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Acid Rain Program; Auction Offerors to Set Minimum Prices in Increments of $0.01

air-emissions · Rule · Published 1998-02-04 · Effective 1998-03-11 · 63 FR 5734

Document

Document number
98-2719
Federal Register citation
63 FR 5734
CFR reference
40 CFR 73
Type
Rule
Action
Direct final rule.
Category
air-emissions
Publication date
1998-02-04
Effective date
1998-03-11
EPA docket
FRL-5961-4

Abstract

Title IV of the Clean Air Act, as amended by the Clean Air Act Amendments of 1990 (the Act), authorized the Environmental Protection Agency (EPA) to establish the Acid Rain Program to reduce the adverse health and ecological effects of acidic deposition. The program utilizes an innovative system of marketable allowances that are allocated to electric utilities. Title IV mandates that EPA hold yearly auctions of allowances for a small portion of the total allowances allocated each year. Private parties may also offer their allowances for sale in the EPA auctions and specify a minimum sales price. Currently, the regulations require that an offeror's minimum sales price be in whole dollars (see 40 CFR part 73, Subpart E, Sec. 73.70 ). No such restriction applies to auction bidders and since 1995, EPA has allowed bidders to submit bids in increments of less than a dollar. The restriction on minimum offer prices was originally intended to facilitate administrative ease, but allowing minimum sales prices in increments of $0.01 would not change the design, operation, or administrative burden of the auctions in any way. In addition, it would be consistent with the flexibility afforded auction bidders. Thus, EPA is proposing to amend the current regulations to allow offerors to submit their minimum offer price in increments of $0.01. Because this rule revision was discussed in an Advance Notice of Proposed Rulemaking (see the June 6, 1996 Federal Register, Vol. 61, Number 110, pp. 28995-28998) and EPA received no adverse comments, this revision is being issued as a direct final rule.

Source

Authoritative
Federal Register document
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