[Federal Register Volume 60, Number 28 (Friday, February 10, 1995)]
[Notices]
[Page 7962]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-3382]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5152-6]
Clean Air Act; Acid Rain Provisions
AGENCY: Environmental Protection Agency.
ACTION: Notice of the 1995 EPA SO2 allowance auctions.
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SUMMARY: Pursuant to Title IV of the Clean Air Act and 40 CFR part 73,
the EPA is responsible for implementing a program to reduce emissions
of sulfur dioxide (SO2), a precursor of acid rain. The centerpiece
of the SO2 control program is the allocation of transferable
allowances, or authorizations to emit SO2, which are distributed
in limited quantities for existing utility units and which eventually
must be held by virtually all utility units to cover their SO2
emissions. These allowances may be transferred among polluting sources
and others, so that market forces may govern their ultimate use and
distribution, resulting in the most cost-effective sharing of the
emissions control burden. In addition, EPA is directed under Section
416 of the Act to conduct annual sales and auctions of a small portion
of allowances (2.8%) withheld from the total allowances allocated to
utilities each year. Sales and auctions are expected to stimulate and
support such a market in allowances and to provide a public source of
allowances, particularly to new units for which no allowances are
allocated. Today, the Acid Rain Division is giving notice of the third
annual SO2 allowance auctions. The regulations governing the
auctions and sales were promulgated on December 17, 1991 (40 CFR part
73, subpart E).
EPA has delegated the administration of the EPA allowance auctions
to the Chicago Board of Trade (CBOT). The auctions will be conducted
under the regulations cited above. Anyone can participate in the EPA
auctions and bidders are not restricted as to the quantity or price of
their bid. Allowances sold at the auctions will be sold to the highest
bidder until no allowances remain. The 1995 auctions will consist of
one ``spot'' auction and two ``advance'' auctions. Allowances sold in
the spot auction are useable for compliance beginning in 1995.
Allowances sold in the 6-year advance auction are useable for
compliance beginning in 2001; allowances sold in the 7-year advance
auction are useable for compliance beginning in 2002. 25,000 allowances
will be sold in the 6-year advance auction, which are the unsold
allowances from the 1994 direct sale. 50,000 spot allowances will be
sold in the spot auction and 100,000 allowances will be sold in the 7-
year advance auction. Bid Forms for the 1995 auctions must be received
by the CBOT by the close of business on March 21, 1995. The auctions
themselves will be conducted on March 27, 1995, with the results
announced the next day.
CBOT will also sell in the 1995 auctions any spot, 6-year advance,
or 7-year advance allowances that are offered by others holding
allowances in EPA's Allowance Tracking System. However, offered
allowances will be sold after the allowances that were withheld from
the utilities, so offered allowances will consequently be sold at a
lower price than the withheld allowances. Owners of offered allowances
may set a minimum price for their allowances. To offer allowances in
the EPA auctions, owners of allowances must submit a SO2 Allowance
Offer Form to EPA by the close of business on March 3, 1995. The
auction and sale regulations require that offer forms be received by
EPA no later than 15 business days prior to the date of the auctions.
ADDRESSES:
U.S. EPA Acid Rain Division (6204J), Attn: Auctions and Sales, 401 M
St., S.W., Washington, DC 20460.
Chicago Board of Trade, Attn: EPA Auctions, 141 W. Jackson Blvd., Suite
2240, Chicago, IL 60604.
Forms needed to participate in the EPA auctions are available from
the Acid Rain Division. To obtain forms, call the Acid Rain Hotline at
(202) 233-9620.
FOR FURTHER INFORMATION CONTACT: Information on bidding in the 1994 EPA
auctions can be found in the brochure ``How to Bid in the EPA SO2
Allowance Auctions, Third Annual Auctions--March 27, 1995;'' general
information on the EPA auctions can be found in the ``Acid Rain Program
Allowance Auctions and Direct Sales'' fact sheet. These publications
can be obtained by calling the Acid Rain Hotline or by writing to EPA
at the address listed above.
Dated: February 1, 1995.
Brian J. McLean,
Director, Acid Rain Division.
[FR Doc. 95-3382 Filed 2-9-95; 8:45 am]
BILLING CODE 6560-50-P