1. A. The Department, in consultation with the Committee, shall determine which categories of eligible bidders will be authorized to submit bids in each auction. Notification of the categories shall be included in each notice of CO₂ allowance auction.

2. B. Eligible categories of bidders for an auction may include:

   1. (1) Owners of CO₂ budget units located in Maryland;
   2. (2) Owners of CO₂ budget units located outside of Maryland but in a participating state with final CO₂ budget trading rules in place at the time of the auction; and
   3. (3) Other market participants, including but not limited to, brokers, environmental groups, financial and investment institutions, and owners of generation units, located in or outside of the participating states with final CO₂ budget trading rules in place at the time of the auction.
3. C. In order to participate in auctions, eligible bidders shall provide financial security in the form of a bond, cash, certified funds, or an irrevocable standby letter of credit, in a form acceptable to the Department.
4. D. A bidder's eligibility to bid in any auction may be limited to the level of financial security provided.
5. E. A bidder's financial security may be forfeited and retained by the Department in the event the bidder's offer is accepted in an auction and the bidder fails to tender payment of the full amount when due.

6. F. Return of Financial Security.

   1. (1) A bidder may request return of its financial security at any time before or following any auction.
   2. (2) The Department shall return the financial security upon the Department's determination that the bidder has complied with these regulations and paid the full amount of its accepted bid.

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)