N.J. Admin. Code § 7:27C-11.3

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:27C-11.3 - Auction timing and CO[2] allowance submission schedule

(a) CO[2] allowance auctions will be held NO[x] less frequently than annually, and as frequently as the

Department determines is necessary and practical to ensure the availability of CO[2] allowances to CO[2] Budget units and CO[2] Budget sources and to support the effective functioning of the CO[2] allowance market.

(b) Prior to the end of each control period, the initial control period, or an interim control period, the Department will make available for sale by auction, all CO[2] allowances held in the consumer benefit account that are designated for the allocation years associated with that control period, initial control period, or interim control period. This will not include CO[2] allowances set aside to be sold directly to certified dispatch agreement facilities with fixed-price contracts pursuant to N.J.A.C. 7:27C-5.5, or CO[2] allowances set aside to be retired pursuant to N.J.A.C. 7:27C-5.3.

(c) In each CO[2] allowance auction, the Department will make available for sale CO[2] allowances designated for the allocation years associated with that control period, interim control period, or initial control period and CO[2] allowances designated for the allocation years associated with a future control period, in a number as determined to be appropriate by the Department, in order to ensure the availability of sufficient allowances to protect the financial stability of CO[2] Budget sources in New Jersey.

(d) The number of CO[2] allowances to be made available for sale in a specific auction will be disclosed in the notice of CO[2] allowance auction issued pursuant to N.J.A.C. 7:27C-11.5.

(e) Auctions of CO[2] allowances will include a CO[2] cost containment reserve and a CCR trigger price, as provided at N.J.A.C. 7:27C-5.2(d).

N.J. Admin. Code § 7:27C-11.3

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