GOVERNOR PATERSON HAILS NEW YORK’S FIRST SALE OF CARBON DIOXIDE POLLUTION ALLOWANCES AS A SUCCESS
Governor Reaffirms New York’s Commitment to Advancing Renewable and Clean Energy
Regional Greenhouse Gas Initiative (RGGI) Auction Generates $42 Million for Clean Energy Technologies to Help New York’s Economic Recovery
Governor David A. Paterson today heralded New York’s participation in the sale of carbon dioxide (CO2) pollution allowances as a success. The sale occurred as part of a ten-state Regional Greenhouse Gas Initiative (RGGI) auction held on Wednesday, and generated $106.5 million for investment in energy efficiency, clean and renewable energy technologies, and strategies to reduce CO2. New York’s share of the auction proceeds will be approximately $42 million.
New York plans to use the proceeds from the RGGI auction to fund energy efficiency and renewable energy programs and services and other greenhouse gas reduction strategies. The RGGI regulations require that the New York State Energy Research and Development Authority (NYSERDA) use the proceeds for energy efficiency, renewable energy, programs to reduce greenhouse gas emissions in other sectors of the economy and other initiatives. These proceeds will also provide support for the Governor’s vision of creating a clean energy economy in New York, create jobs, and help New York’s economic recovery.
In his budget address on Tuesday, Governor Paterson urged the Legislature to take back control of New York’s future by restoring the core mission of government: creating jobs, assisting businesses, fostering higher education, and finding new industry such as clean and renewable energy sources.
“The RGGI auction allows New York State to continue its commitment to break free from traditional fossil fuels with dedicated funding for clean and renewable energy initiatives. As we face the worst fiscal crisis in generations, it is critical that our State continue to take the necessary steps to help reduce the cost of energy and reduce pollution,” said Governor Paterson. “With our participation in RGGI, New York State continues to demonstrate national leadership by supporting clean and renewable energy technologies as we provide an example for other states and the nation to follow.”
All of the 31,505,898 allowances offered at the December 17th RGGI auction – the second of its kind – were sold at a clearing price of $3.38 per allowance. There were 69 entities from the energy, financial and environmental sectors bidding in the auction, demonstrating a robust interest in the carbon dioxide allowance auction. Those entities sought 110.2 million allowances, or 3.5 times the available supply for this auction. The revenue from the auction is distributed in proportion to the allowances each of the ten RGGI state’s offered, which includes New York, Connecticut, Delaware, Maine, Massachusetts, Maryland, New Hampshire, New Jersey, Rhode Island and Vermont.
Pete Grannis, New York State Commissioner of Environmental Conservation and Chair of the Regional Greenhouse Gas Initiative, Inc., said: “The RGGI program is being viewed as a model for greenhouse gas reduction programs nationally and internationally. With two successful auctions now completed, New York and its partner states are laying the groundwork for national action to curb global warming. Under Governor Paterson’s leadership, New York State is blazing a new trail that will boost energy efficiency, create green jobs and promote a shift to a clean energy economy.”
Bob Callender, Vice President for Programs for NYSERDA, said: “New York State leads the nation in developing policies and initiatives that address the energy and environmental challenges of the 21st century, while creating clean energy; so-called “green jobs” that will help to stimulate New York’s economy. Governor Paterson has made clean energy and fighting global climate change hallmarks of his administration and we look forward to working with our RGGI partners to design and implement the next generation of programs that will reduce the emissions of greenhouse gases in New York State.”
Garry Brown, Chairman of the New York State Public Service Commission, said: “The continued success of this important auction process sends a strong signal about the ability of states to work together to combat the threat of global warming. I congratulate Governor Paterson on his ability to bring the State’s agencies together to work as an effective team to reduce greenhouse gases and create new economic opportunities for the State’s citizens.”
About the Regional Greenhouse Gas Initiative
The ten Northeast and Mid-Atlantic states participating in RGGI have designed the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions. Under RGGI, these ten states have established a cap or limit on the total amount of CO2 pollution that power plants may emit. Power plants over 25 megawatts that emit CO2 must obtain pollution allowances to do so. These allowances, which the states are making available primarily by auction, in effect give power plants limited permission to emit CO2. The cumulative emissions of all carbon allowances may not exceed the amount set by the cap. Over time, the carbon cap is lowered incrementally, thus bringing down carbon emission levels. Participating states will stabilize power sector CO2 emissions at the capped level 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. This approach will limit the region’s total contribution to atmospheric greenhouse gas levels.
For more information about RGGI, turn to: http://www.rggi.org.