The Regional Greenhouse Gas Initiative Conducting First Carbon Dioxide Allowance Auction
By Lisa K. Rushton and Jeff Allmon
Taking another key step toward becoming the first domestic mandatory program for the regulation of greenhouse gases, the Regional Greenhouse Gas Initiative (RGGI) provided notice of its first carbon dioxide (CO2) allowance auction. RGGI is a cooperative effort by 10 states located in the mid-Atlantic and Northeast to regulate CO2 emissions from fossil-fuel fired power plants through the use of a cap-and-trade regulatory regime. Six of the 10 participating states will offer CO2 emission allowances for sale during the initial auction Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont. The remaining four states Delaware, New Hampshire, New Jersey, and New York are expected to complete the rulemakings necessary to participate in the program and offer allowances during a second auction, scheduled for December 2008.