N.J. Admin. Code § 7:27C-11.8

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

Section 7:27C-11.8 - Auction participant qualification

(a) A person who intends to participate in a CO[2] allowance auction, or auctions, shall submit a qualification application to the Department, in the form and manner specified in the notice of CO[2] allowance auction.

(b) The deadline for submitting a qualification application will be established in the notice of CO[2] allowance auction and will be at least 15 days after the publication of such notice.

(c) As part of a qualification application, an applicant shall provide information and documentation relating to the applicant's ability and authority to execute bids and honor contractual obligations, as well as information required to ensure adherence to the auction requirements and procedures specified in this subchapter, as follows:

1. Identification by the applicant of either a compliance account or general account, established pursuant to N.J.A.C. 7:27C-6.2(a) or (b), and identification of the CO[2] authorized account representative for such compliance account or general account;

2. Information and documentation regarding the corporate identity, ownership, affiliations, and capital structure of the entity represented by the applicant;

3. Identification of any indictment or felony conviction of the applicant or any member, director, principal, partner, or officer of the entity represented by the applicant or any affiliate or related entity;

4. Identification of any previous or pending investigation of the applicant or the entity represented by the applicant or any affiliate or related entity, with respect to any alleged violation of any rule, regulation, or law associated with any commodity market or exchange; and

5. Such other information and declarations as the Department determines may be required of an applicant in order to evaluate prospective auction participants and ensure the integrity of the CO[2] allowance auction process in accordance with the requirements and procedures for CO[2] allowance auctions established in this subchapter.

(d) The Department will determine whether a qualification application is complete, or incomplete, or otherwise deficient. If the Department determines that an application is incomplete or otherwise deficient, the applicant will be given a reasonable opportunity, and in NO[x] event less than five business days and NO[x] more than 10 business days, as specified in the notice of CO[2] allowance auction, to provide additional information to the Department in order to complete the application or remedy any application deficiency.

(e) The Department will review a complete qualification application and make a determination as to whether the applicant is qualified to participate in CO[2] allowance auctions. The Department will make a determination as to the qualification status of the applicant by the deadline for such determination specified in the notice of CO[2] allowance auction.

(f) The Department may deny qualification to an applicant based on information submitted in a qualification application in order to ensure the integrity of the COallowance auction process in accordance with the requirements and procedures for auctions established at N.J.A.C. 7:27C-11.6, 11.7, 11.9, 11.10, and 11.11.

(g) The Department may revoke the qualification status of a qualified participant, if he or she fails to comply with the applicable requirements of this subchapter, or if the Department determines that he or she has knowingly provided false or misleading information or withheld pertinent information from the qualification application submitted pursuant to (a) above. The Department may also prohibit a qualified participant who has engaged in such conduct from participating in future CO[2] allowance auctions where the Department determines that the prior conduct could compromise the integrity of a subsequent CO[2] allowance auction.

(h) A qualified participant will remain qualified indefinitely to participate in all COallowance auctions after the Department's qualification determination, provided that there has been NO[x] material change to the information supplied to the Department in the qualification application submitted pursuant to (a) above. If there is any material change to the information in the qualification application submitted pursuant to (a) above, the qualification status will expire as of the date of such change, pending the submission of a new qualification application pursuant to (a) above and a determination by the Department that the applicant is qualified to participate in CO[2] allowance auctions.

(i) Prior to each CO[2] allowance auction, a qualified participant who intends to participate in the auction shall notify the Department, through a notice of intent to bid, that he or she intends to participate in the upcoming CO[2] allowance auction. Such notice shall be submitted to the Department by the same date as that required for submitting a qualification application established in the notice of CO[2] allowance auction for such auction.

(j) As part of a notice of intent to bid submitted to the Department pursuant to (i) above, a qualified participant shall notify the Department whether there has been any material change to the information supplied in the qualification application submitted pursuant to (a) above. Examples of what constitutes a material change are included on RGGI's website (www.rggi.org) as part of the Intent to Bid form/materials.

N.J. Admin. Code § 7:27C-11.8

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