N.J. Admin. Code § 7:27C-11.9

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

Section 7:27C-11.9 - Submission of financial security

(a) In order to participate in any specific CO[2] allowance auction, a qualified participant shall provide financial security to the Department, such as a bond, cash, certified funds, or an irrevocable stand-by letter of credit, in a form and manner prescribed by the Department in the notice of COallowance auction.

(b) The Department will approve the qualified participant to participate as a bidder in the specified CO[2] allowance auction after the Department has approved the financial security submitted pursuant to (a) above.

(c) A qualified participant who submits financial security may request return of such financial security at any time prior to or following any CO[2] allowance auction, subject to the following limitations:

1. Any request for the return of financial security prior to the conduct of a CO[2] allowance auction will result in the Department revoking approval to participate in such CO[2] allowance auction, as of the date of such request;

2. The Department will not return such financial security if the Department has any current or pending claim to such financial security as a result of the failure of the bidder to abide by the requirements of this subchapter or to pay the full amount of any submitted bid when payment is due; and

3. Financial security may be forfeited to the Department in the event the bidder's offer to purchase CO[2] allowances is accepted and the bidder fails to tender payment of the full amount when due.

N.J. Admin. Code § 7:27C-11.9

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