[Federal Register Volume 60, Number 78 (Monday, April 24, 1995)]
[Notices]
[Pages 20086-20089]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 95-10060]



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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5195-4]


Clean Air Act; Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice of the 1995 EPA SO2 allowance auctions results.

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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 to 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. 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 the 
allowance market and to provide a public source of allowances, 
particularly to new units for which no allowances are allocated. In the 
Fall of 1992, EPA delegated the administration of the EPA allowance 
auctions and sales to the Chicago Board of Trade (CBOT). Today, the 
Acid Rain Division is giving notice of the results of the third annual 
SO2 allowance auctions that were conducted by the CBOT on March 
27, 1995.
    For rules governing the conduct of the auctions and sales see 40 
CFR Part 73, Subpart E.

I. Offers

A. Total Allowances Available for Auction

    In the spot auction (year 1995 allowances sold), a total of 58,306 
allowances were offered for sale: 50,000 that were withheld from the 
utilities and an additional 8,306 that were voluntarily contributed 
from utilities. In the 6-year advance auction (year 2001 allowances 
sold), a total of 32,000 allowances were offered for sale: 25,000 that 
were unsold from the 1994 direct sale and an additional 7,000 that were 
contributed from utilities. In the 7-year advance auction (year 2002 
allowances sold), a total of 107,000 allowances were offered for sale: 
100,000 that were withheld from the utilities and an additional 7,000 
that were contributed. The minimum prices that utilities would accept 
for their contributed allowances are listed in Table 1.

               Table 1.--Offer Data for the 1995 Auctions               
                       Spot Auction Offers (1995)                       
------------------------------------------------------------------------
     Minimum price              Quantity             Cumulative total   
------------------------------------------------------------------------
* * * *................              *600                     600       
$135.00................               102                     702       
$140.00................               102                     804       
$145.00................               102                     906       
$145.00................               600                   1,506       
$150.00................             2,500                   4,006       
$155.00................             2,500                   6,506       
$160.00................               600                   7,106       
$170.00................               600                   7,706       
$180.00................               600                  8,306        
------------------------------------------------------------------------
*600 allowances, with offer prices equal to or less than $130.00, were  
  sold at $130.00.                                                      


                 6-Year Allowance Auction Offers (2001)                 
------------------------------------------------------------------------
     Minimum price              Quantity             Cumulative total   
------------------------------------------------------------------------
* * * *................              *400                     400       
$140.00................               400                     800       
$160.00................               400                   1,200       
$180.00................               400                   1,600       
$199.00................             2,000                   3,600       
$200.00................               400                   4,000       
$299.00................             2,000                   6,000       
$399.00................             1,000                  7,000        
------------------------------------------------------------------------
*Three allowances, with offer prices equal to or less than $129.00, were
  sold at $129.00 and 397 allowances, with offer prices equal to or less
  than $128.00, were sold at $128.00.                                   


                 7-Year Allowance Auction Offers (2002)                 
------------------------------------------------------------------------
     Minimum price         Quantity cumulative             Total        
------------------------------------------------------------------------
* * * *................              *400                      400      
$135.00................              *400                      800      
$155.00................               400                    1,200      
$175.00................               400                    1,600      
$195.00................             2,000                    2,000      
$199.00................             2,000                    4,000      
$299.00................             1,000                    6,000      
$399.00................             6,200                   7,000       
------------------------------------------------------------------------
*400 allowances, with offer prices equal to or less than $126.00, were  
  sold at $126.00.                                                      

II. Bids

A. Spot Auction Results

    CBOT received 89 bids requesting 255,371 year 1995 allowances. 
There were 46 successful bids and 50,600 allowances were sold (50,000 
withheld and 600 contributed). Spot auction proceeds totaled 
$6,676,386.
    Per EPA regulations, unsuccessful bidders' names are not revealed.

                                       Table 2.--Spot Auction Bids (1995)                                       
----------------------------------------------------------------------------------------------------------------
                                                                                                      Cumulative
    Bid        Quantity                                 Bidder's name                                   total   
----------------------------------------------------------------------------------------------------------------
$350.00....            1  New England School of Law Environmental Law Society......................            1
$210.00....            1  Environmental Law Students Association...................................            2
$200.00....            1  Environmental Law Students Association...................................            3
$200.00....            1  Thomas M. Cooley Environmental Law Society...............................            4
$200.00....            5  University of Michigan Environmental Law Society.........................            9
$180.00....            1  Hamline University School of Law.........................................           10
$176.00....            1  Duke University School of the Environment................................           11
$170.00....            1  Hamline University School of Law.........................................           12
$170.00....            1  Michael S. Hamilton......................................................           13
$160.00....            1  Pollution Retirement Center..............................................           14
$153.00....            1  L.J. O'Callaghan, Sr.....................................................           15
$151.00....           21  IN.H.A.L.E./Glens Falls, NY Middle School................................           36
$150.00....            2  Electric Software Products/David Gloski..................................           38
$150.00....            2  Electric Software Products/Alexander Long................................           40
$150.00....            1  University of Maryland School of Law.....................................          41 
[[Page 20087]]                                                                                                  
                                                                                                                
$146.00....            5  National Healthy Air License Exchange....................................           46
$142.00....           10  National Healthy Air License Exchange....................................           56
$141.00....           50  Sam Peltzman Revocable Trust.............................................          106
$140.00....           15  National Healthy Air License Exchange....................................          121
$137.00....           30  National Healthy Air License Exchange....................................          151
$136.00....          500  Hoosier Energy REC, Inc./Frank E. Ratts Plant Unit 1SG1..................          651
$136.00....          500  Hoosier Energy REC, Inc./Frank E. Ratts Plant Unit 2SG1..................        1,151
$136.00....        1,000  PECO Energy Company......................................................        2,151
$136.00....        2,000  Virginia Power...........................................................        4,151
$135.00....          500  Marine Coal Sales Company................................................        4,651
$135.00....           30  National Healthy Air License Exchange....................................        4,681
$135.00....        1,000  PECO Energy Company......................................................        5,681
$134.00....        1,000  PECO Energy Company......................................................        6,681
$133.00....        5,000  Cantor Fitzgerald Brokerage, L.P.........................................       11,681
$133.00....        4,000  Duke Power Company.......................................................       15,681
$133.00....           30  National Healthy Air License Exchange....................................       15,711
$133.00....        1,000  PECO Energy Company......................................................       16,711
$133.00....        2,000  Virginia Power...........................................................       18,711
$132.00....           12  CATEX Vitol Electric Inc.................................................       18,723
$132.00....        4,250  Duke Power Company.......................................................       22,973
$132.00....        1,000  PECO Energy Company......................................................       23,973
$131.00....        3,000  Cantor Fitzgerald Brokerage, L.P.........................................       26,973
$131.00....        2,952  Detroit Edison Company...................................................       29,925
$131.00....        4,500  Duke Power Company.......................................................       34,425
$131.00....        1,000  PECO Energy Company......................................................       35,425
$131.00....        2,000  Virginia Power...........................................................       37,425
*$130.00...           15  National Healthy Air License Exchange....................................       37,440
*$130.00...        4,000  Canterbury Coal Company..................................................       41,440
*$130.00...        2,000  PECO Energy Company......................................................       43,440
*$130.00...        5,000  Duke Power Company.......................................................       48,440
*$130.00...     **25,000  Allowance Holdings Corporation...........................................       73,440
*$130.00...        5,000  .........................................................................       78,440
*$130.00...          500  .........................................................................       78,940
$129.00....        6,000  .........................................................................       84,940
$129.00....        2,000  .........................................................................       86,940
$128.00....        8,000  .........................................................................       94,940
$128.00....        5,000  .........................................................................       99,940
$128.00....        2,000  .........................................................................      101,940
$128.00....        2,000  .........................................................................      103,940
$127.00....       10,500  .........................................................................      114,440
$127.00....           10  .........................................................................      114,450
$127.00....        5,000  .........................................................................      119,450
$127.00....        1,000  .........................................................................      120,450
$126.00....        7,750  .........................................................................      128,200
$126.00....        8,000  .........................................................................      136,200
$126.00....        2,000  .........................................................................      138,200
$125.00....       15,000  .........................................................................      153,200
$125.00....          120  .........................................................................      153,320
$125.00....          500  .........................................................................      153,820
$125.00....        1,250  .........................................................................      155,070
$125.00....           50  .........................................................................      155,120
$125.00....        1,000  .........................................................................      156,120
$124.00....        1,000  .........................................................................      157,120
$123.00....        5,000  .........................................................................      162,120
$123.00....        1,000  .........................................................................      163,120
$122.00....        1,000  .........................................................................      164,120
$121.00....       10,000  .........................................................................      174,120
$121.00....        3,000  .........................................................................      177,120
$121.00....        2,000  .........................................................................      179,120
$121.00....        1,000  .........................................................................      180,120
$120.00....        2,000  .........................................................................      182,120
$120.00....        1,000  .........................................................................      183,120
$119.00....       10,000  .........................................................................      193,120
$118.00....        1,250  .........................................................................      194,370
$118.00....        5,000  .........................................................................      199,370
$117.00....       10,000  .........................................................................      209,370
$115.00....        2,000  .........................................................................      211,370
$115.00....       10,000  .........................................................................      221,370
$115.00....        1,200  .........................................................................      222,570
$112.00....       15,000  .........................................................................      237,570
$111.00....        1,250  .........................................................................     238,820 
[[Page 20088]]                                                                                                  
                                                                                                                
$100.00....        4,800  .........................................................................      243,620
$50.00.....       11,750  .........................................................................      255,370
$1.00......            1  .........................................................................     255,371 
----------------------------------------------------------------------------------------------------------------
*Per EPA auction regulations on breaking ties, bids at the same price that exceed the number of remaining       
  allowances are awarded allowances by lottery, the result of which is reflected in the table.                  
**Awarded a partial fill of 2,160 out of 25,000 (1,560 allowances from the EPA reserve and 600 offered          
  allowances).                                                                                                  

B. 6-Year Advance Auction Results

    CBOT received 24 bids requesting 70,286 year 2001 allowances. Nine 
bids were successful and 25,400 allowances were sold (25,000 withheld 
and 400 contributed). 6-Year advance auction proceeds totaled 
$3,319,026.

                                  Table 3.--6-Year Advance Auction Bids (2001)                                  
----------------------------------------------------------------------------------------------------------------
                                                                                                      Cumulative
    Bid        Quantity                                 Bidder's name                                   total   
----------------------------------------------------------------------------------------------------------------
$160.00....            1  University of Maryland School of Law.....................................            1
$150.00....            1  University of Maryland School of Law.....................................            2
$150.00....            1  Hamline University School of Law.........................................            3
$133.00....        4,000  Duke Power Company.......................................................        4,003
$132.00....        4,250  Duke Power Company.......................................................        8,253
$131.00....        4,500  Duke Power Company.......................................................       12,753
$130.00....        5,000  Duke Power Company.......................................................       17,753
$129.00....       7,250*  Duke Power Company.......................................................       25,003
$128.00....      2,500**  Virginia Power...........................................................       27,503
$126.00....          656  .........................................................................       28,159
$126.00....        1,260  .........................................................................       29,419
$126.00....        2,500  .........................................................................       31,919
$124.00....        2,500  .........................................................................       34,419
$123.00....          718  .........................................................................       35,137
$121.00....        1,677  .........................................................................       36,814
$120.00....        2,500  .........................................................................       39,314
$116.00....        1,883  .........................................................................       41,197
$111.00....        2,089  .........................................................................       43,286
$70.00.....        1,000  .........................................................................       44,286
$67.00.....       10,000  .........................................................................       54,286
$66.00.....        5,000  .........................................................................       59,286
$65.00.....        5,000  .........................................................................       64,286
$64.00.....        5,000  .........................................................................       69,286
$63.00.....        1,000  .........................................................................      70,286 
----------------------------------------------------------------------------------------------------------------
*This bid was awarded 7,247 allowances from the EPA reserve and 3 offered allowances.                           
**Awarded a partial fill of 397 offered allowances.                                                             

C. 7-Year Advance Auction Results

    CBOT received 37 bids requesting 236,928 year 2002 allowances. 
Seventeen bids were successful and 100,400 allowances were sold 
(100,000 withheld and 400 contributed). 7-Year advance auction proceeds 
totaled $12,839,884.

                                  Table 4.--7-Year Advance Auction Bids (2002)                                  
----------------------------------------------------------------------------------------------------------------
                                                                                                      Cumulative
    Bid        Quantity                                 Bidder's name                                   total   
----------------------------------------------------------------------------------------------------------------
$160.00....            1  University of Maryland School of Law.....................................            1
$143.00....          350  Paul Wedel...............................................................          351
$133.00....        4,000  Duke Power Company.......................................................        4,351
$132.00....        4,250  Duke Power Company.......................................................        8,601
$131.00....        4,500  Duke Power Company.......................................................       13,101
$130.00....        5,000  Duke Power Company.......................................................       18,101
$129.00....        1,000  United Power Association.................................................       19,101
$129.00....        6,000  Duke Power Company.......................................................       25,101
$128.00....        8,000  Duke Power Company.......................................................       33,101
$128.00....        5,000  Virginia Power...........................................................       38,101
$127.00....       10,500  Duke Power Company.......................................................       48,601
$127.00....       30,000  Allowance Holdings Corporation...........................................       78,601
$126.00*...        5,000  Virginia Power...........................................................       83,601
$126.00*...        1,000  United Power Association.................................................       84,601
$126.00*...        5,041  Carolina Power & Light Company...........................................       89,642
$126.00*...        2,625  Carolina Power & Light Company...........................................       92,267
$126.00*...     11,000**  Duke Power Company.......................................................     103,267 
[[Page 20089]]                                                                                                  
                                                                                                                
$125.00....       10,500  .........................................................................      113,767
$124.00....        8,000  .........................................................................      121,767
$124.00....        5,000  .........................................................................      126,767
$123.00....        6,000  .........................................................................      132,767
$123.00....        2,873  .........................................................................      135,640
$122.00....        5,000  .........................................................................      140,640
$121.00....          900  .........................................................................      141,540
$121.00....        4,500  .........................................................................      146,040
$121.00....        6,710  .........................................................................      152,750
$120.00....       10,538  .........................................................................      163,288
$120.00....        4,250  .........................................................................      167,538
$120.00....        5,000  .........................................................................      172,538
$119.00....        4,250  .........................................................................      176,788
$118.00....        4,250  .........................................................................      181,038
$116.00....        7,535  .........................................................................      188,573
$111.00....        8,355  .........................................................................      196,928
$61.00.....       10,000  .........................................................................      206,928
$60.00.....       10,000  .........................................................................      216,928
$59.00.....       10,000  .........................................................................      226,928
$58.00.....       10,000  .........................................................................     236,928 
----------------------------------------------------------------------------------------------------------------
*Per EPA auction regulations on breaking ties, bids at the same price that exceed the number of remaining       
  allowances are awarded allowances by lottery, the result of which is reflected in the table.                  
*Awarded a partial fill of 8,133 (7,733 allowances from the EPA reserve and 400 offered allowances).            

    Proceeds from all three auctions totaled $22,835,296, all of which 
will be returned to the utilities from which allowances were withheld 
or offered, per EPA regulations.

FOR FURTHER INFORMATION CONTACT: Eugene Casey, EPA/OAP/Acid Rain 
Division (6204J), 401 M Street SW., Washington, DC 20460 (202) 233-
9194.

    Dated: April 13, 1995.
Brian J. McLean,
Director, Acid Rain Division.
[FR Doc. 95-10060 Filed 4-21-95; 8:45 am]
BILLING CODE 6560-50-P