On June 19, 2014, California Air Resources Board (ARB) released the official auction notice with detailed requirements and instructions pertaining to participation in the greenhouse gas (GHG) allowance auction scheduled to take place on August 18, 2014 (the August 2014 Auction). Any California covered entity, opt-in covered entity, and voluntarily associated entity is eligible to participate in the August 2014 Auction provided that the entity has a Compliance Instrument Tracking System Service (CITSS) account and completed other administrative pre-auction requirements. The August 2014 Auction will be conducted in the same manner as the previous GHG allowance auctions held by CARB. The auction will feature 2014 (current) vintage allowances as well as 2017 (advance) vintage allowances. Bidding will take place during a three-hour window on August 18, 2014. The table below shows the results of CARB’s previous GHG allowance auctions within the past year.

AuctionVintageAllowances Sold/Allowances OfferedSettlement Price
August 2013201313,865,422/13,865,422 (100%)$12.22
20169,560,000/9,560,000 (100%)$11.10
November 2013201316,614,526/16,614,526 (100%)$11.48
20169,560,000/9,560,000 (100%)$11.10
February 2014201419,538,695/19,538,695 (100%)$11.48
20179,260,000/9,260,000 (100%)$11.38
May 2014201416,947,080/16,947,080 (100%) $11.50
20174,036,000/9,260,000 (43.6%) $11.34

As shown by the table above, prior auctions have sold out for both current and future vintages. The August 2014 auction will feature the following allowances:

VintageAllowances OfferedReserve Price

The following list identifies important upcoming activities associated with the August 2014 Auction:

  • August 6, 2014 – Bid guarantees due to Financial Services Administrator
  • August 14, 2014 – CARB issues final approval and notification of auction participants
  • August 18, 2014 – GHG allowance auction held
  • August 21, 2014 – Public notice of auction results released
  • August 28, 2014 – Financial settlement due to Financial Services Administrator
  • September 8, 2014 – Transfer of allowances into CITSS accounts

Including the August 2014 auction, there are two auctions remaining in 2014 before the second Cap-and-Trade compliance period begins on January 1, 2015. After this date, the program cap will increase and transportation fuel sectors will enter the market. The auction notice document, which describes all pre-auction requirements and instructions in more detail, is available here.