[Federal Register Volume 62, Number 16 (Friday, January 24, 1997)]
[Notices]
[Page 3681]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-1764]
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ENVIRONMENTAL PROTECTION AGENCY
[FRL-5680-5]
Clean Air Act; Acid Rain Provisions
AGENCY: Environmental Protection Agency.
ACTION: Notice of the 1997 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 fifth
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 1997 auctions will consist of
one ``spot'' auction and two ``advance'' auctions. Allowances sold in
the spot auction are useable for compliance beginning in 1997.
Allowances sold in the 6-year advance auction are useable for
compliance beginning in 2003; allowances sold in the 7-year advance
auction are useable for compliance beginning in 2004. 25,000
allowances--the unsold allowances from the 1996 direct sale--will be
sold in the 6-year advance auction, 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 1997 auctions must be received by
the CBOT by the close of business on March 18, 1997. The auctions
themselves will be conducted on March 24, 1997, with the results
announced on March 26.
CBOT will also sell in the 1997 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. However, under 40 CFR
73.70, such offered allowances must have a minimum price in whole
dollars. 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, 1997. 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: Information on bidding in the 1997 EPA
auctions can be found in the brochure ``How to Bid in the EPA SO2
Allowance Auctions, Fifth Annual Auctions--March 24, 1997;'' 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, by writing to EPA at
the address listed above, or by accessing the Acid Rain Program home
page on the Internet at http://www.epa.gov/acidrain/ardhome.html where
additional information on the Acid Rain Program is also available.
Dated: January 13, 1997.
Brian J. McLean,
Director, Acid Rain Division.
[FR Doc. 97-1764 Filed 1-23-97; 8:45 am]
BILLING CODE 6560-50-P
