N.Y. Comp. Codes R. & Regs. tit. 21 § 507.9

Current through Register Vol. 46, No. 45, November 2, 2024

Section 507.9 - Participation requirements

(a) Qualification. Any party wishing to participate in a CO ₂ allowance auction or auctions shall submit an application for qualification in the form and manner provided in the notice of CO ₂ allowance auction to the authority on or before the application deadline date specified in the notice of CO ₂ allowance auction, which date shall be no sooner than 15 days following the date of publication of the notice. Application information and forms shall be made available electronically on the CO ₂ allowance auction website. As a part of their application, applicants will be required to provide information and documentation relating to their ability and authority to execute bids and honor contractual obligations. Such documentation may include but may not be limited to:

(1) information and documentation regarding the corporate identity, ownership, affiliations, and capital structure of the applicant;

(2) declarations as to the beneficial ownership of any allowance that may be acquired through the auction;

(3) the identification of any indictment or felony conviction of the bidder, or any member, director, principle, partner or officer of the applicant or any affiliate or related entity;

(4) a statement by the applicant as to prior findings of non-responsibility with regard to any New York State procurement including findings under section 139-j of the New York State Finance Law;

(5) the 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;

(6) evidence demonstrating that such applicant has opened a general or compliance account as provided for in the provisions in 6 NYCRR Part 242-6.2 and identification of relationships with any other account holder;

(7) applicants may be denied qualification based on the information provided or upon information as to such applicant obtained independent of the application process.

(b) The authority will review each application for qualification and make determinations as to qualification to participate or otherwise submit bids in CO ₂ allowance auctions. Failure to provide any information required by the notice of CO ₂ allowance auction may result in the application being declared incomplete or otherwise deficient. If an application for qualification is determined to be incomplete or otherwise deficient, the authority shall notify the applicant and state the reason therefore. Applicants whose applications for qualification have been determined to be incomplete or deficient will be given a reasonable opportunity, and in no event less than five business days to provide additional information and to cure such deficiencies.

(c) Parties found qualified for participation under subdivision (b) of this section will be qualified for subsequent CO ₂ allowance auctions, and will be qualified to participate in such auctions within the financial security limitations of subdivision (h) of this section, provided that there has been no material change to the information provided in the previously submitted application, that the party is within one of the categories of eligible bidders described in the notice of CO ₂ allowance auction for such auction, and such party meets all other requirements for participation. Any party found qualified shall notify the authority of any material change in the information provided in the application for qualification no later than the date on which qualification applications for the next auction are due. Such notification shall state the date the change occurred and describe the change in sufficient detail to enable the authority to determine if a change in the qualification status to participate in future auctions is warranted.

(d) The authority may require parties previously found qualified to up-date and re-file applications for qualification on an annual basis.

(e) The authority may suspend or revoke qualification of any party if such party fails to comply with this Part and/or the provisions of 6 NYCRR Part 242.

(f) Bid submittal instructions. All bids shall be in a form prescribed by the authority, which shall be made available electronically on the CO ₂ allowance auction website, as appropriate. All bids submitted will be considered binding offers for the purchase of allowances under the rules of the auction, this Part, and 6 NYCRR Part 242.

(g) If the authority determines that a bidder has provided false or misleading information, or has withheld pertinent information in its application, or has otherwise failed to comply with any material provision of this Part or has violated any part of the auctions rules, the bidder may be prohibited from participating in any future CO ₂ allowance auctions.

(h) To receive approval to participate in any specific auction, otherwise qualified bidders will be required to provide financial security in the form of a bond, cash, certified funds, or an irrevocable stand-by letter of credit, in a form acceptable to the authority. Financial security shall be provided in a form and manner as described in the notice of CO ₂ allowance auction.

(1) Parties who have posted financial security may request return of their financial security at any time prior to or following any CO ₂ allowance auction, and the authority shall return said financial security provided that the authority has no current or pending claim to such security as a result of a failure of the party to comply with these regulations or to pay the full amount of its accepted bid when due.

(2) Financial security may be forfeited to and retained by the authority in the event the bidder's offer is accepted in a CO ₂ allowance auction and the bidder fails to tender payment of the full amount when due.

N.Y. Comp. Codes R. & Regs. Tit. 21 § 507.9