Maine Governor Signs RGGI-Model Statute
June 21, 2007 6:17 PM | Posted by email@example.com | Topic(s): State Policy/Programs
, Regional Policy/Programs
Contrary to the wishes of utilities which prefer the emission allowances be issued by the government without cost instead of auctioned, it appears that the RGGI states are moving toward an all-auction model. On June 18, 2006, Maine Governor Baldacci signed into law Maine’s version of the RGGI model statute (see LD 1851, item 1, 123rd Maine State Legislature
. The bill requires 100% of the allowances to be auctioned, which of course means that emitters needing allowances will have to pay for them. New York recently announced that it also intends to require 100% auction of allowances. The manner in which allowances are distributed is a hotly contested part of any cap-and-trade scheme and influences the magnitude of emitters’ compliance costs.