Summary Results Report

California Cap-and-Trade Program, and

Qu?bec Cap-and-Trade System August 2021 Joint Auction #28

Summary Results Report

Background The California Air Resources Board (CARB) and Qu?bec's minist?re de l'Environnement et de la Lutte contre les changements climatiques (MELCC)1 held a joint auction of greenhouse gas (GHG) allowances on August 18, 2021. The auction included a Current Auction of 2020 and 2021 vintage allowances and an Advance Auction of 2024 vintage allowances. The information provided in this report is a balance between the need for program transparency and protection of information about individual qualified bidders' market positions.

Prior to the certification of the auction, CARB and MELCC staff and the independent Market Monitor carefully evaluated the bids and determined that the auction process and procedures complied with the requirements of the California and Qu?bec Cap-andTrade Regulations (the Regulations). As provided below, the Market Monitor made the following determination:

The Market Monitor found that the auction was cleared consistent with the auction clearing rules in the Regulations and appropriate economic logic. The Market Monitor confirmed the clearing price and clearing quantities by qualified bidder for the Current Auction of 2020 and 2021 vintage allowances and for the Advance Auction of 2024 vintage allowances. The auction algorithm correctly applied requirements of the Regulations covering the bid guarantee. The Market Monitor did not observe any breaches of security or communication protocols.

The Market Monitor recommends that CARB and MELCC approve the August Auction results.

Auction proceeds figures are not shown in this report because of the exchange rate process for determining final auction proceeds in a joint auction. Winning bids are submitted in one of two currencies ? U.S. dollars (USD) or Canadian dollars (CAD). After receiving payment from the winning bidders, and using instructions from the linked jurisdictions (California and Qu?bec), the Financial Services Administrator will exchange

1 Ministry of the Environment and the Fight against Climate Change

Page 2

CA-QC Joint Auction Summary Results Report August 25, 2021

some amount of currency at then-prevailing market rates prior to transferring the auction proceeds to the jurisdictions.

The Financial Services Administrator will distribute auction proceeds to the jurisdictions after all qualified bidder payments are received. The jurisdictions will receive auction proceeds by September 15, 2021. As provided in the California Cap-and-Trade Regulation, sellers who consigned allowances in this auction will be paid the auction settlement price in USD for every consigned allowance sold. Information regarding jurisdiction-specific auction proceeds will be published after the auction is final.

California must receive auction proceeds only in USD. Qu?bec must receive auction proceeds only in CAD. Thus, the total amount of auction proceeds received by the jurisdictions from the sale of allowances may be higher or lower than the auction settlement price multiplied by allowances sold depending on the prevailing exchange rates in effect at the time of currency exchange prior to the distribution of auction proceeds. Each jurisdiction will separately post information on September 15, 2021, providing the final amount of proceeds transferred.

Auction Results

The first and second tables below provide key data and information on the results of the auction. The third table provides qualified bid summary statistics from the auction. Please see Explanatory Notes after the list of qualified bidders for descriptions of all summary information.

Table 1: Auction Results for August 2021 Joint Auction #28

Description of

Allowances Allowances offered by CA Entity Consignment Allowances offered by CARB Allowances offered by MELCC Total Allowances Offered for Sale

Current Auction Vintage

2020

-

12,444,605

1,807,701

14,252,306

Current Auction Vintage

2021

20,534,028

29,244,395

7,230,807

57,009,230

Current Auction Vintage

Total

20,534,028

41,689,000

9,038,508

71,261,536

Advance Auction Vintage

2024

-

7,017,500

1,288,750

8,306,250

Page 3

Description of

Allowances Allowances sold for CA Entity Consignment Allowances sold for CARB Allowances sold for MELCC Total Allowances Sold at Auction

Current Auction Vintage

2020

-

12,444,605

1,807,701

14,252,306

CA-QC Joint Auction Summary Results Report August 25, 2021

Current Auction Vintage

2021

Current Auction Vintage

Total

Advance Auction Vintage

2024

20,534,028

20,534,028

-

29,244,395 7,230,807

41,689,000 9,038,508

7,017,500 1,288,750

57,009,230

71,261,536

8,306,250

Table 2: Auction Data for August 2021 Joint Auction #28

Auction Data Total Qualified Bids Divided by Total Allowances Available for Sale Proportion of Allowances Purchased by Compliance Entities Herfindahl-Hirschman Index

Current Auction

1.85

67.5%

472

Advance Auction

1.45

88.0%

1825

Qualified Bid Summary Statistics

All Qualified Bid Summary Statistics are determined in USD including all bids submitted in USD and CAD. The CAD equivalent of the USD Qualified Bid Summary Statistics is based on the Auction Exchange Rate. USD statistics are converted into CAD in whole cents to be able to compare statistics on a common basis. The Auction Exchange Rate for this auction was 1.2623 CAD to one USD.

Page 4

CA-QC Joint Auction Summary Results Report August 25, 2021

Table 3: Qualified Bid Summary Statistics for August 2021 Joint Auction #28

Auction Statistics Auction Reserve Price Settlement Price Maximum Price Minimum Price Mean Price Median Price Median Allowance Price

Current Auction

USD $17.71 $23.30 $50.00 $17.71 $24.34 $22.34 $23.41

Current Auction

CAD $22.36 $29.41 $63.12 $22.36 $30.72 $28.20 $29.55

Advance Auction

USD $17.71 $23.69 $25.01 $17.71 $23.56 $23.35 $24.00

Advance Auction

CAD $22.36 $29.90 $31.57 $22.36 $29.74 $29.47 $30.30

Page 5

CA-QC Joint Auction Summary Results Report August 25, 2021

List of qualified bidders for the August 2021 Joint Auction #28

A qualified bidder is an entity that completed an auction application, submitted a bid guarantee2 that was accepted by the Financial Services Administrator, and was approved by CARB or MELCC to participate in the auction. Qualified bidders may or may not have participated in the auction.

CITSS Entity ID CA1185 CA2988 CA1561 QC1724 CA2759 CA3054 QC2959 CA3101 CA1913 CA3065 CA1108 CA1119 QC1491 CA1075 CA1112 CA1037 CA1288 CA1732 CA1038 CA1016 CA1166 QC3120 CA1408 QC1901 CA1323 CA1091 CA1152 QC2448

Entity Legal Name Aera Energy, LLC Aetos Capital Opportunities Fund, LP AltaGas Power Holdings (U.S.), Inc. Bell-Gaz lt?e Bellus Ventures II, LP BLAM Carbon Fund, LLC Bombardier inc. Boston Energy Trading and Marketing, LLC BP Products North America, Inc. Braeswood Carbon Partners, LP California Resources Elk Hills, LLC Calpine Energy Services, LP CGC Inc. Chevron U.S.A., Inc. Citigroup Energy, Inc. City of Anaheim, Public Utilities Department City of Cerritos City of Long Beach, Gas and Oil Department City of Palo Alto City of Riverside Public Utilities City of Vernon, Vernon Public Utilities Clay Hills Management Ltd. ClimeCo Corporation Coop?rative de solidarit? Carbone Del Monte Foods, Inc. DTE Energy Trading, Inc. E. & J. GALLO WINERY Elbow River Marketing Ltd.

2 The term "bid guarantee" refers to "bid guarantee" as described in the California Regulation and "financial guarantee" as defined in the Qu?bec Regulation.

Page 6

CA-QC Joint Auction Summary Results Report August 25, 2021

CITSS Entity ID QC1384 QC2586 QC1502 CA1110 CA1499 CA1260 QC2711 QC1750 QC1764 CA2916 QC2118 QC2501 QC1359 CA1807 QC2789 CA1293 CA1727 CA2932 CA1141 QC1770 CA1233 CA1111 CA2553 CA1830 CA1104 CA2111 CA2645 CA2887 CA1261 CA3032 CA1239 CA2232 CA1302 CA1672 CA1191 CA2945 CA1138 CA2905

Entity Legal Name ?nergie Valero Inc. ?NERGIES SONIC INC. ?nergir, s.e.c. Exelon Generation Company, LLC Five Rings Capital, LLC Flyers Energy, LLC Formica Canada Inc Gazif?re Inc. Gestion ?nergie Qu?bec Inc. Green Trading Capital, LP Hamel Propane Inc. Harnois ?nergies Inc. Hydro-Qu?bec Idemitsu Apollo Ifastgroupe 2004 L.P. J. Aron & Company, LLC Jaco Oil Company Kcarbon Holdings, LLC Kern Oil & Refining Company Les P?troles Irving Commercial s.e.n.c Liberty Utilities (CalPeco Electric), LLC Los Angeles Department of Water & Power Luminus EC, LP Luminus Energy Partners, LLC Macquarie Energy, LLC Mag Energy Solutions, Inc. Mercuria Energy America, LLC Merrill Lynch Commodities, Inc. Midstream Energy Partners (USA), LLC Molecule Ventures, LP Morgan Stanley Capital Group, Inc. Musket Corporation Naftex Operating Company NextEra Energy Marketing, LLC Northern California Power Agency Northern Trace Fund, Ltd. NRG Power Marketing, LLC PA Carbon I, LLC

Page 7

CA-QC Joint Auction Summary Results Report August 25, 2021

CITSS Entity ID CA2904 CA1046 CA2046 CA1034 CA1534 CA2923 QC2673 CA1410 QC1706 CA1279 CA2784 CA1595 CA1003 CA1505 QC1474 CA1834 CA1774 CA1102 CA1163 CA1760 CA2175 CA1366 CA1251 CA1757 CA1054 CA1031 CA2991 QC2781 CA1029 CA1170 CA1800

CA1674 CA1284 CA3132 CA1921 QC1873 CA1165

Entity Legal Name PABCO Building Products, LLC Pacific Gas and Electric Company Pacific Gas and Electric Company PacifiCorp Panoche Energy Center, LLC PCAF I, LLC Petro-Francis Inc Petro Diamond, Inc. P?troli?re Imp?riale Phillips 66 Company Pilot Travel Centers, LLC Pixley Cogen Partners, LLC Plumas-Sierra Rural Electric Cooperative Powerex Corporation Produits Suncor ?nergie S.E.N.C. River City Petroleum Robinson Oil Supply & Transport, Inc. Royal Bank of Canada Sacramento Municipal Utility District (SMUD) San Diego Gas and Electric Company Sempra Gas & Power Marketing, LLC Seneca Resources Corporation Shell Energy North America (US), LP Shiralian Enterprises Signal Hill Petroleum, Inc. Silicon Valley Power (SVP), City of Santa Clara Simon Smundak Sivaco Wire Group 2004 L.P. Southern California Edison Company Southern California Gas Company Southern Counties Oil Company, a California Limited Partnership Southwest Gas Corporation Stanislaus Food Products Company Stanton Energy Reliability Center, LLC Statkraft US, LLC Superior Gas Liquids Partnership Tesoro Refining & Marketing Company, LLC

Page 8

CA-QC Joint Auction Summary Results Report August 25, 2021

CITSS Entity ID CA3072 QC1467 CA3029 CA1216 CA1346 CA1635 CA1135 QC2174 QC2066 CA2056

Entity Legal Name Trafigura Trading, LLC TransCanada Energy Ltd. Truman Arnold Companies Turlock Irrigation District United States Gypsum Company Valero Marketing and Supply Company Vitol, Inc. W.O. Stinson & Son Ltd W.R. Grace Canada Corp. Wild Goose Storage, LLC

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download