§ 145.382. General requirements.

 (a)  In the auction notice for each auction, the Department or its agent shall include the following:

   (1)  The number of CO₂ allowances offered for sale at the auction, not including any CO₂ CCR allowances.

   (2)  The number of CO₂ CCR allowances that will be offered for sale at the auction if the condition in subsection (b)(1) is met.

   (3)  The minimum reserve price for the auction.

   (4)  The CCR trigger price for the auction. The CCR trigger price in calendar year 2022 shall be $13.91. Each calendar year after 2022, the CCR trigger price shall be 1.07 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in Table 1.

Table 1. CO₂ CCR Trigger Price

2023	2024	2025	2026	2027	2028	2029	2030
$14.88	$15.92	$17.03	$18.22	$19.50	$20.87	$22.33	$23.89

   (5)  The maximum number of CO₂ allowances that may be withheld from sale at the auction if the condition in subsection (d)(1) is met.

   (6)  The ECR trigger price for the auction. The ECR trigger price in calendar year 2022 shall be $6.42. Each calendar year after 2022, the ECR trigger price shall be 1.07 multiplied by the ECR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in Table 2.

Table 2. CO₂ ECR Trigger Price

2023	2024	2025	2026	2027	2028	2029	2030
$6.87	$7.35	$7.86	$8.41	$9.00	$9.63	$10.30	$11.02

 (b)  For the sale of CO₂ CCR allowances, the Department or its agent will do the following:

   (1)  CO₂ CCR allowances will only be sold at an auction in which the total demand for allowances, above the CCR trigger price, exceeds the number of CO₂ allowances available for purchase at the auction, not including any CO₂ CCR allowances.

   (2)  If the condition in paragraph (1) is met at an auction, then the number of CO₂ CCR allowances offered for sale by the Department or its agent at the auction will be equal to the number of CO₂ CCR allowances in the air pollution reduction account at the time of the auction.

   (3)  After all of the CO₂ CCR allowances in the air pollution reduction account have been sold in a given calendar year, no additional CO₂ CCR allowances will be sold at any auction for the remainder of that calendar year, even if the condition in paragraph (1) is met at an auction.

   (4)  At an auction in which CO₂ CCR allowances are sold, the reserve price for the auction shall be the CCR trigger price.

   (5)  If the condition in paragraph (1) is not satisfied, no CO₂ CCR allowances will be offered for sale at the auction and the reserve price for the auction will be equal to the minimum reserve price.

 (c)  The Department or its agent will implement the reserve price in the following manner:

   (1)  No CO₂ allowances will be sold at any auction for a price below the reserve price for that auction.

   (2)  If the total demand for CO₂ allowances at an auction is less than or equal to the total number of CO₂ allowances made available for sale in that auction, then the auction clearing price for the auction shall be the reserve price.

 (d)  For the withholding of CO₂ ECR allowances from an auction, the Department or its agent will do the following:

   (1)  CO₂ ECR allowances will only 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 prior to the withholding from the auction of any ECR allowances.

   (2)  If the condition in paragraph (1) is met at an auction, then the maximum number of CO₂ ECR allowances that may be withheld from that auction will be equal to the quantity in §  145.342(e)(1) (relating to CO₂ allowance allocations) minus the total quantity of CO₂ ECR allowances that have been withheld from any prior auction in that calendar year. The Department will transfer any CO₂ ECR allowances withheld from an auction into the Pennsylvania ECR Account.

Cross References

   This section cited in 25 Pa. Code §  145.302 (relating to definitions); 25 Pa. Code §  145.342 (relating to CO₂ allowance allocations); 25 Pa. Code §  145.402 (relating to auction format); and 25 Pa. Code §  145.404 (relating to auction notice).

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