49. The auction of emission units consists of a single round of bidding, using sealed bids.
Except for the last lot of emission units, which may consist of a lesser quantity, the emission units are auctioned in lots of 1,000 emission units of the same vintage when the units belong to the vintage for a subsequent year, and in lots of 1,000 emission units of various vintages when the units belong to the vintage for the current or a previous year and are sold in accordance with section 54.
The minimum price of the emission units is set
(1) at $10 per emission unit, for auctions conducted in 2012;
(2) for auctions conducted in any year after 2012, the price is set annually using the minimum price set for the previous year increased by 5% and adjusted in the manner provided for in section 83.3 of the Financial Administration Act (chapter A-6.001), as per the equation below:
MPt = MP(t-1) × (1 + 0.05 + Ir)
MPt = Minimum price set for a year;
MP(t-1) = Minimum price set for the previous year;
Ir = Indexation rate.
If the auction is conducted jointly with a partner entity,
(1) the lots may contain emission units from each of the partner entities;
(2) the joint minimum price of the emission units is the higher, on the day of the auction, of the price set under the third paragraph and the price set by the partner entity, at the official conversion rate of the Bank of Canada at noon on the date of the auction or, when that rate is not available, the most recent rate published in its Daily Memorandum of Exchange Rates.
A bid submitted at less than the minimum price set in accordance with the third and fourth paragraphs will be refused.
O.C. 1297-2011, s. 49; O.C. 1184-2012, s. 31; O.C. 1138-2013, s. 13; O.C. 902-2014, s. 30.