New Jersey Administrative Code
Title 7 - ENVIRONMENTAL PROTECTION
Chapter 27C - CO[2] BUDGET TRADING PROGRAM
Subchapter 1 - GENERAL PROVISIONS
Section 7:27C-1.3 - Applicability and exemption

Universal Citation: NJ Admin Code 7:27C-1.3

Current through Register Vol. 56, No. 18, September 16, 2024

(a) The requirements of this chapter apply to any CObudget unit or CObudget source.

(b) Notwithstanding (a) above, a CO[2] Budget source for which the Department has issued an operating permit containing a condition restricting the supply of the unit's annual electrical output to the electric grid to NO[x] more than 10 percent of the unit's annual gross electric generation, and that complies with (d) through (g) below, is exempt from the requirements of this chapter, except for the provisions of this section, NJ.A.C. 7:27C-1.6 and 8.8, and, if applicable because of the allocation of CO[2] allowances during the pre-exemption time period, N.J.A.C. 7:27C-5, 6, and 7.

(c) The exemption under (b) above becomes effective as of the January 1 that is on or after the date on which the restriction on the percentage of annual gross generation that may be supplied to the electric grid and the provisions in the permit required at (b) above become final.

(d) A CO[2] Budget unit exempt under (b) above shall comply with the restriction on the percentage of annual gross electric generation that may be supplied to the electric grid described in (b) above.

(e) A CO[2] Budget unit exempt under (b) above shall report to the Department, in accordance with the applicable provisions at N.J.A.C. 7:27C-8.8, the amount of annual gross electric generation and the amount of annual gross electric generation supplied to the electric grid during the year by February 1 of the following year.

(f) For a period of 10 years from the date the records are created, the owners and operators of a unit exempt under (b) above shall retain, at the source that includes the unit, records demonstrating that the conditions of the permit under (b) were met. At any time prior to the end of the period, the Department may, in writing, extend the 10-year period for keeping records if it determines a longer retention period is necessary to demonstrate compliance with permit conditions. The owners and operators bear the burden of proof that the unit met the restriction on the percentage of annual gross electric generation that may be supplied to the electric grid.

(g) The owners and operators and, to the extent applicable, the CO[2] authorized account representative of a CO[2] Budget unit exempt under (b) above shall comply with all the requirements of this chapter concerning all time periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.

(h) A CO[2] Budget unit exempt under (b) above will lose its exemption upon the occurrence of either of the following:

1. The restriction on the percentage of annual gross generation that may be supplied to the electric grid described in (b) above is removed from the unit's permit or otherwise becomes NO[x] longer applicable in any year that commences on or after January 1, 2020; or

2. The unit fails to comply or the owners and operators fail to meet their burden of proving that the unit is complying with the restriction on the percentage of annual gross generation that may be supplied to the electric grid described in (b) above during any year that commences on or after January 1, 2020.

(i) For the purposes of this chapter, the date of commencement of operation for a unit that loses its exemption pursuant to (h) above will be the date the unit loses its exemption.

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