Section 95915 - Price Ceiling Sales(a) Administration of Price Ceiling Sales.(1) The Executive Officer may serve as sale administrator to conduct price ceiling sales or designate an entity to serve as the sale administrator.(2) The Executive Officer may designate a financial services administrator to conduct the financial transactions required to operate price ceiling sales.(b) Eligibility. (1) Only California covered entities and opt-in covered entities may participate in price ceiling sales.(2) Purchases shall be limited to entities that do not have sufficient eligible compliance instruments in their holding and compliance accounts for the next compliance surrender deadline and these entities may only purchase what they need to meet their compliance obligation at the next surrender deadline.(c) Price ceiling sales may be held beginning in 2021.(d) The sale administrator will not conduct price ceiling sales if allowances remain in the first or second tiers of the Reserve.(e) The sale administrator will only conduct a price ceiling sale between the last Reserve sale before a compliance event and the compliance event itself.(f) Price Ceiling Sales Procedure.(1) Terms of sale. (A) Beginning in 2021, entities may purchase allowances or price ceiling units from the price ceiling account at $65 per allowance or price ceiling unit.(B) After 2021, the purchase price will increase annually by five percent plus the rate of inflation as measured by the most recently available twelve month value of the Consumer Price Index for All Urban Consumers.(C) The financial services administrator will begin to accept cash payment for purchases from price ceiling sales no earlier than ten business days after the previous Reserve sale and will cease accepting payments no later than seven business days thereafter.(2) The financial services administrator will inform the Executive Officer of the amounts of payments received from covered entities no later than one business day after it ceases to accept payments.(3) The Executive Officer will determine the number of allowances or price ceiling units purchased by each entity by dividing the payment submitted by the entity by the purchase price prevailing at the time of the sale, and rounding down to the nearest whole allowance or price ceiling unit. The Executive Officer will then take one of the following actions:(A) If there are sufficient allowances in the price ceiling account to fulfill the purchases of all entities submitting payment, the Executive Officer will transfer the appropriate number of allowances to each purchasing entity's compliance account.(B) If there are insufficient allowances remaining in the price ceiling account to fulfill the purchases of all entities submitting payment, the Executive Officer will prorate the available allowances equally among all purchasing entities to the extent possible, and transfer the prorated allowances and sufficient price ceiling units to fulfill the purchases of all entities submitting payment into each entity's compliance account. The proration will be calculated using the share of allowances available for purchase in the price ceiling account in the sum of the purchases.(C) If there are no allowances remaining in the price ceiling account to fulfill the purchases, the Executive Officer will transfer the appropriate number of price ceiling units to each purchasing entity's compliance account.(g) Beginning in 2021, price ceiling units will be valid for surrender against a compliance obligation upon transfer to a compliance account and will be retired after all other compliance instruments specified in sections 95856(h)(1) and 95856(h)(2), as applicable, have been retired.(h) Procedure for Issuance of Price Ceiling Units. (1) The Executive Officer will issue price ceiling units into the Price Ceiling Account as needed. Upon issuance into the Price Ceiling Account, price ceiling units are eligible for purchase at price ceiling sales pursuant to section 95915(f).(2) Moneys generated from the sale of price ceiling units will be expended to achieve emissions reductions on at least a metric ton for metric ton basis that are real, permanent, quantifiable, verifiable, enforceable by the state board and in addition to any greenhouse gas emission reduction otherwise required by law or regulation and any other greenhouse gas emission reduction that otherwise would occur.Cal. Code Regs. Tit. 17, § 95915
1. New section filed 3-29-2019; operative 3-29-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13). Note: Authority cited: Sections 38510, 38560, 38562, 38570, 38571, 38580, 39600 and 39601, Health and Safety Code. Reference: Sections 38530, 38560.5, 38564, 38565, 38570 and 39600, Health and Safety Code.
1. New section filed 3-29-2019; operative 3/29/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).