Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) The Executive Officer may cancel or
restrict a previously approved auction participation application or reject a
new application if the Executive Officer determines that an entity has:
(1) Provided false or misleading
facts;
(2) Withheld material
information from its application or account application information listed in
section 95830, with material meaning
information that could influence a decision by the Executive Officer, the
Board, or the Board's staff;
(3)
Violated any part of the auction rules pursuant to subarticle 10;
(4) Violated the registration requirements
pursuant to subarticle 5; or
(5)
Violated the rules governing trading pursuant to subarticle
11.
(b) If the Executive
Officer determines an entity has committed any of the violations listed in
section 95914(a), then:
(1) The Executive Officer may instruct the
auction administrator to cancel a previously approved auction application or to
not accept auction applications from the entity;
(2) The Executive Officer may instruct the
auction administrator to restrict the auction application approval for any
corporate associate of the entity to prevent the purchase of allowances at
auction for subsequent transfer to the violator;
(3) Any cancellation or restriction imposed
by the Executive Officer may be permanent or for a specified number of
auctions; and
(4) The cancellation
or restriction imposed by the Executive Officer shall be in addition to any
other penalties, fines, and additional remedies available at
law.
(c) Disclosure of
Auction Participation Information.
(1) Except
as provided in section
95914(c)(2), all
entities registered into the Cap-and-Trade Program pursuant to section
95830, their direct and indirect
corporate associations, and consultants and advisors as identified in section
95923 shall not release any of the
following information regarding auction participation or reserve sale
participation, as applicable:
(A) Intent to
participate, or not participate, at auction, and auction approval
status;
(B) Bidding strategy at any
auctions, including the specification of an auction settlement price or range
of potential auction settlement prices at which an entity is willing to buy or
sell allowances;
(C) Bid price or
bid quantity information at past or future auctions; and
(D) Information on the amount of any bid
guarantee provided to the financial services administrator.
(2) Auction participation information listed
in section
95914(c)(1) may
be released under the following conditions:
(A) When the release is to other members of a
direct corporate association not subject to auction participation restriction
or cancellation pursuant to section
95914(b);
(B) When the release is to a Cap-and-Trade
Consultant or Advisor who has been disclosed to the Executive Officer pursuant
to section
95914(c)(3);
(C) When the release is made by a publicly
owned utility only as required by public accountability rules, statute, or
rules governing participation in generation projects operated by a Joint Powers
Authority or other publicly owned utilities; or
(D) When the release is to an agency that has
regulatory jurisdiction over privately owned utilities in the State of
California of information regarding compliance instrument cost and acquisition
strategy and other disclosures specifically required or authorized by the
regulatory agency pursuant to any of its applicable rules, orders, or
decisions. In the event of a disclosure pursuant to this section, and upon the
request of the Executive Officer, the entity must provide within 10 business
days the statutory or regulatory reference or the general order, decision, or
ruling to ARB that requires the disclosure of the specific information related
to bidding strategy.
(3)
If an entity participating in an auction has retained the services of a
Cap-and-Trade Consultant or Advisor, as defined in section
95923, regarding auction bidding
strategy, then:
(A) The entity must ensure
against the Consultant or Advisor transferring the entity's information to
other auction participants or coordinating the bidding strategy among
participants;
(B) The entity will
inform the Consultant or Advisor of the prohibition of sharing information to
other auction participants and ensure the Consultant or Advisor has read and
acknowledged the prohibition under penalty of perjury;
(C) The Consultant or Advisor must provide
the Executive Officer the following information:
1. Names of the entities participating in the
Cap-and-Trade Program that are being advised;
2. Description of advisory services being
performed; and
3. Assurance under
penalty of perjury that advisor is not transferring to or otherwise sharing
information with other auction participants.
(D) The information must be received by the
Executive Officer at least 15 days prior to an
auction.
1. New
section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code
section
11343.4
(Register 2011, No. 50).
2. Change without regulatory effect
amending subsection (d)(3)(A) filed 2-15-2012 pursuant to section
100, title 1, California Code of
Regulations (Register 2012, No. 7).
3. Amendment filed 8-29-2012;
operative 9-1-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 35).
4. Amendment filed 6-26-2014; operative
7-1-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 26).
5. Editorial correction relocating
Appendices B and C to follow section
96022 (Register 2016, No.
31).
6. Amendment of subsections (c)-(c)(1)(D), (c)(2)(D), (c)(3)(A)
and (c)(3)(D) and repealer of subsections (d)-(d)(3)(C) filed 9-18-2017;
operative 10-1-2017 pursuant to Government Code section
11343.4(b)(3)
(Register 2017, No. 38).
7. Amendment of subsections (c)(2)(A)-(C)
filed 3-29-2019; operative 3-29-2019 pursuant to Government Code section
11343.4(b)(3)
(Register 2019, No. 13).
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.
