State raises $13.3 million from emissions allowances

By Erin Ailworth, Globe Staff

Massachusetts has netted $13.3 million from a regional auction of allowances meant to help the state, in conjunction with nine others, reduce the amount of carbon dioxide released into the air by local power plants, state officials said Monday.

The money will be used to fund energy efficiency programs. The states, joining together as the Regional Greenhouse Gas Initiative, or RGGI, hosted the Thursday auction.

Power plants in the RGGI states are required to obtain one allowance for each ton of carbon dioxide they emit, or find a way to reduce their pollution. The requirement is part of a pollution reduction program among the 10 states that caps the amount of carbon dioxide power plants are allowed to emit.

Fifty-nine bidders from the energy, financial and environmental sectors vied for more than 12.5 million greenhouse gas emisisons allowances, which ultimately sold at $3.07 each. Total proceeds equaled $38,575,783.

More allowances will be auctioned in December, and on a quarterly basis thereafter.

Ian Bowles, commissioner of the state's executive office of energy and environmental affairs, hailed the results of the RGGI auction.

“Historic occasion, historic occasion," Bowles said. "We have the successful launch of the nation’s first market for greenhouse gas emissions reductions ... creating jobs, providing resources to consumers confronting a diffcult winter ahead and curbing greenhouse gas emissions among the 10 states -- what’s not to like? Did I mention historic?"