HomeMy WebLinkAboutF-1.1. GHG Allowance auction reportINFORMATION ITEM F-1
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: MARCH 27, 2023
SUBJECT: RESULTS OF THE CALIFORNIA AIR RESOURCES BOARD’S FEBRUARY 15, 2023
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 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 that the Utility Board take the following action:
1)Receive and file Staff’s report on results of the February 15, 2023, 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 the 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 15, 2023, auction of 2023 Greenhouse Gas (GHG) Allowances.
The February 15, 2023 auction took place as scheduled: A total of 56,395,720 of “current vintage”
Allowances and 7,577,000 Advance Auction 2026 Allowances were offered. CARB reported that the
auction clearing price at which current bought and sold allowances transacted was $27.85/Allowance.
CARB further reported that 87.06% of the buyers were Compliance Entities (entities with GHG
compliance responsibilities under AB32). Azusa Light and Water sold 49,838 Allowances for a total
revenue of $1,387,988.30.
Approved
Utility Board
03/27/2023
Results of February 15, 2023 GHG Allowance Auction
March 27, 2023
Page 2
FISCAL IMPACT:
There is no operating or capital budget impact. Proceeds from the auction will be deposited in the City
of Azusa’s California Climate Change Fund (Fund 23) and disbursed per applicable CARB rules and
regulations.
Prepared by:
Richard Torres
Assistant General Manager -
Resource Management
Reviewed and Approved:
Tikan Singh
General Manager
Reviewed and Approved:
Sergio Gonzalez
City Manager