The Credit Clearance Market creates a clear path for regulated parties to come into compliance with the clean fuel standards in the event that they are short in the number of credits they need to comply. The CCM strengthens the program by setting the maximum compliance cost for the program, reducing the possibility of credit price spikes, and maintaining the incentive to invest in low carbon fuel production and distribution. The CCM also creates a clear maximum price for selling credits at the end of a compliance period, and thus caps the cost of complying with the program.
Credit Clearance Market timeline
April 1, 2021: DEQ emails all registered parties to call for credits they wish to pledge into the CCM.
April 30, 2021: Regulated parties must submit their annual report for 2020 and indicate to DEQ if they will need to purchase credits from the CCM.
May 15, 2021: DEQ will declare, on or before this date, if the CCM is necessary. If the CCM is not necessary, then DEQ releases pledged credits to the parties that pledged them.
June 1, 2021: DEQ will publish, on or before this date, a list of the companies that have pledged to sell credits into the CCM and a list of the companies that must buy credits in the CCM to come into compliance with the CFP. DEQ will also notify regulated parties what their pro-rata share of the pledged credits are.
From June 1 to July 31, 2021: The CCM is in operation. Buyers and sellers negotiate amongst themselves to complete credit transfers. Parties must submit credit transfers to DEQ as per routine program requirements.
Aug. 31, 2021: Regulated parties must submit their amended annual reports reflecting credits purchased through the CCM. If a party has deficits remaining after the CCM, CFP will increase the number of deficits by 5% and place into the regulated party’s annual report for the following year.