The fourth auction under the Regional Greenhouse Gas Initiative took place last week, netting more than $100 million -- including nearly $40 million for the state of New York.

DEC Commissioner Grannis said RGGI's success proves the auction-allowance system a model for federal legislation.Department of Environmental Conservation Commissioner Pete Grannis said that all 30.9 million allowances for the 2009 vintage sold at a clearing price of $3.23 per allowance in the auction. In a parallel offering, the RGGI states also auctioned allowances for a three-year compliance period that begins in 2012. The proceeds will go to energy efficiency, clean and renewable energy technologies and strategies to reduce greenhouse gases and create green jobs.

But New York still cannot use those funds generated by the cap-and-trade auction. That's because of a lawsuit by Indeck Corinth, which owns a natural-gas fired power plant in Saratoga County, that alleges that the state did not set aside enough free allowances for power producers that are locked in to long-term contracts.

If Indeck Corinth prevails, the state may have to return the RGGI proceeds. 

The states have now auctioned more than 110 million allowances and raised a total of $366.5 million since the first RGGI auction in September 2008. New York's share is approximately $127.8 million.