Code of Maine Rules
06 - DEPARTMENT OF ENVIRONMENTAL PROTECTION
096 - DEPARTMENT OF ENVIRONMENTAL PROTECTION - GENERAL
Chapter 156 - CO[2] BUDGET TRADING PROGRAM
Section 096-156-7 - CO[2] Allowance Tracking System

Universal Citation: 06 ME Code Rules ยง 096-156-7

Current through 2024-38, September 18, 2024

A. CO2 Allowance Tracking System accounts.

(1) Any person wishing to purchase or otherwise hold CO2 allowances must open a compliance or general account.

(2) Nature and function of compliance accounts. Consistent with subsection 7(B)(1) of this Chapter, the Department or its agent will establish one compliance account for each CO2 budget source. Allocations of CO2 allowances pursuant to section 2 of this Chapter and deductions or transfers of CO2 allowances pursuant to subsections 5(B), 5(D), 7(F), or section 8 of this Chapter will be recorded in the compliance accounts in accordance with this section.

(3) Nature and function of general accounts. Consistent with subsection 7(B)(2) of this Chapter, the Department or its agent will establish, upon request, a general account for any person. Transfers of CO2 allowances pursuant to section 8 of this Chapter will be recorded in the general account in accordance with this section.

B. Establishment of accounts.

(1) Compliance accounts. Upon receipt of a complete account certificate of representation under subsection 6(D) of this Chapter, the Department or its agent will establish a compliance account for each CO2 budget source for which the account certificate of representation was submitted.

(2) General accounts.
(a) Application for general account. Any person may apply to open a general account for the purpose of holding and transferring CO2 allowances. An application for a general account may designate one and only one CO2 authorized account representative and one and only one CO2 authorized alternate account representative who may act on behalf of the CO2 authorized account representative. The agreement by which the CO2 authorized alternate account representative is designated shall include a procedure for authorizing the CO2 authorized alternate account representative to act in lieu of the CO2 authorized account representative. A complete application for a general account shall be submitted to the Department or its agent and shall include, at a minimum, the following elements in a format prescribed by the Department or its agent:
(i) name, address, e-mail address, and telephone number of the CO2 authorized account representative and any CO2 authorized alternate account representative;

(ii) at the option of the CO2 authorized account representative, organization name and type of organization;

(iii) a list of all persons subject to a binding agreement for the CO2 authorized account representative or any CO2 authorized alternate account representative to represent their ownership interest with respect to the CO2 allowances held in the general account;

(iv) the following certification statement by the CO2 authorized account representative and any CO2 authorized alternate account representative: "I certify that I was selected as the CO2 authorized account representative (or the CO2 authorized alternate account representative, as applicable), by an agreement that is binding on all persons who have an ownership interest with respect to CO2 allowances held in the general account. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO2 Budget Trading Program on behalf of such persons and that each such person shall be fully bound by my representations, actions, inactions, or submissions and by any order or decision issued to me by the Department or its agent or a court regarding the general account.";

(v) the signature of the CO2 authorized account representative and any CO2 authorized alternate account representative and the dates signed; and

(vi) unless otherwise required by the Department or its agent, documents of agreement referred to in the application for a general account shall not be submitted to the Department or its agent. Neither the Department nor its agent shall be under any obligation to review or evaluate the sufficiency of such documents if submitted.

(b) Authorization of CO2 authorized account representative
(i) Upon receipt by the Department or its agent of a complete application for a general account under subsection 7(B)(2)(a) of this Chapter:
(A) The Department or its agent will establish a general account for the person or persons for whom the application is submitted.

(B) The CO2 authorized account representative and any CO2 authorized alternate account representative for the general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to CO2 allowances held in the general account in all matters pertaining to the CO2 Budget Trading Program, notwithstanding any agreement between the CO2 authorized account representative or any CO2 authorized alternate account representative and such person. Any such person shall be bound by any order or decision issued to the CO2 authorized account representative or any CO2 authorized alternate account representative by the Department or its agent or a court regarding the general account.

(C) Any representation, action, inaction, or submission by any CO2 authorized alternate account representative shall be deemed to be a representation, action, inaction, or submission by the CO2 authorized account representative.

(ii) Each submission concerning the general account shall be submitted, signed, and certified by the CO2 authorized account representative or any CO2 authorized alternate account representative for the persons having an ownership interest with respect to CO2 allowances held in the general account. Each such submission shall include the following certification statement by the CO2 authorized account representative or any CO2 authorized alternate account representative: "I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the CO2 allowances held in the general account. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

(iii) The Department or its agent will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with subsection 7(B)(2)(b) (ii) of this Chapter.

(c) Changing CO2 authorized account representative and CO2 authorized alternate account representative; changes in persons with ownership interest.
(i) The CO2 authorized account representative for a general account may be changed at any time upon receipt by the Department or its agent upon receipt of a complete application for a general account under subsection 7(B)(2)(a) of this Chapter superseding the application on file. Not with standing any such change, all representations, actions, inactions, and submissions by the previous CO2 authorized account representative, or the previous CO2 authorized alternate account representative, prior to the time and date when the Department or its agent receives the superseding application for the general account shall be binding on the new CO2 authorized account representative and the persons with an ownership interest with respect to the CO2 allowances in the general account.

(ii) The CO2 authorized alternate account representative for a general account may be changed at any time upon receipt by the Department or its agent of a complete application for a general account under subsection 7(B)(2)(a) of this Chapter superseding the application on file. Not with standing any such change, all representations, actions, inactions, and submissions by the previous CO2 authorized alternate account representative prior to the time and date when the Department or its agent receives the superseding application for the general account shall be binding on the new CO2 authorized alternate account representative and the persons with an ownership interest with respect to the CO2 allowances in the general account.

(iii) In the event a new person acquires an ownership interest with respect to CO2 allowances in the general account and is not included in the list of such persons in the application for a general account, such new person shall be deemed to be subject to and bound by the application for the general account, the representations, actions, inactions, and submissions of the CO2 authorized account representative and any CO2 authorized alternate account representative, and the decisions, orders, actions, and inactions of the Department or its agent, as if the new person were included in such list.

(iv) Within 30 days following any change in the persons having an ownership interest with respect to CO2 allowances in the general account, including the addition of persons, the CO2 authorized account representative or any CO2 authorized alternate account representative shall submit a revision to the application for the general account amending the list of persons having an ownership interest with respect to the CO2 allowances in the general account to include the change.

(d) Objections concerning a CO2 authorized account representative
(i) Once a complete application for a general account under subsection 7(B)(2)(a) of this Chapter has been submitted and received, the Department or its agent will rely on the application unless and until a complete application for a general account under subsection 7(B)(2)(a) of this Chapter superseding the application on file is received by the Department or its agent.

(ii) Except as provided in subsections 7(B)(2)(c)(i) and (ii) of this Chapter, no objection or other communication submitted to the Department or its agent concerning the authorization, or any representation, action, inaction, or submission of the CO2 authorized account representative or any CO2 authorized alternate account representative for a general account shall affect any representation, action, inaction, or submission of the CO2 authorized account representative or any CO2 authorized alternate account representative or the finality of any decision or order by the Department or its agent under the CO2 Budget Trading Program.

(iii) Neither the Department nor its agent will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of the CO2 authorized account representative or any CO2 authorized alternate account representative for a general account, including private legal disputes concerning the proceeds of CO2 allowance transfers.

(e) Delegation by CO2 authorized account representative and CO2 authorized alternate account representative.
(i) A CO2 authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Department or its agent provided for under sections 7 and 8 of this Chapter.

(ii) A CO2 authorized alternate account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Department or its agent provided for under sections 7 and 8 of this Chapter.

(iii) In order to delegate authority to make an electronic submission to the Department or its agent in accordance with subsections 7(B)(2)(e)(i) and (ii) of this Chapter, the CO2 authorized account representative or CO2 authorized alternate account representative, as appropriate, must submit to the Department or its agent a notice of delegation, in a format prescribed by the Department that includes at a minimum the following elements:
(A) The name, address, e-mail address, telephone number of such CO2 authorized account representative or CO2 authorized alternate account representative;

(B) The name, address, e-mail address, and telephone number of each such natural person, herein referred to as "electronic submission agent";

(C) For each such natural person, a list of the type of electronic submissions under either subsection 7(B)(1) or 7(B)(2) of this Chapter for which authority is delegated to him or her; and

(D) The following certification statements by such CO2 authorized account representative or CO2 authorized alternate account representative:
(I) "I agree that any electronic submission to the Department or its agent that is by an electronic submission agent identified in this notice of delegation and of a type listed for such electronic submission agent in this notice and that is made while I am a CO2 authorized account representative (or CO2 authorized alternate account representative, as appropriate), and before this notice of delegation is superseded by another notice of delegation under the Department's Rules, 06-096, Chapter 156, "CO2 Budget Trading Program, "section 7(B)(2)(e) (iv) shall be deemed to be an electronic submission by me."

(II) "Until this notice of delegation is superseded by another notice of delegation under the Department's Rules, 06-096, Chapter 156, "CO2 Budget Trading Program" section 7(B)(2)(e) (iv), I agree to maintain an e-mail account and to notify the Department or its agent immediately of any change in my e-mail address unless all delegation authority by me under section 7(B)(2)(e) of Chapter 156 is terminated."

(iv) A notice of delegation submitted under subsection 7(B)(2)(e) (iii) of this Chapter shall be effective, with regard to the CO2 authorized account representative or CO2 authorized alternate account representative identified in such notice, upon receipt of such notice by the Department or its agent and until receipt by the Department or its agent of a notice of delegation by such CO2 authorized account representative or CO2 authorized alternate account representative as appropriate superseding the notice on file. The superseding notice of delegation may replace any previously identified electronic submission agent, add one or more new electronic submission agents, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in subsection 7(B)(2)(e) (iii)(D)(I) of this Chapter and made in accordance with a notice of delegation effective under subsection 7(B)(2)(e) (iv) of this Chapter shall be deemed to be an electronic submission by the CO2 authorized account representative or CO2 authorized alternate account representative submitting such notice of delegation.

(3) Account identification. The Department or its agent will assign a unique identifying number to each account established under subsections 7(B)(1) or (2) of this Chapter.

C. CO2 authorized account representative responsibilities. Following the establishment of a CO2 Allowance Tracking System account, all submissions to the Department or its agent pertaining to the account, including, but not limited to, submissions concerning the deduction or transfer of CO2 allowances in the account, shall be made only by the CO2 authorized account representative for the account.

D. Banking. Each CO2 allowance that is held in a compliance account or a general account will remain in such account unless and until the CO2 allowance is deducted or transferred under subsections 5(B), 5(D), 7(F), or section 8 of this Chapter. CO2 allowances that are held in a compliance account or a general account may be used by a CO2 budget unit to meet the requirements of this Chapter in any subsequent control period regardless of the year the CO2 allowance originated.

E. Account error. The Department or its agent may, at its sole discretion and on its own motion, correct any error in any CO2 Allowance Tracking System account. Within 10 business days of making such a correction, the Department or its agent will notify the CO2 authorized account representative for the account.

F. Closing of general accounts.

(1) A CO2 authorized account representative of a general account may instruct the Department or its agent to close the account by submitting a statement requesting deletion of the account from the CO2 Allowance Tracking System and correctly submitting for recordation under subsection 8(A) of this Chapter a CO2 allowance transfer of all CO2 allowances in the account to one or more other CO2 Allowance Tracking System accounts.

(2) If a general account shows no activity for a period of one year or more and does not contain any CO2 allowances, the Department or its agent may notify the CO2 authorized account representative for the account that the account will be closed in the CO2 Allowance Tracking System 30 business days after the notice is sent. The account will be closed after the 30-day period unless before the end of the 30-day period the Department or its agent receives a correctly submitted transfer of CO2 allowances into the account under subsection 8(A) of this Chapter or a statement submitted by the CO2 authorized account representative demonstrating to the satisfaction of the Department or its agent good cause as to why the account should not be closed. The Department or its agent will have sole discretion to determine if the account representative demonstrated that the account should not be closed.

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