Upon notification from the department that it has allocated CO₂ allowances into the account, the authority shall participate in or conduct CO₂ allowance auctions to sell such allowances pursuant to this Part. The initial auction shall be conducted at such time and manner as determined by the authority in consultation with the committee.

CO₂ allowance auctions will be held quarterly, or as often as practical and necessary to effectuate the objectives of the CO₂ Budget Trading Program, in consultation with the committee.

The authority shall maintain a calendar of anticipated auction dates on the CO₂ allowance auction website. The calendar shall indicate the auction format and the number of allowances and allocation years of allowances to be auctioned at each auction. The authority may periodically revise the calendar, provided that the information relevant to the next scheduled CO₂ allowance auction shall be fixed no later than 45 calendar days prior to such auction. The calendar shall include the dates of at least the next four CO₂ allowance auctions and may also include the anticipated number of allowances to be auctioned at each auction. The authority may periodically modify the anticipated dates of auctions listed on such calendar.

Prior to the end of each control period, CO₂ allowances in a quantity equal to the number of CO₂ allowances allocated to the account for such control period will be made available for sale. CO₂ allowances will be made available for sale by allocation year. Up to 50 percent of the allowances from an allocation year may be made available for sale in advance of the respective allocation year; such allowances may be made available for sale up to four years in advance of such allocation year. Specific quantities of CO₂ allowances that will be offered for sale will be included in each notice of CO₂ allowance auction.

The authority shall make CO₂ allowances available for sale in lot sizes of 1,000 allowances, except where available supply requires a smaller lot size.

In administering auctions, the authority will employ the use of a reserve price in a manner and form as provided for in 6 NYCRR Part 242. The authority shall publish or announce such reserve price prior to each CO₂ allowance auction.

The authority or its agent shall administer the rules for the sale of CO₂ CCR allowances at section 242-5.3(b) of Title 6 NYCRR.

The authority or its agent shall withdraw allowances from auctions in accordance with CO₂ CCR allowances of section 242-5.3(c) of Title 6 NYCRR.

Unsold CO₂ allowances will be made available for sale in a form and manner provided under 6 NYCRR Part 242.