rhode Island and Vermont. The states use a market-basedcap-and-trade program to reduce greenhouse gas emissions from regional powerplants, selling nearly all emissions allowances through auctions and investingproceeds in energy efficiency projects in the residential, commercial andmunicipal sectors.
TheRGGI participating states are undergoing a program review this year, duringwhich time changes to the program's rules, particularly in light of the CleanPower Plan, are being considered.