FOR IMMEDIATE RELEASE Contact: Jason Brown

RGGI, Inc.

212-417-3179

Monday, January 13, 2014 jason.brown@rggi.org

RGGI States Make Major Cuts to 

Greenhouse Gas Emissions from Power Plants

Approach Serves as a National Model for Addressing Climate Change

States Release March 5, 2014 CO2 Allowance Auction Notice

NEW YORK, NY— Having completed revisions to their state CO2 Budget Trading Programs, the 

nine states participating in the Regional Greenhouse Gas Initiative (RGGI) today announced 

that the 2014 RGGI cap is 91 million tons. This represents a 45 percent reduction to the RGGI

CO2 cap. To further build on this progress, the RGGI cap will decline 2.5 percent each year from 

2015 to 2020. By 2020, power plant CO2 pollution in the nine RGGI states is projected to be half 

of 2005 levels.

The first CO2 allowance auction under the new cap, and the twenty-third RGGI auction overall, 

will take place on March 5, 2014. The RGGI states released the Auction Notice for CO2

Allowance Auction 23 today.

Having strengthened their successful carbon pollution reduction program, the RGGI states have 

submitted extensive comments to the United States Environmental Protection Agency (EPA) 

describing why regional cap-and-trade programs, like RGGI, offer a simple, cost-effective way

for states to comply with upcoming EPA regulations to cut CO2 pollution from existing power 

plants.

“RGGI has once again proven that state leadership provides the laboratory for innovation,” said

Kenneth Kimmell, Commissioner of the Massachusetts Department of Environmental Protection 

and Chair of the RGGI, Inc. Board of Directors. “RGGI is a cost-effective and flexible program 

that can serve as a national model for dramatically reducing carbon pollution for other states 

throughout the nation.”

“RGGI’s market-based program takes a key step forward with the implementation of these 2014 

program changes,” said Commissioner Daniel C. Esty of Connecticut’s Department of Energy 

and Environmental Protection and Vice-Chair of the RGGI, Inc. Board of Directors. “The cap 

reduction and accompanying RGGI program improvements will help ensure RGGI’s continued 

effectiveness – strengthening its position as a carbon pollution reduction model for the nation.”

“The RGGI cap reduction, along with other changes to the program, will help the RGGI states 

further reduce carbon emissions while fueling clean energy economic development by funding 

investments in energy efficiency and renewable energy,” said Collin O'Mara, Secretary of the 

Delaware Department of Natural Resources and Environmental Control and Vice-Chair of the 

Regional Greenhouse Gas Initiative, Inc.

90 Church Street, 4th Floor

New York, NY 10007
RGGI, Inc. Board of Directors. “Last year, each of the nine states pledged to propose regulatory 

changes to lower the cap. Each state stepped up to the plate and got the job done.”

First Interim Adjustment for Banked Allowances

In conjunction with the release of the Auction Notice, the RGGI states are announcing the first of 

the interim adjustments to the RGGI cap. This adjustment will help account for the private bank 

of allowances held by market participants before the new cap was implemented.

The RGGI states include two interim adjustments to the RGGI cap to account for banked 

allowances. The first control period interim adjustment for banked allowances is a reduction to 

the RGGI cap equivalent to the private bank of first control period allowances (2009-2011). The

adjustment is applied to each state’s annual CO2 allowance budget for 2014-2020.

The first control period adjustment is 57.4 million allowances and the adjustment to the RGGI 

cap for 2014 is 8.2 million. The 2014 RGGI adjusted cap for the nine-state region is 82.8 million.

The RGGI states are scheduled to announce the second control period interim adjustment on 

March 17, 2014. The second adjustment is applied to each state’s annual CO2 allowance 

budget for 2015-2020.

Additional details are provided in the First Control Period Interim Adjustment Announcement 

available at http://www.rggi.org/docs/FCPIABA.pdf.

Auction 23 Notice

The Auction Notice for CO2 Allowance Auction 23 provides potential auction participants with 

the information needed to submit a Qualification Application and intent to bid in Auction 23. As 

indicated in the Auction Notice for CO2 Allowance Auction 23, the states will offer for sale 18.6

million CO2 allowances. The states will use a reserve price of $2.00 for the March auction.

There will also be a five million allowance cost containment reserve (CCR) available for this 

auction. This reserve will be accessed if the interim clearing price exceeds the CCR trigger price 

of $4.00. 

Auction 23 Details

Key Dates

• January 14: Prospective Bidder Webinar Materials available

• January 15: Prospective Bidder Webinar (2:00-3:00 PM ET)

• January 21: Prospective Bidder Webinar Recording available

• January 28: Intent to Bid and/or Qualification Application Due by 5:00 PM ET

• February 26: Financial security due by 5:00 PM ET

• March 5: Auction 23 (9:00 AM - 12:00 PM ET)

• March 7: Auction results posted to www.rggi.org

The January 15, 2014 prospective bidder webinar is a free, public webinar, but registration is 

required. Visit https://www3.gotomeeting.com/register/599582246 to register for the webinar.

Additional registration details are available at www.rggi.org/docs/Auctions/23/Auction_23-

Webinar-Instructions.pdf. Further details on the auction are provided in the Auction Notice for 

CO2 Allowance Auction 23 available at http://www.rggi.org/market/co2_auctions/information.
About the Regional Greenhouse Gas Initiative

The Northeast and Mid-Atlantic states participating in the second RGGI control period (Connecticut, 

Delaware, Maine, Maryland, Massachusetts, New Hampshire, New York, Rhode Island, and Vermont) 

have implemented the first mandatory market-based regulatory program in the U.S. to reduce 

greenhouse gas emissions. The 2014 RGGI cap is 91 million short tons. The RGGI cap then declines 2.5 

percent each year from 2015-2020.

RGGI is composed of individual CO2 budget trading programs in each state, based on each state’s 

independent legal authority. A CO2 allowance represents a limited authorization to emit one short ton of 

CO2, as issued by a respective state. A regulated power plant must hold CO2 allowances equal to its 

emissions to demonstrate compliance for each three-year control period. RGGI’s second control period 

began on January 1, 2012 and extends through December 31, 2014. For more information visit 

www.rggi.org

About Regional Greenhouse Gas Initiative, Inc. 

Regional Greenhouse Gas Initiative, Inc. (RGGI, Inc.) was created to provide technical and administrative 

services to the states participating in the Regional Greenhouse Gas Initiative. RGGI, Inc. is a 501(c)(3) 

nonprofit organization. For more information, visit: www.rggi.org/rggi.

The RGGI auctions are administered by RGGI, Inc. and run on an on-line platform provided by World 

Energy Solutions, Inc. 

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