N.J. Admin. Code § 7:27C-11.12

Current through Register Vol. 56, No. 21, November 4, 2024

Section 7:27C-11.12 - Approval of auction results

(a) An independent monitor, such as a certified public accounting firm or similar entity, shall observe the conduct and outcome of each auction and issue a report to the Department in accordance with professional auditing standards addressing whether the auction was conducted in accordance with the rules and procedures in the respective notice of CO[2] allowance auction. Upon receipt and approval by the Department of the report and upon payment in full by successful bidders, the Department shall transfer, or have transferred, the corresponding CO[2] allowances to each successful bidder's applicable compliance or general account.

(b) The Department will approve or disapprove the outcome of a COallowance auction following the completion of the auction, based on an evaluation, in consultation with an independent monitor, as provided at (a) above, of whether the auction was conducted in accordance with the procedures and requirements at N.J.A.C. 7:27C-5 and this subchapter and whether there was any indication of collusive behavior among auction participants or attempts at market manipulation that impacted the results of the auction.

(c) In advising the Department or its agent, the independent monitor will monitor each CO[2] allowance auction and develop and apply data collection methods, metrics, and analytic techniques, and thresholds for identifying any bidding behavior or activity that may have a significant impact on the efficiency and performance of such auctions, including, but not limited to, collusion, market power, or price manipulation.

(d) The independent monitor shall also monitor allowance market data and information known to the Department, including allowance transactions and associated pricing reported in COATS, and other relevant data and information to ensure fair competition, efficient pricing, and protection against collusive or manipulative behavior in the CO[2] allowance auctions and the CO[2] Budget Trading Program.

N.J. Admin. Code § 7:27C-11.12

Adopted by 51 N.J.R. 992(a), effective 6/17/2019