CO Allowance Auction Procedures

(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, CO allowances in a quantity equal to the number of CO Allowances allocated to the Auction Account for such Control Period will be available for sale. Such CO 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 CO 2 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 CO allowances if the reserve price is not met. (6) Auctions of CO 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 CO 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, CO 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