Clean Air Act; Acid Rain Provisions

ENVIRONMENTAL PROTECTION AGENCY

[FRL-5456-8]

Clean Air Act; Acid Rain Provisions

AGENCY: Environmental Protection Agency.

ACTION: Notice of the 1996 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 fourth annual

SO2 allowance auctions that were conducted by the CBOT on March

25, 1996.

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 1996 allowances sold), a total of 158,000

allowances were offered for sale: 150,000 that were withheld from the

utilities and an additional 8,000 that were voluntarily contributed

from utilities. In the 6-year advance auction (year 2002 allowances

sold), a total of 32,000 allowances were offered for sale: 25,000 that

were unsold from the 1995 direct sale and an additional 7,000 that were

contributed from utilities. In the 7-year advance auction (year 2003

allowances sold), a total of 107,000 allowances were offered for sale:

100,000 that were withheld from the utilities and an additional 7,000

that were contributed. The minimum prices that utilities would accept

for their contributed allowances are listed in Table 1.

Table 1.--1996 Auction Offers (Spot)

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

Cumulative

Minimum price* Quantity total

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

$75............................................... 600 600

80................................................ 600 1,200

100............................................... 600 1,800

120............................................... 600 2,400

125............................................... 600 3,000

150............................................... 2,500 5,500

150............................................... 2,500 8,000

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

*No offers were sold in the 1996 Auction (Spot).

2002 Auction Offers (6 Year Advance)

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

Cumulative

Minimum price* Quantity total

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

$75............................................... 400 400

80................................................ 400 800

100............................................... 400 1,200

120............................................... 400 1,600

125............................................... 400 2,000

199............................................... 5,000 7,000

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

*No offers were sold in the 2002 Auction (Six Year Advance).

2003 Auction Offers (7 Year Advance)

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

Cumulative

Minimum price* Quantity total

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

$75............................................... 400 400

80................................................ 400 800

100............................................... 400 1,200

120............................................... 400 1,600

125............................................... 400 2,000

199............................................... 5,000 7,000

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

*No offers were sold in the 2003 Auction (Seven Year Advance).

II. Bids

A. 1996 Spot Auction Results

CBOT received 139 bids requesting 911,735 year 1996 allowances. 47

bids were successful and 150,000 allowances were sold. No contributed

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

$10,221,536.89.

Per EPA regulations, unsuccessful bidder's names are not revealed.

Table 2.--Spot Auction Bids (1995)

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

Cumulative

Bids Quantity Bidder's name total

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

$300.00.............................. 1 New England School of Law--Environmental Law 1

Society.

200.00............................... 1 Thomas M. Cooley Environmental Law Society....... 2

175.00............................... 4 University of Michigan Environmental Law Society. 6

175.00............................... 1 University of Minnesota Environmental Law Society 7

160.00............................... 1 CUNY Environmental Law Students Association...... 8

151.88............................... 1 Valparaiso University School of Law.............. 9

[[Page 15935]]

135.00............................... 1 William D. Watson................................ 10

130.00............................... 1 CUNY Environmental Law Students Association...... 11

125.00............................... 2 Catholic University Environmental Law Society.... 13

105.00............................... 1 James M. Parker.................................. 14

91.00................................ 1 Westerfield & Associates......................... 15

85.47................................ 3 Renee Rico....................................... 18

80.00................................ 3 Donald B. Benson................................. 21

80.00................................ 16 Acid Rain Retirement Fund........................ 37

77.02................................ 1 University of Maryland School of Law............. 38

76.02................................ 1 University of Maryland School of Law............. 39

75.02................................ 1 University of Maryland School of Law............. 40

75.02................................ 1 University of Maryland School of Law............. 41

74.02................................ 1 University of Maryland School of Law............. 42

73.02................................ 1 University of Maryland School of Law............. 43

73.02................................ 1 University of Maryland School of Law............. 44

72.02................................ 1 University of Maryland School of Law............. 45

70.83................................ 24 Laurel Hill Works................................ 69

70.06................................ 11,500 AIG Trading Corporation.......................... 11,569

70.01................................ 292 IN.H.A.L.E./Glens Falls Middle School, Glens 11,861

Falls, NY.

70.01................................ 15,000 Enron Power Marketing, Inc....................... 26,861

70.00................................ 4 IN.H.A.L.E./Lower Dauphin Ecology Club at Lower 26,865

Dauphin High School.

70.00................................ 11 IN.H.A.L.E./Schenectady Schools (Woodlawn, Paige, 26,876

and MLK Magnet School).

70.00................................ 2 IN.H.A.L.E./Wheatley School Environmental Action 26,878

Committee--Westbury, NY.

70.00................................ 2 IN.H.A.L.E./Solebury Environmental Science Class-- 26,880

Ottsville, PA.

70.00................................ 2 IN.H.A.L.E./Elizabeth High School--Elizabeth, NJ. 26,882

70.00................................ 4 IN.H.A.L.E./Combination of National Schools and 26,886

Community Organizations.

70.00................................ 3 National Healthy Air License Exchange............ 26,889

70.00................................ 4 National Healthy Air License Exchange............ 26,893

69.05................................ 25,000 Enron Power Marketing, Inc....................... 51,893

69.00................................ 4,725 Cantor Fitzgerald Brokerage, L.P................. 56,618

68.11................................ 3,000 Detroit Edison Company........................... 59,618

68.05................................ 25,000 Enron Power Marketing, Inc....................... 84,618

68.00................................ 130 National Healthy Air License Exchange............ 84,748

67.55................................ 9,030 Enron Power Marketing, Inc....................... 93,778

67.50................................ 5,000 Cantor Fitzgerald Brokerage, LP.................. 98,778

67.13................................ 10,000 Allegheny Power System........................... 108,778

67.11................................ 3,000 Detroit Edison Company........................... 111,778

67.05................................ 25,000 Enron Power Marketing, Inc....................... 136,778

66.11................................ 3,000 Detroit Edison Company........................... 139,778

66.05................................ 2,000 Kerr-McGee Coal Corporation...................... 141,778

66.05*............................... **25,000 Enron Power Marketing, Inc....................... 166,778

66.00................................ 2,500 ............................................... 169,278

66.00................................ 130 ............................................... 169,408

66.00................................ 5,000 ............................................... 174,408

65.55................................ 25,000 ............................................... 199,408

65.11................................ 3,000 ............................................... 202,408

65.00................................ 8,000 ............................................... 210,408

64.50................................ 5,000 ............................................... 215,408

64.11................................ 3,000 ............................................... 218,408

64.00................................ 76 ............................................... 218,484

64.00................................ 25,000 ............................................... 243,484

63.40................................ 5,000 ............................................... 248,484

63.13................................ 1,000 ............................................... 249,484

63.00................................ 5,000 ............................................... 254,484

63.00................................ 500 ............................................... 254,984

62.63................................ 10,000 ............................................... 264,984

62.13................................ 1,000 ............................................... 265,984

62.07................................ 2,000 ............................................... 267,984

62.00................................ 32,000 ............................................... 299,984

61.25................................ 5,000 ............................................... 304,984

61.13................................ 1,000 ............................................... 305,984

61.10................................ 10,000 ............................................... 315,984

61.00................................ 6,000 ............................................... 321,984

61.00................................ 500 ............................................... 322,484

60.57................................ 5,000 ............................................... 327,484

60.13................................ 1,000 ............................................... 328,484

60.11................................ 1,000 ............................................... 329,484

60.11................................ 5,000 ............................................... 334,484

60.11................................ 5,000 ............................................... 339,484

60.00................................ 6,000 ............................................... 345,484

60.00................................ 1,000 ............................................... 346,484

[[Page 15936]]

59.75................................ 1,500 ............................................... 347,984

59.13................................ 1,000 ............................................... 348,984

59.11................................ 1,500 ............................................... 350,484

59.07................................ 8,000 ............................................... 358,484

59.00................................ 56,000 ............................................... 414,484

59.00................................ 6,000 ............................................... 420,484

59.00................................ 1,500 ............................................... 421,984

58.13................................ 10,000 ............................................... 431,984

58.13................................ 1,000 ............................................... 432,984

58.11................................ 2,000 ............................................... 434,984

58.00................................ 5,000 ............................................... 439,984

58.00................................ 1,500 ............................................... 441,484

57.57................................ 10,000 ............................................... 451,484

57.13................................ 1,000 ............................................... 452,484

57.11................................ 2,500 ............................................... 454,984

57.00................................ 47,000 ............................................... 501,984

57.00................................ 5,000 ............................................... 506,984

57.00................................ 2,500 ............................................... 509,484

56.13................................ 1,000 ............................................... 510,484

56.11................................ 3,000 ............................................... 513,484

56.10................................ 5,000 ............................................... 518,484

56.00................................ 5,000 ............................................... 523,484

55.13................................ 1,000 ............................................... 524,484

55.11................................ 3,500 ............................................... 527,984

55.00................................ 5,000 ............................................... 532,984

54.13................................ 1,000 ............................................... 533,984

54.11................................ 4,000 ............................................... 537,984

54.00................................ 5,000 ............................................... 542,984

53.63................................ 10,000 ............................................... 552,984

53.11................................ 4,500 ............................................... 557,484

53.00................................ 5,000 ............................................... 562,484

52.11................................ 5,000 ............................................... 567,484

52.00................................ 3,000 ............................................... 570,484

52.00................................ 1,000 ............................................... 571,484

51.11................................ 6,000 ............................................... 577,484

51.10................................ 5,000 ............................................... 582,484

51.00................................ 3,000 ............................................... 585,484

50.57................................ 25,000 ............................................... 610,484

50.11................................ 7,000 ............................................... 617,484

50.11................................ 5,000 ............................................... 622,484

50.11................................ 5,000 ............................................... 627,484

50.00................................ 3,000 ............................................... 630,484

50.00................................ 500 ............................................... 630,984

49.11................................ 8,000 ............................................... 638,984

49.00................................ 3,000 ............................................... 641,984

48.11................................ 10,000 ............................................... 651,984

48.00................................ 2,500 ............................................... 654,484

48.00................................ 25,000 ............................................... 679,484

47.50................................ 11,750 ............................................... 691,234

47.11................................ 12,000 ............................................... 703,234

46.11................................ 15,000 ............................................... 718,234

45.59................................ 1 ............................................... 718,235

45.11................................ 15,500 ............................................... 733,735

45.01................................ 1,000 ............................................... 734,735

45.00................................ 50,000 ............................................... 784,735

44.11................................ 16,000 ............................................... 800,735

43.11................................ 16,500 ............................................... 817,235

42.11................................ 17,000 ............................................... 834,235

40.11................................ 12,500 ............................................... 846,735

40.11................................ 12,500 ............................................... 859,235

40.00................................ 50,000 ............................................... 909,235

39.00................................ 2,500 ............................................... 911,735

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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 8,222 out of 25,000 allowances.

B. 2002 Advance Auction Results

[[Page 15937]]

CBOT received 34 bids requesting 148,026 year 2002 allowances. 9

bids were successful and 25,000 allowances were sold. 6-Year Advance

auction proceeds totaled $1,633,985.86.

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

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

Cumulative

Bids Quantity Bidder's name total

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

150.00............................... 1 Environmental Law Society........................ 1

66.11................................ 3,000 Detroit Edison Company........................... 3,001

66.02................................ 5,000 Virginia Electric & Power Company................ 8,001

65.82................................ 2,000 Virginia Electric & Power Company................ 10,001

65.53................................ 2,000 Virginia Electric & Power Company................ 12,001

65.27................................ 4,000 Virginia Electric & Power Company................ 16,001

65.11................................ 3,000 Detroit Edison Company........................... 19,001

64.52................................ 4,000 Virginia Electric & Power Company................ 23,001

64.14................................ *3,025 Baltimore Gas and Electric Company............... 26,026

64.11................................ 3,000 ............................................... 29,026

63.81................................ 4,000 ............................................... 33,026

63.27................................ 4,000 ............................................... 37,026

63.11................................ 3,000 ............................................... 40,026

62.11................................ 3,000 ............................................... 43,026

60.00................................ 5,000 ............................................... 48,026

58.00................................ 10,000 ............................................... 58,026

55.00................................ 10,000 ............................................... 68,026

53.98................................ 1,000 ............................................... 69,026

52.98................................ 1,250 ............................................... 70,276

52.00................................ 20,000 ............................................... 90,276

51.98................................ 1,500 ............................................... 91,776

50.98................................ 1,750 ............................................... 93,526

49.98................................ 2,000 ............................................... 95,526

48.98................................ 2,250 ............................................... 97,776

47.98................................ 2,500 ............................................... 100,276

46.98................................ 2,750 ............................................... 103,026

45.98................................ 3,000 ............................................... 106,026

44.98................................ 3,250 ............................................... 109,276

43.96................................ 3,750 ............................................... 113,026

37.28................................ 10,000 ............................................... 123,026

34.78................................ 5,000 ............................................... 128,026

32.28................................ 5,000 ............................................... 133,026

29.78................................ 5,000 ............................................... 138,026

0.01................................. 10,000 ............................................... 148,026

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*Awarded a partial fill of 1,999 out of 3,025 allowances.

C. 2003 Advance Auction Results

CBOT received 92 bids requesting 404,634 year 2003 allowances. 25

bids were successful and 100,000 allowances were sold. 7-Year Advance

auction proceeds totaled $6,421,245.11.

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

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

Cumulative

Bids Quantity Bidder's name total

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

$151.00.............................. 1 Pennsylvania Environmental Council............... 1

118.00............................... 1 Peter Zapfel..................................... 2

100.53............................... 500 Muscatine Power and Water Company................ 502

72.00................................ 10 Robert T. Stewart................................ 512

70.00................................ 15 Robert T. Stewart................................ 527

69.02................................ 1 University of Maryland School of Law............. 528

68.02................................ 1 University of Maryland School of Law............. 529

68.00................................ 20 Robert T. Stewart................................ 549

67.01................................ 300 Anne E. Kilkenny................................. 849

66.06................................ 10,000 AIG Trading Corporation.......................... 10,849

66.02................................ 1 University of Maryland School of Law............. 10,850

66.00................................ 20 Robert T. Stewart................................ 10,870

65.11................................ 3,000 Detroit Edison Company........................... 13,870

65.02................................ 10,000 Virginia Electric & Power Company................ 23,870

64.82................................ 2,000 Virginia Electric & Power Company................ 25,870

64.53................................ 4,000 Virginia Electric & Power Company................ 29,870

64.27................................ 6,000 Virginia Electric & Power Company................ 35,870

64.11................................ 3,000 Detroit Edison Company........................... 38,870

64.03................................ 8,000 Virginia Electric & Power Company................ 46,870

[[Page 15938]]

63.76................................ 10,000 Virginia Electric & Power Company................ 56,870

63.66................................ 2,575 Baltimore Gas and Electric Company............... 59,445

63.33................................ 12,000 Virginia Electric & Power Company................ 71,445

63.11................................ 3,000 Detroit Edison Company........................... 74,445

63.07................................ 14,000 Virginia Electric & Power Company................ 88,445

63.01................................ *15,000 Enron Power Marketing, Inc....................... 103,445

63.00................................ 20 ............................................... 103,465

62.76................................ 16,000 ............................................... 119,465

62.11................................ 3,000 ............................................... 122,465

62.10................................ 750 ............................................... 123,215

61.52................................ 18,000 ............................................... 141,215

61.11................................ 3,000 ............................................... 144,215

60.11................................ 800 ............................................... 145,015

60.11................................ 3,000 ............................................... 148,015

60.00................................ 15,000 ............................................... 163,015

60.00................................ 500 ............................................... 163,515

59.11................................ 3,500 ............................................... 167,015

59.00................................ 500 ............................................... 167,515

59.00................................ 20 ............................................... 167,535

59.00................................ 15,000 ............................................... 182,535

58.11................................ 3,500 ............................................... 186,035

58.03................................ 10,000 ............................................... 196,035

58.00................................ 500 ............................................... 196,535

57.42................................ 850 ............................................... 197,385

57.00................................ 500 ............................................... 197,885

56.00................................ 500 ............................................... 198,385

56.00................................ 10,000 ............................................... 208,385

55.30................................ 900 ............................................... 209,285

55.00................................ 500 ............................................... 209,785

54.00................................ 500 ............................................... 210,285

54.00................................ 25 ............................................... 210,310

53.00................................ 500 ............................................... 210,810

52.68................................ 950 ............................................... 211,760

52.00................................ 500 ............................................... 212,260

52.00................................ 10,000 ............................................... 222,260

51.67................................ 1,000 ............................................... 223,260

51.00................................ 428 ............................................... 223,688

50.67................................ 1,500 ............................................... 225,188

50.00................................ 20,000 ............................................... 245,188

49.72................................ 975 ............................................... 246,163

49.67................................ 2,000 ............................................... 248,163

48.67................................ 2,500 ............................................... 250,663

48.00................................ 25 ............................................... 250,688

47.67................................ 3,000 ............................................... 253,688

46.67................................ 3,500 ............................................... 257,188

45.82................................ 1,000 ............................................... 258,188

45.67................................ 4,000 ............................................... 262,188

44.67................................ 4,500 ............................................... 266,688

43.67................................ 5,000 ............................................... 271,688

42.67................................ 6,000 ............................................... 277,688

42.48................................ 1,100 ............................................... 278,788

41.67................................ 7,000 ............................................... 285,788

41.00................................ 30 ............................................... 285,818

40.67................................ 8,000 ............................................... 293,818

40.11................................ 7,500 ............................................... 301,318

40.11................................ 7,500 ............................................... 308,818

40.07................................ 1,200 ............................................... 310,018

39.67................................ 10,000 ............................................... 320,018

38.67................................ 12,000 ............................................... 332,018

37.89................................ 1,300 ............................................... 333,318

37.67................................ 15,000 ............................................... 348,318

36.65................................ 15,000 ............................................... 363,318

33.80................................ 10,000 ............................................... 373,318

33.00................................ 40 ............................................... 373,358

31.53................................ 10,000 ............................................... 383,358

29.27................................ 10,000 ............................................... 393,358

27.00................................ 10,000 ............................................... 403,358

24.00................................ 50 ............................................... 403,408

12.00................................ 100 ............................................... 403,508

11.00................................ 1 ............................................... 403,509

1.00................................. 1,000 ............................................... 404,509

[[Page 15939]]

1.00................................. 25 ............................................... 404,534

0.50................................. 100 ............................................... 404,634

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*Awarded a partial fill of 11,555 out of 15,000 allowances.

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

Rain Division (6204J), 401 M Street SW., Washington, DC 20460, (202)

233-9087.

Dated: April 4, 1996.

Brian J. McLean,

Director, Acid Rain Division.

[FR Doc. 96-8924 Filed 4-9-96; 8:45 am]

BILLING CODE 6560-50-P