HomeMy WebLinkAboutF-2.1. GHG Allowance auction reportINFORMATION ITEM
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY
BOARD
FROM: MANNY ROBLEDO, DIRECTOR OF UTILITIES
DATE: MARCH 22, 2021
SUBJECT: RESULTS OF THE CALIFORNIA AIR RESOURCES BOARD’S FEBRUARY 17,
2021 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 February 17, 2021 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 CARB 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 February 17, 2021 auction of 2021
Greenhouse Gas (GHG) Allowances.
The February 17, 2021 auction took place as scheduled; 54,773,607 of “current vintage”
Allowances and 8,306,250 Advance Auction 2024 Allowances were offered. CARB reported that
the auction clearing price at which current bought and sold allowances transacted was
$17.80/Allowance. CARB further reported that 89.4% of the buyers were Compliance Entities
(entities with GHG compliance responsibilities under AB32).
F-2Approved
Utility Board
3/22/21
Results of February 17, 2021 GHG Allowance Auction
March 22, 2021
Page 2
53,471 Allowances sold for a total $951,783.80.
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