10 Northeastern and Mid-Atantic states participating in the Regional Greenhouse Gas Initiative (RGGI) announced they will hold the first CO2 allowance auction on September 10. The auction, through which regional power plants are required to pay for their greenhouse gas emissions, will be th first of its kind in the U.S.
The sale of allowances will be the first of quarterly auctions in which each state has agreed to participate. Power plants must reduce their carbon emissions below a limit set by the RGGI, or purchase emission allowances from other companies to cover their overages.
“Climate change is the most significant environmental problem of our generation”, said Pete Grannis, the Chair of RGGI, Inc. and Commissioner of the New York State Department of Environmental Conservation.
“Absent federal leadership, the Northeast and Mid-Atlantic states of RGGI are taking action to cut greenhouse gas emissions and reduce their impact on the environment," he continued. "Our CO2 auction will be the first in the nation and it is one that should be replicated at the federal level.”
The second auction is scheduled for December 17, 2008, and the first compliance period for the RGGI cap-and-trade program will begin January 1, 2009.
To support the implementation of the program, RGGI has selected several companies to deliver services.
World Energy Solutions, Inc. will assist the design and implementation of the auction. Perrin Quarles Associates, Inc. (PQA) was selected to provide services related to the development and implementation of an emissions and allowance tracking system.
ICF International will support the implementation of the emissions offset component of the RGGI program, including the development of model application and submittal documents and model guidance documents. Greenhouse Gas Management Institute will assist in the development of an accreditation process for independent verifiers of offset projects.
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