jswizzle3737/ontario_laws_and_regs huggingface dataset:
Holding limit, current vintage emission allowances, etc.
 40. (1) Subject to section 41, a registered participant shall ensure that the total number of emission allowances and credits mentioned in subsection (2) that are held in the participant’s cap and trade accounts does not at any time in a year exceed the limit determined by applying the following formula: L = 2,500,000 + 0.025 × (C − 25,000,000) where, L = the limit, and C = the number of emission allowances created for the year, both in Ontario and in designated jurisdictions. O. Reg. 450/17, s.17 (1). (2) The limit applies in respect of the following held in a registered participant’s cap and trade accounts: 1. Current vintage emission allowances. 2. Emission allowances that do not have a vintage year. 3. Early reduction credits. O. Reg. 450/17, s.17 (1). (3) Registered participants shall allocate the limit calculated under subsection (2) among themselves and all of the persons with whom they are related and who are either registered participants or externally authorized participants. O. Reg. 450/17, s.17 (1). (3.1) No registered participant shall hold in the participant’s cap and trade accounts more than the share of the holding limit allocated to the participant under this section. O. Reg. 450/17, s.17 (1). (4) This section does not apply to a market participant that is an Ontario clearing house. O. Reg. 473/16, s. 15; O. Reg. 450/17, s.17 (2). (5) Revoked: O. Reg. 56/17, s. 6.
Holding limit, future vintage emission allowances
 42. (1) A registered participant shall ensure that the total number of future vintage emission allowances held in the participant’s cap and trade accounts at any time in a year does not at any time in a year exceed the limit determined by applying the following formula in respect of each future vintage year: HLj = 2,500,000 + 0.025 × (Cj − 25,000,000) where, HLj = the limit on future vintage emission allowances with vintage year j, and Cj = the number of emission allowances created for year j, both in Ontario and in designated jurisdictions. O. Reg. 450/17, s.18 (1). (2) Registered participants shall allocate the limit calculated under subsection (1) among themselves and all of the persons with whom they are related and who are either registered participants or externally authorized participants. O. Reg. 450/17, s.18 (1). (2.1) No registered participant shall hold in the participant’s cap and trade accounts more than the share of the holding limit allocated to the participant under this section. O. Reg. 450/17, s.18 (1). (3) This section does not apply to a market participant that is an Ontario clearing house. O. Reg. 473/16, s. 17; O. Reg. 450/17, s.18 (2). (4) Revoked: O. Reg. 56/17, s. 6.
When holding limit exceeded
 43. (1) The Minister may, at any time starting five days after the day a registered participant is in contravention of section 40 or 42, remove the number of emission allowances or credits that exceed the applicable limit from the participant’s cap and trade accounts. O. Reg. 144/16, s. 43 (1); O. Reg. 473/16, s. 18 (1). (1.1) The Minister’s authority under subsection 27 (1) of the Act to remove emission allowances and credits that exceed the applicable limit from the participant’s cap and trade accounts may only be exercised by taking the following steps in respect of the participant’s cap and trade accounts in the order in which the steps are set out, until the excess number of allowances or credits has been removed: 1. The Minister shall remove any emission allowances from the holding account, beginning with the emission allowances with the earliest vintage year and continuing chronologically to the emission allowances with the most recent vintage year, until no more of those emission allowances remain in the holding account. 2. The Minister shall remove any early reduction credits from the holding account until no more of those credits remain in the holding account. 3. The Minister shall remove any emission allowances from the compliance account, beginning with the emission allowances with the earliest vintage year and continuing chronologically to the emission allowances with the most recent vintage year, until no more of those emission allowances remain in the compliance account. 4. The Minister shall remove any early reduction credits from the compliance account until no more of those credits remain in the compliance account. 5. The Minister shall remove any emission allowances from the cap and trade accounts that do not have a vintage year until no more of those allowances remain in the accounts. O. Reg. 473/16, s. 18 (2); O. Reg. 450/17, s. 19. (2) The Minister shall, (a) retire from circulation all credits removed under subsection (1); and (b) reserve all emission allowances removed under subsection (1) for the purpose of auctions.
Account agents, classes
 44. (1) The following classes of account agents are established: 1. Primary account representative. 2. Alternate account representative 3. Account viewing agent. (2) Only an individual who resides in Ontario may be designated as the primary account representative of a registered participant.
Account agents, powers and duties
 46. (1) A designated primary account representative or a designated alternate account representative of a registered participant is authorized to act on behalf of the participant to perform any actions that the participant is required or permitted to take under the Act. (2) An individual who is designated as an account viewing agent by a registered participant is authorized to observe the participant’s cap and trade accounts on behalf of the participant. (3) If a designated primary or alternate account representative submits a notice or confirmation under this Regulation, the individual must include a statement that he or she is authorized to submit the notice or confirmation on behalf of the registered participant who made the designation and that the information set out in the notice or confirmation is true, accurate and complete to the best of the individual’s knowledge.
Designations, requirements and restrictions
 47. (1) Each registered participant shall designate, (a) one individual as a primary account representative; and (b) subject to subsection (2), at least one and no more than four individuals as alternate account representatives, none of whom may also be designated as the primary account representative. (2) A market participant who is an individual is not required to designate an alternate account representative. (3) Each registered participant may designate up to five individuals as account viewing agents. (4) The designation shall include the following information in respect of each individual being designated: 1. The individual’s name and the identification number assigned by the Director or by a designated jurisdiction. 2. A statement signed by a chief officer or a resolution of the board of directors of the registered participant, confirming that the individual has been designated to act on behalf of the registered participant as either an account representative or an account viewing agent, as the case may be. 3. A statement signed by a lawyer or notary, confirming the relationship between the individual and the registered participant. 4. A statement signed by the individual, confirming that the individual has been designated to act on behalf of the registered participant for the purposes of this Regulation and that the individual undertakes to comply with the Act and the regulations. 5. If the individual is designated by any other registered participant as an account representative or as an account viewing agent for the purposes of this Regulation, or is an external account representative for an externally authorized participant, a statement signed by the individual, providing the name and contact information of any such registered participant or externally authorized participant. O. Reg. 144/16, s. 47 (4); O. Reg. 450/17, s. 21.
Termination of designation
 48. The designation of an individual as an account agent for a registered participant terminates when, (a) the Director receives a written request from the registered participant for termination of the designation; (b) all of the registered participant’s accounts are closed; (c) the Director cancels the recognition of the individual; or (d) the person’s designation under a corresponding program, as mentioned in paragraph 5 of subsection 47 (4), is terminated by a designated jurisdiction.
Suspension of authority re accounts
 49. (1) The Director shall suspend a participant’s or a designated account representative’s authority to deal with emission allowances and credits held in a participant’s cap and trade accounts by providing written notice of the suspension if the Director has reason to believe that the participant or account representative has contravened this Regulation or section 21, 28 or 29 of the Act. (2) If the Director is satisfied that the participant or designated account representative, as the case may be, is not contravening this Regulation or section 21, 28 or 29 of the Act, the Director shall reinstate the authority.
Minister to transfer upon receiving transfer request
 50. (1) Upon receiving a request to transfer emission allowances or credits under this Regulation, the Minister shall transfer the allowances or credits that are identified in the request in accordance with the request, unless the Minister is of the view that, (a) the transfer would result in non-compliance with the Act or the regulations; (b) the Minister has reasonable grounds to believe that an offence has been committed under the Act in relation to the request; or (c) the request contains errors, omissions or is otherwise incomplete. (2) If the Minister refuses to transfer emission allowances or credits under subsection (1), the Minister shall provide notice of the reason for the refusal to all of the designated account representatives who have taken steps under this Regulation with respect to the request. (3) If the Minister refuses to transfer emission allowances or credits under clause (1) (c), the notice shall identify the errors or omissions or shall include a description of how the request is otherwise incomplete.
Transfers, general rules
 51. (1) If the Minister asks a designated account representative of a registered participant for information relating to the transfer of emission allowances or credits under this Regulation, the account representative shall give the information to the Minister by the date specified by the Minister. O. Reg. 450/17, s. 22. (2) Despite sections 51.1 51.1.1 and 51.1.2, the Minister shall not transfer emission allowances or credits to an Ontario clearing house or to an external clearing house if the transferor is an Ontario clearing house or an external clearing house. O. Reg. 450/17, s. 22. (3) Despite any requirement in this Regulation that steps relating to a transfer be taken by different designated account representatives of a registered participant, the same individual may take the steps if the registered participant is a market participant that is an individual and has only one designated account representative. O. Reg. 450/17, s. 22. (4) If emission allowances or credits that were transferred to the holding account of an Ontario clearing house remain in the holding account for a period exceeding five business days, (a) the Ontario clearing house shall request a reversal of the transfer; and (b) for the purposes of subsection 27 (4) of the Act, the Minister or Director may reverse the transfer, whether or not a request has been made under clause (a) of this subsection. O. Reg. 450/17, s. 22.
Transfers between registered participants
 51.1 (1) This section applies in respect of the transfer of emission allowances or credits from a registered participant’s holding account to another registered participant’s holding account. O. Reg. 450/17, s. 22. (2) A registered participant may submit a request to the Minister to transfer emission allowances or credits from the participant’s holding account to another registered participant’s holding account by taking the following steps: 1. A designated account representative of the transferor must submit to the Minister and to all other designated account representatives of the transferor a notice of the intent to transfer emission allowances or credits, setting out the information mentioned in section 51.2. 2. A second designated account representative of the transferor must, no later than two days following the submission of the notice of intent under paragraph 1, submit to the Minister and to all other designated account representatives of the transferor and to all designated account representatives of the intended transferee a confirmation of the transferor’s intent to transfer the emission allowances and credits specified in the notice. O. Reg. 450/17, s. 22. (3) Subject to subsection (5), if the intended transferee wishes to accept the transfer, a designated account representative of the intended transferee must, no later than three days following the submission of the notice under paragraph 1 of subsection (2), submit to the Minister a confirmation of the intent to accept the transfer. O. Reg. 450/17, s. 22. (4) Subject to subsection 50 (1), the Minister shall ensure that upon receipt of a confirmation mentioned in subsection (3) of this section, the emission allowances and credits specified in the confirmation are transferred. O. Reg. 450/17, s. 22. (5) If either the transferor or the intended transferee is an Ontario clearing house, (a) subsection (3) does not apply; and (b) subject to subsection 50 (1), the Minister shall ensure that upon receipt of the confirmation mentioned in paragraph 2 of subsection (2) of this section, the emission allowances and credits specified in the confirmation are transferred. O. Reg. 450/17, s. 22.
Transfers, registered participant to externally authorized participant
 51.1.1 (1) This section applies in respect of the transfer of emission allowances or credits from a registered participant’s holding account to an external account of an externally authorized participant. O. Reg. 450/17, s. 22. (2) The registered participant may submit a request to the Minister to transfer the emission allowances or credits by taking the following steps: 1. A designated account representative of the registered participant must submit to the Minister and to all other designated account representatives of the registered participant a notice of the intent to transfer emission allowances or credits, setting out the information mentioned in section 51.2. 2. A second designated account representative of the registered participant must, no later than two days following the submission of the notice of intent under paragraph 1, submit to the Minister and to all other designated account representatives of the registered participant and to all external account representatives of the externally authorized participant a confirmation of the registered participant’s intent to transfer the emission allowances and credits specified in the notice. O. Reg. 450/17, s. 22. (3) Subject to subsection (4), the Minister shall transfer the emission allowances or credits specified in the notice if the Minister is satisfied of the following: 1. That an external account representative of the externally authorized participant has submitted a confirmation of the intent to accept the transfer in accordance with the requirements of the corresponding program. 2. That the confirmation mentioned in paragraph 1 was submitted no later than three days following the submission of the notice of intent under paragraph 1 of subsection (2). O. Reg. 450/17, s. 22. (4) If the registered participant is an Ontario clearing house, (a) subsection (3) does not apply; and (b) subject to subsection 50 (1), the Minister shall ensure that upon receipt of the confirmation mentioned in paragraph 2 of subsection (2) of this section, the emission allowances and credits specified in the confirmation are transferred. O. Reg. 450/17, s. 22.
Transfers, externally authorized participant to registered participant
 51.1.2 (1) This section applies in respect of the transfer of emission allowances or credits from an external account of an externally authorized participant to the holding account of a registered participant. O. Reg. 450/17, s. 22. (2) If the registered participant is not an Ontario clearing house, a designated account representative of the registered participant must, no later than three days following the submission of a notice of intent to transfer the emission allowances or credits that was submitted in accordance with the requirements of the corresponding program
by an external account representative of the externally authorized participant, submit to the Minister a confirmation of the intent to accept the transfer.
O. Reg. 450/17, s. 22. (3) Subject to subsection 50 (1), the Minister shall ensure that upon receipt of a confirmation mentioned in subsection (2) of this section, the emission allowances and credits specified in the confirmation are transferred. O. Reg. 450/17, s. 22. (4) Subject to subsection 50 (1), if the registered participant to whom the emission allowances and credits would be transferred is an Ontario clearing house, the Minister shall transfer the emission allowances or credits specified in a notice of intent to transfer and a confirmation of intent to transfer if the Minister is satisfied of the following:  that the notice and the confirmation were submitted in accordance with the requirements of the corresponding program by an external account representative of the externally authorized participant. O. Reg. 450/17, s. 22.
Information for request to transfer
 51.2 (1) For the purposes of subsections 51.1 (2) and 51.1.1 (2), the request to transfer shall include the following information: 1. The transferor’s account number. 2. The transferee’s account number. 3. The total number of allowances or credits to be transferred. 4. For each allowance or credit to be transferred, i. the type of allowance or credit: emission allowance, offset credit or early reduction credit, ii. the vintage year, if any, or, in the case of an offset credit, the year in which it was issued, and iii. the price to be paid for the allowance or credit under the transfer agreement. 5. For each allowance of the same type and vintage year and for each credit of the same type that has the same year in which it was issued, the method used to determine the price to be paid. 6. A detailed description of the transfer agreement in a form approved by the Director that includes, i. the day on which the transferor and transferee signed the agreement, ii. the day by which all terms of the agreement are to be fulfilled, and iii. a description of any other matters dealt with in the agreement. 7. The day on which the request is submitted. O. Reg. 473/16, s. 21; O. Reg. 450/17, s. 23 (1-4). (2) Subparagraph 4 iii of subsection (1) does not apply if the transferor and transferee are related persons, unless the transferor or transferee is an Ontario clearing house or an external clearing house.  O. Reg. 473/16, s. 21; O. Reg. 450/17, s. 23 (5).
Transfers between compliance accounts
 51.3 (1) A previous owner or operator of a facility at which a specified GHG activity is engaged in may submit a request to the Minister to transfer emission allowances or credits from the previous owner or operator’s compliance account to the compliance account of the new owner or operator by having a designated account representative submit a notice of intent to transfer emission allowances or credits to the Minister setting out the following information: 1. The previous owner or operator’s compliance account number. 2. The new owner or operator’s compliance account number. 3. The total number of allowances or credits to be transferred. 4. For each allowance or credit to be transferred, i. the type of allowance or credit: emission allowance, offset credit or early reduction credit, and ii. the vintage year, if any, or, in the case of an offset credit, the year in which it was issued. O. Reg. 473/16, s. 21; O. Reg. 450/17, s. 24. (2) Subject to subsection 50 (1), the Minister shall ensure that upon receipt of the transfer request and the notice of change of ownership under subsection 9.1 (5), the emission allowances and credits specified in the transfer request are transferred. O. Reg. 473/16, s. 21. (3) If the Minister asks a designated account representative of the previous or new owner or operator for information relating to the transfer of emission allowances or credits under this section, the account representative shall give the information to the Minister by the date specified by the Minister. O. Reg. 473/16, s. 21.
Removal of emission allowances or credits from holding account
 52. (1) A registered participant may submit a request to the Minister for the removal of emission allowances or credits from the participant’s holding account by taking the following steps: 1. A
designated account representative of the registered participant must submit to the Minister and to all other designated account representatives of the participant a notice of the participant’s intent to remove emission allowances and credits, setting out the number of emission allowances and credits and a description of the emission allowances and credits to be removed. 2. A second designated account representative of the registered participant must, no later than two days following the submission of the notice of intent under paragraph 1, submit to the Minister and to all other designated account representatives of the participant a confirmation of the participant’s intent to remove the emission allowances and credits specified in the notice. O. Reg. 144/16, s. 52 (1); O. Reg. 450/17, s. 25 (1). (2) Upon receiving a confirmation under paragraph 2 of subsection (1), the Minister shall remove the emission allowances or credits specified in the confirmation from the holding account and retire them from circulation. (3) Despite the requirement in subsection (1) that steps relating to a request for removal be taken by different designated account representatives of a registered participant, the same individual may take the steps if the registered participant is a market participant that is an individual and has only one designated account representative. O. Reg. 450/17, s. 25 (2). (4) If the Minister asks a designated account representative of a participant for information relating to the removal of emission allowances or credits under this section, the account representative shall give the information to the Minister by the date specified by the Minister. O. Reg. 144/16, s. 52 (4); O. Reg. 257/17, s. 8.
Closing of accounts
 53. (1) The cap and trade accounts of a registered participant are closed under subsection 26 (1) of the Act if the participant’s registration is cancelled. (2) If cap and trade accounts are closed under section 26 of the Act and any emission allowances or credits remain in the accounts, the Director shall take the following steps: 1. The Director shall reserve any emission allowances for auctions. 2. The Director shall retire from circulation any offset credits issued by designated jurisdictions and any early reduction credits. 3. The Director shall retain any Ontario offset credits for the purposes prescribed under subsection 36 (2) of the Act. O. Reg. 144/16, s. 53 (2); O. Reg. 450/17, s. 26.
Holding of allowances, credits owned by another person
 53.1 Subsection 28 (2) of the Act does not apply to a market participant that is an Ontario clearing house. O. Reg. 473/16, s. 22; O. Reg. 450/17, s. 27. Part VI   Distribution of Ontario Emission Allowances Creation and Distribution - General
PART VI DISTRIBUTION OF ONTARIO EMISSION ALLOWANCES
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Creation and Distribution - General
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Ontario emission allowances created for each year
 54. For each year set out in Column 1 of the following Table, the Minister shall create the number of Ontario emission allowances set out opposite the year in Column 2 of the Table: Table Item   Column 1 Year   Column 2 Number of Ontario emission allowances 

  1.   2017   142,332,000 

  2.   2018   136,440,000 

  3.   2019   130,556,000 

  4.   2020   124,668,000 

  5.   2021   121,058,000 

  6.   2022   117,438,000 

  7.   2023   113,818,000 

  8.   2024   110,198,000 

  9.   2025   106,578,000 

  10.   2026   102,958,000 

  11.   2027   99,339,000 

  12.   2028   95,719,000 

  13.   2029   92,099,000 

  14.   2030   88,479,000 O. Reg. 450/17, s. 28.
Allowances reserved for sales under s. 59
 55. (1) Before January 1 in the first year of a compliance period and before taking any steps under sections 56 and 57, the Minister shall reserve 5 per cent of the Ontario emission allowances created for each year of the compliance period for the purpose of sales under section 59. (2) The Minister shall classify the emission allowances reserved under subsection (1) into three categories with the labels of Category A, B and C, with each category consisting of, to the extent possible, an equal number of emission allowances.
Allowances reserved for free distribution under subs. 31 (2) of the Act
 56. (1) Before January 1 in each year in a compliance period and before taking any steps under section 57, the Minister shall reserve such number of Ontario emission allowances that were created for the upcoming year as are required for the purpose of distributing them free of charge under subsection 31 (2) of the Act. (2) The Minister shall classify the emission allowances reserved under subsection (1) with the upcoming year as their vintage year.
Allowances reserved for auctions
 57. (1) The Minister shall, on or before January 15 in each auction year, reserve emission allowances for the purpose of auctions to be held in the auction year as follows: 1. Reserve the remaining Ontario emission allowances created for that year, which must be classified with the auction year as their vintage year. 2. Reserve 10 per cent of the original number of Ontario emission allowances created for the year that is three years later than the auction year, which must be classified with the year that is three years later than the auction year as their vintage year. (2) After an order is issued under paragraph 1 of subsection 14 (8) of the Act, the Minister shall remove the following from the Ontario emission allowances that have been reserved by the Minister for the next auction and retire them from circulation: the number of Ontario emission allowances equal to 25 per cent of the amount of the outstanding obligations set out in the order. Distribution by Auction and Sale
Distribution by Auction and Sale
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Distribution by auction
 58. (1) Each year starting in 2017, the Minister shall submit emission allowances for the purposes of an auction to be held on four separate occasions, each consisting of a single round of bidding. O. Reg. 450/17, s. 29 (1). (2) Only the following emission allowances shall be auctioned: 1. Such emission allowances as have been reserved by the Minister for the purpose of auctions. 2. Any emission allowances that have been submitted to the Minister under paragraph 2 of subsection 14 (7) of the Act. 3. Any emission allowances that have been removed by the Minister from a capped participant’s cap and trade accounts under paragraph 3 of subsection 14 (7) of the Act. 4. Any emission allowances that have been removed by the Minister under subsection 27 (1) of the Act. O. Reg. 144/16, s. 58 (2); O. Reg. 473/16, s. 23; O. Reg. 450/17, s. 29 (2). (3) At each auction in an auction year, the Minister shall submit for the purposes of the auction, (a) such percentage as the Minister considers appropriate of the Ontario emission allowances mentioned in paragraph 1 of subsection 57 (1), as long as 100 per cent of those emission allowances are auctioned by the end of the fourth auction; and (b) 25 per cent of the Ontario emission allowances mentioned in paragraph 2 of subsection 57 (1). O. Reg. 144/16, s. 58 (3); O. Reg. 450/17, s. 29 (3). (4) If, at the end of an auction, any of the emission allowances that were auctioned remain unsold, the Minister shall reserve them for the purpose of subsequent auctions and may submit them subsequently for the purposes of an auction, subject to the following rules: 1. An unsold Auction Class 1 emission allowance may be auctioned subsequently only if, following the most recent auction in which the allowance remained unsold, the lowest bid price (Auction Class 1) was higher than the auction reserve price at two or more consecutive auctions held by the Minister. 2. An unsold Auction Class 2 emission allowance may be auctioned subsequently in a year that is no earlier than the vintage year of the unsold emission allowance. 3. The maximum number of unsold Auction Class 1 emission allowances that may be auctioned on a single occasion is the number that is equal to 25 per cent of the emission allowances that are being auctioned on the occasion that, i. have not previously been auctioned, and ii. have a vintage year that is the auction year. O. Reg. 144/16, s. 58 (4); O. Reg. 450/17, s. 29 (4-6).
Distribution by sale
 59. (1) Each year starting in 2017, in addition to holding auctions, the Minister may offer Ontario emission allowances for sale to capped participants on a maximum of four separate occasions. (2) The Minister shall only offer for sale such Ontario emission allowances as have been reserved for sales under this section. (3) If any of the Ontario emission allowances that were offered for sale under subsection (1) remain unsold after the Minister has offered them for sale, the Minister shall reserve them for the purpose of a subsequent sale under this section. O. Reg. 144/16, s. 59 (3); O. Reg. 450/17, s. 30.
Minister’s notice of auction or sale
 60. (1) At least 60 days before an auction or a sale, the Minister shall provide notice of the auction or sale to the public in such manner as the Minister considers appropriate, setting out the following information: 1. The day on which and time period during which bidding in the auction or sale may take place. 2. The location or internet address at which the auction or sale will be held. 3. A summary of the requirements of this Regulation relating to the auction or sale. 4. A summary of the auction or sale process. 5. In the case of an auction, i. for each emission allowance being offered for sale at the auction, the vintage year, if any, of the emission allowance, and ii. the number of emission allowances with no vintage year being offered for sale at the auction and, for each vintage year identified under subparagraph i, the number of emission allowances being offered with that vintage year. 6. In the case of a sale, i. the categories of the Ontario emission allowances being offered for sale and the number of emission allowances of each category being offered, and ii. the price of the emission allowances in each category. O. Reg. 144/16, s. 60; O. Reg. 450/17, s. 31. (2) Subject to subsection (3), the Minister may, at any time after providing a notice under subsection (1), change the information included in the notice by providing notice of the change in such manner as the Minister considers appropriate. O. Reg. 257/17, s. 9. (3) The day on which bidding in the auction or sale may take place may be changed by a maximum of four business days, which four business days may be either before or after the day specified in the original notice of the auction or sale. O. Reg. 257/17, s. 9. (4) Subject to subsections (5) and (6), if the day on which bidding in the auction or sale may take place is changed, all requirements under this Regulation in respect of which there is a time limit determined in relation to the day on which bidding takes place shall be, as of the day on which the notice of the change is provided by the Minister, determined in relation to the new day as specified in the notice of change. O. Reg. 257/17, s. 9. (5) Subsection (4) does not apply with respect to a requirement if, before the day on which the Minister provides a notice of a change, the time limit in respect of the requirement expired. O. Reg. 257/17, s. 9. (6) Despite subsection (4), if a participant has given financial assurance in accordance with this Regulation for the purpose of bidding in an auction or a sale and the day of the auction or sale is subsequently changed, the participant is not required to provide new financial assurance that is valid for at least 26 days following the revised day of the auction or sale. O. Reg. 257/17, s. 9.
Financial assurance
 61. (1) Financial assurance required to be given by a registered participant under this Regulation for the purpose of bidding in an auction or a sale must meet the following criteria: 1. It must be in Canadian or US dollars. 2. It must be valid for at least 26 days following the day of the auction or sale. 3. It must be one or a combination of the following and must be given in a form and manner approved by the Minister: i. A bank transfer. ii. An irrevocable letter of credit or letter of guarantee issued by a bank within the meaning of the Bank Act
(Canada) or by a financial services cooperative that is authorized by a statute of Canada or Ontario to carry on business in Canada or Ontario. 4. If the financial assurance is a bank transfer, it must be deposited in an escrow account of the financial services administrator or of the institution indicated by the financial services administrator. 4.1 If the financial assurance is an irrevocable letter of credit or a letter of guarantee, i. it must be made payable to the financial services administrator, and ii. it must be payable within three business days of a payment request. 5. It must be for an amount that is greater than or equal to the participant’s proposed maximum bid value, as determined under subsection (2) or (3). O. Reg. 144/16, s. 61 (1); O. Reg. 473/16, s. 24; O. Reg. 257/17, s. 10; O. Reg. 450/17, s. 32. (2) The participant’s proposed maximum bid value for an auction is determined as follows: 1. For each bid price proposed by the participant, multiply the bid price by the number of emission allowances that the participant proposes to purchase at that bid price or at a higher bid price. 2. The highest value calculated under paragraph 1 is the proposed maximum bid value. (3) The participant’s proposed maximum bid value for a sale is determined as follows: 1. For each bid price proposed by the participant, multiply the bid price by the number of emission allowances that the participant proposes to purchase at that bid price. 2. Determine the sum of the results calculated under paragraph 1.
Bids
 62. (1) A registered participant must include the following in a bid submitted in an auction or a sale: 1. The bid price, in dollars and whole cents. 2. The quantity of lots that the participant wishes to purchase. (2) Each bid must be sealed and submitted in the form approved by the Minister. (3) A participant may submit more than one bid in an auction or sale.
Payment for purchases
 63. (1) A registered participant who has been notified by the Minister that one or more bids by the participant have been successful in an auction or a sale shall pay, in the form and manner approved by the Minister, the amount set out in the notice to the financial services administrator no later than seven days after receiving the notice. O. Reg. 473/16, s. 25 (1); O. Reg. 257/17, s. 11. (2) If the participant provided a bank transfer as financial assurance, it must be used to satisfy the amount payable under subsection (1). O. Reg. 473/16, s. 25 (1). (3) If the amount of the bank transfer is not sufficient to satisfy the whole amount payable under subsection (1) and the participant does not pay the whole amount by the deadline set out in that subsection, the irrevocable letter of credit or letter of guarantee shall be used to satisfy the balance. O. Reg. 473/16, s. 25 (1). (3.1) If the participant did not provide a bank transfer as financial assurance and does not pay the whole amount payable under subsection (1) by the deadline set out in that subsection, the irrevocable letter of credit or letter of guarantee shall be used to satisfy the amount. O. Reg. 473/16, s. 25 (1). (4) The Minister shall transfer the emission allowances paid for under subsections (1) to (3.1) to the participant’s, (a) holding account, in the case of an auction purchase, subject to subsection (6); or (b) compliance account, in the case of a sale. O. Reg. 144/16, s. 63 (4); O. Reg. 473/16, s. 25 (2); O. Reg. 450/17, s. 33 (1). (5) The financial services administrator shall return any unused portions of financial assurance. O. Reg. 144/16, s. 63 (5); O. Reg. 473/16, s. 25 (3). (6) Despite clause (4) (a), the Minister may transfer emission allowances purchased at an auction to a participant’s compliance account if, (a) the emission allowances are current vintage emission allowances or allowances with no vintage year; and (b) the limit in section 40 would not apply under section 41 to the emission allowances once they are transferred to the compliance account. O. Reg. 450/17, s. 33 (2).
Summary of auction, sale
 64. (1) The Minister shall make available to the public, in a manner that the Minister considers appropriate, a written summary of each auction or sale, setting out the following information: 1. In the case of an auction, the lowest bid price (Auction Class 1) and the lowest bid price (Auction Class 2). 2. The registered participants to whom the Minister gave permission to participate in the auction or sale. 3. Details regarding the number of emission allowances sold, the number of each vintage year or category of emission allowances sold, and a description of how the emission allowances were distributed among the participants who submitted bids, without identifying which participants purchased the emission allowances. (2) The summary shall be made available no later than 45 days following the conclusion of the auction or sale. Bidding in Auctions Auction or sale of allowances
Bidding in Auctions
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Auction or sale of allowances
 65. (1) For the purposes of subsection 32 (9) of the Act, subsections 32 (6), (7) and (8) of the Act do not apply with respect to, (a) a disclosure to the Ontario Energy Board; or (b) a disclosure between persons who are related, within the meaning of subsection 2 (2) of this Regulation. O. Reg. 473/16, s. 26. (2) A person is exempt from subsection 32 (10) of the Act for the purpose of coordinating the bidding strategies of more than one prospective purchaser in connection with an auction provided that the person is related, within the meaning of subsection 2 (2) of this Regulation, to each of the prospective purchasers. O. Reg. 473/16, s. 26. (3), (4) Revoked: O. Reg. 56/17, s. 6.
Prohibition, bidding in auction
 66. (1) If any of the information provided by a person under section 8 or 9 of Schedule 1 changes during the period beginning 39 days before the auction and ending on the day of the auction, the person is prohibited from bidding in the auction. (2) A market participant that is an Ontario clearing house is prohibited from bidding in auctions. O. Reg. 473/16, s. 27; O. Reg. 450/17, s. 34.
Permission to bid in auction
 67. (1) A registered participant may apply to the Minister for permission to bid in an auction by taking the following steps: 1. No later than 40 days before the day of the auction, the participant must, if applicable, update any information required to be updated as a condition of the participant’s registration. 2. No later than 30 days before the day of the auction, the participant must submit the following information to the Minister: i. The name, contact information and holding account number of the participant. ii. The names and identification numbers of all designated account representatives of the participant. ii.1 The name and contact information of any consultant that provides advice related to the auction participant’s bidding strategy and, if applicable, the name of the consultant’s employer. iii. If the participant is an individual, the individual’s social insurance number. iv. The form of financial assurance to be given. 3. No later than 12 days before the day of the auction, the person must submit financial assurance. O. Reg. 144/16, s. 67 (1); O. Reg. 473/16, s. 28. (2) Subject to subsection (3), upon receiving an application from a participant that meets the requirements set out in subsection (1), the Minister shall permit the participant to bid in the auction. (3) The Minister shall refuse permission to bid in an auction if any of the following circumstances apply: 1. The participant has given false or misleading information in the application. 2. The participant has failed to disclose information required under subsection (1). 3. The participant’s registration or cap and trade accounts are subject to conditions under this Regulation or imposed by the Director that prohibit participation in auctions or otherwise prevent emission allowances or credits from being transferred to the person’s cap and trade accounts. 4. Financial assurance in the form of a bank transfer that has been submitted by the participant has not been deposited into an escrow account established by the financial services administrator or the institution indicated by the financial services administrator. O. Reg. 144/16, s. 67 (3); O. Reg. 257/17, s. 12. (4) Revoked: O. Reg. 56/17, s. 6.
Suspension, revocation of permission
 68. (1) The Minister shall suspend permission to bid in an auction if the circumstances described in paragraph 3 of subsection 67 (3) apply. (2) If permission has been suspended, the Minister shall reinstate the permission once the circumstances described in paragraph 3 of subsection 67 (3) no longer apply. (3) The Minister may revoke permission to bid in an auction if the Minister becomes aware that the participant has given false or misleading information in the application for permission, or if the participant has failed to comply with section 29 of the Act, subsections 32 (6), (7) or (8) of the Act or failed to disclose information required by this Regulation.
Purchase limits
 69. (1) For the purposes of this section, a registered participant is a member of a purchase group if there is at least one related person in respect of the registered participant and the related person is either another registered participant or an externally authorized participant. O. Reg. 450/17, s. 35. (2) For the purposes of this section, (a) the other members of a purchase group in which a registered participant is a member are the related persons mentioned in subsection (1); and (b) participation or lack of participation in an auction does not affect a registered participant’s or an externally authorized participant’s membership in a purchase group. O. Reg. 450/17, s. 35. (3) A registered participant shall comply with the following rules in respect of the purchase of emission allowances available at an auction: 1. A capped participant that is not a member of a purchase group shall not purchase more than 25 per cent of the emission allowances available. 2. A market participant that is not a member of a purchase group shall not purchase more than 4 per cent of the emission allowances available. 3. A registered participant that is a member of a purchase group shall ensure that the purchase limit set out in paragraph 1 is allocated among the members of the purchase group. 4. If the purchase group mentioned in paragraph 3 includes a market participant, the allocation under paragraph 3 must be carried out in such a manner as to ensure the rule set out in paragraph 5 is also complied with. 5. A market participant that is a member of a purchase group shall ensure that the purchase limit set out in paragraph 2 is allocated among all members of the group who meet one of the following descriptions: i. The member is a market participant. ii. The member is a participant within the meaning of the Quebec Regulation. iii. The member is a voluntarily associated entity within the meaning of the California Regulation. 6. No registered participant that is a member of a purchase group shall purchase more than the share of the purchase limit allocated to the participant under this section. O. Reg. 450/17, s. 35. (4)-(7) Revoked: O. Reg. 450/17, s. 35. (8) Revoked: O. Reg. 56/17, s. 6. Administration of Auction
Administration of Auction
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Lots
 70. The Minister shall divide emission allowances that are to be auctioned into lots in accordance with the following rules: 1. Each lot, other than the final lot, shall consist of 1,000 emission allowances. 2. The final lot may consist of fewer than 1,000 emission allowances if fewer than 1,000 emission allowances remain once all other emission allowances have been divided into lots of 1,000. 3. Each lot may consist of only one of the following: i. Auction Class 1 emission allowances. ii. Auction Class 2 emission allowances, all of which must have the same vintage year. O. Reg. 144/16, s. 70; O. Reg. 450/17, s. 36.
Auction reserve price
 71. (1) The auction reserve price of an emission allowance in an auction is the higher of the minimum price in Ontario for the auction year, the minimum price in Quebec for the auction year and the auction reserve price for the auction year in California after applying the following conversion: 1. If, on the day before the day of the auction, the Bank of Canada provided a Canadian dollar exchange rate for that currency, the currency conversion is calculated at that rate. 2. If paragraph 1 does not apply, the currency conversion is calculated at the Canadian dollar exchange rate for that currency as provided by the Bank of Canada for the date that is before, and is as close as possible to, the day of the auction. O. Reg. 450/17, s. 37. (2) The minimum price in Quebec for the auction year is the last price that was set out in the year before the auction year for that jurisdiction on a website of the government of Quebec. O. Reg. 450/17, s. 37. (3) The auction reserve price for the auction year in California is the last price that was set out in the year before the auction year for that jurisdiction on a website of the California Air Resources Board. O. Reg. 450/17, s. 37. (4) The minimum price in Ontario for 2018 shall be established in accordance with the following formula: MP2018 = 13.75 × (0.05 + Ir) where, MP2018 =   Ontario minimum price for 2018, Ir = the average monthly Consumer Price Index for Ontario for the 12-month period ending on September 30 in 2017, divided by the average monthly Consumer Price Index for Ontario for the 12-month period ending on September 30 in 2016. O. Reg. 450/17, s. 37. (5) The minimum price in Ontario for a year subsequent to 2018 shall be established in accordance with the following formula: MPt = MPt-1 × (0.05 + Ir) where, MPt = Ontario minimum price for year t, Ir = the average monthly Consumer Price Index for Ontario for the 12-month period ending on September 30 in the year immediately preceding year t, divided by the average monthly Consumer Price Index for Ontario for the 12-month period ending on September 30 in the year that is two years immediately preceding year t. O. Reg. 450/17, s. 37.
Bids in excess of holding limit, purchase limit
 72. (1) After the period of time for bidding has concluded, the Minister shall reject bids or portions of bids of a participant if acceptance of all of the participant’s bids would result in contravention of a limit under section 40, 42 or 69 (2) The Minister shall reject bids or portions of bids, starting with the participant’s lowest bid price and continuing in increasing order by bid price, until the total of the participant’s bids remaining would, if accepted, not result in contravention of a limit under section 40, 42 or 69.
Determination of actual maximum bid value
 73. (1) Before accepting any bids, the Minister shall determine whether each participant’s actual maximum bid value, as determined under subsection (2), is greater than the participant’s financial assurance. O. Reg. 144/16, s. 73 (1); O. Reg. 473/16, s. 29. (2) The participant’s actual maximum bid value is determined as follows: 1. For each bid price included in the participant’s bids, multiply the bid price by the number of emission allowances that the participant proposed to purchase at that bid price or at a higher bid price. 2. The highest value calculated under paragraph 1 is the actual maximum bid value.