This page last reviewed December 1, 2015
Auction and Reserve Sale Information
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Archived Reserve Sale Information and Results
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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 greenhouse gas (GHG) allowances. As part of California’s Cap-and-Trade Program and the Québec Cap-and-Trade System, ARB and Québec’s 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.
Additionally, as part of the Cap-and-Trade Program, California will hold quarterly sales of allowances from the Allowance Price Containment Reserve (reserve sales).
California Cap-and-Trade Program Auction and Reserve Sale Activities
Summary of Expected Dates includes the expected
auction and reserve sale dates for 2016.
- 2016 Auction and Reserve Sale Activities Summary of Expected Dates (posted November 10, 2015)
- 2015 Auction and Reserve Sale Activities Summary of Expected Dates (updated December 29, 2014)
Auction notices are posted to the jurisdiction webpages at 12:00 PM Pacific Time (PT), sixty (60) days prior to each auction, pursuant to the California Cap-and-Trade Regulation and the Government of Québec Regulation respecting a cap-and-trade system for greenhouse gas emission allowances. 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. Auction Notices provide information about eligibility, auction format, and GHG allowances to be auctioned. Attachment A to each Auction Notice provides detailed requirements and instructions for participating in a joint auction. Attachment B to each Auction Notice provides information and examples of how to determine the amount of a bid guarantee, how holding and purchase limits are applied, how U.S. and Canadian currencies are handled, and examples of how joint auctions are settled.
This webpage will be updated with the Summary Results Reports and the California Post Auction Public Proceeds Report for each auction at the date and time listed in the Auction Notice. If there is a delay or change to a posting date, ARB will issue a notice of the change.
|Joint Auction Date||Joint Auction Materials||Joint Auction Results|
Joint Auction #5 –
November 17, 2015
10:00 AM to 1:00 PM PT / 1:00 PM to 4:00 PM ET
NOTE: Additional information on prior auctions can be found in
Auction Information and Results webpage.
An auction participant training presentation is posted annually and updated as needed. This training presentation provides information on administrative and regulatory requirements for joint auction participation, the auction application and confirmation of intent to bid process, bid guarantee submission, bid submission, settlement price determination, and financial settlement processes for joint auctions.
- Auction Participant Training Presentation (updated June 2015)
A summary of Cap-and-Trade Program auction settlement prices and results to date is available below.
- Summary of Auction Settlement Prices and Results (updated November 2015)
The 2016 Annual Auction Reserve Price Notice specifies the California and Québec 2016 Annual Auction Reserve Prices and the number of allowances to be auctioned in 2016 for the quarterly auctions as part of the Current Auction and Advance Auction.
The Auction Reserve Price in effect for each joint auction will be determined as the higher of the California or Québec Annual Auction Reserve Prices after applying the established Auction Exchange Rate. The Auction Reserve Price is a predetermined minimum price at which allowances will be sold to auction participants.
- 2016 Annual Auction Reserve Price Notice (posted December 1, 2015)
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 Guidance for additional information.
An auction applicant may use the Auction Application Attestation Disclosure Form (revised December 2014) 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.
With the release of additional functionality in the Compliance Instrument Tracking System Service (CITSS) in early September 2015, the process for consigning entities to provide and confirm the entity’s wiring instructions for the payment of proceeds resulting from the sale of consigned allowances at an auction has been updated. The Primary Account Representative (PAR) and Alternate Account Representatives (AARs) will now enter and confirm the wiring instructions directly in CITSS.
All consigning entities will need to enter their wiring instructions in CITSS for initial confirmation by the Financial Services Administrator. ARB is requesting that this entry be completed by Friday, October 30, 2015. Further guidance for the entry of initial wiring instructions is provided below.
Additional information on the actions to be taken to confirm existing wiring instructions or provide updated wiring instructions is provided in the CITSS Auction Consignment Wiring Instructions User Reference.
The Cap-and-Trade Regulation provides that allowances are allocated annually to each eligible electrical distribution utility or natural gas supplier (consigning entity). Each calendar year, a consigning entity must offer for sale at auction all allowances that have been placed in its 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), auction consignment, and auction participation is available in the Guidance for Allowance Consignment to Auction (updated December 1, 2014).
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 certain provisions are met as described in the Regulation. In addition, the Consultant or Advisor providing services related to bid strategy must submit certain information to ARB no later than fifteen (15) days prior to the quarterly auction at which the Consultant or Advisor's services will be employed. The Auction Bid Advisor Form can be used to submit the required information to ARB at the address provided on the 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 the Utility Disclosure Form and return it to the Executive Officer within 10 business days of making the disclosure to satisfy the reporting requirement.
An Example Letter of Credit (updated September 18, 2014) format for California auction or reserve sale applicants is provided as 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.
NOTE: California entities may also submit a bank bond or a Surety Bond as a physical bid guarantee. A bank bond must be issued by a financial institution with a U.S. banking license. A Surety Bond must be issued by an institution namied in the current list of "Surety Companies Acceptable in Federal Bonds" as published in the Federal Register by the Audit Staff Bureau of Accounts, U.S. Treasury Department. The required terms for a bank bond or a Surety Bond are described in Attachment A to each Auction Notice.
As part of the Cap-and-Trade Program, California will hold quarterly sales of allowances from the Allowance Price Containment Reserve (reserve sales). In 2015, the reserve sales are scheduled pursuant to the schedule in Appendix C of the Cap-and-Trade Regulation. California’s reserve sales will offer GHG allowances from the Allowance Price Containment Reserve (APCR) for sale in three fixed-price, equal-sized tiers.
Reserve sale notices are posted on this webpage 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.
If there are no qualified applicants or qualified bidders for any scheduled reserve sale, then that reserve sale will not be held. If a reserve sale will not be held, ARB will post a notification to this webpage no later than two (2) days prior to the scheduled reserve sale.
The December 2015 Reserve Sale will be held on Wednesday, December 30, 2015, from 10:00 AM to 1:00 PM PT.
|Reserve Sale Date||Reserve Sale Materials||Reserve Sale Results|
Sale 12 –
December 30, 2015
10:00 AM to 1:00 PM PT
NOTE: Additional information on prior reserve sales can be found on the Archived Reserve Sale Information and Results webpage.
A reserve sale participant training presentation is posted annually and updated as needed. The presentation provides information regarding the reserve sale eligibility, format, procedures, and requirements, as well as how to submit an application to provide notification of an entity's intent to bid in a reserve sale, submit a bid guarantee, and submit bids in the Auction Platform.
- Reserve Sale Participant Training Presentation (updated May 2015)
The 2016 Annual Allowance Price Containment Reserve Notice specifies the number of Allowance Price Containment Reserve allowances potentially available for sale during 2016 and the tier prices.
- 2016 Annual Allowance Price Containment Reserve Notice (posted December 1, 2015)
Prior Auction and Reserve Sale Schedules2014 Auction and Reserve Sale Activities Summary of Expected Dates (updated November 21, 2014)
Prior Annual Auction Reserve Price Notices2015 Annual Auction Reserve Price Notice (revised December 2, 2014)
2014 Annual Auction Reserve Price Notice (updated September 19, 2014)
2013 Annual Auction Reserve Price Notice (updated January 15, 2013)
Prior Annual Allowance Price Containment Reserve Notices2015 Annual Allowance Price Containment Reserve Notice (posted December 2, 2014)
ARB Program Staff
For questions or comments regarding auctions or reserve sales, please contact Natalie Lee at (916) 324-0230, or firstname.lastname@example.org.
For questions or comments about this page, please contact Chuck Seidler at (916) 324-0931.