Md. Code Regs. 26.09.04.06

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.09.04.06 - Auction of CO[2] Allowances

A. The following rules shall apply to each allowance auction. The Department may specify additional information in the auction notice for each auction. Such additional information may include the time and location of the auction, auction rules, registration deadlines, and any additional information deemed necessary or useful.

B. General Requirements.

(1) The Department shall include the following information in the auction notice for each auction:

(a) The number of CO₂ allowances offered for sale at the auction, not including any CO₂ CCR allowances;

(b) The number of CO₂ CCR allowances that will be offered for sale at the auction if the condition of §B(2)(a) of this regulation is met;

(c) The minimum reserve price for the auction;

(d) The CCR trigger price for the auction;

(e) The maximum number of CO₂ allowances that may be withheld from sale at the auction if the condition of §B(4)(a) of this regulation is met; and

(f) The ECR trigger price for the auction.

(2) The Department or its agent shall follow these rules for the sale of CO₂ CCR allowances:

(a) CO₂ CCR allowances shall only be sold at an auction in which total demand for allowances, above the CCR trigger price, exceeds the number of CO₂ allowances available for purchase at the auction, not including any CO₂ CCR allowances;

(b) If the condition of §B(2)(a) of this regulation is met at an auction, then the number of CO₂ CCR allowances offered for sale by the Department at the auction shall be equal to the number of CO₂ CCR allowances in the Consumer Energy Efficiency Account at the time of the auction;

(c) After all of the CO₂ CCR allowances in the Consumer Energy Efficiency Account have been sold in a given calendar year, no additional CO₂ CCR allowances will be offered for sale at any auction for the remainder of that calendar year, even if the condition of §B(2)(a) of this regulation is met at an auction;

(d) At an auction in which CO₂ CCR allowances are sold, the reserve price for the auction shall be the CCR trigger price; and

(e) If the condition of §B(2)(a) of this regulation is not satisfied, no CO₂ CCR allowances shall be offered for sale at the auction, and the reserve price for the auction shall be equal to the minimum reserve prices.

(3) The Department shall implement the reserve price in the following manner:

(a) No allowances shall be sold at any auction for a price below the reserve price for that auction; and

(b) If the total demand for allowances at an auction is less than or equal to the total number of allowances made available for sale in that auction, then the auction clearing price for the auction shall be the reserve price.

(4) The Department or its agent shall follow these rules for the withholding of CO2 ECR allowances from an auction:

(a) CO2 ECR allowances shall only be withheld from an auction if the demand for allowances would result in an auction clearing price that is less than the ECR trigger price prior to the withholding from the auction of any ECR allowances;

(b) If the condition in §B(4)(a) of this regulation is met at an auction, then the maximum number of CO₂ ECR allowances that may be withheld from that auction will be equal to the quantity described in COMAR 26.09.02.03D(1) minus the total quantity of CO₂ ECR allowances that have been withheld from any prior auction in that calendar year; and

(c) Any CO₂ ECR allowances withheld from an auction will be transferred into the Emission containment reserve account.

Md. Code Regs. 26.09.04.06

Regulations .06 adopted as an emergency provision effective April 4, 2008 (35:9 Md. R. 895); adopted permanently effective August 25, 2008 (35:17 Md. R. 1490); amended effective 45:26 Md. R. 1247, eff. 12/31/2018