Washington (Platts)--17Sep2012/1235 pm EDT/1635 GMT
California's Air Resources Board will offer 61.2 million greenhouse gas allowances for sale at an auction to be held November 14, ARB said late Friday. The GHG allowances are to be used for compliance with the state's GHG cap-and-trade program, which begins January 1 and includes roughly 600 utilities and industrial facilities, including refineries. ARB will make available roughly 21.804 million vintage 2013 GHG allowances and 39.45 million vintage 2015 GHG allowances. The vintage refers to the first year in which a GHG allowance can be used for compliance purposes. Article continues below... Request a free trial of: Electric Power Daily No other daily publication delivers so complete an account of North American power industry news as Electric Power Daily. For those who need solid grounding every day in this complex arena where so much is at stake, Electric Power Daily is a must read.
California's Air Resources Board will offer 61.2 million greenhouse gas allowances for sale at an auction to be held November 14, ARB said late Friday. The GHG allowances are to be used for compliance with the state's GHG cap-and-trade program, which begins January 1 and includes roughly 600 utilities and industrial facilities, including refineries. ARB will make available roughly 21.804 million vintage 2013 GHG allowances and 39.45 million vintage 2015 GHG allowances. The vintage refers to the first year in which a GHG allowance can be used for compliance purposes.
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No other daily publication delivers so complete an account of North American power industry news as Electric Power Daily. For those who need solid grounding every day in this complex arena where so much is at stake, Electric Power Daily is a must read.
Beginning in 2013, the auctions will take place on a quarterly basis. The cap-and-trade program requires compliance entities to retire enough GHG allowances to cover their emissions. In addition, offset credits generated by GHG reduction programs can be used to satisfy as much as 8% of the overall requirement. A single GHG allowance and offset credit equals 1 mt of emissions. GHG allowances are distributed either for free, or sold through a quarterly auction. Entities may also buy GHG allowances and offset credits through the secondary market. ARB plans on releasing the names of qualified bidders, the settlement price and an auction summary following the November auction. The auction will be conducted using a single-round, sealed-bid format. ARB tested the internet-based auction platform during a dress rehearsal it performed August 30 involving about 150 participants. --Geoffrey Craig, geoffrey_craig@platts.com --Edited by Jeff Barber, jeff_barber@platts.com
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