25 Pa. Code § 145.406 - Auction participant qualification

(a) A person who intends to participate in a CO₂ allowance auction shall submit a qualification application to the Department, in the form and manner specified in the notice of the CO₂ allowance auction.

(b) The deadline for submitting a qualification application will be established in the notice of the CO₂ allowance auction.

(c) As part of a qualification application, an applicant shall provide information and documentation relating to the ability and authority of the applicant to execute bids and honor contractual obligations, including the following:

(1) Identification by the applicant of either a compliance account or general account established under § 145.351 (relating to CO₂ allowance tracking system (COATS) accounts) and identification of the CO₂ authorized account representative for the compliance account or general account.

(2) Information and documentation regarding the corporate identity, ownership, affiliations and capital structure of the entity represented by the applicant.

(3) Identification of any indictment or felony conviction of the applicant or any member, director, principal, partner or officer of the entity represented by the applicant or any affiliate or related entity.

(4) Identification of any previous or pending investigation of the applicant or the entity represented by the applicant or any affiliate or related entity, with respect to any alleged violation of any rule, regulation or law associated with any commodity market or exchange.

(5) Other information and declarations as the Department determines may be required of an applicant to ensure the integrity of the CO₂ allowance auction process.

(d) The Department will determine whether a qualification application is complete, or incomplete, or otherwise deficient. If the Department determines that an application is incomplete or otherwise deficient, the applicant will be given 10 business days to provide additional information to the Department to complete the application or remedy any application deficiency.

(e) The Department will review a complete qualification application, make a determination as to whether the applicant is qualified to participate in the CO₂ allowance auction and notify the applicant in writing not later than 15 days before the CO₂ allowance auction.

(f) The Department may deny qualification to an applicant based on information submitted in a qualification application to ensure the integrity of the CO₂ allowance auction process in accordance with the requirements and procedures for auctions established under §§ 145.405, 145.407 and 145.408 (relating to auction participant requirements; submission of financial security; and bid submittal requirements).

(g) The Department may revoke the qualification status of a qualified participant, if the participant fails to comply with the applicable requirements of this subchapter, or if the Department determines that they have knowingly provided false or misleading information or withheld pertinent information from the qualification application submitted under subsection (a). The Department may also prohibit the qualified participant from participating in a future CO₂ allowance auction where the Department determines that the prior conduct could compromise the integrity of a subsequent CO₂ allowance auction.

(h) A qualified participant will remain qualified to participate in future CO₂ allowance auctions after the Department's qualification determination, provided that there has been no material change to the information supplied to the Department in the qualification application submitted under subsection (a). If there is a material change to the information in the qualification application submitted under subsection (a), the qualification status will expire as of the date of the change, pending the submission of a new qualification application under subsection (a) and a determination by the Department that the applicant is qualified to participate in a CO₂ allowance auction.

(i) Prior to each CO₂ allowance auction, a qualified participant who intends to participate in the auction shall notify the Department, through a notice of intent to bid, that they intend to participate in the upcoming CO₂ allowance auction. The notice shall be submitted to the Department by the same date as that required for submitting a qualification application established in the notice of the CO₂ allowance auction.

(j) As part of a notice of intent to bid submitted to the Department under subsection (i), a qualified participant shall notify the Department whether there has been a material change to the information supplied in the qualification application submitted under subsection (a).

Notes

25 Pa. Code § 145.406

This section cited in 25 Pa. Code § 145.302 (relating to definitions); 25 Pa. Code § 145.401 (relating to auction of CO₂ allowances); and 25 Pa. Code § 145.409 (relating to approval of auction results).