N.J. Admin. Code § 7:27C-9.1

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

Section 7:27C-9.1 - General requirements

(a) In addition to the information specified at N.J.A.C. 7:27C-11.5(c), the notice of COallowance auction for each auction will include the following:

1. The number of CO[2] allowances offered for sale at the auction, not including any CCR allowances;

2. The number of CCR allowances that will be offered for sale at the auction if the condition at (b)1 below is met;

3. The minimum reserve price for the auction;

4. The CCR trigger price for the auction;

5. The maximum number of CO[2] allowances that may be withheld from sale at the auction if the condition at (d)1 below is met; and

6. The ECR trigger price for the auction.

(b) The following apply to the sale of CCR allowances:

1. The Department will sell CCR allowances only at an auction in which the total demand for allowances, above the CCR trigger price, exceeds the number of CO[2] allowances available for purchase at the auction, not including any CCR allowances;

2. If the condition at (b)1 above is met at an auction, then the number of CCR allowances the Department will offer for sale by at the auction will be equal to the number of CCR allowances in the New Jersey consumer benefit account at the time of the auction;

3. After all the CCR allowances in the New Jersey consumer benefit account have been sold in a given calendar year, NO[x] additional CCR allowances will be sold at any auction for the remainder of that calendar year, even if the condition at (b)1 above is met at an auction;

4. At an auction in which CCR allowances are sold, the reserve price for the auction will be the CCR trigger price; and

5. If the condition of (b)1 above is not satisfied, NO[x] CCR allowances will be offered for sale at the auction, and the reserve price for the auction will be equal to the minimum reserve price.

(c) The Department will implement the reserve price in the following manner:

1. NO[x] allowances will be sold at any auction for a price below the reserve price for that auction; and

2. 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 will be the reserve price.

(d) The following apply to the withholding of ECR allowances from an auction:

1. The Department will withhold allowances from an auction only 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 such ECR allowances, as provided at NJ.A.C. 7:27C-5.2(e) above; and

2. If the condition in (d)1 above is met at an auction, then the maximum number of ECR allowances that may be withheld from that auction will be equal to the quantity shown in NJ.A.C. 7:27C-5.2(e)1 minus the total quantity of ECR allowances that have been withheld from any prior auction in that calendar year. The Department will transfer any ECR allowances withheld from an auction into the New Jersey ECR Account.

N.J. Admin. Code § 7:27C-9.1

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