HomeMy WebLinkAboutF-1 California Air Resource Board's Information Item
Presented 1 1 �'1:5
F-1
AMA Fr
INFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA
UTILITY BOARD
FROM: GEORGE MORROW,DIRECTOR OF UTILITIES
DATE: NOVEMBER 23,2015
SUBJECT: INTENT TO PARTICIPATE IN THE CALIFORNIA AIR RESOURCES
BOARD'S FEBRUARY 17, 2016 AUCTION OF GREENHOUSE GAS
ALLOWANCES
Consistent with provisions of the AB 32 based "Cap-and-Trade"program,Azusa Light&
Water may participate in CARB's upcoming February 2016 auction of 2016 Greenhouse
Gas("GHG")Allowances.
The objective of any participation is to sell and procure equal volumes of GHG
compliance instruments simultaneously for an expected zero (0) dollar net impact. In
order to participate in the auction, however, auction security will be placed with auction
escrow holder, Deutsche Bank. This is consistent with past auctions that AL&W
participated.
No formal Utility Board approval is required for auction participation since under the
utility's Risk Management Program, the Director of Utilities and Assistant Director-
Resource Management are authorized to sell and procure GHG compliance instruments
as needed.
If the utility elects to participate in the upcoming auction,no net fiscal impact is foreseen
since the goal is to buy and sell GHG Allowances simultaneously. (By design, there is a
single auction clearing price established for all buyers and sellers.)
As always, please note that communications outside our organization of Azusa's GHG
auction intentions or strategies violates CARB's GHG market rules and will subject the
utility to significant fines.
Prepared by: Yarek Lehr,P.E.,Assistant Director of Resource Management
UB-172