Regional Greenhouse Gas Initiative (RGGI) Overview Andrew McKeon Executive Director, RGGI, Inc. www.rggi.org 1
Overview • Role of RGGI, Inc. • RGGI structure / overview • CO 2 allowance auctions • Independent market monitor • RGGI CO 2 Allowance Tracking System (COATS) & compliance www.rggi.org 2
RGGI, Inc. Provides RGGI states with technical & administrative RGGI, Inc. services to support implementation of each RGGI state’s CO 2 Budget Trading Program • Nonprofit corporation • Separate contracts with each state • Agent on behalf of states • RGGI, Inc. Board comprised of two directors from each state www.rggi.org 3
The RGGI States ME VT NH NY MA CT RI PA NJ OH MD DE WV VA 4 www.rggi.org
RGGI Structure • Eastern states cap-and-invest program o Power sector o Fossil generators 25+ MW o State-issued allowances Auction distribution Fungible, bankable, and tradable • 2020 cap (RGGI-10): 96.2 million tons • 2021 cap (RGGI-11): 119.8 million tons • Proceeds reinvested www.rggi.org 5
RGGI First Principles • Individual state CO 2 budget trading programs o Independent legal authority o Regulations aligned with Model Rule • Reflects regional nature of electric grid • Market-based, cost-effective CO 2 reductions • State agencies provide governance www.rggi.org 6
RGGI CO 2 Emissions Cap 180,000,000 160,000,000 140,000,000 Short Tons of CO 2 120,000,000 100,000,000 80,000,000 60,000,000 40,000,000 20,000,000 - Base Cap Adjusted Cap* *The cap was reduced by an adjustment of 140 million across 2014-2020 to account for a surplus of privately held allowances. An additional adjustment to the cap, to be calculated in March 2021, will be made across 2021-2025. www.rggi.org 7
RGGI Auctions Platform: Format: Electronic Uniform-price Internet-based Sealed-bid Auction Structure Awards: Tied bids: Bids ranked by price Random tiebreaking process High to low 8
RGGI Auctions • Market stability mechanisms o Minimum reserve price o Cost Containment Reserve o Emissions Containment Reserve • Quarterly auction cycle o Auction materials release for each auction o Training videos available on: RGGI auction participant application portal RGGI auction tutorial (ex: Auction 49) www.rggi.org 9
Independent Market Monitor Monitors auctions Tracks secondary live market Market Monitor Annual & quarterly Maintains market reports published integrity on RGGI website 10
RGGI COATS Origination & Tracking of CO 2 transfer of CO 2 emissions allowances RGGI COATS Public reports of Processing of program data & compliance market activity 11
RGGI Market Compliance Three-Year Control Period Compliance Three-year control periods Sources must hold EPA CAMD data allowances = 100% three- COATS tracks compliance year emissions Interim Control Period Compliance First two years of three-year Sources must hold EPA CAMD data control period allowances = 50% annual COATS tracks compliance emissions www.rggi.org 12
RGGI COATS • Access to RGGI COATS o Update data in US EPA CAMD Business System o COATS compliance account o Register for COATS login • Interim and three-year compliance processes o Guidance materials release for each compliance period o Instructional webinar held www.rggi.org 13
RGGI Reinvestment • RGGI states receive proceeds directly once auction results have been approved by the states • RGGI invest proceeds in strategic programs o Over $2.5 billion invested through 2018 o Generating billions in consumer savings o Avoiding millions of tons of additional CO 2 emissions www.rggi.org 14
Thank you! Contact: info@rggi.org www.rggi.org 15
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