9VAC5-140-6420. General Requirements.
A. The department's agent will include the following information in the auction notice for each auction:
1. The number of CO2 allowances offered for sale at the auction, not including any CO2 CCR allowances;
2. The number of CO2 CCR allowances that will be offered for sale at the auction if the condition of subdivision B 1 of this section is met;
3. The minimum reserve price for the auction;
4. The CCR trigger price for the auction;
5. The maximum number of CO2 allowances that may be withheld from sale at the auction if the condition of subdivision D 1 of this section is met; and
6. The ECR trigger price for the auction.
B. The department's agent will follow these rules for the sale of CO2 CCR allowances.
1. 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.
2. If the condition of subdivision 1 of this subsection is met at an auction, then the number of CO2 CCR allowances offered for sale by the department or its agent at the auction shall be equal to the number of CO2 CCR allowances in the Virginia Auction Account at the time of the auction.
3. After all of the CO2 CCR allowances in the Virginia Auction Account have been sold in a given calendar year, no additional CO2 CCR allowances will be sold at any auction for the remainder of that calendar year, even if the condition of subdivision 1 of this subsection is met at an auction.
4. At an auction in which CO2 CCR allowances are sold, the reserve price for the auction shall be the CCR trigger price.
5. If the condition of subdivision 1 of this subsection 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 price.
C. The department's agent shall implement the reserve price as follows: (i) no allowances shall be sold at any auction for a price below the reserve price for that auction and (ii) 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.
D. The department's agent will meet the following rules for the withholding of CO2 ECR allowances from an auction.
1. 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.
2. If the condition in subdivision 1 of this subsection 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 shown in Table 140-5B of 9VAC5-140-6210 E minus the total quantity of CO2 ECR allowances that have been withheld from any prior auction in that calendar year. Any CO2 ECR allowances withheld from an auction will be transferred into the Virginia ECR Account.
Statutory Authority
§§ 10.1-1308 and 10.1-1322.3 of the Code of Virginia; §§ 108, 109, 110, and 302 of the Clean Air Act; 40 CFR Part 51.
Historical Notes
Derived from Volume 35, Issue 20, eff. June 26, 2019; amended, Virginia Register Volume 36, Issue 25, eff. July 10, 2020.
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