Massachusetts is one of the lead states participating in the Regional Greenhouse Gas Initiative (RGGI), the nation's first market-based, regulatory program to cap and reduce greenhouse gas emissions from large fossil-fueled power plants. January 1, 2012 marks the completion of the first 3-year Compliance Period, the beginning of the second Compliance Period and the initiation of the RGGI program review as set forth in the original RGGI Memorandum of Understanding.
RGGI Auction Advisory Committee
DOER Commissioner Sylvia has convened the RGGI Auction Advisory Committee to assist him with the Massachusetts RGGI program review that will take place in 2012. The first matter before the Committee, the retirement of unsold allowances from the first Compliance Period, has been resolved. Massachusetts will retire the 16,831,266 unsold RGGI allowances from the First Compliance Period, as recommended by DOER and Department of Environmental Protection staff in its
recommendation
.
Auction Proceeds
Massachusetts has directed all of its RGGI proceeds into clean energy programs and initiatives, primarily its nation-leading Energy Efficiency Investment Plans delivered statewide through Mass Save, and the Green Communities Grant Program for cities and towns. These proceeds, which began in the fall of 2008, are fueling a cleaner energy future for the Commonwealth. In the last two years, Massachusetts has received nearly $158 million, which it has used to implement energy programs that improve building performance, comfort, durability, health, and affordability for individuals, businesses, and state and local governments.
Massachusetts Results (2012) - RGGI Auction
| DATE | ALLOWANCES | CLEARING PRICE | AUCTION PROCEEDS |
| March 2012 | 3,862,579 (2011 vintage) | $1.93 | $7,454,777.47 |
Massachusetts Results (2011) - RGGI Auction
| DATE | ALLOWANCES | CLEARING PRICE | AUCTION PROCEEDS |
| December 2011 | 4,172,545 (2011 vintage) | $1.89 | $7,886,110.05 |
| September 2011 | 1,166,145 (2011 vintage) | $1.89 | $2,204,014.05 |
| June 2011 | 1,959,938 (2011 vintage) 168,367 (2014 vintage) | $1.89 $1.89 | $3,704,282.82 $318,213.63 |
| March 2010 | 6,571,301 (2011 vintage) 332,976 (2014 vintage) | $1.89 $1.89 | $12,419,758.89 $629,324.64 |
The Green Communities Act of 2008 directed the Executive Office of Energy and Environmental Affairs (EEA), through the Department of Energy Resources (DOER), to dedicate 80% of the proceeds to the energy efficiency programs administered by the state's electric utilities and energy efficiency service providers. Allocations to the electric efficiency Program Administrators (PA) are made based on each PA's electricity sales relative to total electricity sales statewide.
Massachusetts Results (2010) - RGGI Auction
| DATE | ALLOWANCES | CLEARING PRICE | AUCTION PROCEEDS |
| December 2010 | 3,767,867 (2010 vintage) 182,682 (2013 vintage) | $1.86 $1.86 | $7,008,232.62 $339,788.52 |
| September 2010 | 4,958,744 (2010 vintage) 204,505(2013 vintage) | $1.86 $1.86 | $9,223,264 $380,379 |
| June 2010 | 6,571,301 (2010 vintage) 333,253 (2013 vintage) | $1.88 $1.86 | $12.35 million $619,850 |
| March 2010 | 6,571,301 (2010 vintage) 325,928 (2013 vintage) | $2.07 $1.86 | $13.6 million $606,226 |
The bulk of the revenue from the 2009 auctions, which yielded more than $50 million, was distributed to the Program Administrators and dedicated to the electric utility-administered energy efficiency programs.
| $4,008,173 |
| $19,595,514 |
| $17,368,751 |
| $890,706 |
| $2,672,116 |
The remainder of the 2009 RGGI funds was used for additional energy efficiency and renewable energy purposes (e.g., Green Communities Division activities).
Massachusetts Results (2009) - RGGI Auction
| DATE | ALLOWANCES | CLEARING PRICE | AUCTION PROCEEDS |
| December 2009 | 4,387,534 (2009 vintage) 241,826 (2012 vintage) | $2.05 $1.86 | $9 million $500,000 |
| September 2009 | 4,387,534 (2009 vintage) 328,565 (2012 vintage) | $2.19 $1.87 | $9.6 million $614,416 |
| June 2009 | 4,387,534 (2009 vintage) 328,565 (2012 vintage) | $3.23 $2.06 | $14.17 million $676,843 |
| March 2009 | 4,387,534 (2009 vintage) 328,565 (2012 vintage) | $3.51 $3.05 | $15.4 million $1 million |
The more than $28 million in 2008 revenue was allocated to a variety of energy programs, including the Green Communities Division start-up and program grants to cities and towns; municipal assistance for energy efficiency projects; heating system replacements in low-income households; and workforce development and training programs focused on energy efficiency.
Massachusetts Results (2008) - RGGI Auction
| DATE | ALLOWANCES | CLEARING PRICE | AUCTION PROCEEDS |
| December 2008 | 4,387,534 | $3.38 | $14.8 million |
| September 2008 | 4,347,534 | $3.07 | $13.3 million |
For more information on the programs supported by RGGI proceeds and on Massachusetts' commitment to clean energy, please review the following documents.
-
Energy Efficiency in Massachusetts: Our First Fuel
(DOER) - Massachusetts Joint Statewide Three-Year Electric Energy Efficiency Plan
- Massachusetts Joint Statewide Three-Year Gas Energy Efficiency Plan
- Three-Year Energy Efficiency Plan Orders (DPU)
This information is provided by the Department of Energy Resources.