Code of Massachusetts Regulations › 225 CMR - DEPARTMENT OF ENERGY RESOURCES › Title 225 CMR 13.00 - Doer Co[2] Budget Trading Program Auction Regulation › Section 13.06 - CO[2] Allowance Auction Procedures

Current through Register 1525, July 5, 2024
(1) The
			 implementation of any auction conducted pursuant to 225 CMR 13.00 may be
			 transferred by DOER to an agent deemed qualified by DOER to conduct such
			 auction, provided that such agent shall perform all such duties under the
			 direction and oversight of DOER.
(2) The auction format shall be a Sealed Bid,
			 Uniform Price Auction.
(3) Prior to
			 the end of each Control Period or Interim Control Period,
			 CO2 allowances in a quantity equal to the number of
			 CO2 Allowances allocated to the Auction Account for such
			 Control Period will be available for sale. Such CO2
			 allowances will be available for sale by allocation year. DOER may require that
			 allowances are sold in minimum lot sizes. In such event, such lot sizes shall
			 be published in the Auction Notice pursuant to
			 225 CMR
			 13.07(1). No more than 50%
			 of the allowances from an allocation year may be available for sale in advance
			 of the respective allocation year, up to four years in advance of such
			 allocation year.
(4) DOER shall
			 post a calendar of proposed auction dates on the CO2
			 Allowance Auction Website. The calendar shall include the auction format and
			 the number of allowances and allocation years of allowances to be auctioned at
			 each auction. DOER may periodically modify the contents of the calendar,
			 provided that the information relevant to the next scheduled auction shall be
			 fixed no later than 45 calendar days prior to such auction, consistent with
			 225 CMR
			 13.06(1).
(5) Auctions of CO2
			 allowances shall be held with a reserve price. DOER is not obligated to sell
			 CO2 allowances if the reserve price is not
			 met.
(6) Auctions of
			 CO2 Allowances shall include a Cost Containment Reserve
			 and a CCR Trigger price. CO2 CCR allowances shall only
			 be sold at an auction in which total demand for allowances, above the CCR
			 trigger price, exceeds the number of CO2 allowances
			 available for purchase at the auction, not including any CCR
			 allowances.
(7) Auctions of
			 CO2 Allowances shall include an Emissions Containment
			 Reserve and an ECR Trigger price shown in
			 225 CMR 13.03: Table
			 2. Starting in calendar year 2021 and each year thereafter,
			 CO2 allowances shall be withheld from sale at an auction
			 in accordance with the following:
(a)
			 CO2 allowances shall be withheld from an auction if the
			 demand for allowances would result in an auction clearing price that is less
			 than the ECR trigger price shown in
			 225 CMR 13.03: Table
			 2.
(b) If the
			 CO2 ECR trigger price is met, then the maximum quantity
			 of CO2 allowances that may be withheld from that auction
			 will be equal to the quantity shown in
			 225 CMR
			 13.06(7): Table 4, minus the
			 total quantity of CO2 allowances that have been withheld
			 from any prior auction in that calendar year.
Table 4. ECR Allowance Quantities
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030 and thereafter
1,194,436
1,158,240
1,122,045
1,085,850
1,049,655
1,013,460
977,265
941,070
904,875
868,680
(c)
			 CO2 allowances withheld from the auction because the ECR
			 trigger price was met shall not be resold in any future auction.