Maine earns 2.7 Million from Greenhouse Gas Initiative
Money to be used to reduce energy costs
June 19, 2009
CONTACT:
Donna Gormley 207.592.2032 donna.m.gormley@maine.gov
Today, state officials learned that Maine will receive more than $2.7 million from 4th RGGI Auction, part of a regional cap and trade program used to regulate greenhouse gases. In all, Maine has earned a total of more than $11.6 million since the first auction in September of 2008. The money will benefit consumers in Maine through investments in energy efficiency and programs that reduce energy costs.
“RGGI” stands for the Regional Greenhouse Gas Initiative, which works to reduce carbon dioxide emissions in two
ways:
It places a cap on the total amount of carbon dioxide (CO2 – a ‘greenhouse’ gas) RGGI power plants can collectively emit and requires those power plants to purchase allowances from RGGI for their emissions. This provides an incentive to reduce emissions – doing so saves money because fewer allowances are required to cover plant operations.
It issues a set number of allowances to the 10 participating RGGI states; those states in turn can sell the allowances at quarterly auctions. In Maine, the proceeds are used to reduce green house gas emissions by funding projects that save both energy and money.
“Maine will be using nearly all of it proceeds for energy efficiency, which provides immediate opportunity to slash emissions, reduce consumer energy costs, and create green jobs,” said Maine Department of Environmental Protection Commissioner David Littell. “By using carbon allowance auctions for consumer benefit, Maine and the other RGGI states are showing by example that investing in energy efficiency works.”
At the end of this month, 40% of the RGGI proceeds will be transferred to Efficiency Maine, an energy-efficiency and conservation program administered by the Public Utilities Commission. “These funds will immediately benefit Maine's consumers by expanding current and successful residential and commercial electricity conservation programs at Efficiency Maine,” said Sharon Reishus, Chair of the Commission.
The Energy and Carbon Savings Trustees, who are responsible for distributing the funds, report that approximately 25% of the money will be awarded as competitive grants for large energy efficiency and conservation projects, ranging from $10,000 to $1 million. The notice for that competition is expected to be released before the end of the summer. . Last fall, $650,000 was used for low-income weatherization. After evaluating preliminary results from these programs, the Trustees will identify additional areas in need of funding and disburse the remaining proceeds as quickly as possible.
The major benefit of RGGI is a reduction in greenhouse gas emissions throughout the state and the region – reducing our contribution to global climate change. But there will be other benefits, including reduced reliance on foreign oil and a greater investment in energy efficiency and renewable energy.
4th RGGI Auction pricing:
The 2009 vintage allowances offered in Wednesday’s auction sold at a price of $3.23, the 2012 vintage sold at $2.06.
About the RGGI power plants:
There are 6 power plants in Maine participating in RGGI; Casco Bay Energy in Veazie, Rumford Power, FPL Energy in Wyman, Westbrook Energy Center, and Verso in Androscoggin and Bucksport.
About the Regional Greenhouse Gas Initiative
The 10 Northeast and Mid-Atlantic states participating in RGGI (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Power sector CO2 emissions are capped at current levels through 2014. The cap will then be reduced by 2.5 percent in each of the four years 2015 through 2018, for a total reduction of 10 percent.
A CO2 allowance represents a limited authorization to emit one ton of CO2, as issued by a respective participating state. A regulated power plant must hold CO2 allowances equal to its emissions to demonstrate compliance at the end of each three-year compliance period. The first compliance period for fossil fuel-fired electric generators under the 10-state CO2 Budget Trading Programs took effect on January 1, 2009 and extends through December 31, 2011. For more information about RGGI, turn to: www.rggi.org. The complete Market Monitor Report for Auction 4 is available at: http://www.rggi.org/docs/Auction4NewsReleaseMM_Report.pdf
