[Federal Register Volume 59, Number 79 (Monday, April 25, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-9939]


[[Page Unknown]]

[Federal Register: April 25, 1994]


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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 
----------------------------------------------------------------------------------------------------------------
*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 
----------------------------------------------------------------------------------------------------------------
* 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