Delaware Expects $2.6 Million For Investment In Renewable Energy And Efficiency Programs

June 19, 2009 -- DOVER – Delaware Governor Jack Markell and DNREC Secretary Collin O’Mara announced today that Delaware will be receiving $2.6 million for investment in clean energy projects from the state’s participation in the fourth Regional Greenhouse Gas Initiative (RGGI) auction of carbon dioxide (CO2) emissions allowances held Wednesday, June 17.

The 10 RGGI partnering states hold quarterly allowance auctions and invest the proceeds in energy efficiency, renewable energy and other programs that benefit energy consumers and create green jobs.

“RGGI offers an opportunity to invest needed resources in energy efficiency and greenhouse gas reduction efforts, and at the same time create jobs and help consumers reduce energy costs,” said Governor Markell.

All of Delaware’s 763,842 allowances offered for sale in this auction were sold at a clearing price of $3.23 per allowance. In a parallel offering, Delaware sold 66,698 allowances for $2.06 per allowance for the second 3-year control period beginning in 2012. The 2012 vintage offering provides power plants and other entities that must comply with Delaware regulations the first look at future market prices for RGGI (CO2) allowances.

“RGGI auction proceeds will boost Delaware’s leadership while reducing the state’s carbon footprint in transitioning to a green economy by fostering investments in clean energy sources and green jobs,” said Secretary O’Mara, a member of the Regional Greenhouse Gas Initiative, Inc., board of directors.

Under legislation passed last year by the Delaware General Assembly, approximately $1.87 million or 65 percent of the auction proceeds will be directed to the new Sustainable Energy Utility, the entity tasked with providing energy efficiency and renewable energy programs for households and businesses. A total 15 percent of auction proceeds will be directed to low income consumers through programs administered by the Department of Health and Social Services. Up to 10 percent will be used for greenhouse gas reduction projects and the remaining 10 percent may be used to administer RGGI and climate change programs in DNREC.

Delaware is one of ten Northeast states (Connecticut, Delaware, Maine, Maryland, Massachusetts, New Jersey, New Hampshire, New York, Rhode Island and Vermont) pioneering RGGI – the first market-based, mandatory cap-and-trade program in the U.S. to reduce greenhouse gas emissions.

The participating states adopted regulations to cap and then reduce the amount of (CO2) that power plants in each state are allowed to emit, limiting the region’s total contribution of atmospheric greenhouse gas levels. Under RGGI, the 10 states will stabilize power sector carbon emissions at their capped level, and then reduce the cap by 10 percent at a rate of 2.5 percent each year between 2015 and 2018. The groundbreaking program may serve as a model for a possible federal cap-and-trade program.

For more information on Delaware’s RGGI program, visit http://www.awm.delaware.gov/AQM/Pages/RegionalGreenhouseGasInitiative.as... or for RGGI, Inc., or visit http://www.rggi.org.

Source: Delaware Governor