Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
Administration of Price Ceiling Sales.
(1) The
Executive Officer may serve as sale administrator to conduct price ceiling
sales or designate an entity to serve as the sale administrator.
(2) The Executive Officer may designate a
financial services administrator to conduct the financial transactions required
to operate price ceiling sales.
(b) Eligibility.
(1) Only California covered entities and
opt-in covered entities may participate in price ceiling sales.
(2) Purchases shall be limited to entities
that do not have sufficient eligible compliance instruments in their holding
and compliance accounts for the next compliance surrender deadline and these
entities may only purchase what they need to meet their compliance obligation
at the next surrender deadline.
(c) Price ceiling sales may be held beginning
in 2021.
(d) The sale administrator
will not conduct price ceiling sales if allowances remain in the first or
second tiers of the Reserve.
(e)
The sale administrator will only conduct a price ceiling sale between the last
Reserve sale before a compliance event and the compliance event
itself.
(f) Price Ceiling Sales
Procedure.
(1) Terms of sale.
(A) Beginning in 2021, entities may purchase
allowances or price ceiling units from the price ceiling account at $65 per
allowance or price ceiling unit.
(B) After 2021, the purchase price will
increase annually by five percent plus the rate of inflation as measured by the
most recently available twelve month value of the Consumer Price Index for All
Urban Consumers.
(C) The financial
services administrator will begin to accept cash payment for purchases from
price ceiling sales no earlier than ten business days after the previous
Reserve sale and will cease accepting payments no later than seven business
days thereafter.
(2) The
financial services administrator will inform the Executive Officer of the
amounts of payments received from covered entities no later than one business
day after it ceases to accept payments.
(3) The Executive Officer will determine the
number of allowances or price ceiling units purchased by each entity by
dividing the payment submitted by the entity by the purchase price prevailing
at the time of the sale, and rounding down to the nearest whole allowance or
price ceiling unit. The Executive Officer will then take one of the following
actions:
(A) If there are sufficient
allowances in the price ceiling account to fulfill the purchases of all
entities submitting payment, the Executive Officer will transfer the
appropriate number of allowances to each purchasing entity's compliance
account.
(B) If there are
insufficient allowances remaining in the price ceiling account to fulfill the
purchases of all entities submitting payment, the Executive Officer will
prorate the available allowances equally among all purchasing entities to the
extent possible, and transfer the prorated allowances and sufficient price
ceiling units to fulfill the purchases of all entities submitting payment into
each entity's compliance account. The proration will be calculated using the
share of allowances available for purchase in the price ceiling account in the
sum of the purchases.
(C) If there
are no allowances remaining in the price ceiling account to fulfill the
purchases, the Executive Officer will transfer the appropriate number of price
ceiling units to each purchasing entity's compliance
account.
(g)
Beginning in 2021, price ceiling units will be valid for surrender against a
compliance obligation upon transfer to a compliance account and will be retired
after all other compliance instruments specified in sections
95856(h)(1) and
95856(h)(2), as
applicable, have been retired.
(h)
Procedure for Issuance of Price Ceiling Units.
(1) The Executive Officer will issue price
ceiling units into the Price Ceiling Account as needed. Upon issuance into the
Price Ceiling Account, price ceiling units are eligible for purchase at price
ceiling sales pursuant to section
95915(f).
(2) Moneys generated from the sale of price
ceiling units will be expended to achieve emissions reductions on at least a
metric ton for metric ton basis that are real, permanent, quantifiable,
verifiable, enforceable by the state board and in addition to any greenhouse
gas emission reduction otherwise required by law or regulation and any other
greenhouse gas emission reduction that otherwise would
occur.
1. New
section 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.
