Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Timing of the Allowance Auctions.
Auctions shall be conducted on the schedule pursuant to Appendix C. The
schedule may be adjusted by a maximum of 4 business days from the dates listed
in Appendix C.
(b) An allowance may
be designated for auction prior to or after its vintage year.
(c) Allowances from future vintages will be
auctioned separately from allowances from current and previous vintages each
quarter.
(1) Auction of Allowances from the
Current and Previous Budget Years.
(A) This
auction will be known as the Current Auction.
(B) One quarter of the allowances allocated
for auction from the current calendar year's budget will be designated for sale
at each Current Auction.
(C) The
Current Auction may include allowances consigned to auction pursuant to section
95910(d) that
have a vintage equal or prior to the current budget year.
(D) Allowances from the current and previous
budget years which remained unsold at previous auctions will be designated for
the Current Auction pursuant to section
95911(f)(3).
(2) Auction of Allowances from Future Budget
Years.
(A) This auction will be known as the
Advance Auction.
(B) One quarter of
the allowances allocated for Advance Auction from the budget year three years
subsequent to the current calendar year will be designated for sale at each
Advance Auction.
(C) The Advance
Auction may include allowances which were returned to the Auction Holding
Account following an Advance Auction which resulted in unsold allowances, and
which are designated for auction pursuant to section
95911(f)(3).
(d) Auction of Consigned Allowances.
(1) An entity may consign allowances to the
Executive Officer for sale at the quarterly auctions only from a limited use
holding account.
(2) When the
Executive Officer withdraws compliance instruments from accounts containing
allowances in excess of the holding limit pursuant to section
95920(b)(5), or
from accounts suspended or revoked pursuant to section
95921(g)(3):
(A) Allowances shall be consigned to the next
Current Auction for which the allowance vintage is equal to or prior to the
current budget year;
(B) If, after
review, the Executive Officer determines that any ARB offset credits, or offset
credits issued from a GHG ETS to which California has linked pursuant to
subarticle 12, remaining in the entity's accounts are valid, the Executive
Officer will remove the offset credits from any holding or compliance account
needed to fulfill the entity's compliance obligation. If offset credits remain
in the entity's compliance account thereafter, the Executive Officer will
return them to the entity's holding account.
(C) The Executive Officer will retire any
withdrawn allowances issued by ARB or by a GHG ETS to which California has
linked pursuant to subarticle 12 that have no vintage, offer an equal number of
current budget year vintage allowances from the Auction Holding Account, and
consign those allowances to the next Current Auction in place of the retired
allowances that have no vintage.
(D) The Executive Officer will retain in the
Auction Holding Account any withdrawn allowances that have a vintage that is
later than the current budget year, offer an equal number of current budget
year vintage allowances from the Auction Holding Account, and consign those
allowances to the next Current Auction in place of the retained future vintage
allowances.
(3) Each
consigning entity agrees to accept the auction settlement price for allowances
sold at auction.
(4) Deadline for
Consignment. Allowances designated for consignment pursuant to sections
95892(c) and
95893(c) must be
transferred to the Auction Holding Account at least 75 days before the auction
as scheduled in Appendix C.
(e) Auction of Allowances Used to Fulfill an
Untimely Surrender Obligation. When the Executive Officer transfers compliance
instruments used to fulfill an untimely surrender obligation to the Auction
Holding Account pursuant to section
95857(d):
(1) Allowances with a vintage year
corresponding to the current or previous budget years will be designated to the
Current Auction;
(2) Allowances
with a vintage year corresponding to a budget year three years subsequent to
the current calendar year will be designated to the Advance Auction;
(3) Allowances with a vintage corresponding
to a budget year one year or two years subsequent to the current year will
remain in the Auction Holding Account until their vintage corresponds to the
current calendar year. They will then be designated for the Current
Auction.
(4) The Executive Officer
will retire any allowances issued from ARB or a GHG ETS to which California has
linked pursuant to Subarticle 12 that have no vintage.
1. New
subarticle 10 (sections
95910-95914) and section filed
12-13-2011; operative 1-1-2012 pursuant to Government Code section
11343.4
(Register 2011, No. 50).
2. Amendment filed 8-29-2012; operative
9-1-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 35).
3. Amendment of subsection (a)(2) filed
6-24-2013; operative 10-1-2013 (Register 2013, No. 26).
4. Amendment
filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 26).
5. Amendment filed 9-18-2017; operative
10-1-2017 pursuant to Government Code section
11343.4(b)(3)
(Register 2017, No. 38).
Note: Authority cited: Sections
38510,
38560,
38562,
38570,
38571,
38580,
39600
and
39601,
Health and Safety Code. Reference: Sections
38530,
38560.5,
38564,
38565,
38570
and
39600,
Health and Safety Code.
