1. A. The following rules shall apply to each allowance auction. The Department may specify additional information in the auction notice for each auction. Such additional information may include the time and location of the auction, auction rules, registration deadlines, and any additional information deemed necessary or useful.

2. B. General Requirements.

   1. (1) The Department shall include the following information in the auction notice for each auction:

      1. (a) The number of CO₂ allowances offered for sale at the auction, not including any CO₂ CCR tier 1 or CO₂ CCR tier 2 allowances;
      2. (b) The number of CO ₂ CCR tier 1 allowances that will be offered for sale at the auction if the condition of §B(2)(a) of this regulation is met;
      3. (c) The number of CO ₂ CCR tier 2 allowances that will be offered for sale at the auction if the condition of §B(2)(c) of this regulation is met;
      4. (d) The minimum reserve price for the auction;
      5. (e) The CCR tier 1 trigger price for the auction; and
      6. (f) The CCR tier 2 trigger price for the auction.

   2. (2) The Department or its agent shall follow these rules for the sale of CO₂ CCR allowances:

      1. (a) CO₂ CCR tier 1 allowances shall only be sold at an auction in which total demand for allowances, above the CCR tier 1 trigger price, exceeds the number of CO₂ allowances available for purchase at the auction, not including any CO₂ CCR tier 1 or tier 2 allowances;
      2. (b) If the condition of §B(2)(a) of this regulation is met at an auction, then the number of CO₂ CCR tier 1 allowances offered for sale by the Department at the auction shall be equal to the number of CO₂ CCR tier 1 allowances in the Consumer Energy Efficiency Account at the time of the auction;
      3. (c) CO₂ CCR tier 2 allowances shall only be sold at an auction in which total demand for allowances, above the CCR tier 2 trigger price, exceeds the number of CO₂ allowances available for purchase at the auction, not including any CO₂ CCR tier 2 allowances;
      4. (d) If the condition of §B(2)(c) of this regulation is met at an auction, then the number of CO ₂ CCR tier 2 allowances offered for sale by the Department at the auction shall be equal to the number of CO ₂ CCR tier 2 allowances in the Consumer Energy Efficiency Account at the time of the auction;
      5. (e) After all of the CO₂ CCR tier 1 allowances in the Consumer Energy Efficiency Account have been sold in a given calendar year, no additional CO₂ CCR tier 1 allowances will be offered for sale at any auction for the remainder of that calendar year, even if the condition of §B(2)(a) of this regulation is met at an auction;
      6. (f) After all of the CO₂ CCR tier 2 allowances in the Consumer Energy Efficiency Account have been sold in a given calendar year, no addition CO₂ CCR allowances will be offered for sale at any auction for the remainder of that calendar year, even if the condition of §B(2)(c) of this regulation is met at an auction;
      7. (g) At an auction in which CO₂ CCR tier 1 allowances are sold, but no CO₂ CCR tier 2 allowances are sold, the reserve price for the auction shall be the CCR tier 1 trigger price;
      8. (h) At an auction in which CO ₂ CCR tier 2 allowances are sold, the reserve price for the auction shall be the CCR tier 2 trigger price;
      9. (i) If the condition of §B(2)(a) of this regulation is not satisfied, no CO₂ CCR tier 1 or CO₂ CCR tier 2 allowances shall be offered for sale at the auction, and the reserve price for the auction shall be equal to the minimum reserve prices; and

      10. (j) If the condition of §B(2)(c) of this regulation is not satisfied, no CO ₂ CCR tier 2 allowances shall be offered for sale at the auction, and the reserve price for the auction shall be determined as follows:

          1. (i) If the condition of §B(2)(a) of this regulation is met, the reserve price shall be equal to the CCR tier 1 trigger price; and
          2. (ii) If the condition of §B(2)(a) of this regulation is not met, the reserve price shall be equal to the minimum reserve price.

   3. (3) The Department shall implement the reserve price in the following manner:

      1. (a) No allowances shall be sold at any auction for a price below the reserve price for that auction; and
      2. (b) If the total demand for allowances at an auction is less than or equal to the total number of allowances made available for sale in that auction, then the auction clearing price for the auction shall be the reserve price.

Authority: Environment Article, §§1-101, 1-404, 2-103, and 2-1002(g), Annotated Code of Maryland

Effective date:

Regulations .01—.13 adopted as an emergency provision effective April 4, 2008 (35:9 Md. R. 895); adopted permanently effective August 25, 2008 (35:17 Md. R. 1490)

Regulation .02C amended effective August 6, 2012 (39:15 Md. R. 964)

Regulation .03B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)

Regulation .03B amended effective August 6, 2012 (39:15 Md. R. 964)

Regulation .05F amended effective August 6, 2012 (39:15 Md. R. 964)

Regulation .08B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)

Regulation .09A amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)

Chapter revised effective January 6, 2013 (40:26 Md. R. 2165)

Regulation .03B amended effective March 30, 2026 (53:6 Md. R. 292)

Regulation .06B amended effective December 31, 2018 (45:26 Md. R. 1249); March 30, 2026 (53:6 Md. R. 292)