[Federal Register Volume 63, Number 27 (Tuesday, February 10, 1998)]
[Notices]
[Page 6755]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-3320]
[[Page 6755]]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5964-5]
Clean Air Act; Acid Rain Provisions
AGENCY: Environmental Protection Agency (EPA).
ACTION: Notice of the 1998 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 auctions
of a small portion of allowances (2.8%) withheld from the total
allowances allocated to utilities each year. 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 sixth annual SO2 allowance auctions. The
regulation governing the auctions was 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 regulation 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 1998 auctions will consist of
one ``spot'' auction and one ``advance'' auction. Allowances sold in
the spot auction are useable for compliance beginning in 1998.
Allowances sold in the 7-year advance auction are useable for
compliance beginning in 2005. 150,000 allowances will be sold in the
spot auction and 125,000 allowances will be sold in the 7-year advance
auction. Bid Forms for the 1998 auctions must be received by the CBOT
by the close of business on March 17, 1997. The auctions themselves
will be conducted on March 23, 1998, with the results announced on
March 25.
CBOT will also sell in the 1998 auctions any spot 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 2, 1998. The auction regulation requires
that offer forms be received by EPA no later than 15 business days
prior to the date of the auctions.
ADDRESSES:
Regular mail: U.S. EPA Acid Rain Division (6204J), Attn: Auctions, 401
M St., S.W., Washington, DC 20460.
Overnight mail: US EPA Acid Rain Division (6204J), Attn: Auctions, 501
3rd Street, N.W., Washington, DC 20001.
Chicago Board of Trade, Attn: EPA Auctions, 141 W. Jackson Blvd., Suite
2240, Chicago, IL 60604.
FOR FURTHER INFORMATION: Information on bidding in the 1998 EPA
auctions can be found in the brochure ``How to Bid in the EPA
SO2 Allowance Auctions, Sixth Annual Auctions--March 23,
1998''; general information on the EPA auctions can be found in the
``Acid Rain Program Allowance Auctions'' fact sheet. These
publications, as well as the forms needed to participate in the EPA
auctions, can be obtained by calling the Acid Rain Hotline at (202)
564-9620, by writing to EPA at the address listed above, or by
accessing the Acid Rain Program home page at http://www.epa.gov/
acidrain.
Dated: January 28, 1998.
Janice K. Wagner,
Acting Director, Acid Rain Division.
[FR Doc. 98-3320 Filed 2-9-98; 8:45 am]
BILLING CODE 6560-50-P