The 10 Northeast and Mid-Atlantic states participating in the Regional Greenhouse Gas Initiative (RGGI) have released the auction notice, qualification application and intent to bid for RGGI's fourth carbon dioxide (CO2) allowance auction, scheduled for June 17.
The release initiates the bidder qualification process and publicizes auction details, including reserve price and number of allowances offered for sale.
The June auction will be the second held since compliance obligations under the 10-state RGGI CO2 budget trading programs took effect on Jan. 1, and the second to offer allowances from current (2009-2011) and future (2012-2014) control periods. States will offer for sale about 30 million current control period allowances (all for the 2009 vintage) and about 2 million allowances for the future control period (all for the 2012 vintage).
Given the early stage of the RGGI CO2 allowance market, the participating states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Hampshire, New Jersey, New York, Rhode Island and Vermont) will continue to use a reserve price of $1.86 for all allowances. Before CO2 Allowance Auction 5, the participating states will consider whether there is enough data available to justify the calculation of a current market reserve price.
The 10 RGGI states urge prospective bidders to apply to, qualify for, and participate in the auction by downloading the auction documents at rggi.org.
Potential bidders are also encouraged to participate in a free webinar on April 15 from 2 p.m. to 4 p.m. The webinar, open to all parties interested in participating in Auction 4, will review the auction format, forms that need to be submitted and the complete qualification process.
SOURCE: Regional Greenhouse Gas Initiative Inc.