Code of Maine Rules
06 - DEPARTMENT OF ENVIRONMENTAL PROTECTION
096 - DEPARTMENT OF ENVIRONMENTAL PROTECTION - GENERAL
Chapter 156 - CO[2] BUDGET TRADING PROGRAM
Section 096-156-1 - CO[2] Budget Trading Program General Provisions

Universal Citation: 06 ME Code Rules ยง 096-156-1

Current through 2024-38, September 18, 2024

A. Applicability

(1) This regulation applies statewide.

(2) The CO2 Budget Trading Program will commence no earlier than January 1, 2009 and only when other states meeting the following criteria have initiated comparable CO2 budget trading programs:
(a) such states have wholesale electricity markets that are administered and overseen by the same Regional transmission organization as are Maine's; and

(b) the combined CO2 emissions budgets from such states total at least 35,000,000 tons per year.

The Department may initiate air emissions licensing of CO2 budget sources and participate in auctions for the sale of CO2 allowances prior to commencement of the CO2 Budget Trading Program.

(3) This regulation applies to any CO2budget unit except as provided for in subsection 1(A)(4) below.

(4) Limited Exemption. A unit that supplies less than or equal to ten percent (10%) of its gross electrical generation for transmission over the facilities of a transmission and distribution utility on an annual basis shall be exempt from the requirements of this regulation, with the exception of the following sections:
(a) Section 1(B) - Definitions,

(b) Section 1(G) - Computation of Time; and, as applicable,

(c) Section 4(H) - Monitoring, Recordkeeping, and Reporting Requirements as required by the Department to demonstrate that the unit is eligible for the limited exemption.

In determining whether or not the 10% applicability trigger is exceeded, all electricity transmitted over the facilities of a transmission and distribution utility as result of verifiable conservation and demand-side management initiatives or as a result of any emergency mandate from the Regional transmission organization or a lawful order of a governmental authority, is excluded from the calculation.

B. Definitions

(1) Account number . "Account number" means the identification number given by the Department or its agent to each CO2 Allowance Tracking System account.

(2) Acid rain emissions limitation. "Acid rain emissions limitation" as defined in 40 CFR 72.2, means a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program under Title IV of the Clean Air Act.

(3) Administrator. "Administrator" means the Administrator of the United States Environmental Protection Agency or the Administrator's authorized representative.

(4) Allocate or allocation. "Allocation" means the number of CO2 allowances, as determined by the Department, to be credited to a CO2 budget unit, any general account established by the Department, the consumer benefit account, or the general account of the sponsor of an approved CO2emissions offset project. "Allocate" means to credit such allowances to the appropriate account.

(5) Allocation year . "Allocation year" means a calendar year for which the Department allocates CO2 allowances pursuant to sections 2 and 9 of this Chapter. The allocation year of each CO2 allowance is reflected in the unique identification number given to the allowance pursuant to subsection 7(B)(3) of this Chapter.

(6) Anaerobic digester . "Anaerobic digester" means a device that promotes the decomposition of organic material to simple organic and gaseous biogas products, usually accomplished by means of controlling temperature and volume, and including a methane recovery system.

(7) Anaerobic digestion . "Anaerobic digestion" means the degradation of organic material including manure brought about through the action of microorganisms in the absence of elemental oxygen.

(8) Anaerobic storage ."Anaerobic storage" means storage of organic material in an oxygen-free environment, or under oxygen-free conditions, including but not limited to holding tanks, ponds, and lagoons.

(9) ANSI ."ANSI" means American National Standards Institute.

(10) Attribute. An "attribute" is a characteristic associated with electricity generated using a particular renewable fuel, such as its generation date, facility geographic location, unit vintage, emissions output, fuel, state program eligibility, or other characteristic that can be identified, accounted, and tracked.

(11) Attribute credit. An "attribute credit" represents the attributes related to one megawatt-hour of electricity generation.

(12) Automated data acquisition and handling system or DAHS . "Automated data acquisition and handling system" or "DAHS" means that component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under section 4 of this Chapter, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produce a continuous record of the measured parameters in the measurement units required by section 4 of this Chapter.

(13) Award. "Award" means the number of offset CO2 allowances, as determined by the Department, to be recorded in the general account of a project sponsor pursuant to subsection 9(F) of this Chapter. Award is a type of allocation.

(14) Behind-the-meter CO2 emissions. "Behind-the-meter CO2 emissions" means the difference between the total annual CO2 emissions from a CO2 budget unit that is a combined heat and power unit at an integrated manufacturing facility and the annual CO2 emissions associated with the net electricity that is transmitted over the facilities of a transmission and distribution utility from such a unit.

(15) Billing meter . "Billing meter" means a measurement device used to measure electric or thermal output for commercial billing under a contract.

(16) Biogas. "Biogas" means gas resulting from the decomposition of organic matter under anaerobic conditions. The principle constituents are methane (CH4) and CO2.

(17) Boiler . "Boiler" means an enclosed fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

(18) British thermal unit or Btu. "British thermal unit" or "Btu" is a measure of energy. One Btu means the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit.

(19) Cost containment reserve trigger price or CCR trigger price. "Cost containment reserve trigger price" or "CCR trigger price" means the minimum price at which CO2 CCR allowances are offered for sale by the Department or its agent at an auction. The CCR trigger price shall be $10.00 per CO2 allowance in calendar year 2017. Each calendar year thereafter through 2020, the CCR trigger price shall be 1.025 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent. The CCR trigger price in calendar year 2021 shall be $13.00. Each calendar year thereafter, the CCR trigger price shall be 1.07 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent.

(20) CO2. "CO2" means carbon dioxide.

(21) CO2 allowance . "CO2 allowance" means a limited authorization by the Department under the CO2 Budget Trading Program to emit up to one ton of CO2, subject to all applicable limitations contained in this regulation. No provision of this regulation shall be construed to limit the authority of the Department to terminate or limit such authorization to emit. This limited authorization does not constitute a property right.

(22) CO2 allowance auction or auction. "CO2 allowance auction" or "allowance auction" or "auction" means an auction in which the Department or its agent offers CO2 allowances for sale.

(23) CO2 allowance deduction or deduct CO2 allowances. " CO2 allowance deduction" or "deduct CO2 allowances" means the permanent withdrawal of CO2 allowances by the Department or its agent from a CO2 Allowance Tracking System compliance account to account for the number of tons of CO2 emitted from a CO2 budget source for a control period or an interim control period, determined in accordance with section 4 of this Chapter, or for the forfeit or retirement of CO2 allowances as provided by this regulation.

(24) CO2 allowances held or hold CO2 allowances. "CO2 allowances held" or "hold CO2 allowances" means the CO2 allowances recorded by the Department or its agent, or submitted to the Department or its agent for recordation, in accordance with sections 7 and 8 of this Chapter, in a CO2 Allowance Tracking System account.

(25) CO2Allowance Tracking System or COATS . "CO2Allowance Tracking System" or "COATS" means the system by which the Department or its agent records allocations, deductions, and transfers of CO2 allowances under the CO2Budget Trading Program. The tracking system may also be used to track CO2emissions offset projects, CO2 allowance prices, and emissions from affected sources.

(26) CO2Allowance Tracking System account or COATS account . "CO2Allowance Tracking System account" or "COATS account" means an account in the CO2Allowance Tracking System established by the Department or its agent for purposes of recording the allocation, holding, transferring, retiring, or deducting of CO2 allowances.

(27) CO2 allowance transfer deadline . "CO2 allowance transfer deadline" means midnight of the March 1 occurring after the end of the relevant control period and each relevant interim control period or, if that March 1 is not a business day, midnight of the first business day thereafter. The CO2 allowance transfer deadline is the deadline by which CO2 allowances must be submitted for recordation in a CO2 budget source's compliance account in order to meet the source's CO2 budget emissions limitation for the control period and each interim control period immediately preceding such deadline.

(28) CO2 authorized account representative . "CO2 authorized account representative" means, for a CO2 budget source and each CO2 budget unit at the source, the natural person who is authorized by the owners and operators of the source and all CO2 budget units at the source, in accordance with section 6 of this Chapter, to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the natural person who is authorized, under section 7 of this Chapter, to transfer or otherwise dispose of CO2 allowances held in the general account. If the CO2 budget source is also subject to the Acid Rain Program, CSAPR NOx Annual Trading Program, CSAPR NOx Ozone Season Trading Program, CSAPR SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 Trading Program, then, for a CO2 Budget Trading Program compliance account, this natural person shall be the same person as the designated representative as defined in the respective program.

(29) CO2 authorized alternate account representative. "CO2 authorized alternate account representative" or "alternate account representative" means, for a CO2 budget source and each CO2 budget unit at the source, the alternate natural person who is authorized by the owners and operators of the source and all CO2 budget units at the source, in accordance with section 6 of this Chapter, to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the alternate natural person who is authorized, under section 7 of this Chapter, to transfer or otherwise dispose of CO2 allowances held in the general account. If the CO2 budget source is also subject to the Acid Rain Program, CSAPR NOx Annual Trading Program, CSAPR NOx Ozone Season Trading Program, CSAPR SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 Trading Program, then, for a CO2 Budget Trading Program compliance account, this alternate natural person shall be the same person as the alternate designated representative as defined in the respective program.

(30) CO2 budget emissions limitation . "CO2 budget emissions limitation" means the tonnage equivalent of the CO2 allowances required in a control period or interim control period for compliance deduction under subsection 5(D)(3) of this Chapter for a CO2 budget source for that period.

(31) CO2 budget license . "CO2 budget license" means the portion of the legally binding license issued by the Department pursuant to Major and Minor Source Air Emission License Regulations, 06-096 CMR 115 (effective December 24, 2005) of the Department's Rules to a CO2 budget source or CO2 budget unit which specifies the CO2 Budget Trading Program requirements applicable to the CO2 budget source, to each CO2 budget unit at the CO2 budget source, and to the owners and operators and the CO2 authorized account representative of the CO2 budget source and each CO2 budget unit.

(32) CO2 budget source . "CO2 budget source" means a source that includes one or more CO2 budget units.

(33) CO2budget source compliance account or compliance account. "CO2 budget unit compliance account" or "compliance account" means a COATS account established by the Department or its agent for a CO2 budget source wherein CO2 allowances are held and available for use by the source for a control period and each interim control period for compliance purposes under this CO2Budget Trading Program.

(34) CO2 Budget Trading Program . "CO2 Budget Trading Program" means a multi-state CO2 air pollution control and emissions reduction program established pursuant to this regulation and corresponding regulations in other states as a means of reducing emissions of CO2 from CO2 budget sources.

(35) CO2 Budget Trading Program Adjusted Budget. "CO2 Budget Trading Program Adjusted Budget" means the budget determined in accordance with section 2 of this Chapter and is the annual amount of CO2 in tons available in Maine for allocation in a given allocation year, in accordance with the CO2 Budget Trading Program. CO2 offset allowances allocated to project sponsors and CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated from the CO2 Budget Trading Program adjusted budget.

(36) CO2 Budget Trading Program Base Budget. "CO2 Budget Trading Program Base Budget" means the budget specified in section 2 of this Chapter. CO2 offset allowances allocated to project sponsors and CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated from the CO2 Budget Trading Program Base Budget.

(37) CO2 budget unit ."CO2budget unit" means any single fossil fuel-fired unit that serves a generator with a nameplate capacity equal to or greater than 25 MW electrical output.

(38) CO2 cost containment reserve allowance or CO2 CCR allowance. "CO2 cost containment reserve allowance" or "CO2 CCR allowance" means a CO2 allowance that is offered for sale at an auction by the Department or its agent for the purpose of containing the cost of CO2 allowances. CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated from the Maine CO2 Budget Trading Program base and adjusted budgets. CO2 CCR allowances are subject to all applicable limitations contained in this Chapter and in Chapter 158 of the Department's Rules.

(39) CO2 emissions containment reserve allowance or CO2 ECR allowance. "CO2 emissions containment reserve allowance" or "ECR allowance" means a CO2 allowance that is withheld from sale at an auction by a participating state for the purpose of additional emissions reduction in the event emissions reduction costs are lower than anticipated.

(40) CO2 emissions containment reserve trigger price or ECR trigger price. "CO2 emissions containment reserve trigger price" or "ECR trigger price" means the price below which CO2 allowances may be withheld from sale by a participating state or its agent at an auction. The ECR trigger price in calendar year 2021 shall be $6.00. Each calendar year thereafter, the ECR trigger price shall be 1.07 multiplied by the ECR trigger price from the previous calendar year, rounded to the nearest whole cent.

(41) CO2 emissions credit retirement(s). "CO2 emissions credit retirement(s)" means the permanent retirement of greenhouse gas allowances or credits issued pursuant to any governmental mandatory carbon constraining program outside the United Sates that places a specific tonnage limit on greenhouse gas emissions, or certified greenhouse gas emissions reduction credits issued pursuant to the United Nations Framework Convention on Climate Change (UNFCCC) or protocols adopted through the UNFCCC process.

(42) CO2emissions offset project or Offset project. "CO2 emissions offset project" or "Offset project" means a project that reduces greenhouse gas emissions from a source that is not a CO2 budget unit. "CO2 emissions offset project" includes: land fill and agricultural methane (CH4) capture and destruction, sequestration of carbon due to reforestation, and avoided methane emissions from agricultural manure management operations. A CO2emissions offset project includes all equipment, materials, items, or actions directly related to the reduction of CO2 equivalent emissions or the sequestration of carbon specified in a consistency application submitted pursuant to subsection 9(C)(3) of this Chapter. Equipment, materials, items, or actions unrelated to an offset project's reduction of CO2 equivalent emissions or the sequestration of carbon, but occurring at a location where an offset project occurs, shall not be considered part of the CO2 offset project, unless specified at subsection 9(D) of this Chapter.

(43) CO2 equivalent or CO2e . "CO2 equivalent" or "CO2e" means the quantity, in tons, of a given greenhouse gas multiplied by its global warming potential (GWP).

(44) CO2 offset allowance(s). "CO2 off set allowance(s)" means a CO2 allowance that is awarded to the sponsor of a CO2 emissions offset project pursuant to subsection 9(F) of this Chapter and is subject to the relevant compliance deduction limitations of subsection 5(D)(1)(c) of this Chapter.

(45) Combined cycle system . "Combined cycle system" means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.

(46) Combined heat and power unit. "Combined heat and power unit" means an electric generating unit that simultaneously generates electricity and thermal power and that operates at a high level of output efficiency by utilizing the waste heat created as a by-product of electricity generation for domestic, commercial or industrial heating or cooling purposes, and whose useful thermal output equals at least 10% of the fossil fuel energy input of the unit.

(47) Combustion turbine . "Combustion turbine" means an enclosed fossil or other fuel-fired device that is comprised of a compressor (if applicable), a combustor, and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the shaft to a generator.

(48) Commence commercial operation . "Commence commercial operation" means, with regard to a unit that serves a generator, to begin to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation. For a CO2 budget unit under section 1(A) of this Chapter, the date on which this occurs shall remain the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO2 budget unit under section 1(A) on the date the unit begins production of electricity for sale or use as described above, the date the unit becomes a CO2 budget unit under section 1(A) shall be the unit's date of commencement of commercial operation.

(49) Commence operation . "Commence operation" means to begin any mechanical, chemical, or electronic process, including start-up of the unit's combustion chamber. For a CO2 budget unit under section 1(A) of this Chapter, the date on which this occurs shall remain the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO2 budget unit under section 1(A) on the date the unit begins any mechanical, chemical, or electronic process as described above, the date the unit becomes a CO2 budget unit under section 1(A) shall be the unit's date of commencement of operation.

(50) Conflict of Interest. "Conflict of Interest" means a situation that may arise with respect to an individual in relation to any specific project sponsor, CO2 emissions offset project or category of offset projects, such that the individual's other activities or relationships with other persons or organizations render or may render the individual incapable of providing an impartial certification opinion, or otherwise compromise the individual's objectivity in performing certification functions.

(51) Consumer benefit account . "Consumer benefit account" means a general account established by the Department or its agent from which CO2 allowances will be sold or distributed in order to provide funds to encourage and foster the following: promotion of energy efficiency measures, direct mitigation of electricity ratepayer impacts attributable to the implementation of the CO2 Budget Trading Program, promotion of renewable or non-carbon-emitting energy technologies, stimulation or reward of investment in the development of innovative carbon emissions abatement technologies with significant carbon reduction potential, promotion and reward for combined heat and power projects, and/or the administration of Maine's component of the CO2 Budget Trading Program.

(52) Continuous emissions monitoring system or CEMS . "Continuous emissions monitoring system" or "CEMS" means the equipment required under section 4 of this Chapter to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated DAHS), a permanent record of stack gas volumetric flow rate, stack gas moisture content, and oxygen or CO2 concentration (as applicable), in a manner consistent with 40 CFR Part 75 and section 4 of this Chapter. The following systems are the principal types of continuous emissions monitoring systems required under section 4 of this Chapter:
(a) A flow monitoring system, consisting of a stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetric flow rate, in standard cubic feet per hour (scfh);

(b) A nitrogen oxides emissions rate (or NOX-diluent) monitoring system, consisting of a NOX pollutant concentration monitor, a diluent gas (CO2 or O2) monitor, and an automated data acquisition and handling system and providing a permanent, continuous record of NOX concentration in parts per million (ppm); diluent gas concentration in percent CO2 or O2; and NOX emissions rate in pounds per million British thermal units (lb/MMBtu);

(c) A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent water;

(d) A CO2 monitoring system, consisting of a CO2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and

(e) An oxygen monitoring system, consisting of an oxygen concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of oxygen, in percent oxygen.

(53) Control period . "Control period" means a three-calendar-year time period. The first control period is from January 1, 2009 to December 31, 2011, inclusive. Each subsequent sequential three-calendar-year period is a separate control period. The first two calendar years of each control period are each defined as an interim control period, beginning on January 1, 2015.

(54) Cooperating Regulatory Agency . "Cooperating Regulatory Agency" means a regulatory agency in a state or United States jurisdiction that is not a Participating State that has entered into a memorandum of understanding with the Department to carry out certain obligations relative to CO2 emissions offset projects in that state or jurisdiction, including but not limited to the obligation to perform audits of offset project sites, and report violations of this Chapter.

(55) Cross State Air Pollution Rule (CSAPR) NOX Annual Trading Program. "Cross State Air Pollution Rule NOX Annual Trading Program" or "CSAPR NOX Annual Trading Program" means a multi-state NOX air pollution control and emission reduction program established in accordance with subpart AAAAA of 40 CFR Part 97 and 40 CFR 52.38(a) (including such a program that is revised in a SIP revision approved by the Administrator under 40 CFR 52.38(a)(3) or (4) or that is established in a SIP revision approved by the Administrator under 40 CFR 52.38(a)(5)) , as a means of mitigating interstate transport of fine particulates and NOX.

(56) Cross State Air Pollution Rule (CSAPR) NOX Ozone Season Trading Program. "Cross State Air Pollution Rule NOX Ozone Season Trading Program" or "CSAPR NOX Ozone Season Trading Program" means a multi-state NOX air pollution control and emission reduction program established in accordance with subpart BBBBB of 40 CFR Part 97 and 40 CFR 52.38(b) (including such a program that is revised in a SIP revision approved by the Administrator under 40 CFR 52.38(b)(3) or (4) or that is established in a SIP revision approved by the Administrator under 40 CFR 52.38(b)(5)) , as a means of mitigating interstate transport of ozone and NOX.

(57) Cross State Air Pollution Rule (CSAPR) SO2 Group 1 Trading Program. "Cross State Air Pollution Rule SO2 Group 1 Trading Program" or "CSAPR SO2 Group 1 Trading Program" means a multi-state SO2 air pollution control and emission reduction program established in accordance with subpart CCCCC of 40 CFR Part 97 and 40 CFR 52.39(a), (b), (d) through (f), (j), and (k) (including such a program that is revised in a SIP revision approved by the Administrator under 40 CFR 52.39(d) or (e) or that is established in a SIP revision approved by the Administrator under 40 CFR 52.39(f)) , as a means of mitigating interstate transport of fine particulates and SO2.

(58) Cross State Air Pollution Rule (CSAPR) SO2 Group 2 Trading Program. "Cross State Air Pollution Rule SO2 Group 2 Trading Program" or "CSAPR SO2 Group 2 Trading Program" means a multi-state SO2 air pollution control and emission reduction program established in accordance with subpart DDDDD of 40 CFR Part 97 and 40 CFR 52.39(a), (c), and (g) through (k) (including such a program that is revised in a SIP revision approved by the Administrator under 40 CFR 52.39(g) or (h) or that is established in a SIP revision approved by the Administrator under 40 CFR 52.39(i)) , as a means of mitigating interstate transport of fine particulates and SO2.

(59) DAHS. "DAHS" means data acquisition and handling system.

(60) Eligible Biomass . Eligible biomass includes sustainably harvested woody and herbaceous fuel sources that are available on a renewable or recurring basis (excluding old-growth timber), including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, unadulterated wood and wood residues, animal wastes, other clean organic wastes not mixed with other solid wastes, biogas, and other neat liquid biofuels derived from such fuel sources. Sustainability of harvest will be determined by the Department.

(61) Excess emissions . "Excess emissions" means any tonnage of CO2 emitted by a CO2 budget source during a control period that exceeds the CO2 budget emissions limitation for the source for that control period.

(62) Excess interim emissions. "Excess interim emissions" means any tonnage of CO2 emitted by a CO2 budget source during an interim control period which, when multiplied by 0.50, exceeds the CO2 budget emissions limitation for the source for that interim control period.

(63) First control period adjustment for banked allowances. "First control period adjustment for banked allowances" means an adjustment applied to the Maine CO2 Budget Trading Program base budget for allocation years 2014 through 2020 to address the surplus allocation year 2009, 2010 and 2011 allowances held in general and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program, but not including accounts opened by participating states.

(64) Forest offset project. "Forest offset project" means an offset project involving reforestation, improved forest management or avoided conversion.

(65) Forest offset project data report. "Forest offset project data report" means the report prepared by a project sponsor each year that provides the information and documentation required by this Chapter or the forest offset protocol.

(66) Forest offset protocol. "Forest offset protocol" means the protocol titled "Regional Greenhouse Gas Initiative Offset Protocol U.S. Forest Projects" published by the participating states on June 13, 2013.

(67) Fossil fuel . "Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

(68) Fossil fuel-fired unit . "Fossil fuel-fired unit" means:
(a) With regard to a unit that commenced operation prior to January 1, 2005, a unit fueled by the combustion of fossil fuel, alone or in combination with any other fuel, where the fossil fuel combusted comprises, or is projected to comprise, more than 50% of the annual heat input on a Btu basis during any calendar year; or

(b) With regard to a unit that commenced or commences operation on or after January 1, 2005, a unit fueled by the combustion of fossil fuel, alone or in combination with any other fuel, where the fossil fuel combusted comprises, or is projected to comprise, more than 5% of the annual heat input on a Btu basis during any calendar year.

(69) General account . "General account" means a CO2Allowance Tracking System (COATS) account, established under section 7 of this Chapter, that is not a compliance account.

(70) Generator. "Generator" means a device that produces electricity and is required to be reported as a generating unit pursuant to the United States Department of Energy's form 860.

(71) Global warming potential (GWP). "Global warming potential" or "GWP" means a measure of the radiative efficiency (heat-absorbing ability) of a particular gas relative to that of CO2 after taking into account the decay rate of the gas (the amount removed from the atmosphere over a given number of years) relative to that of CO2. Global warming potentials used in this regulation are consistent with the values used in the Intergovernmental Panel on Climate Change, Fifth Assessment Report.

(72) Gross electrical generation or gross generation. "Gross electrical generation" or "gross generation" means the electrical output (in MWe) at the terminals of the generator.

(73) Independent verifier. "Independent verifier" means an individual that has been approved by the Department or its agent to conduct verification activities with regard to CO2 emissions offset projects.

(74) Initiated. "Initiated" with respect to subsection 1(A)(2) of this Chapter means that a state has signed the Regional Greenhouse Gas Initiative Memorandum of Understanding and initiated legislation or rule making to implement the program.

(75) Integrated manufacturing facility. "Integrated manufacturing facility" means a facility that:
(a) Received an air emissions license from the Department prior to July 1, 2007;

(b) Produces electricity from one or more CO2 budget units, including one or more combined heat and power units, for transmission over the facilities of a transmission and distribution utility; and

(c) Routinely produces one or more other products for sale.

(76) Integrated manufacturing facility pre-retirement account ."Integrated manufacturing facility pre-retirement account" means a general account that the Department opens and manages in accordance with the incentive program under this regulation for CO2 budget units that are combined heat and power units at integrated manufacturing facilities.

(77) Integrated manufacturing facility retirement account ."Integrated manufacturing facility retirement account" means a general account that the Department opens and manages in order to permanently retire the CO2 allowances associated with the incentive program under this regulation for CO2 budget units that are combined heat and power units at integrated manufacturing facilities.

(78) Intentional reversal. "Intentional reversal" means any reversal caused by a forest owner's negligence, gross negligence or willful intent, including harvesting, development, or harm to the area within the offset project boundary.

(79) Interim control period. "Interim control period" means a one-calendar-year time period that comprises either the first or the second calendar year of a three year control period. The first interim control period starts on January 1, 2015 and ends on December 31, 2015, inclusive. The second interim control period starts on January 1, 2016 and ends on December 31, 2016, inclusive. Each successive three year control period will have two interim control periods, comprised of each of the first two calendar years of that control period.

(80) Life-of-the-unit contractual arrangement . "Life-of-the-unit contractual arrangement" means a unit participation power sales agreement under which a customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and/or associated energy from any specified unit pursuant to a contract:
(a) for the life of the unit;

(b) for a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or

(c) for a period equal to or greater than 25 years or 70 percent of the economically useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.

(81) Long-term electricity contract. "Long-term electricity contract" means, with regards to a CO2 budget unit at an integrated manufacturing facility, a contract for a period of 3 years or more for the purchase of electricity from that CO2 budget unit.

(82) Market penetration rate . "Market penetration rate" means a measure of the diffusion of a technology, product, or practice in a defined market, as represented by the percentage of annual sales for a product or practice, or as a percentage of the existing installed stock for a product or category of products, or as the percentage of existing installed stock that utilizes a practice. The Department may determine an appropriate market definition and market penetration metric for a category of technology, product or practice, and may issue guidance specifying the technologies, products or practices that meet a specified market penetration rate.

(83) Maximum potential hourly heat input . "Maximum potential hourly heat input" means the hourly heat input used for reporting purposes when a unit lacks certified monitors to report heat input. If the unit intends to use appendix D of 40 CFR Part 75 to report heat input, this value should be calculated, in accordance with 40 CFR Part 75, using the maximum fuel flow rate and the maximum gross calorific value. If the unit intends to use a flow monitor and a diluent gas monitor, this value should be reported, in accordance with 40 CFR Part 75, using the maximum potential flow rate and either the maximum CO2 concentration (in percent CO2) or the minimum oxygen concentration (in percent O2).

(84) Megawatt or MW. "Megawatt" or "MW" means a unit of energy equal to 1,000 kilowatts or 1,000,000 watts.

(85) Memorandum of understanding or MOU. "Memorandum of understanding" or "MOU" means the Regional Greenhouse Gas Initiative Memorandum of Understanding dated December 20, 2005, as amended, that establishes an electric power sector carbon emissions cap-and-trade program within the northeast region of the United States.

(86) MMBtu. "MMBtu" means one million British thermal units.

(87) Minimum reserve price. "Minimum reserve price" means the minimum price for allowances at an auction in which the conditions for the release of CCR allowances are not met. The minimum reserve price in calendar year 2014 shall be $2.00. Each calendar year thereafter, the minimum reserve price shall be 1.025 multiplied by the minimum reserve price from the previous calendar year, rounded to the nearest whole cent.

(88) Monitoring system. "Monitoring system" means any monitoring system that meets the requirements of section 4 of this Chapter, including a continuous emissions monitoring system, an excepted monitoring system, or an alternative monitoring system.

(89) MWe. "MWe" means megawatt electrical.

(90) MWh or Megawatt-hour. "MWh or "Megawatt-hour" means the equivalent of one megawatt of power used or produced for one hour.

(91) Nameplate capacity. "Nameplate capacity" means the maximum electrical generating output, expressed in megawatts, that a generator can sustain over a specified period of time when not restricted by seasonal or other de-ratings as measured in accordance with the United States Department of Energy standards.

(92) Net electricity. "Net electricity" means the difference between the electricity that is produced at an integrated manufacturing facility and transmitted over the facilities of a transmission and distribution utility and the electricity that is purchased over the facilities of a transmission and distribution utility and used at the integrated manufacturing facility.

(93) Non-CO2 budget unit. "Non-CO2 budget unit" means a unit that does not meet the applicability criteria in subsection 1(A) of this Chapter.

(94) Operator . "Operator" means any person who operates, controls, or supervises a CO2 budget unit or a CO2 budget source including, but not limited to, any holding company, utility system, or plant manager of such a unit or source.

(95) Owner . "Owner" means:
(a) The definition of "owner" associated with the licensing, monitoring, recordkeeping, reporting, and compliance related requirements except those under section 5 of this Chapter means:
(i) any holder of any portion of the legal or equitable title in a CO2 budget unit;

(ii) any holder of a leasehold interest in a CO2 budget unit, other than a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the CO2 budget unit; or

(iii) if no person has title or interest in the CO2 budget unit as described in subparagraphs (i) or (ii) above, the owner is any holder of any portion of the legal or equitable title to the electrical output of a CO2 budget unit.

(b) The definition of "owner" for the purpose of obtaining and making available CO2 allowances for compliance deduction purposes under subsection 5 of this Chapter means:
(i) any purchaser of electricity transmitted for purposes of resale over the facilities of a transmission and distribution utility who purchases such electricity under a long-term electricity contract from a CO2 budget unit located at an integrated manufacturing facility;

(ii) any purchaser of electricity transmitted for purposes of resale over the facilities of a transmission and distribution utility who purchases such electricity under a life-of-the-unit contractual arrangement in which the purchaser controls the dispatch of the unit from a CO2 budget unit which is not located at an integrated manufacturing facility; or

(iii) if in the instance there exists no purchaser of electricity under a long-term electricity contract, and there exists no purchaser of electricity under a life-of-the-unit contractual arrangement, the "owner" for the purpose of obtaining and making available CO2 allowances for compliance deduction purposes under section 5 of this Chapter is defined as under subparagraphs (a)(i) - (iii) of this definition.

(c) The definition of "owner" associated with any general account means any person who has an ownership interest with respect to the CO2 allowances held in the general account and who is subject to the binding agreement for the CO2 authorized account representative to represent that person's ownership interest with respect to the CO2 allowances.

(d) The definition of "owner" associated with any offset project means any person who has legal or rightful title to the equipment, building, property, or operations associated with the offset project.

(96) Participating state . "Participating state" means a state that has established a corresponding regulation as part of the CO2 Budget Trading Program.

(97) Permanently retired . A greenhouse gas allowance or credit has been "permanently retired" if it has been placed in a retirement account controlled by the jurisdiction that generated the allowance or credit, or has been placed in an allowance retirement account controlled by the Department, or is otherwise deemed unusable by the Department.

(98) Project commencement . "Project commencement" means, for an offset project involving physical construction, other work at an offset project site, or installation of equipment or materials, the date of the beginning of such activity. For an offset project that involves the implementation of a management activity or protocol, project commencement means the date on which such activity is first implemented or such protocol first utilized. For an offset project involving reforestation, improved forest management, or avoided conversion, project commencement means the date specified in section 3.2 of the forest offset protocol.

(99) Receive or receipt of. "Receive" or "receipt of" means, when referring to the Department or its agent, to come into possession of a document, information, or correspondence (whether sent in writing or by authorized electronic transmission). The time and date of receipt may be indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the Department or its agent in the regular course of business.

(100) Recordation , record, or recorded. "Recordation," "record," or "recorded" means, with regard to CO2 allowances, the movement of CO2 allowances by the Department or its agent from one CO2 Allowance Tracking System account to another, for purposes of allocation, transfer, retirement, or deduction.

(101) Regional Greenhouse Gas Initiative. "Regional Greenhouse Gas Initiative" means the ongoing cooperative effort by the states of Maine, New Hampshire, Vermont, Connecticut, New York, New Jersey, Massachusetts, Rhode Island, Maryland, and Delaware and such other states as may in the future become a part of the program to design and implement a regional CO2 cap-and-trade program covering CO2 emissions from CO2 budget units in the signatory states.

(102) Regional Transmission Organization or RTO. "Regional Transmission Organization" or "RTO" means an independent systems operator that administers and oversees wholesale electricity markets.

(103) Regional-type anaerobic digester. "Regional-type anaerobic digester" means an anaerobic digester using feedstock from more than one agricultural operation, or importing feedstock from more than one agricultural operation. Also referred to as a "community digester" or "centralized digester."

(104) Renewable energy. "Renewable energy" means electricity generated from any resource that meets the resource type and vintage for Class I of the Maine Portfolio Requirement 65-407 CMR Chapter 311.

(105) Renewable energy credit or REC. A "Renewable energy credit" or "REC" is a tradable instrument representing the characteristics associated with the generation of one megawatt-hour of electricity from a renewable energy source, such as its generation date, facility geographic location, unit vintage, emissions output, fuel, state program eligibility, or other characteristic that can be identified, accounted, and tracked.

(106) Renewable portfolio standard or RPS . "Renewable portfolio standard" or "RPS" means a statutory or regulatory requirement that a load-serving entity provide a certain portion of the electricity it supplies to its customers from renewable energy sources, or any other statutory or regulatory requirement that a certain portion of electricity supplied to the electricity grid be generated from renewable energy sources.

(107) Reporting period. "Reporting period" means the period of time covered by a forest offset project data report. The first reporting period for an offset project in an initial crediting period may consist of 6 to 24 consecutive months; all subsequent reporting periods in an initial crediting and all reporting periods in any renewed crediting period must consist of 12 consecutive months.

(108) Reserve price. "Reserve price" means the minimum acceptable price for each CO2 allowance in a specific auction. The reserve price at an auction is either the minimum reserve price or the CCR trigger price, as specified in subsection 2(H) of this Chapter.

(109) Reversal. "Reversal" means a GHG emission reduction or GHG removal enhancement for which CO2 offset allowances have been issued that is subsequently released or emitted back into the atmosphere due to any intentional or unintentional circumstances.

(110) Second control period adjustment for banked allowances. "Second control period adjustment for banked allowances" means an adjustment applied to the CO2 Budget Trading Program base budget for allocation years 2015 through 2020 to address the allocation year 2012 and 2013 allowances held in general and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program, but not including accounts opened by participating states, that are in excess of the aggregate quantity of 2012 and 2013 emissions from all CO2 budget sources in all of the participating states.

(111) Serial number . "Serial number" means, when referring to CO2 allowances, the unique identification number assigned to each CO2 allowance by the Department or its agent under subsection 7(B)(3) of this Chapter.

(112) Source . "Source" means any governmental, institutional, commercial, or industrial structure, installation, plant, building, or facility that emits or has the potential to emit any air pollutant. A "source," including a "source" with multiple units, shall be considered a single "facility."

(113) Sponsor or project sponsor. "Sponsor" or "project sponsor" means any person who meets the requirements of the CO2 authorized account representative for the general account of an eligible CO2 emissions offset project or CO2 emissions credit retirement.

(114) State . "State" means one of the fifty United States of America, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa and includes the Commonwealth of the Northern Mariana Islands.

(115) Submit or serve. "Submit" or "serve" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation:
(a) in person;

(b) by United States Postal Service; or

(c) by other means of dispatch or transmission and delivery.

Compliance with any "submission," "service," or "mailing" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.

(116) System benefit fund. "System benefit fund" means any fund collected directly from retail electricity or natural gas ratepayers.

(117) Third adjustment for banked allowances . "Third adjustment for banked allowances" means an adjustment applied to the Maine CO2 Budget Trading Program base budget for allocation years 2021 through 2025 to address allowances held ingeneral and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program, but not including accounts opened by participating states, that are in addition to the aggregate quantity of emissions from all CO2 budget sources in all of the participating states at the end of the fourth control period in 2020, as reflected in the CO2 Allowance Tracking System on March 17, 2021.

(118) Ton or tonnage. "Ton" or "tonnage" means any "short ton," or 2,000 pounds. For the purpose of determining compliance with the CO2 budget emissions limitation, total tons for a control period and for each interim control period shall be calculated as the sum of all recorded hourly emissions (or the tonnage equivalent of the recorded hourly emissions rates) in accordance with section 4 of this Chapter, with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one ton and any fraction of a ton less than 0.50 ton deemed to equal zero tons. A short ton is equal to 0.9072 metric tons.

(119) Total solids. "Total solids" means the total of all solids in a sample, including the total suspended solids, total dissolved solids, and total volatile suspended solids.

(120) Transmission and distribution utility. "Transmission and distribution utility" means a transmission and distribution utility as defined in 35-A M.R.S. §3201, subsection 6, 12 or 16.

(121) Undistributed CO2 allowances. "Undistributed CO2 allowances" means CO2 allowances originally allocated to a set aside account as pursuant to section 2 of this Chapter that were not distributed.

(122) Unintentional Reversal. "Unintentional Reversal" means any reversal of the emissions reductions achieved through a forest offset project, including but not limited to wild fires or disease that is not the result of the forest owner's negligence, gross negligence or willful intent.

(123) Unit . "Unit" means a fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system.

(124) Unit operating day . "Unit operating day" means a calendar day in which a unit combusts any fuel.

(125) Unsold CO2 allowances. "Unsold CO2 allowances" means CO2 allowances that have been made available for sale in an auction conducted by the Department or its agent, but not sold.

(126) Verification. "Verification" means the determination by an independent verifier that certain parts of a CO2 emissions offset project application and/or measurement, monitoring or verification report conforms to the requirements of section 9 of this Chapter.

(127) Volatile solids. "Volatile solids" means the fraction of total solids that is comprised primarily of organic matter.

(128) Voluntary renewable energy purchases. "Voluntary renewable energy purchases" means the purchase of renewable energy credits (RECs) by a retail electricity customer on a voluntary basis. The renewable energy credits or RECs related to such purchases may not be used by the generator or purchaser to meet any regulatory mandate, such as a renewable portfolio standard.

(129) Voluntary renewable energy retirement account. "Voluntary renewable energy retirement account" means a general account that the Department opens and manages in order to permanently retire CO2 allowances associated with the voluntary renewable energy purchase provisions contained in subsection 2(G)(4) of this Chapter.

(130) Voluntary renewable energy set- aside account. "Voluntary renewable energy set-aside account" means a general account that the Department opens and manages in accordance with the voluntary renewable energy purchase provisions contained in subsection 2(G)(4) of this Chapter.

C. Liability

(1) No license revision shall excuse any violation of the requirements of the CO2 Budget Trading Program that occurs prior to the date that the revision takes effect.

(2) Any provision of the CO2 Budget Trading Program that applies to a CO2 budget source (including a provision applicable to the CO2 authorized account representative of a CO2 budget source) shall also apply to the owners and operators of such source and of the CO2 budget units at the source.

(3) Any provision of the CO2 Budget Trading Program that applies to a CO2 budget unit (including a provision applicable to the CO2 authorized account representative of a CO2 budget unit) shall also apply to the owners and operators of such unit.

D. Effect on other authorities. No provision of the CO2 Budget Trading Program, a CO2 budget license application, or a CO2 budget license shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the CO2 authorized account representative of a CO2 budget source or CO2 budget unit from compliance with any other provisions of applicable State and federal law and regulations.

E. Severability. If any provision of this Regulation, or its application to any particular person or circumstances, is held invalid, the remainder of this Regulation, and the application thereof to other persons or circumstances, shall not be affected thereby.

F. Enforcement. Except as provided in the Department's Rules, 06-096, Chapter 157, CO2 Budget Trading Program Waiver and Suspension, violations of this Chapter are enforceable, and penalties may be imposed in accordance with 38 M.R.S. §§347-A, 348, and 349.

G. Computation of time .

(1) Unless otherwise stated, any time period scheduled under the CO2 Budget Trading Program to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

(2) Unless otherwise stated, any time period scheduled under the CO2 Budget Trading Program to begin before the occurrence of an act or event shall be computed so that the period begins the day before the act or event occurs.

(3) Unless otherwise stated, if the final day of any time period under the CO2 Budget Trading Program falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business day.

Disclaimer: These regulations may not be the most recent version. Maine may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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