Section 95910 - Auction of California GHG Allowances(a) Timing of the Allowance Auctions. Auctions shall be conducted on the schedule pursuant to Appendix C. The schedule may be adjusted by a maximum of 4 business days from the dates listed in Appendix C.(b) An allowance may be designated for auction prior to or after its vintage year.(c) Allowances from future vintages will be auctioned separately from allowances from current and previous vintages each quarter.(1) Auction of Allowances from the Current and Previous Budget Years.(A) This auction will be known as the Current Auction.(B) One quarter of the allowances allocated for auction from the current calendar year's budget will be designated for sale at each Current Auction.(C) The Current Auction may include allowances consigned to auction pursuant to section 95910(d) that have a vintage equal or prior to the current budget year.(D) Allowances from the current and previous budget years which remained unsold at previous auctions will be designated for the Current Auction pursuant to section 95911(f)(3).(2) Auction of Allowances from Future Budget Years.(A) This auction will be known as the Advance Auction.(B) One quarter of the allowances allocated for Advance Auction from the budget year three years subsequent to the current calendar year will be designated for sale at each Advance Auction.(C) The Advance Auction may include allowances which were returned to the Auction Holding Account following an Advance Auction which resulted in unsold allowances, and which are designated for auction pursuant to section 95911(f)(3).(d) Auction of Consigned Allowances. (1) An entity may consign allowances to the Executive Officer for sale at the quarterly auctions only from a limited use holding account.(2) When the Executive Officer withdraws compliance instruments from accounts containing allowances in excess of the holding limit pursuant to section 95920(b)(5), or from accounts suspended or revoked pursuant to section 95921(g)(3): (A) Allowances shall be consigned to the next Current Auction for which the allowance vintage is equal to or prior to the current budget year;(B) If, after review, the Executive Officer determines that any ARB offset credits, or offset credits issued from a GHG ETS to which California has linked pursuant to subarticle 12, remaining in the entity's accounts are valid, the Executive Officer will remove the offset credits from any holding or compliance account needed to fulfill the entity's compliance obligation. If offset credits remain in the entity's compliance account thereafter, the Executive Officer will return them to the entity's holding account.(C) The Executive Officer will retire any withdrawn allowances issued by ARB or by a GHG ETS to which California has linked pursuant to subarticle 12 that have no vintage, offer an equal number of current budget year vintage allowances from the Auction Holding Account, and consign those allowances to the next Current Auction in place of the retired allowances that have no vintage.(D) The Executive Officer will retain in the Auction Holding Account any withdrawn allowances that have a vintage that is later than the current budget year, offer an equal number of current budget year vintage allowances from the Auction Holding Account, and consign those allowances to the next Current Auction in place of the retained future vintage allowances.(3) Each consigning entity agrees to accept the auction settlement price for allowances sold at auction.(4) Deadline for Consignment. Allowances designated for consignment pursuant to sections 95892(c) and 95893(c) must be transferred to the Auction Holding Account at least 75 days before the auction as scheduled in Appendix C.(e) Auction of Allowances Used to Fulfill an Untimely Surrender Obligation. When the Executive Officer transfers compliance instruments used to fulfill an untimely surrender obligation to the Auction Holding Account pursuant to section 95857(d): (1) Allowances with a vintage year corresponding to the current or previous budget years will be designated to the Current Auction;(2) Allowances with a vintage year corresponding to a budget year three years subsequent to the current calendar year will be designated to the Advance Auction;(3) Allowances with a vintage corresponding to a budget year one year or two years subsequent to the current year will remain in the Auction Holding Account until their vintage corresponds to the current calendar year. They will then be designated for the Current Auction.(4) The Executive Officer will retire any allowances issued from ARB or a GHG ETS to which California has linked pursuant to Subarticle 12 that have no vintage.Cal. Code Regs. Tit. 17, § 95910
1. New subarticle 10 (sections 95910-95914) and section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Amendment filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
3. Amendment of subsection (a)(2) filed 6-24-2013; operative 10-1-2013 (Register 2013, No. 26).
4. Amendment filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
5. Amendment filed 9-18-2017; operative 10-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38). Note: Authority cited: Sections 38510, 38560, 38562, 38570, 38571, 38580, 39600 and 39601, Health and Safety Code. Reference: Sections 38530, 38560.5, 38564, 38565, 38570 and 39600, Health and Safety Code.
1. New subarticle 10 (sections 95910-95914) and section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Amendment filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
3. Amendment of subsection (a)(2) filed 6-24-2013; operative 10-1-2013 (Register 2013, No. 26).
4. Amendment filed 6-26-2014; operative 7/1/2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
5. Amendment filed 9-18-2017; operative 10/1/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).