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newsrel -- ARB takes action against cap-and-trade program bidding violations

Posted: 14 Feb 2014 16:20:38
Please consider the following news release from the California
Air Resources Board: http://bit.ly/1hjMuTb

February 14, 2014



Dave Clegern
(916) 322-2990
 ARB takes action against cap-and-trade program bidding

Violations are for confidentiality breaches and an insufficient
bid guarantee

Sacramento — The Air Resources Board today announced the
resolution of four enforcement cases arising from cap-and-trade
program allowance auctions. Enforcement action was taken after
the Air Resources Board detected what appear to be negligent
errors in the bidding process and improper disclosures of bidding
information by auction participants.

“The rules are very clear that no information about auction
participation or bidding can be shared,” noted Dr. Steven Cliff
of the Air Resources Board staff, “even in private contracts with
third parties.” He encouraged anyone with questions to contact
cap-and-trade program staff.

The violations include the following:

Southern California Edison (SCE) will pay $75,000 for making
public comments about participating in the first allowance
auction in November 2012. The cap-and-trade regulation forbids
any disclosure to third parties regarding qualification for or
participation in an auction, and disclosure of any bidding
information. Although none of the conduct appears intended to
affect the market or benefit SCE, the Air Resources Board must
enforce rules to protect the security of cap-and-trade program

Luminus Energy Partners QP, LP, will pay a $40,000 penalty for
sharing bidding information with an advisor who had not been
disclosed to the Air Resources Board. An investigation by the Air
Resources Board indicated that, in connection with the August
2013 auction, Luminus discussed bidding information with an
undisclosed third-party advisor. Auction advisors who have been
disclosed to the Air Resources Board are the only third parties
with whom auction participants may share information regarding
auction participation.

CP Energy Marketing (US), Inc. agreed to pay $25,000 for
disclosing to a third party some limited information regarding
plans to purchase allowances at auction.  

The City of Riverside will pay $25,000 for submitting bids into
an auction that exceeded the financial bid guarantee required by
auction regulations. Submitting bids that are not fully backed by
a bid guarantee is a violation of California’s cap-and-trade

More information regarding these settlements is available on
ARB’s website at http://bit.ly/1eXTFyQ. 

California is in a drought emergency.
Visit www.SaveOurH2O.org for water conservation tips.

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