According to the Wall Street Journal [1],the results of the latest Regional Greenhouse Gas Initiative carbon auction will be announced on Friday.  But some states, including New York, may not let their share of the proceeds go to the energy efficiency and environmental programs for which they are intended, .

RGGI is a cap-and-trade pact created by 10 states to lower the amount of greenhouse gases emitted by power plants.  Each year, the cap placed on these emissions is reduced, and power companies must bid on permits to emit a portion of this cap. The proceeds are then distributed among the states.

When RGGI was created in 2008, the states pledged to dedicate the proceeds to programs aimed at fighting climate change, but priorities are shifting because of current budget woes.  The governors of Connecticut and New Jersey have already proposed raiding other funds reserved for energy programs to balance their states' budgets.

New York is a particularly worrisome case.  It is the only state that has already raided the RGGI funds to help reduce its deficit. In December, the Legislature approved Gov. Paterson's proposal [1] to take away $90 million in RGGI funds to subsidize the general fund.

The results of the latest auction, which was held Wednesday, March 10, will be posted here [2] on Friday, March 12 at 10 a.m.