News from New York State Department of Environmental Conservation

For more information contact: Yancey Roy, 518-402-8000

Regional Greenhouse Gas Initiative Auction Process Goes Live Today

60-day Process Opens for First-in-the-Nation Carbon Emissions Allowances Auction

ALBANY, NY (07/24/2008; 1121)(readMedia)-- The Regional Greenhouse Gas Initiative (RGGI) auction process goes live today, beginning 60 days of bid preparation for this first-in-the-nation auction of carbon dioxide (CO2) allowances to be held on Sept. 25.

Today's Auction Notice opens the process that potential bidders must follow to qualify for and participate in the CO2 allowance auction. New York State Department of Environmental Conservation Commissioner Pete Grannis joined the nine other RGGI states urging prospective bidders to seize this first opportunity to bid for CO2 allowances by downloading final auction documents from: www.RGGI.org/auctions . All potential bidders must have successfully completed the qualification process to gain access to the auction.

"Climate change demands the attention of every government body, every business and every citizen," said Pete Grannis, Commissioner of the New York State Department of Environmental Conservation and Chair of RGGI Inc. "The RGGI auction is a critical part of the equation, an historic undertaking that will not only reduce greenhouse gases throughout the northeast, but serve as a catalyst for national and international efforts on this issue. Under Governor David A. Paterson's leadership, New York State is blazing a new trail that will reach across oceans, ensuring a healthier planet for future generations."

To obtain more information about the first auction, participants can log on to a conference call "webinar" today (July 24) from 2-4 p.m. EDT or submit questions online at www.RGGI.org . Materials needed to participate in the upcoming auction are available at www.RGGI.org/auctions . All auction participants must also open accounts in the RGGI tracking system; simple guidance to this procedure is available at www.RGGI.org/tracking.htm.

The 10 Northeast and Mid-Atlantic States pioneering the auction have designed the first market-based, mandatory cap-and-trade programs in the U.S. to reduce greenhouse gas emissions in a simple and constructive way. The states have committed to cap and then reduce the amount of CO2 that power plants in their region are allowed to emit, limiting the region's total contribution to atmospheric greenhouse gas levels. The auction will generate investment in energy efficiency and renewable energy in the RGGI region and fund programs to support consumers and combat fuel poverty.

The RGGI auction process was designed with input from stakeholders and all 10 participating RGGI states and will provide a platform for the auctioning of each state's CO2 allowances.

The Sept. 25 auction will offer over 12.5 million CO2 allowances, including CO2 allowances issued by Connecticut, Maine, Maryland, Massachusetts, Rhode Island and Vermont. Any CO2 allowances purchased at this auction can be used by a regulated facility for compliance in any of the RGGI states, even if that state does not offer allowances in this auction.

Under the RGGI process, after the 10 participating states have stabilized power sector carbon emissions at their capped level by 2014, the cap will be reduced each year from 2015 through 2018.

By holding this auction and the one planned for December, the 10 RGGI states have exceeded the commitment made in December 2005. By signing the original Memorandum of Understanding, participating states committed to have a program in place by Jan. 1, 2009. That goal will be met and these early auctions will ensure an ample opportunity for bidders to obtain the allowances they will need for compliance across the entire 10-state region.

"We are pleased to be a part of this historic day and look forward to a successful auction," said Bob Callender, Vice President for Programs, New York State Energy Research and Development Authority. "Gov. Paterson has made fighting global climate change one of the hallmarks of his administration and we look forward to working with our partners to develop and implement the programs that will reduce the emissions of greenhouse gases in New York State."

"The creation of an auction is a vital part of mitigating and reducing global warming, which is without question one of the most important challenges we face," said Garry Brown, Chairman of the New York State Public Service Commission. "I applaud Governor Paterson's efforts to focus attention on finding ways to resolve this most pressing problem, and we are eager to work with other states to reduce global warming gases in the Northeast."

New York is on track to offer its CO2 allowances in the December RGGI auction (auctions will be quarterly). Toward that, the State Environmental Board is scheduled to consider RGGI regulations at its Aug. 11 meeting. Though the state won't be putting allowances up for auction in September, New York power plants and companies, as well as individuals, may bid for the CO2 allowances offered by other states in the September auction. A reminder: all potential bidders must successfully complete the qualification process - which opens today - to gain access to the auction.

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