HomeMy WebLinkAboutF-2.1. Results of CARB February 2025 Auction of GHG AllowancesCONSENT ITEM F-2
TO: HONORABLE CHAIRPERSON AND MEMBERS OF THE AZUSA UTILITY BOARD
FROM: TIKAN SINGH, GENERAL MANAGER
DATE: APRIL 28, 2025
SUBJECT: RESULTS OF THE CALIFORNIA AIR RESOURCES BOARD’S FEBRUARY 2025
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 the February 2025 GHG Allowance auction results.
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 2025 auction of 2025 Greenhouse Gas (GHG) Allowances.
The February 2025 auction occurred as scheduled: 51,466,028 of “current vintage” Allowances and
6,847,750 Advance Auction 2028 Allowances were offered. CARB reported that the auction clearing price
at which current bought and sold allowances transacted was $29.27/Allowance. CARB reported that
83.31% of the buyers were Compliance Entities (entities with GHG compliance responsibilities under
AB32).
66,002 Allowances sold for a total of $1,931,878.54.
Approved
Utility Board
04/28/2025
Results of February 2025 GHG Allowance Auction
April 28, 2025
Page 2
FISCAL IMPACT:
There is no impact on the operating or capital budget. Proceeds from the auction will be deposited in
Azusa’s California Climate Change Fund (Fund 23) and disbursed per applicable CARB rules and
regulations.
Prepared by: Reviewed and Approved:
Richard Torres Danny Smith
Assistant General Manager - Utilities Admin & Finance Manager
Resource Management
Reviewed and Approved: Reviewed and Approved:
Tikan Singh Sergio Gonzalez
General Manager City Manager