Pollution-credit auction generates $13.3m for state

Massachusetts netted $13.3 million from a regional auction of allowances intended to help it and nine other states reduce carbon dioxide emissions by power plants, state officials said today. The money will be used to fund energy efficiency programs.

The state collective, known as the Regional Greenhouse Gas Initiative, hosted the auction last Thursday. Power plants in region are required to obtain an allowance for each ton of carbon dioxide they emit, or find ways to reduce pollution, as part of an environmental program that caps carbon dioxide emissions.

Fifty-nine bidders from the energy, financial and environmental sectors vied for more than 12.5 million allowances, which ultimately sold for $3.07 apiece. More allowances will be auctioned in December, and on a quarterly basis thereafter.
(By Erin Ailworth, Globe staff)