The Regional Greenhouse Gas Initiative, a northeastern state version of the upcoming Western Climate Initiative due in 2012, has begun quite successfully.  Six of the ten states involved held the first of their quarterly carbon allowance auctions last Thursday and sold all 12.5 million carbon allowances on auction. 

In the sealed online auction Thursday, the buyers, primarily utilities, paid $3.07 per ton of excess emissions, and all 12.5 million carbon allowances were sold, the initiative reported.

In an article in the Washington Post today, reporter Robin Shulman stated that the earnings from the auction will be split among the six participating states, based on the number of allowances they had. 

"Shari T. Wilson, Maryland's environment secretary, said her state will use more than $6 million to help low-income people with utility bills and more than $7 million for energy-efficiency and conservation programs."

We will be looking forward to the beginning of the cap-and-trade program in the western states and provinces and should be able to make the most of what the northeastern states learn from their program.  We in the Washington have the opportunity to begin to prepare for selling our own carbon allowances and thinking about how best to make use of the money it will provide to seriously lower our greenhouse gas emissions.