UPDATE ON RGGI AUCTION PROCEEDS AND THE PROGRAMS TO BE FUNDED March 12, 2010

Massachusetts is one of the lead states participating in the first-in-the-nation Regional Greenhouse Gas Initiative (RGGI) auction program designed to cap and reduce greenhouse gas emissions from power plants. The proceeds from these auctions, as directed by the Green Communities Act, are fueling the creation of a greener energy future for our state.


Regional Greenhouse Gas Initiative (RGGI) Auction - Massachusetts Results



DATE

ALLOWANCES

CLEARING PRICE

AUCTION PROCEEDS

Sept.2008

4,347,534

$3.07

$13.3 million

Dec. 2008

4,387,534

$3.38

$14.8 million

March 2009

4,387,534 (2009 vintage)
328,565 (2012 vintage)

$3.51
$3.05

$15.4 million
$1 million

June 2009

4,387,534 (2009 vintage)
328,565 (2012 vintage)

$3.23
$2.06

$14.17 million
$676,843

Sept.2009

4,387,534 (2009 vintage)
328,565 (2012 vintage)

$2.19
$1.87

$9.6 million
$614,416

December 2009

4,387,534 (2009 vintage)
241,826 (2012 vintage)

$2.05
$1.86

$9 million
$500,000

March 20106,571,301 (2010 vintage)
325,928 (2013 vintage)
$2.07
$1.86
$13.6 million
$606,226


The more than $28 million in 2008 revenue from the first two auctions was allocated to the following programs.

  • Green Communities Program start-up and Green Communities Program Grants for cities and towns ($10 million)
  • Ramp-up of utility-administered energy efficiency programs ($5.9 million), as required to support the Green Communities Act. See Appendix for details
  • Assistance to municipalities for energy efficiency projects identified in DOER audits, but previously unfunded ($2.7 million)
  • Heating system replacements in low-income households, through DHCD's HeartWAP program ($4 million)
  • Workforce development and training programs focused on energy efficiency for homes, businesses and public buildings ($1.9 million for the Energy Efficiency Skills and Innovation Initiative), as well as seed grants and other support for innovative delivery models that will allow the energy efficiency industry to reach a new level of capacity ($3 million)
  • Program administration ( $500,000) to cover administration of the programs (note: very small portions of the above amounts may also be used to fund administration of the programs, e.g., Green Communities Program start-up)

The bulk of the revenue from the 2009 auctions, which yielded more than $50 million, was dedicated to electric utility-administered energy efficiency programs, as directed by the Green Communities Act. The majority of the 2010 revenue will also be dedicated to those programs.