RGGI states start bidding process for Auction 30

The states participating in the Regional Greenhouse Gas Initiative (RGGI) 2015 auctions have released the auction notice and application materials for their 30th quarterly carbon dioxide (CO2) allowance auction, to be held on Dec. 2.

The Auction Notice for CO2 Allowance Auction 30 provides potential auction participants with the information needed to submit a Qualification Application and indicate their intent to bid in Auction 30.

As indicated in the Auction Notice for CO2 Allowance Auction 30, the states will offer for sale 15,374,274 CO2 allowances. The states will use a reserve price of $2.05 in 2015.

Auction 29, which occurred in September, resulted in a clearing price of $6.02 per CO2 emissions credit.

The Dec. 2, 2015 auction will be the last quarterly auction in which states will offer for purchase CO2 allowances to meet CO2 interim compliance obligations for the 2015 interim control period, which began on Jan. 1, 2015. Market participants can obtain CO2 allowances in quarterly CO2 allowance auctions or through various secondary markets.

A webinar for prospective bidders will be held Oct. 8. Intent to bid or qualification application are due Oct. 21. Financial security is due by close of business on Nov. 24. The auction itself will be Dec. 2 and the results will be announced on Dec. 4.

The Northeast and Mid-Atlantic states participating in the current RGGI control period include Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont.

The U.S. Environmental Protection Agency (EPA) has hailed RGGI as an excellent example of the type of regional cooperation that could be used to comply with the federal Clean Power Plan, which EPA proposed in August.

The Auction Materials webpage can be visited at http://www.rggi.org/market/co2_auctions/information

About Wayne Barber 4201 Articles
Wayne Barber, Chief Analyst for the GenerationHub, has been covering power generation, energy and natural resources issues at national publications for more than 20 years. Prior to joining PennWell he was editor of Generation Markets Week at SNL Financial for nine years. He has also worked as a business journalist at both McGraw-Hill and Financial Times Energy. Wayne also worked as a newspaper reporter for several years. During his career has visited nuclear reactors and coal mines as well as coal and natural gas power plants. Wayne can be reached at wayneb@pennwell.com.