Section 250-RICR-120-05-47.14 - Participation RequirementsA. In order to participate in an auction or sale, any prospective bidder or buyer must provide financial security in the form of a bond, cash, certified funds, or an irrevocable stand-by letter of credit, in a form acceptable to the Department or its agent. Financial security shall be provided in a form and manner as described in the Notice. A prospective bidder's eligibility to bid in any auction or a buyer's eligibility to buy allowances shall be limited to the level of financial security provided. Financial security may be forfeited to and retained by the Department or its agent in the event the bidder's offer is accepted in a CO2 allowance auction and the bidder fails to tender payment of the full amount when due.B. Bidders or buyers may request return of their financial security at any time prior to or following any CO2 allowance auction or sale, and the Department or its agent shall return said financial security provided that the Department or its agent have no current or pending claim to such security as a result of a successful bid or sale, or failure of a bidder or buyer to pay the full amount of its accepted bid when due.C. Any party wishing to participate in an auction or sale shall be required to: 1. Open and maintain a compliance account or a general account, and2. Complete an application. Prospective bidders and buyers must provide information and documentation relating to their ability and authority to execute bids and sales and honor contractual obligations. Such documentation may include, but may not be limited to, information and documentation regarding the corporate identity, ownership and capital structure of the applicant.D. Applicants wishing to participate in an auction or sale shall submit an application in the form provided in the Notice to the Department or its agent on or before the deadline specified in the Notice. Such deadline shall be no sooner than fifteen (15) days following the date of publication of the Notice. Application information and forms shall be made available electronically on the central website or the Department's website, whichever is appropriate.E. The Department or its agent will review each application and make a determination as to whether an applicant is deemed qualified. Failure to provide any information required by the Notice or this regulation may result in the application being denied.F. Prospective bidders and buyers that qualify for participation under § 47.14 of this Part will be qualified for all subsequent CO2 allowance auctions and sales, and will be eligible to bid in such auctions or buy in a sale provided that such party has complied with the financial security requirements pursuant to § 47.14 of this Part.G. Prior to each CO2 allowance auction or sale, a prospective bidder or buyer that has qualified under § 47.14 of this Part must notify the Department or its agent of its intent to participate in the upcoming auction or sale. This notification shall include either a statement that there has been no material change to the information provided in the application, or a revised application if material changes have occurred. A material change is a substantial change of decisional significance.H. The Department or its agent may suspend or revoke its approval of an application if the bidder or buyer fails to comply with requirements of this regulation and Part 46 of this Subchapter (CO2 Budget Trading Program).I. All bids shall be submitted in a form prescribed by the Department or its agent, and shall be submitted in the manner prescribed by the Department or its agent. Such forms shall be made available electronically on the central auction website or the Department's website, whichever is appropriate based on the Department's or its agent's determination under § 47.5 of this Part. All bids submitted shall be considered binding offers for the purchase of allowances under the rules of the auction.J. All sales shall be submitted in a form prescribed by the Department or its agent, and shall be submitted in the manner prescribed by the Department or its agent. Such forms shall be made available electronically on the Department's website. All sales shall be considered binding for the purchase of allowances under the rules of the sale.K. If the Department or its agent determines that a bidder or buyer has provided false or misleading information, or has withheld pertinent information in its application, or has otherwise failed to comply with this regulation, the bidder or buyer may be prohibited from participating in any future auctions or sales.250 R.I. Code R. 250-RICR-120-05-47.14
Amended effective 12/25/2018