Md. Code Regs. 26.09.04.07

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.09.04.07 - Participant Eligibility

A. The Department, in consultation with the Committee, shall determine which categories of eligible bidders will be authorized to submit bids in each auction. Notification of the categories shall be included in each notice of CO₂ allowance auction.

B. Eligible categories of bidders for an auction may include:

(1) Owners of CO₂ budget units located in Maryland;

(2) Owners of CO₂ budget units located outside of Maryland but in a participating state with final CO₂ budget trading rules in place at the time of the auction; and

(3) Other market participants, including but not limited to, brokers, environmental groups, financial and investment institutions, and owners of generation units, located in or outside of the participating states with final CO₂ budget trading rules in place at the time of the auction.

C. In order to participate in auctions, eligible bidders shall provide financial security in the form of a bond, cash, certified funds, or an irrevocable standby letter of credit, in a form acceptable to the Department.

D. A bidder's eligibility to bid in any auction may be limited to the level of financial security provided.

E. A bidder's financial security may be forfeited and retained by the Department in the event the bidder's offer is accepted in an auction and the bidder fails to tender payment of the full amount when due.

F. Return of Financial Security.

(1) A bidder may request return of its financial security at any time before or following any auction.

(2) The Department shall return the financial security upon the Department's determination that the bidder has complied with these regulations and paid the full amount of its accepted bid.

Md. Code Regs. 26.09.04.07

Regulations .07 adopted as an emergency provision effective April 4, 2008 (35:9 Md. R. 895); adopted permanently effective August 25, 2008 (35:17 Md. R. 1490)