HomeMy WebLinkAboutH-9 Staff Report - Results of The California Air Resources Board’s August 18, 2020 Auction f Greenhouse Gas AllowancesCONSENT ITEM
H-9
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: SEPTEMBER 21, 2020
SUBJECT: RESULTS OF THE CALIFORNIA AIR RESOURCES BOARD’S AUGUST 18,
2020 AUCTION OF GREENHOUSE GAS ALLOWANCES.
BACKGROUND:
The Assembly Bill 32 based “Cap-and-Trade” Program requires that every year California Air
Resources Board (CARB) or its agent conduct quarterly public auctions of the Greenhouse Gas
(GHG) Allowances. Entities with GHG compliance responsibility or entities desiring to engage in
trading can buy needed Allowances or sell excess of such in the auctions.
RECOMMENDATION:
Staff recommends the Utility Board take the following action:
1)Receive and file Staff’s report on results of the August 18, 2020 GHG Allowance
auction.
ANALYSIS:
CARB regulations forbid informing or discussing with anyone (including public forums) an entity’s
intent to participate in GHG auctions or its auction bid/offer strategy. In light of that regulatory
requirement, Staff reports auction outcome to the Board once the California Air Resources Board
makes the auction results public. Consistent with the above and the Utility Board’s understanding
and approval of GHG auction rules, Staff reports Azusa’s participation in the August 18, 2020
auction of 2020 Greenhouse Gas (GHG) Allowances:
The August 18, 2020 auction took place as scheduled; 59,250,484 of “current vintage” Allowances
and 8,672,250 2023 vintage Allowances were offered. CARB reported that the auction clearing
price at which all bought and sold allowances transacted was $16.68/Allowance. CARB further
APPROVED
UTILITY BOARD
9/21/2020
Special Meeting
Received and Filed
Results of August 18, 2020 GHG Allowance auction
September 21, 2020
Page 2
reported that 96.5% of the buyers were Compliance Entities (entities with GHG compliance
responsibilities under AB32).
In the August 18, 2020 auction, Azusa sold 71,398 Allowances, which yielded a total of
$1,190,918.64. Such proceeds are restricted and shall be disbursed in accordance with CARB rules
and regulations designed to further reduce greenhouse gases.
FISCAL IMPACT:
There is no operating or capital budget impact. Proceeds from the auction will be deposited in
Azusa’s California Climate Change Fund (Fund 24) and will be disbursed in accordance with
applicable CARB rules and regulations.
Prepared by: Reviewed and Approved:
Richard Torres Manny Robledo
Assistant Director – Resource Management Director of Utilities
Reviewed and Approved:
Sergio Gonzalez
City Manager