A.
Maine CO2Budget Trading Program Base Budget
(1) For 2018 the Maine
CO2 budget trading program base budget is 2,961,611
tons.
(2) For 2019 the Maine
CO2 budget trading program base budget is 2,887,571
tons.
(3) For 2020 the Maine
CO2 budget trading program base budget is 2,815,382
tons.
(4) For 2021 the Maine
CO2 budget trading program base budget is 2,733,450
tons.
(5) For 2022 the Maine
CO2 budget trading program base budget is 2,651,519
tons.
(6) For 2023 the Maine
CO2 budget trading program base budget is 2,569,587
tons.
(7) For 2024 the Maine
CO2 budget trading program base budget is 2,487,656
tons.
(8) For 2025 the Maine
CO2 budget trading program base budget is 2,405,725
tons.
(9) For 2026 the Maine
CO2 budget trading program base budget is 2,323,794
tons.
(10) For 2027 the Maine
CO2 budget trading program base budget is 2,241,862
tons.
(11) For 2028 the Maine
CO2 budget trading program base budget is 2,159,931
tons.
(12) For 2029 the Maine
CO2 budget trading program base budget is 2,078,000
tons.
(13) For 2030 the Maine
CO2 budget trading program base budget is 1,996,069
tons.
B.
CO2 Allowance Allocations .
(1) CO2 Allowances
available for allocation. For allocation year 2018 and each year thereafter,
the CO2 Budget Trading Program adjusted budget shall be
the maximum number of allowances available for allocation in a given allocation
year, except for CO2 offset allowances and
CO2 CCR allowances. In any year in which there is no
adjusted budget, the adjusted budget shall equal the base budget.
(2) Cost Containment Reserve (CCR)
allocation. The Department shall allocate CO2 CCR
allowances, separate from and additional to the CO2
Budget Trading Program base budget set forth in subsection 2(A) of this
Chapter, to the auction account. The CCR allocation is for the purpose of
containing the cost of CO2 allowances. The Department
shall allocate CO2 CCR allowances in the following
manner:
(a) The Department shall initially
allocate 180,069 CO2 CCR allowances for calendar year
2014.
(b) On or before January 1,
2015 and each calendar year thereafter through 2020, the Department shall
allocate CO2 CCR allowances in an amount equal to
360,137 minus the number of CO2 CCR allowances that
remain in the auction account at the end of the prior calendar year.
(c) On or before January 1, 2021, the
Department shall allocate CO2 CCR allowances in an
amount equal to 273,345 minus the number of CO2 CCR
allowances that remain in the auction account at the end of the calendar year
2020.
(d) On or before January 1,
2022, the Department shall allocate CO2 CCR allowances
in an amount equal to 265,152 minus the number of CO2
CCR allowances that remain in the auction account at the end of the calendar
year 2021.
(e) On or before January
1, 2023, the Department shall allocate CO2 CCR
allowances in an amount equal to 256,959 minus the number of CO2
CCR allowances that remain in the auction account at the end of
the calendar year 2022.
(f) On or
before January 1, 2024, the Department shall allocate CO2
CCR allowances in an amount equal to 248,766 minus the number of
CO2 CCR allowances that remain in the auction account
at the end of the calendar year 2023.
(g) On or before January 1, 2025, the
Department shall allocate CO2 CCR allowances in an
amount equal to 240,573 minus the number of CO2 CCR
allowances that remain in the auction account at the end of the calendar year
2024.
(h) On or before January 1,
2026, the Department shall allocate CO2 CCR allowances
in an amount equal to 232,379 minus the number of CO2
CCR allowances that remain in the auction account at the end of the calendar
year 2025.
(i) On or before January
1, 2027, the Department shall allocate CO2 CCR
allowances in an amount equal to 224,186 minus the number of CO2
CCR allowances that remain in the auction account at the end of
the calendar year 2026.
(j) On or
before January 1, 2028, the Department shall allocate CO2
CCR allowances in an amount equal to 215,993 minus the number of
CO2 CCR allowances that remain in the auction account
at the end of the calendar year 2027.
(k) On or before January 1, 2029, the
Department shall allocate CO2 CCR allowances in an
amount equal to 207,800 minus the number of CO2 CCR
allowances that remain in the auction account at the end of the calendar year
2028.
(l) On or before January 1,
2030, and each year thereafter, the Department shall allocate CO2
CCR allowances in an amount equal to 196,607 minus the number of
CO2 CCR allowances that remain in the auction account
at the end of the previous calendar year.
(3) First control period interim adjustment
for banked allowances.By January 15, 2014, the Department shall determine the
first control period interim adjustment for banked allowances quantity for
allocation years 2014 through 2020 by the following formula:
FCPIABA = (FCPA/7) x RS%
Where:
FCPIABA is the first control period interim adjustment for
banked allowances quantity in tons.
FCPA, the first control period adjustment, is the total
quantity of allocation year 2009, 2010 and 2011 CO2
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, as
reflected in the CO2 Allowance Tracking System (COATS)
on January 1, 2014.
RS% is Maine's 2013 Budget divided by the 2013 Regional
Budget.
(4) Second control
period interim adjustment for banked allowances. On March 17, 2014, the
Department shall determine the second control period interim adjustment for
banked allowances quantity the allocation years 2015 through 2020 by the
following formula:
SCPIABA = ((SCPA - SCPE)/6) x RS%
Where:
SCPIABA is the second control period interim adjustment for
banked allowances quantity in tons.
SCPA, second control period adjustment, is the total
quantity of allocation year 2012 and 2013 CO2 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, as reflected in the
CO2 Allowance Tracking System (COATS) on March 17,
2014.
SCPE, second control period emissions, is the total quantity
of 2012 and 2013 emissions from all CO2 budget sources
in all participating states, reported pursuant to CO2
Budget Trading Program as reflected in the CO2
Allowance Tracking System (COATS) on March 17, 2014.
RS% is Maine's 2013 Budget divided by the 2013 Regional
Budget.
(5) Third
adjustment for banked allowances. On March 15, 2021, the Department shall
determine the third adjustment for banked allowances quantity for allocation
years 2021 through 2025 through the application of the following formula:
TABA = (TA - TAE)/5 X RS%
Where:
TABA is the third adjustment for banked allowances quantity
in tons;
TA, third adjustment, is the total quantity of allowances of
vintage years prior to 2021 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, as reflected in the CO2 Allowance Tracking
System on March 15, 2021;
TAE, third adjustment emissions, is the total quantity of
2018, 2019 and 2020 emissions from all CO2 budget
sources in all participating states, reported pursuant to
CO2 Budget Trading Program as reflected in the
CO2 Allowance Tracking System, for which compliance has
not yet been demonstrated, on March 15, 2021; and RS% is Maine's 2021 budget
divided by the 2021 regional budget.
C.
CO2 Budget
Trading Program Adjusted Budget 2014. The Department shall determine the
CO2 Budget Trading Program adjusted budget for the 2014
allocation year by the following formula:
AB = BB - FCPIABA
Where:
AB is the CO2 Budget Trading Program
2014 adjusted budget.
BB is the CO2 Budget Trading Program
2014 base budget.
FCPIABA is the first control period interim adjustment for
banked allowances quantity.
D.
CO2 Budget
Trading Program Adjusted Budgets for 2015 through 2020. On April 15,
2014 the Department shall determine the CO2 Budget
Trading Program adjusted budgets for the 2015 through 2020 allocation years by
the following formula:
AB = BB - (FCPIABA + SCPIABA)
Where:
AB is the CO2 Budget Trading Program
adjusted budget.
BB is the CO2 Budget Trading Program
base budget.
FCPIABA is the first control period interim adjustment for
banked allowances.
SCPIABA is the second control interim adjustment for banked
allowances.
E.
CO2 Budget Trading Program Adjusted Budgets for 2021
through 2025. On or before April 15, 2021, the Department shall
establish the Maine CO2 Budget Trading Program adjusted
budgets for the 2021 through 2025 allocation years by the following formula:
AB = BB - TABA Where:
AB is the Maine CO2 Budget Trading
Program adjusted budget;
BB is the Maine CO2 Budget Trading
Program base budget; and TABA is the third adjustment for banked allowances
quantity in tons.
F.
Publishing the CO2 Trading Program Adjusted
Budgets. After making the determinations in subsections 2(C) through (E)
of this Chapter, the Department or its Agent will publish the
CO2 Trading Program Adjusted Budgets for the 2014
through 2025 allocation years.
G.
Consumer benefit account allocation. The Department will allocate one hundred
percent (100%) of Maine's CO2 Budget Trading Program
base budget to the consumer benefit account. A portion of the
CO2 allowances held in the consumer benefit account will
be transferred to an integrated manufacturing facility pre-retirement account
and handled as described in subsections 2(G)(1), (2), and (3) below. A portion,
not to exceed 2% of the CO2 Budget Trading Program base
budget, of the CO2 allowances held in the consumer
benefit account will be transferred to a voluntary renewable energy set-aside
account and handled as described in subsection 2(G)(4) below.
CO2 allowances remaining in the consumer benefit account
will be auctioned for sale by the Department or its agent.
(1) Incentive for CO2
budget units that are combined heat and power units at integrated manufacturing
facilities. Annually, the Department will transfer a portion of the
CO2 allowances allocated to the consumer benefit account
to an integrated manufacturing facility pre-retirement account. Such
CO2 allowances are intended to promote and reward the
operation of CO2 budget units that are combined heat and
power units at integrated manufacturing facilities by using the
CO2 allowances to offset the behind-the-meter
CO2 emissions. The methods by which the number of
CO2 allowances will be distributed are described in
subsections 2(G) (2), (3), and (4) of this Chapter.
(2) Reservation of CO2
allowances for integrated manufacturing facilities. Integrated
manufacturing facilities will be responsible for submitting and the Department
will be responsible for approving projections of each
CO2 budget unit's anticipated behind-the-meter
CO2 emissions. The number of CO2
allowances equal to the total approved projected amount of behind-the-meter
CO2 emissions from the CO2 budget
units will be transferred from the consumer benefit account to the integrated
manufacturing facility pre-retirement account.
(3) Balancing of the integrated manufacturing
facility pre-retirement account. Each calendar year the Department will compare
the number of CO2 allowances held in the integrated
manufacturing facility pre-retirement account with the total actual reported
behind-the-meter CO2 emissions from each integrated
manufacturing facility. If there are fewer CO2
allowances held in the integrated manufacturing facility pre-retirement account
than needed, additional CO2 allowances will be added to
the next year's predicted number of CO2 allowances and
transferred into the integrated manufacturing facility pre-retirement account
to balance the account. If there are more CO2 allowances
held in the integrated manufacturing facility pre-retirement account than
needed, only as many CO2 allowances will be transferred
from next year's consumer benefit account as needed to cover future
behind-the-meter CO2 emissions.
(4) Voluntary renewable energy purchases. The
Department will set aside and permanently retire CO2
allowances to promote and reward the voluntary purchase by consumers in Maine
of renewable energy credits generated from within any participating state. The
handling of such CO2 allowances shall be accomplished by
the Department as follows:
(a) The Department
shall transfer up to 2% of the CO2 Budget Trading
Program base budget from each year of the control period from the consumer
benefit account into the voluntary renewable energy set-aside
account.
(b) The Department shall
permanently retire the number of CO2 allowances equal to
the amount of avoided CO2 emissions from the previous
calendar year, determined using the following equation, subject to the
limitations in subparagraph (c) and requirements of subparagraphs (d) and (e)
of this subsection:
n AE = [SIGMA]
(MWHREC)i x (MER)/2000 i=1
Where AE = the amount of avoided CO2
emissions (in tons rounded to the nearest whole ton).
MWHREC = the number of renewable energy credits (RECs)
voluntarily purchased by Maine consumers during each calendar year (in
equivalent MWh on a state-by-state basis), which have been generated within a
participating state. MER = the most recently published annual average marginal
emission rate (in lbs of CO2 per MWh) as reported by the
corresponding participating state's regional transmission organization.
i = each participating state from which RECs were purchased
by Maine consumers.
(c) If
the total amount of avoided CO2 emissions calculated
pursuant to subparagraph (b) of this subsection exceeds the number of
CO2 allowances held in the voluntary renewable energy
set-aside account for an associated vintage year, then the number of
CO2 allowances to be retired shall be equal to the total
number of CO2 allowances contained in the voluntary
renewable energy set-aside account for that particular vintage year.
(d) If the total amount of avoided
CO2 emissions calculated pursuant to subparagraph (b) of
this subsection is less than the number of CO2
allowances held in the voluntary renewable energy set-aside account for an
associated vintage year, then the number of CO2
allowances in an amount equal to the calculated avoided
CO2 emissions shall be retired and any excess
CO2 allowances shall be transferred back into the
consumer benefit account and offered for sale at auction.
(e) The Department shall retire the number of
CO2 allowances determined pursuant to subparagraphs (c)
and (d) of this subsection by transferring them into the voluntary renewable
energy retirement account.
(f)
Data for the amount of renewable energy credits voluntarily purchased by Maine
consumers and required for the equation specified in subparagraph (b) of this
subsection will be obtained from renewable energy credit tracking systems
associated with the regional transmission organizations operating in the states
where the credits were generated. For credits that originate in areas with no
credit tracking system, verifiable evidence of purchases by Maine consumers of
renewable energy credits will be obtained from the entity that oversees the
electricity transmission system in that area. Renewable energy credit data must
be verifiable and document the following information:
(i) Number of renewable energy credits, in
MWh, purchased by retail consumers, by customer class in Maine, during the
previous calendar year;
(ii)
Documentation that the renewable energy credits were procured by the retail
provider;
(iii) State where the
renewable energy credits were generated;
(iv) Time period when the renewable energy
credits were generated;
(v) Any
additional information required by the Department necessary to demonstrate that
such renewable energy credit purchase is eligible in Maine and not being
credited in more than one participating state and is not being credited toward
any renewable portfolio standard; and
(vi) Annual average marginal
CO2 emission rate for electricity generation, in pounds
CO2/MWh, as most recently reported by the regional
transmission organization or the entity that oversees electricity transmission
in areas with no RTO.
(5) Public notice of the number of
CO2 allowances to be auctioned. Each calendar year the
Department or its agent will make public the number of
CO2 allowances that are planned to be auctioned in the
coming year and the number of CO2 allowances that are
planned to be transferred to the integrated manufacturing facility
pre-retirement account.
(6) Serial
numbers for allocated CO2 allowances. When allocating
CO2 allowances to and recording them in an account, the
Department or its agent will assign each CO2 allowance a
unique identification number that will include digits identifying the year for
which the CO2 allowance is allocated.
H.
Auction of CO2
CCR Allowances .
(1)
Purpose. The following rules shall apply to each CO2
allowance auction. The Department or its agent may specify
additional information in the auction notice for each auction. Such additional
information may include the time and location of the auction, auction rules,
registration deadlines and any additional information deemed necessary or
useful.
(2) General requirements
(a) The Department or its agent shall include
the following information in the auction notice for each auction:
(i) The number of CO2
allowances offered for sale at the auction, not including any CO2
CCR allowances;
(ii)
The number of CO2 CCR allowances that will be offered
for sale at the auction if the condition of subsection 2(H)(2)(b)(i) of this
Chapter is met;
(iii) The minimum
reserve price for the auction; and
(iv) The CCR trigger price for the
auction.
(b) The
Department or its agent shall follow these rules for the sale of CO2
CCR allowances:
(i)
CO2 CCR allowances shall only be sold at an auction in
which total demand for allowances, above the CCR trigger price, exceeds the
number of CO2 allowances available for purchase at the
auction, not including any CO2 CCR allowances.
(ii) If the condition of subsection
2(H)(2)(b)(i) of this Chapter is met at an auction, then the number of
CO2 CCR allowances offered for sale by the Department
or its agent at the auction shall be equal to the number of
CO2 CCR allowances in the auction account at the time of
the auction.
(iii) After all of the
CO2 CCR allowances in the auction account have been
sold in a given calendar year, no additional CO2 CCR
allowances will be sold at any auction for the remainder of that calendar year,
even if the condition of subsection 2(H)(2)(b)(i) of this Chapter is met at an
auction.
(iv) At an auction in
which CO2 CCR allowances are sold, the reserve price for
the auction shall be the CCR trigger price.
(v) If the condition of subsection
2(H)(2)(b)(i) of this Chapter is not satisfied, no CO2
CCR allowances shall be offered for sale at the auction, and the reserve price
for the auction shall be equal to the minimum reserve prices.
(c) The Department or its agent
shall implement the reserve price in the following manner:
(i) No allowances shall be sold at any
auction for a price below the reserve price for that auction; and
(ii) If the total demand for the allowances
at an auction is less than or equal to the total number of allowances made
available for sale in that auction, then the auction clearing price for the
auction shall be the reserve price.
I.
Undistributed and Unsold
CO2 Allowances .
(1) The Department may retire undistributed
CO2 allowances at the end of each control
period.
(2) The Department may
retire unsold CO2 allowances at the end of each control
period.
