• New York Will Not Participate in First RGGI Auction; New Hampshire Joins RGGI
  • July 1, 2008 | Authors: Gabrielle Sigel; Oscar Fernando Marrero; Allison A. Torrence
  • Law Firm: Jenner & Block LLP - Chicago Office
  • On May 7, 2008, New York’s Department of Environmental Conservation (“NYDEC”) announced that the State of New York will not participate in the September 10, 2008 emissions auction by the Regional Greenhouse Gas Initiative (“RGGI”) because NYDEC will not be able to promulgate final regulations in time.  On March 17, 2008, RGGI announced that it would hold auctions for CO2 emissions allowances on September 10 and December 17, 2008.  NYDEC announced that it would likely participate in the December 17, 2008 auction.  NYDEC has revised its regulations implementing RGGI in response to 10,000 public comments.  The revised regulations specify that the reserve price for one ton of CO2 will be $1.86 or the current market reserve price (calculated by taking 80 percent of the market price for one allowance in each auction year).   NYDEC will hold public hearings on the revised regulations on June 9, 2008.

    On May 15, 2008, the New Hampshire legislature approved legislation, H.B. 1434, authorizing the State of New Hampshire to participate in RGGI.  New Hampshire is the tenth and final state to enact authorizing legislation for RGGI.  New Hampshire’s legislation provides rebates to ratepayers if auction proceeds exceed certain thresholds, beginning at $6 a ton in 2009 and increasing to $15 a ton in 2015.  H.B. 1434 requires the New Hampshire Department of Environmental Services to promulgate a number of rules to implement RGGI.  Consequently, New Hampshire might not be ready to participate in the upcoming RGGI auctions, as is the case with New York with respect to the September 10, 2008 auction.