RGGI Inc, with contractor support, conducts quarterly regional auctions which function as the primary market for CO2 allowances. All states participate in these auctions based on their individual program regulations. A listing of cumulative allowance sales as well as proceeds is recorded on RGGI's auction results page. Maryland's program allows but does not require participation in the multi-state auctions. Maryland has, however, participated in all quarterly auctions to date and does not hold any additional auctions outside of this mechanism.
Participation in RGGI auctions is open to all interested parties, including corporations, individuals, non-profit organizations, brokers and environmental advocacy organizations. Eligibility determination includes a thorough review of:
RGGI states approve the qualifications of each applicant. Applicants are also required to disclose both direct and indirect corporate associations and are limited to purchasing a certain percentage of the allowances up for bidding.
The auctions operate in a single-round, uniform-price sealed-bid format. Each participant has one opportunity to submit one or more undisclosed bids as well as the quantity of allowances (in multiples of 1,000) that they are willing to purchase at that price.
The bids are then ranked from high to low and allowances are tentatively awarded in this order until cumulative demand is greater than the supply of allowances offered for sale. All allowances are then sold at a clearing price determined by the value of the highest rejected bid.
To learn more, please contact Luke Wisniewski or visit Regional Greenhouse Gas Initiative.
1800 Washington Boulevard, Baltimore, MD 21230