On March 17, 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 May 16, 2014 (the May 2014 Auction). Any California covered entity, opt-in covered entity, and voluntarily associated entity is eligible to participate in the May 2014 Auction provided that the entity has a Compliance Instrument Tracking System Service (CITSS) account and has completed other administrative pre-auction requirements. The May 2014 Auction will be conducted in the same manner as the previous GHG allowance auctions held by ARB. The auction will feature 2014 (current) vintage allowances as well as 2017 (advance) vintage allowances. Bidding will take place during a 3-hour window on May 16, 2014. The table below shows the results of ARB’s previous GHG allowance auctions to date.

May 2014 Cap-and-Trade GHG Allowance Auction Details Released chart

As shown by the table above, prior auctions have sold out for both current and future vintages.

The following list identifies important upcoming activities associated with the November 2013 Auction:

  • April 16 , 2014 – Auction applications due in to the auction Platform
  • May 5, 2014 – Bid guarantees due to Financial Services Administrator
  • May 14, 2014 – CARB issues final approval and notification of auction participants
  • May 16, 2014 – GHG allowance auction held
  • May 21, 2014 – Public notice of auction results released
  • May 28, 2014 – Financial settlement due to Financial Services Administrator
  • June 5, 2014 – Transfer of allowances into CITSS accounts

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 fuels sectors will enter the market.

The auction notice document, which describes all pre-auction requirements and instructions in more detail, is available here.