Bid Submittal Requirements

(1) Qualification Application. (a) Only qualified bidders will be permitted to submit bid(s) or otherwise participate in any auction. (b) Any party wishing to participate in a CO Allowance Auction shall open and maintain a compliance or general account and designate a CO2 authorized account representative pursuant to the provisions in 310 CMR 7.70(6). (c) Potential bidders shall submit a qualification application to DOER at least 30 calendar days prior to the bid submittal date of such auction or by such deadline as DOER shall stipulate in the Auction Notice. Qualification applications shall contain the information set forth in 225 CMR 13.09(1) and the Auction Notice, and such applications shall be made available electronically on the CO Allowance Auction Website (available through a link from DOER's main web page at: http://www.mass.gov/doer/). (d) The applicant shall provide information and documentation relating to its corporate structure, financial ability to participate in the auction and authority to execute bids and honor contractual obligations. Such information may include, but not be limited to, the following: 1. Documentation regarding the corporate identity, ownership, and capital structure of the applicant; identification of any agency relationship between the applicant and any third party related to the auction; 2. Audited annual reports and credit reports of the applicant and/or the entity represented by the applicant; and 3. Corporate Background and Recent Adverse Conditions, which may include: a. Identification of any indictment or felony conviction of the applicant, or any member, director, principle, partner or officer of the applicant or any affiliate or related entity; b. A statement by applicant as to prior findings of non-responsibility with regard to any State procurement, including findings under State law or regulation; c. A statement by applicant as to certification under any State Tax registration requirement. d. Identification of any previous or pending investigation with respect to any alleged violation of any rule, regulation, or law associated with any commodity market or exchange. e. Evidence demonstrating that such applicant has opened a general or compliance account as provided for in the provisions of the CO Program and identification of relationships with any other account holder. (e) DOER shall review each qualification application and make determinations as to whether the applicant is qualified to submit bids in the auction. Applicants may be denied eligibility based on the information provided or upon information obtained independent of the application process. Failure to provide the required information may result in the qualification application being declared incomplete or otherwise deficient. DOER shall notify applicants in writing or by electronic mail if the qualification application is complete and meets the requirements for participation in the auction. If the qualification application does not meet such requirements, notification shall include the reasons therefore, and applicants will be given a reasonable opportunity to provide additional information to cure such deficiencies. (f) Once an application has been approved, that bidder shall be eligible to participate in all subsequent CO Allowance Auctions, provided there has been no material change to the information provided in the qualification application, and provided that the applicant meets the eligibility criteria of 225 CMR 13.08. If there is any material change to the information submitted in the bidder's qualification application, the qualification expires and a new qualification application must be submitted. (g) DOER may suspend or revoke its approval of a qualification application if the bidder fails to comply with 225 CMR 13.09. (2) Surety Requirement. (a) Bidders shall be required to provide financial surety in the form of a bond, cash, certified funds, or an irrevocable stand-by letter of credit, in a form acceptable to the DOER. A bidder's eligibility to bid in any auction shall be limited to the level of financial security provided. Financial surety may be forfeited to and retained by the DOER in the event the bidder's offer is accepted in a CO Allowance Auction and the bidder fails to tender payment of the full amount when due. (b) Bidders may request return of their surety at any time prior to or following any auction, and the DOER shall return said surety provided that the Commonwealth has no current or pending claim to such surety as a result of a failure of the bidder to comply with 225 CMR 13.09(2) or to pay the full amount of its accepted bid when due. Return of such surety to the bidder voids the bidder's ability to participate in subsequent auctions unless a new surety is submitted to the DOER pursuant to the provisions of 225 CMR 13.09. (c) The surety requirements of 225 CMR 13.09 may be modified by DOER at any time prior to the applicable auction date, and shall be published no later than 45 calendar days prior to such auction on the CO Allowance Auction Website. (d) In the event that DOER modifies the surety requirements, bidders shall meet the new surety requirements before the next auction. (3) Bid Submittal. (a) Once an application has been approved, and provided there has been no material change to the information provided in the application, bidders seeking to bid in any subsequent auction shall complete and submit an Intent to Bid on or before the deadline specified in the Auction Notice. (b) All bids shall be in a form prescribed by DOER, which shall be made available electronically on the CO Allowance Auction Website (available through a link from DOER's main web page at: http://www.mass.gov/doer/). (c) All bids submitted shall be considered binding offers for the purchase of allowances under the rules of the auction. (d) All qualified maximum bids shall be limited to the amount of financial surety provided by the qualified bidder pursuant to 225 CMR 13.09(2). (e) Bids shall be submitted online and shall conform to the format and protocol of bid submission as set forth in the Auction Notice pursuant to 225 CMR 13.07. (f) If DOER determines that a bidder has provided false or misleading information, fails to honor an accepted bid, or has withheld pertinent information in its qualification documentation, or has otherwise failed to comply with any material provision of 225 CMR 13.09, the surety amount may be forfeited to the Commonwealth, and the bidder may be prohibited from participating in any future CO Allowance Auctions.