On December 3, the Regional Greenhouse Gas Initiative announced its 54th auction of carbon dioxide allowances resulted in an average carbon price of $13 and generated $351 million for states to reinvest in strategic programs, including energy efficiency, renewable energy, direct bill assistance, and GHG abatement programs.

The bids ranged from $2.38 to $17 per allowance.  The cost of the allowances will ultimately be reflected in the cost of electricity in the participating states in some form.

The $351 million in proceeds will benefit 10 states-- Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island, Vermont, and Virginia-- who implement carbon pollution reduction programs covering power plants consistent with RGGI.

The price of allowances in RGGI auctions have increased dramatically over the last three years.

The 45th auction in September 2019 resulted in a clearing price of $5.20. In the 49th auction in September of 2020 the price was $6.82.  In the 53rd auction the price was $9.30 in September of 2021.  Read more here.

Click Here for the complete announcement.

PA RGGI

Gov. Wolf directed DEP to adopt a RGGI-consistent program by executive order in June 2020.

The regulation has now been approved by the Independent Regulatory Review Commission, the Office of Attorney General for form and legality and is awaiting House action on a resolution to kill the regulation that has already been passed by the Senate.

The resolution will go to the Governor for his action and he has already said he will veto it.

Visit DEP’s Regional Greenhouse Gas Initiative webpage to learn more.

NewsClips:

-- Financial Times: Record EU Carbon Price Boosts Clean Fuel Economics

-- PA Cap-Star: Multiple Efforts Continue In The General Assembly To Block DEP’s Regulation Reducing Carbon Pollution From Power Plants

Related Articles:

-- Senate Passes Resolution To Block Regional Greenhouse Gas Initiative Regulations; Now Goes To House

-- Republicans On House Committee Report Out Resolution To Kill Regional Greenhouse Gas Initiative Regulation

-- Independent Regulatory Review Commission Votes To Approve The Final RGGI Carbon Pollution Reduction Regulation Covering Power Plants

-- 4 DEP Advisory Committees Express Their Support For DEP’s Final Carbon Pollution Reduction Regulation Covering Power Plants [RGGI]

-- Senate Republicans To Gov. Wolf: We Will Reject Any Nominees To PUC Until You Withdraw Your Executive Order Joining RGGI Carbon Pollution Reduction Program For Power Plants

-- How Did We Get Here: Background On The Final EQB Regulation Reducing Carbon Pollution From Power Plants [RGGI]

[Posted: December 7, 2021]

12/13/2021