N.Y. Comp. Codes R. & Regs. Tit. 21 § 507.9 - Participation requirements
(a)
Qualification. Any party wishing to participate in a CO
2 allowance auction or auctions shall submit an
application for qualification in the form and manner provided in the notice of
CO 2 allowance auction to the authority on or before the
application deadline date specified in the notice of CO
2 allowance auction, which date shall be no sooner than
15 days following the date of publication of the notice. Application
information and forms shall be made available electronically on the CO
2 allowance auction website. As a part of their
application, applicants will be required to provide information and
documentation relating to their ability and authority to execute bids and honor
contractual obligations. Such documentation may include but may not be limited
to:
(1) information and documentation
regarding the corporate identity, ownership, affiliations, and capital
structure of the applicant;
(2)
declarations as to the beneficial ownership of any allowance that may be
acquired through the auction;
(3)
the identification of any indictment or felony conviction of the bidder, or any
member, director, principle, partner or officer of the applicant or any
affiliate or related entity;
(4) a
statement by the applicant as to prior findings of non-responsibility with
regard to any New York State procurement including findings under section 139-j
of the New York State Finance Law;
(5) the identification of any previous or
pending investigation with respect to any alleged violation of any rule,
regulation, or law associated with any commodity market or exchange;
(6) evidence demonstrating that such
applicant has opened a general or compliance account as provided for in the
provisions in 6 NYCRR Part 242-6.2 and identification of relationships with any
other account holder;
(7)
applicants may be denied qualification based on the information provided or
upon information as to such applicant obtained independent of the application
process.
(b) The
authority will review each application for qualification and make
determinations as to qualification to participate or otherwise submit bids in
CO 2 allowance auctions. Failure to provide any
information required by the notice of CO 2 allowance
auction may result in the application being declared incomplete or otherwise
deficient. If an application for qualification is determined to be incomplete
or otherwise deficient, the authority shall notify the applicant and state the
reason therefore. Applicants whose applications for qualification have been
determined to be incomplete or deficient will be given a reasonable
opportunity, and in no event less than five business days to provide additional
information and to cure such deficiencies.
(c) Parties found qualified for participation
under subdivision (b) of this section will be qualified for subsequent CO
2 allowance auctions, and will be qualified to
participate in such auctions within the financial security limitations of
subdivision (h) of this section, provided that there has been no material
change to the information provided in the previously submitted application,
that the party is within one of the categories of eligible bidders described in
the notice of CO 2 allowance auction for such auction,
and such party meets all other requirements for participation. Any party found
qualified shall notify the authority of any material change in the information
provided in the application for qualification no later than the date on which
qualification applications for the next auction are due. Such notification
shall state the date the change occurred and describe the change in sufficient
detail to enable the authority to determine if a change in the qualification
status to participate in future auctions is warranted.
(d) The authority may require parties
previously found qualified to up-date and re-file applications for
qualification on an annual basis.
(e) The authority may suspend or revoke
qualification of any party if such party fails to comply with this Part and/or
the provisions of 6 NYCRR Part 242.
(f) Bid submittal instructions. All bids
shall be in a form prescribed by the authority, which shall be made available
electronically on the CO 2 allowance auction website, as
appropriate. All bids submitted will be considered binding offers for the
purchase of allowances under the rules of the auction, this Part, and 6 NYCRR
Part 242.
(g) If the authority
determines that a bidder has provided false or misleading information, or has
withheld pertinent information in its application, or has otherwise failed to
comply with any material provision of this Part or has violated any part of the
auctions rules, the bidder may be prohibited from participating in any future
CO 2 allowance auctions.
(h) To receive approval to participate in any
specific auction, otherwise qualified bidders will be required to provide
financial security in the form of a bond, cash, certified funds, or an
irrevocable stand-by letter of credit, in a form acceptable to the authority.
Financial security shall be provided in a form and manner as described in the
notice of CO 2 allowance auction.
(1) Parties who have posted financial
security may request return of their financial security at any time prior to or
following any CO 2 allowance auction, and the authority
shall return said financial security provided that the authority has no current
or pending claim to such security as a result of a failure of the party to
comply with these regulations or to pay the full amount of its accepted bid
when due.
(2) Financial security
may be forfeited to and retained by the authority in the event the bidder's
offer is accepted in a CO 2 allowance auction and the
bidder fails to tender payment of the full amount when due.
Notes
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