This page last reviewed November 21, 2014

Auction and Reserve Sale Information

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Archived Auction Information and Results

Archived Reserve Sale Information and Results

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Background

Joint Greenhouse Gas Allowance Auctions

On January 1, 2014, the California Cap-and-Trade Program and Québec Cap-and-Trade System officially linked, which enabled the mutual acceptance of compliance instruments issued by each jurisdiction, and the jurisdictions to hold joint auctions of GHG allowances.  As part of California’s Cap-and-Trade Program and the Québec Cap-and-Trade System, ARB and Québec’s ministère du Développement durable, de l’Environnement et de la Lutte contre les changements climatiques (Ministry of Sustainable Development, Environment and the Fight against Climate Change) (MDDELCC) will hold joint GHG allowance auctions to allow market participants to acquire GHG allowances.  The first joint auction will be held in November 2014.  

The California Air Resources Board (ARB) Joint Auctions webpage will be updated with auction notices for each joint auction at 12:00 PM Pacific Time (PT)/ 3:00 PM Eastern Time (ET), sixty (60) days prior to each joint auction.  If the date for posting an auction notice falls on a weekend or holiday, the notice will be posted no later than the next business day.  The Joint Auction Notice provides information about eligibility, auction format, and greenhouse gas (GHG) allowances to be auctioned.

Greenhouse Gas Allowance Price Containment Reserve Sales

As part of the Cap-and-Trade Program, California will hold quarterly sales of allowances from the Allowance Price Containment Reserve (reserve sale).  Pursuant to the Regulation, reserve sales will be conducted on the first business day six weeks after each quarterly GHG allowance auction.  California’s reserve sales will offer GHG allowances from the Allowance Price Containment Reserve (APCR) for sale in three fixed-price, equal-sized tiers.

This web page will be updated with reserve sale notices for each reserve sale at 12:00 PM PT, approximately thirty (30) days prior to each reserve sale.  If the date for posting a reserve sale notice falls on a weekend or holiday, the notice will be posted no later than the next business day.  The Reserve Sale Notice provides information about eligibility, reserve sale format, and APCR allowances offered for sale.

Auction and Reserve Sale Results

This webpage will be updated with public notices of auction and reserve sale results at the date and time listed in the Auction or Reserve Sale Notice posted prior to the auction or reserve sale.  If there is a delay or change to a posting date, ARB will issue a notice of the change.

Auction and Reserve Sale Schedule 

The California Cap-and-Trade Program Auction and Reserve Sale Activities Summary of Expected Dates includes the expected auction and reserve sale dates for 2014.  The dates for the November 2014 auction have been updated to reflect that the auction is now scheduled to take place on Tuesday, November 25, 2014.  Each Reserve Sale Notice will be posted and the reserve sale application period will open at least thirty (30) days prior to the reserve sale date, and the reserve sale application period will close twenty (20) days prior to the reserve sale date.

Auction Guidance Documents

Guidance for Allowances Consignment to Auction

Each calendar year, an electrical distribution utility (EDU) must offer for sale at auction all allowances that have been placed in the Limited Use Holding Account (LUHA) that were issued from the budget year that corresponds to the current calendar year. Additional information on allowance consignment requirements, consignment transfers in the Compliance Instrument Tracking System Service (CITSS), and auction consignment and participation is available.

Joint Auctions 

November 2014 Joint Auction #1

Effective November 2014, ARB and MDDELCC will hold joint GHG allowance auctions to allow market participants to acquire GHG allowances.  The November 2014 Joint Auction #1 which was previously scheduled for November 19, 2014, has been rescheduled to Tuesday, November 25, 2014, from 10:00 AM to 1:00 PM PT/ 1:00 PM to 4:00 PM Eastern Time (ET).  Please refer to ARB's Joint Auctions webpage for the updated November auction materials.


Auction Forms

Auction Bid Advisor Form

Section 95914 of the Cap-and-Trade Regulation (Regulation) requires that any entity participating in an auction that has retained the services of a Cap-and-Trade Consultant or Advisor regarding auction bidding strategy must ensure the following:

  • The entity must ensure against the Consultant or Advisor transferring information to other auction participants or coordinating the bidding strategy among participants;

  • The entity will inform the Consultant or Advisor of the prohibition of sharing information to other auction participants and ensure the Consultant or Advisor has read and acknowledged the prohibition under penalty of perjury; and

  • The Consultant or Advisor must provide the Executive Officer the following information:

    • Names of the entities participating in the Cap-and-Trade Program that are being advised;

    • Description of advisory services being performed; and

    • Assurance under penalty of perjury that advisor is not transferring to or otherwise sharing information with other auction participants.

The Consultant or Advisor providing services related to bid strategy must submit this information on the Auction Bid Advisor Form to ARB at the address on the form no later than fifteen (15) days prior to the next quarterly auction at which the Consultant or Advisor’s services will be employed.


Auction Application Attestation Disclosure Form

Section 95912(d)(4)(E) of the Cap-and-Trade Regulation requires that each auction application include an attestation disclosing the existence and status of any ongoing investigation or an investigation that has occurred within the last ten years with respect to any alleged violation of any rule, regulation, or law associated with any commodity, securities, environmental, or financial market for the entity participating in the auction, and all other entities with whom the entity has a corporate association, direct corporate association, or indirect corporate association pursuant to section 95833 that participate in a carbon, fuel, or electricity market.  Further, the attestation must be updated before each auction to reflect any change in the status of an investigation that has occurred since the most recent auction application attestation was submitted.  Please refer to the Auction Application Attestation Guidancepdf for additional information.

An auction applicant may use the Auction Application Attestation Disclosure Form to submit the required attestation disclosure and updates to previously submitted attestations by completing the form and submitting an original to ARB at the address on the back of this form at least 30 days prior to an auction in which it intends to participate.


Cap-and-Trade Utility Disclosure Form 

Section 95914(c)(1) of the Cap-and-Trade Regulation prohibits the disclosure of information related to an entity’s auction participation.  Section 95914(c)(2) provides a list of limited exceptions to the prohibition.  One of the exceptions allows disclosure by privately-owned utilities that are required to do so by a regulatory agency (section 95914(c)(2)(D)), and requires those utilities to report to the Executive Officer within 10 business days of making the disclosure.  Entities qualifying for the exception in section 95914(c)(2)(D) may complete this form and return it to the Executive Officer within 10 business days of making the disclosure to satisfy the reporting requirement.


Example Letter of Credit 

An example letter of credit format for California auction or reserve sale applicants is provided below and is meant a guide only for entities that intend to submit a letter of credit as their form of bid guarantee for an auction or reserve sale.  Auction or reserve sale applicants will need to work with their financial institutions to ensure all requirements are met, as described in Attachment A to the Auction or Reserve Sale Notice posted for each auction or reserve sale, prior to submitting any bid guarantee documents to the Financial Services Administrator.  ARB encourages entities to submit draft letter of credit bid guarantees to the Financial Services Administrator for review prior to the auction or reserve sale bid guarantee deadline.  All physical bid guarantee instruments must be received by the Financial Services Administrator in final form by the deadline date and time as listed in the Auction or Reserve Sale Schedule provided in the Auction or Reserve Sale Notice, or the entity's auction application will be rejected.


Annual Auction Reserve Price

2014 Auction Reserve Price

The Auction Reserve Price is a predetermined minimum price at which allowances will be sold to auction participants.

The 2014 Annual Auction Reserve Price Notice specifies the 2014 Auction Reserve Price and the number of allowances to be auctioned in the Current Auctions and Advance Auctions conducted in 2014.  This Notice has been updated to support the first joint auction on November 19, 2014.

Prior Annual Reserve Price Notices


Reserve Sales

Upcoming December 31, 2014 Reserve Sale

The December 2014 reserve sale will be held on Wednesday, December 31, 2014, from 10:00 AM PT to 1:00 PM PT.
Reserve Sale Date Reserve Sale Materials Reserve Sale Results 
Reserve Sale 8 –
December 31, 2014


10:00 AM to
1:00 PM (PT)
  • Coming Soon

Reserve Sale Participant Training Presentations

A reserve sale participant training presentation will be posted with each Reserve Sale Notice.  The presentation provides information regarding the reserve sale format and application process, procedures, and requirements, as well as how to apply for a reserve sale and submit bids in the Auction Platform.  The presentation also provides information on how to submit a bid guarantee.


Auction and Reserve Sale Contact Information

Auction Platform

ARB has contracted with Markit North America, Inc. to act as the Auction and Reserve Sale Administrator (Auction Administrator).  If you have specific questions regarding the Auction Platform, please contact the Auction Administrator Support at (877) 762-7548, or by email at auctionsupport@markit.com.

Financial Services

ARB has contracted with Deutsche Bank National Trust Company Americas to act as the Financial Services Administrator for Auctions and Reserve Sales (Financial Services Administrator).  If you have specific questions regarding submitting a bid guarantee or financial settlement, please contact Deutsche Bank at (212) 250-6645, or (714) 247-6054, or by email at CAARB.inbox@db.com, or db.wcisupport@db.com.

ARB Program Staff

For questions or comments regarding auctions or reserve sales, please contact Chuck Seidler at (916) 324-0931, or cseidler@arb.ca.gov, or Ashley Dunn at (916) 322-7156, or adunn@arb.ca.gov.


For questions or comments, please contact Chuck Seidler at (916) 324-0931

 
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