Clean Air Act; Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

[FRL-4877-2]

Clean Air Act; Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice of the 1994 EPA SO2 Allowance Auctions Results.

-----------------------------------------------------------------------

SUMMARY: Pursuant to Title IV of the Clean Air Act and 40 CFR part 73,

the EPA is responsible for implementing a program to reduce emissions

of sulfur dioxide (SO2), a precursor of acid rain. The centerpiece

of the SO2 control program is the allocation of transferable

allowances, or authorizations to emit SO2, which are distributed

in limited quantities to existing utility units and which eventually

must be held by virtually all utility units to cover their SO2

emissions. These allowances may be transferred among polluting sources

and others, so that market forces may govern their ultimate use and

distribution, resulting in the most cost-effective sharing of the

emissions control burden.

EPA is directed under Section 416 of the Act to conduct annual

sales and auctions of a small portion of allowances (2.8%) withheld

from the total allowances allocated to utilities each year. Sales and

auctions are expected to stimulate and support the allowance market and

to provide a public source of allowances, particularly to new units for

which no allowances are allocated. In the Fall of 1992, EPA delegated

the administration of the EPA allowance auctions and sales to the

Chicago Board of Trade (CBOT). Today, the Acid Rain Division is giving

notice of the results of the second annual SO2 allowance auctions

that were conducted by the CBOT on March 28, 1994.

For rules governing the conduct of the auctions and sales see 40

CFR part 73, subpart E.

I. Offers

A. Total Allowances Available for Auction

In the spot auction (year 1995 allowances sold), a total of 108,001

allowances were offered for sale: 50,000 that were withheld from the

utilities and an additional 58,001 that were voluntarily contributed

from utilities. In the 6-year advance auction (year 2000 allowances

sold), a total of 75,000 allowances were offered for sale: 25,000 that

were unsold from the 1993 direct sale and an additional 50,000 that

were contributed from utilities. In the 7-year advance auction (year

2001 allowances sold), a total of 147,000 allowances were offered for

sale: 100,000 that were withheld from the utilities and an additional

47,000 that were contributed. The minimum prices that utilities would

accept for their contributed allowances are listed in Table 1.

Table 1.--Offer Data for the 1994 Auctions

------------------------------------------------------------------------

Cumulative

Offer Quantity total

------------------------------------------------------------------------

Spot Auction Offers (1995):

$165.00............................... 1 1

175.00................................ 600 601

190.00................................ 600 1,201

200.00................................ 5,000 6,201

205.00................................ 600 6,801

215.00................................ 600 7,401

220.00................................ 5,000 12,401

225.00................................ 600 13,001

225.00................................ 2,500 15,501

230.00................................ 2,500 18,001

550.00................................ 40,000 58,001

6-Year Allowance Auction Offers (2000):

* * *................................. *400 400

141.00................................ 1,000 1,400

145.00................................ 400 1,800

165.00................................ 400 2,200

185.00................................ 400 2,600

189.00................................ 1,000 3,600

199.00................................ 2,000 5,600

205.00................................ 400 6,000

224.00................................ 500 6,500

224.00................................ 250 6,750

224.00................................ 250 7,000

299.00................................ 2,000 9,000

399.00................................ 1,000 10,000

550.00................................ 19,208 29,208

550.00................................ 20,792 50,000

7-Year Allowance Auction Offers (2001):

* * *................................. **400 400

* * *................................. **400 800

160.00................................ 400 1,200

180.00................................ 400 1,600

199.00................................ 2,000 3,600

200.00................................ 400 4,000

299.00................................ 2,000 6,000

399.00................................ 1,000 7,000

550.00................................ 20,792 27,792

550.00................................ 19,208 47,000

------------------------------------------------------------------------

* 400 allowances with offer prices equal to or less than $140.00 were

sold at $140.00.

** 800 allowances with offer prices equal to or less than $140.00 were

sold at $140.00.

II. Bids

A. Spot Auction Results

CBOT received 103 bids requesting 294,354 year 1995 allowances. 37

bids were successful and 50,000 allowances were sold. No contributed

allowances were sold in the spot auction. Spot auction proceeds totaled

$7,944,328.

Per EPA regulations, unsuccessful bidders' names are not revealed.

Table 2.--Spot Auction Bids (1995)

----------------------------------------------------------------------------------------------------------------

Cumulative

Bid Quantity Bidder's name total

----------------------------------------------------------------------------------------------------------------

$400.00......... 2 TV Nation..................................................... 2

201.00.......... 1 Cliff Hamal................................................... 3

200.00.......... 1 Nathan Hartman................................................ 4

200.00.......... 1 Univ. of Maryland School of Law............................... 5

177.00.......... 129 Cantor Fitzgerald............................................. 134

174.00.......... 333 Cantor Fitzgerald............................................. 467

171.00.......... 333 Cantor Fitzgerald............................................. 800

171.00.......... 50 Cleveland Electric Illuminating Co............................ 850

171.00.......... 500 Wholesale Power Services, Inc................................. 1,350

170.00.......... 41 Mark Battaglia................................................ 1,391

170.00.......... 9,000 American Municipal Power--Ohio Inc............................ 10,391

168.00.......... 333 Cantor Fitzgerald............................................. 10,724

167.00.......... 9 L. J. O'Callaghan, Sr......................................... 10,733

166.00.......... 50 Cleveland Electric Illuminating Co............................ 10,783

166.00.......... 500 Wholesale Power Services, Inc................................. 11,283

165.00.......... 340 Cantor Fitzgerald............................................. 11,623

163.00.......... 9,000 American Municipal Power--Ohio Inc............................ 20,623

161.00.......... 150 Cleveland Electric Illuminating Co............................ 20,773

161.00.......... 3,000 Tampa Electric Company........................................ 23,773

161.00.......... 500 Wholesale Power Services, Inc................................. 24,273

160.00.......... 12 CATEX Vitol Electric Inc...................................... 24,285

159.00.......... 1 Myles R. O'Kelly.............................................. 24,286

158.00.......... 333 Cantor Fitzgerald............................................. 24,619

158.00.......... 3,000 Tampa Electric Company........................................ 27,619

157.00.......... 11 L. J. O'Callaghan, Sr......................................... 27,630

157.00.......... 446 Gulf Power Company............................................ 28,076

156.00.......... 150 Cleveland Electric Illuminating Co............................ 28,226

156.00.......... 3,000 Tampa Electric Company........................................ 31,226

156.00.......... 500 Wholesale Power Services, Inc................................. 31,726

151.00.......... 150 Cleveland Electric Illuminating Co............................ 31,876

151.00.......... 3,000 Tampa Electric Company........................................ 34,876

151.00.......... 600 Wholesale Power Services, Inc................................. 35,476

150.00.......... 1,500 Marine Coal Sales Company..................................... 36,976

150.00*......... 12 CATEX Vitol Electric Inc...................................... 36,988

150.00*......... 46 Mark Battaglia................................................ 37,034

150.00*......... 20 Phil Jensen................................................... 37,054

150.00*......... **40,000 Allowance Holdings Corporation................................ 77,054

-----------------

150.00*......... 500 .............................................................. 77,554

150.00*......... 3,000 .............................................................. 80,554

147.00.......... 12 .............................................................. 80,566

147.00.......... 1,000 .............................................................. 81,566

146.00.......... 150 .............................................................. 81,716

146.00.......... 1,000 .............................................................. 82,716

146.00.......... 3,000 .............................................................. 85,716

145.00.......... 5,000 .............................................................. 90,716

145.00.......... 2,000 .............................................................. 92,716

145.00.......... 1,000 .............................................................. 93,716

144.00.......... 1,500 .............................................................. 95,216

144.00.......... 137 .............................................................. 95,353

143.00.......... 1,500 .............................................................. 96,853

142.00.......... 1,500 .............................................................. 98,353

142.00.......... 7,000 .............................................................. 105,353

141.00.......... 100 .............................................................. 105,453

141.00.......... 1,500 .............................................................. 106,953

141.00.......... 275 .............................................................. 107,228

140.00.......... 2,000 .............................................................. 109,228

140.00.......... 12 .............................................................. 109,240

140.00.......... 1,500 .............................................................. 110,740

139.00.......... 2,000 .............................................................. 112,740

138.00.......... 1,429 .............................................................. 114,169

138.00.......... 2,000 .............................................................. 116,169

138.00.......... 550 .............................................................. 116,719

137.00.......... 2,000 .............................................................. 118,719

136.00.......... 100 .............................................................. 118,819

136.00.......... 2,000 .............................................................. 120,819

135.00.......... 52 .............................................................. 120,871

135.00.......... 1,000 .............................................................. 121,871

135.00.......... 2,000 .............................................................. 123,871

135.00.......... 688 .............................................................. 124,559

134.00.......... 2,000 .............................................................. 126,559

133.00.......... 4,571 .............................................................. 131,130

133.00.......... 2,000 .............................................................. 133,130

132.00.......... 2,500 .............................................................. 135,630

132.00.......... 1,100 .............................................................. 136,730

131.00.......... 100 .............................................................. 136,830

131.00.......... 2,500 .............................................................. 139,330

131.00.......... 3,500 .............................................................. 142,830

130.00.......... 12 .............................................................. 142,842

130.00.......... 2,500 .............................................................. 145,342

129.00.......... 2,500 .............................................................. 147,842

129.00.......... 1,650 .............................................................. 149,492

128.00.......... 10,500 .............................................................. 159,992

128.00.......... 2,500 .............................................................. 162,492

127.00.......... 2,500 .............................................................. 164,992

126.00.......... 2,500 .............................................................. 167,492

126.00.......... 2,475 .............................................................. 169,967

125.00.......... 2,500 .............................................................. 172,467

124.00.......... 10,000 .............................................................. 182,467

124.00.......... 2,500 .............................................................. 184,967

123.00.......... 14,500 .............................................................. 199,467

123.00.......... 3,000 .............................................................. 202,467

123.00.......... 9,625 .............................................................. 212,092

120.00.......... 12 .............................................................. 212,104

118.00.......... 10,000 .............................................................. 222,104

114.00.......... 10,000 .............................................................. 232,104

113.00.......... 6,000 .............................................................. 238,104

108.00.......... 3,000 .............................................................. 241,104

104.00.......... 10,000 .............................................................. 251,104

94.00........... 10,000 .............................................................. 261,104

50.00........... 4,000 .............................................................. 265,104

50.00........... 5,000 .............................................................. 270,104

50.00........... 11,750 .............................................................. 281,854

24.00........... 12,500 .............................................................. 294,354

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*Per EPA auction regulations on breaking ties, bids at the same price that exceed the number of remaining

allowances are awarded allowances by lottery, the result of which is reflected in the table.

**Awarded a partial fill of 12,946 out of 40,000.

B. 6-Year Advance Auction Results

CBOT received 70 bids requesting 110,489 year 2000 allowances. 10

bids were successful and 25,400 allowances were sold (25,000 withheld

and 400 contributed). 6-Year advance auction proceeds totaled

$3,767,628.

Table 3.--6-Year Advance Auction Bids (2000)

----------------------------------------------------------------------------------------------------------------

Cumulative

Bid Quantity Bidder's name total

----------------------------------------------------------------------------------------------------------------

$150.00......... 20,000 Allowance Holdings Corporation................................ 20,000

145.00.......... 1,000 Cantor Fitzgerald............................................. 21,000

144.00.......... 38 SCANA Corporation............................................. 21,038

143.00.......... 1,000 Duke Power Company............................................ 22,038

142.00.......... 1,000 Duke Power Company............................................ 23,038

141.00.......... 1 Myles R. O'Kelly.............................................. 23,039

141.00.......... 1,000 Duke Power Company............................................ 24,039

141.00.......... 75 SCANA Corporation............................................. 24,114

141.00.......... 400 United Power Association...................................... 24,514

140.00*......... **1,500 Duke Power Company............................................ 26,014

-----------------

140.00*......... 1 .............................................................. 26,015

140.00*......... 1,000 .............................................................. 27,015

139.00.......... 1,500 .............................................................. 28,515

139.00.......... 177 .............................................................. 28,692

138.00.......... 714 .............................................................. 29,406

138.00.......... 1,500 .............................................................. 30,906

138.00.......... 150 .............................................................. 31,056

137.00.......... 1,500 .............................................................. 32,556

136.00.......... 2,000 .............................................................. 34,556

136.00.......... 400 .............................................................. 34,956

135.00.......... 1,000 .............................................................. 35,956

135.00.......... 2,000 .............................................................. 37,956

135.00.......... 187 .............................................................. 38,143

134.00.......... 2,000 .............................................................. 40,143

133.00.......... 2,286 .............................................................. 42,429

133.00.......... 2,000 .............................................................. 44,429

132.00.......... 2,000 .............................................................. 46,429

132.00.......... 300 .............................................................. 46,729

131.00.......... 3,000 .............................................................. 49,729

131.00.......... 1,500 .............................................................. 51,229

131.00.......... 500 .............................................................. 51,729

130.00.......... 12 .............................................................. 51,741

130.00.......... 3,000 .............................................................. 54,741

129.00.......... 450 .............................................................. 55,191

128.00.......... 75 .............................................................. 55,266

128.00.......... 5,250 .............................................................. 60,516

127.00.......... 1,750 .............................................................. 62,266

126.00.......... 100 .............................................................. 62,366

126.00.......... 675 .............................................................. 63,041

126.00.......... 100 .............................................................. 63,141

125.00.......... 125 .............................................................. 63,266

123.00.......... 7,250 .............................................................. 70,516

123.00.......... 2,625 .............................................................. 73,141

123.00.......... 500 .............................................................. 73,641

122.00.......... 100 .............................................................. 73,741

122.00.......... 1,550 .............................................................. 75,291

121.00.......... 350 .............................................................. 75,641

121.00.......... 100 .............................................................. 75,741

120.00.......... 12 .............................................................. 75,753

119.00.......... 100 .............................................................. 75,853

118.00.......... 5,000 .............................................................. 80,853

117.00.......... 1,250 .............................................................. 82,103

116.00.......... 300 .............................................................. 82,403

116.00.......... 100 .............................................................. 82,503

113.00.......... 3,000 .............................................................. 85,503

112.00.......... 850 .............................................................. 86,353

111.00.......... 300 .............................................................. 86,653

111.00.......... 100 .............................................................. 86,753

110.00.......... 12 .............................................................. 86,765

108.00.......... 1,500 .............................................................. 88,265

106.00.......... 850 .............................................................. 89,115

100.00.......... 12 .............................................................. 89,127

99.00........... 850 .............................................................. 89,977

94.00........... 400 .............................................................. 90,377

90.00........... 12 .............................................................. 90,389

87.00........... 5,000 .............................................................. 95,389

77.00........... 5,000 .............................................................. 100,389

67.00........... 5,000 .............................................................. 105,389

62.00........... 100 .............................................................. 105,489

57.00........... 5,000 .............................................................. 110,489

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* Per EPA auction regulations on breaking ties, bids at the same price that exceed the number of remaining

allowances are awarded allowances by lottery, the result of which is reflected in the table.

** Awarded a partial fill of 486 out of 1,500, plus 400 offered allowances.

C. 7-Year Advance Auction Results

CBOT received 111 bids requesting 489,399 year 2001 allowances. 19

bids were successful and 100,800 allowances were sold (100,000 withheld

and 800 contributed). 7-Year advance auction proceeds totaled

$15,051,330.

Table 4.--7-Year Advance Auction Bids (2001)

----------------------------------------------------------------------------------------------------------------

Cumulative

Bid Quantity Bidder's name total

----------------------------------------------------------------------------------------------------------------

$250.00......... 5 Dan Peterman.................................................. 5

200.00.......... 5 Robert T. Stewart............................................. 10

200.00.......... 1 Electric Generation Association............................... 11

175.00.......... 5 Robert T. Stewart............................................. 16

159.00.......... 10 Orlando Utilities Commission.................................. 26

154.00.......... 325 Paul Wedel.................................................... 351

154.00.......... 25 Orlando Utilities Commission.................................. 376

150.00.......... 10 Robert T. Stewart............................................. 386

150.00.......... 90,000 Allowance Holdings Corporation................................ 90,386

149.00.......... 40 Orlando Utilities Commission.................................. 90,426

145.00.......... 5 Robert T. Stewart............................................. 90,431

145.00.......... 5,000 American Electric Power Service............................... 95,431

145.00.......... 500 Cantor Fitzgerald............................................. 95,931

144.00.......... 55 Orlando Utilities Commission.................................. 95,986

144.00.......... 325 SCANA Corporation............................................. 96,311

142.00.......... 1,000 Duke Power Company............................................ 97,311

141.00.......... 1,000 Duke Power Company............................................ 98,311

141.00.......... 650 SCANA Corporation............................................. 98,961

140.00.......... *10,000 The Cincinnati Gas & Electric Co.............................. 108,961

-----------------

140.00.......... 500 .............................................................. 109,461

140.00.......... 1,000 .............................................................. 110,461

140.00.......... 1 .............................................................. 110,462

139.00.......... 1,500 .............................................................. 111,962

139.00.......... 709 .............................................................. 112,671

139.00.......... 70 .............................................................. 112,741

138.00.......... 2,857 .............................................................. 115,598

138.00.......... 2,335 .............................................................. 117,933

138.00.......... 1,500 .............................................................. 119,433

138.00.......... 1,300 .............................................................. 120,733

137.00.......... 50 .............................................................. 120,783

137.00.......... 1,500 .............................................................. 122,283

136.00.......... 1,500 .............................................................. 123,783

136.00.......... 600 .............................................................. 124,383

135.00.......... 5 .............................................................. 124,388

135.00.......... 1,700 .............................................................. 126,088

135.00.......... 2,000 .............................................................. 128,088

135.00.......... 1,625 .............................................................. 129,713

134.00.......... 2,000 .............................................................. 131,713

134.00.......... 85 .............................................................. 131,798

133.00.......... 9,143 .............................................................. 140,941

133.00.......... 2,000 .............................................................. 142,941

132.00.......... 2,925 .............................................................. 145,866

132.00.......... 2,000 .............................................................. 147,866

132.00.......... 2,600 .............................................................. 150,466

131.00.......... 2,000 .............................................................. 152,466

131.00.......... 700 .............................................................. 153,166

130.00.......... 5 .............................................................. 153,171

130.00.......... 2,000 .............................................................. 155,171

129.00.......... 2,500 .............................................................. 157,671

129.00.......... 100 .............................................................. 157,771

129.00.......... 3,900 .............................................................. 161,671

128.00.......... 75 .............................................................. 161,746

128.00.......... 21,000 .............................................................. 182,746

128.00.......... 2,500 .............................................................. 185,246

127.00.......... 2,500 .............................................................. 187,746

126.00.......... 2,500 .............................................................. 190,246

126.00.......... 5,850 .............................................................. 196,096

126.00.......... 800 .............................................................. 196,896

125.00.......... 10 .............................................................. 196,906

125.00.......... 125 .............................................................. 197,031

125.00.......... 2,500 .............................................................. 199,531

125.00.......... 20,000 .............................................................. 219,531

124.00.......... 2,500 .............................................................. 222,031

124.00.......... 138 .............................................................. 222,169

124.00.......... 6,000 .............................................................. 228,169

123.00.......... 50 .............................................................. 228,219

123.00.......... 29,000 .............................................................. 257,219

123.00.......... 2,500 .............................................................. 259,719

123.00.......... 22,750 .............................................................. 282,469

122.00.......... 100 .............................................................. 282,569

122.00.......... 2,500 .............................................................. 285,069

121.00.......... 3,000 .............................................................. 288,069

121.00.......... 7,000 .............................................................. 295,069

121.00.......... 900 .............................................................. 295,969

120.00.......... 25 .............................................................. 295,994

120.00.......... 5 .............................................................. 295,999

120.00.......... 3,000 .............................................................. 298,999

119.00.......... 100 .............................................................. 299,099

119.00.......... 3,000 .............................................................. 302,099

118.00.......... 20,000 .............................................................. 322,099

118.00.......... 3,000 .............................................................. 325,099

117.00.......... 3,000 .............................................................. 328,099

116.00.......... 3,000 .............................................................. 331,099

116.00.......... 6,200 .............................................................. 337,299

115.00.......... 50 .............................................................. 337,349

115.00.......... 4,000 .............................................................. 341,349

114.00.......... 4,000 .............................................................. 345,349

113.00.......... 12,000 .............................................................. 357,349

113.00.......... 4,000 .............................................................. 361,349

113.00.......... 1,500 .............................................................. 362,849

112.00.......... 4,000 .............................................................. 366,849

111.00.......... 6,000 .............................................................. 372,849

111.00.......... 5,000 .............................................................. 377,849

110.00.......... 6,000 .............................................................. 383,849

109.00.......... 6,000 .............................................................. 389,849

108.00.......... 6,000 .............................................................. 395,849

108.00.......... 7,000 .............................................................. 402,849

106.00.......... 3,400 .............................................................. 406,249

101.00.......... 3,400 .............................................................. 409,649

100.00.......... 50 .............................................................. 409,699

100.00.......... 2,000 .............................................................. 411,699

94.00........... 3,400 .............................................................. 415,099

89.00........... 1,600 .............................................................. 416,699

82.00........... 15,000 .............................................................. 431,699

75.00........... 50 .............................................................. 431,749

72.00........... 15,000 .............................................................. 446,749

62.00........... 15,000 .............................................................. 461,749

61.00........... 100 .............................................................. 461,849

52.00........... 15,000 .............................................................. 476,849

50.00........... 50 .............................................................. 476,899

24.00........... 12,500 .............................................................. 489,399

----------------------------------------------------------------------------------------------------------------

*Per EPA auction regulations on breaking ties, bids at the same price that exceed the number of remaining

allowances are awarded allowances by lottery, the result of which is reflected in the table.

*Awarded a partial fill of 1,039 out of 10,000, plus 800 offered allowances.

Proceeds from all three auctions totaled $26,763,286, all of which

will be returned to the utilities from which allowances were withheld,

per EPA regulations.

FOR FURTHER INFORMATION CONTACT: Linda Reidt Critchfield, EPA/OAP/Acid

Rain Division (6204J), 401 M St., SW., Washington, DC 20460 (202) 233-

9087.

Date: April 13, 1994.

Brian J. McLean,

Director, Acid Rain Division.

[FR Doc. 94-9939 Filed 4-22-94; 8:45 am]

BILLING CODE 6560-50-P