Plain Text Law

Chapter 01. General Administrative Provisions

Regulation .01 Purpose.Copy Citation

The purpose of this chapter is to define the terms used in this subtitle, to identify the documents that are incorporated by reference in this subtitle, and identify the selection process and responsibilities of CO2 authorized account representatives and alternate CO2 authorized account representatives that perform various functions on behalf of the owners or operators of CO2 budget sources or units. The definitions and documents incorporated by reference relate to requirements and procedures that apply to affected CO2 budget sources and units to reduce emissions of carbon dioxide (CO2) and other greenhouse gases into the air.

Regulation .02 Definitions.Copy Citation

A.
In this subtitle, the following terms have the meanings indicated.
B.
Terms Defined.
(1)
“Account number” means the identification number given to each CO2 account.
(2)
“Administrator” means the Administrator of the United States Environmental Protection Agency or the Administrator's authorized representative.
(3)
“Allocate” means to distribute and record CO2 allowances in:
(a)
A CO2 budget unit's compliance account;
(b)
A set-aside account; or
(c)
The consumer energy efficiency account.
(4)
“Allocation year” means a calendar year for which CO2 allowances are allocated.
(4-1)
“Alternate CO2 authorized account representative” means:
(a)
For a CO2 budget source, the alternate individual who is authorized by the owners and operators of the source to represent and legally bind them in matters pertaining to this subtitle; or
(b)
For a general account, the alternate individual who is authorized to transfer or otherwise dispose of CO2 allowances held in the general account.
(4-2)
“Anaerobic digester” means a device that promotes the decomposition of organic material to simple organics and gaseous biogas products, in the absence of elemental oxygen, usually accomplished by means of controlling temperature and volume, and including a methane recovery system.
(5)
“Anaerobic digestion” means the decomposition of organic material, including manure, brought about through the action of microorganisms in the absence of elemental oxygen.
(6)
“Anaerobic storage” means the storage of organic material in an oxygen-free environment, or under oxygen-free conditions, including, holding tanks, ponds, and lagoons.
(7)
“ANSI” means the American National Standards Institute.
(8)
“Applicant” means a person who submits an application to qualify for participation in a CO2 allowance auction.
(9)
“Attribute” means 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 for, and tracked.
(10)
“Attribute credit” means the attributes related to one megawatt-hour of electricity generation.
(11)
“Auction” means a sale conducted by the Department in which CO2 allowances are made available to eligible categories of bidders for sale and purchase.
(12)
“Auction advisory committee” means a committee comprised of the Secretary of the Environment, the Director of the Maryland Energy Administration, and a commissioner of the Maryland Public Service Commission, or their designees.
(12-1)
“Auction clearing price” means the price per CO2 allowance at which all CO2 allowances offered for sale in the auction will be sold.
(13)
“Automated data acquisition and handling system (DAHS)” means that component of a continuous emissions monitoring system, or other approved emissions monitoring system, 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.
(14)
“Bidder” means a person who is participating or may potentially participate in an auction of CO2 allowances.
(15)
“Billing meter” means a measurement device used to measure electric or thermal output for commercial billing under a contract where the owners of the facility selling the electric or thermal output must be different from the owners of the party purchasing the electric or thermal output.
(16)
“Biogas” means gas resulting from the decomposition of organic matter under anaerobic conditions where the principle constituents are methane and carbon dioxide.
(17)
“Clean generation” means, in the context of the Clean Generation Set-aside Account, electricity produced by the combustion of fossil fuels at a CO2 budget unit that has implemented measures to reduce the emission of air pollutants resulting from the CO2 budget unit's production of electricity.
(18)
“Clean Generation Set-aside Account” means a general account established by the Department from which allowances are awarded to CO2 budget units and CO2 budget sources that:
(a)
Commence operation after January 1, 2009; and
(b)
Engage in clean generation.
(18-1)
Climate Action Plan.
(a)
“Climate action plan” means a written plan submitted to the Department by a CO2 budget source that identifies and analyzes its CO2e emission reduction or sequestration strategies and plans.
(b)
“Climate action plan” includes, but is not limited to, the following components:
(i)
Baseline data and forecasts for on-site CO2e emissions;
(ii)
Short and long term goals for reducing or sequestering CO2e emissions;
(iii)
Identification of CO2e emission reduction or sequestration techniques and strategies that the CO2 budget source will implement and the timetable for implementation; and
(iv)
An estimate of the CO2e emissions reductions that will result from the implementation of the emission reduction or sequestration techniques and strategies identified pursuant to §B(18-1)(b)(iii) of this regulation.
(19)
“Closed auction” means an auction where a specified number of CO2 allowances are made available for sale and purchase only to the owners or operators of a budget unit.
(20)
“CO2 allowance” means the limited authorization to emit up to 1 ton of CO2 and does not constitute a property right.
(21)
“CO2 allowance auction website” means a website that includes information including, but not limited to:
(a)
The date and time of an auction;
(b)
The number of CO2 allowances to be available for purchase at auction;
(c)
The categories of participants that are able to bid on the available allowances at auction; and
(d)
Other information that the Department determines may be pertinent to the auction.
(22)
“CO2 allowance contingency account” means an account administered by the Department to hold the following CO2 allowances:
(a)
Previously auctioned but unsold allowances;
(b)
Unretired or unallocated CO2 allowances from the Set-aside Accounts; or
(c)
Any other CO2 allowances as identified by the auction advisory committee.
(23)
“CO2 allowance deduction” means the permanent withdrawal of CO2 allowances from a CO2 compliance account for each ton of CO2 emitted from a CO2 budget unit during a control period or interim control period.
(24)
“CO2 allowances held” means the CO2 allowances recorded or submitted to be recorded in a CO2 account.
(25)
“CO2 allowance retirement account” means a general account administered by the Department to hold CO2 allowances that have been permanently retired from the Voluntary Renewable Set-aside Account or the CO2 Allowance Contingency Account.
(26)
“CO2 allowance tracking system or COATS” means the system that records allocations, deductions, and transfers of CO2 allowances which may also be used to track CO2 allowance prices, and emissions from affected sources.
(27)
“CO2 allowance transfer deadline means the deadline by which CO2 allowances must be submitted for recordation in a CO2 budget source’s compliance account for the source to meet the requirements of COMAR 26.09.02.03K for a control period or interim control period, occurring at:
(a)
Midnight of the March 1 after the end of the relevant control period or interim control period; or
(b)
If the relevant March 1 is not a business day, the deadline is midnight of the first business day thereafter.
(28)
“CO2 authorized account representative” means:
(a)
For a CO2 budget source, the individual who is authorized by the owners and operators of the source to represent and legally bind them in matters pertaining to this subtitle; or
(b)
For a general account, the individual who is authorized to transfer or otherwise dispose of CO2 allowances held in the general account.
(29)
“CO2 budget emissions limitation” means the tonnage equivalent of the CO2 allowances available for compliance deduction for a CO2 budget source for a control period or twice the CO2 allowances available for an interim control period.
(30)
“CO2 budget permit” means a permit issued to a CO2 budget source or CO2 budget unit that specifies the requirements applicable to the source or to each CO2 budget unit, and to the owners and operators and the CO2 authorized account representative of the CO2 budget source or CO2 budget unit.
(31)
“CO2 budget source” means a source that includes one or more CO2 budget units.
(32)
“CO2 budget system” means two or more CO2 budget sources subject to this subtitle that are owned, operated, or controlled by the same person.
(33)
“CO2 budget unit” means fossil fuel fired fuel-burning equipment that, after January 1, 2005, serves a generator with a nameplate capacity of 25 megawatts or greater.
(34)
“CO2 cost containment reserve tier 1 allowance or CO2 CCR tier 1 allowance” means a CO2 allowance that is offered for sale at an auction by the Department for the purpose of containing the cost of CO2 allowances, subject to the requirements of §B(34-2) of this regulation, and is separate from, and additional to, a CO2 allowance allocated from the Maryland CO2 Budget Trading Program budgets.
(34-1)
“CO2 cost containment reserve tier 2 allowance or CO2 CCR tier 2 allowance” means a CO2 allowance that is offered for sale at an auction by the Department for the purpose of containing the cost of CO2 allowances, subject to the requirements of §B(34-3) of this regulation, and is separate from, and additional to, a CO 2 allowance allocated from the Maryland CO2 Budget Trading Program budgets.
(34-2)
“CO2 cost containment reserve tier 1 trigger price, or CCR tier 1 trigger price” means the minimum price at which CO2 CCR tier 1 allowances are offered for sale by the Department at an auction, and shall be:
(a)
$19.50 per CO2 allowance for calendar year 2027; and
(b)
Each calendar year thereafter, the CCR tier 1 trigger price shall be 1.07 multiplied by the CCR tier 1 trigger price from the previous calendar year, rounded to the nearest whole cent as follows:
(i)
$20.87 for 2028;
(ii)
$22.33 for 2029;
(iii)
$23.89 for 2030;
(iv)
$25.56 for 2031;
(v)
$27.35 for 2032;
(vi)
$29.26 for 2033;
(vii)
$31.31 for 2034;
(viii)
$33.50 for 2035;
(ix)
$35.85 for 2036; and
(x)
$38.36 for 2037.
(34-3)
“CO2 cost containment reserve tier 2 trigger price, or CCR tier 2 trigger price” means the minimum price at which CO2 CCR tier 2 allowances are offered for sale by the Department at an auction, and shall be:
(a)
$29.25 per CO2 allowance for calendar year 2027; and
(b)
Each calendar year thereafter, the CCR tier 2 trigger price shall be 1.07 multiplied by the CCR tier 2 trigger price from the previous calendar year, rounded to the nearest whole cent as follows:
(i)
$31.30 for 2028;
(ii)
$33.49 for 2029;
(iii)
$35.83 for 2030;
(iv)
$38.34 for 2031;
(v)
$41.02 for 2032;
(vi)
$43.89 for 2033;
(vii)
$46.96 for 2034;
(viii)
$50.25 for 2035;
(ix)
$53.77 for 2036; and
(x)
$57.53 for 2037.
(34-4)
“CO2 emissions factor” means the average release rate of carbon dioxide (CO2) from electrical generation units that supply electricity to the PJM region relative to the total megawatt hours (MwH) supplied as expressed in pounds CO2 per MwH or metric ton of CO2 per MwH.
(34-5)
“CO2 emission offset project” means:
(a)
A historical project that allowed the Department to determine how many CO2 offset allowances to record to a sponsor’s general account related specific emission reductions outside of the electricity sector;
(b)
Can no longer be approved for the Maryland CO2 Budget Trading Program; and
(c)
CO2 offset allowances created before January 1, 2027 are eligible to meet the compliance deduction and subject to the relevant compliance deduction limitations.
(35)
“CO2 equivalent (CO2e)” means the quantity of a given greenhouse gas, other than CO2, multiplied by its global warming potential (GWP).
(36)
“CO2 offset allowance” means a CO2 allowance that is:
(a)
Determined by the Department to have been recorded, by a participating state prior to January 1, 2027, in the general account of the sponsor of a CO 2 emissions offset project; and
(b)
Is subject to the relevant compliance deduction limitations.
(37)
“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.
(37-1)
“Combined heat and power unit, CHP unit, or cogeneration unit” means an electric generating unit that uses a steam-generating unit or stationary combustion turbine to simultaneously produce both electric (or mechanical) and useful thermal output from the same primary energy facility.
(38)
“Combustion turbine” means an enclosed fossil or other fuel-fired device comprised of a compressor, a combustor, and a turbine in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine to rotate the turbine.
(39)
“Commence commercial operation” means:
(a)
For a unit that serves a generator, the date the unit begins to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation;
(b)
For a CO2 budget unit, the date the unit begins operation; or
(c)
For a unit that is not a CO2 budget unit, the date the unit begins commercial operation which is the date when the unit becomes a CO2 budget unit.
(40)
“Commence operation” means to begin any mechanical, chemical, or electronic process, including start-up of a unit's combustion chamber, determined as follows:
(a)
For a unit that begins operation and is subsequently modified, reconstructed, or repowered, the date for the CO2 budget unit remains the same; or
(b)
For a unit that is not a CO2 budget unit on the date of commencement of operation, the date the unit becomes a CO2 budget unit.
(41)
“Compliance account” means a budget source's CO2 account in which the CO2 allowances are held and made available for use by the source for a control period or interim control period for the purpose of meeting the source's CO2 budget emissions limitation.
(42)
“Consumer energy efficiency account” means a general account established by the Department from which allowances will be sold or distributed in order to provide funds to encourage and foster the following:
(a)
Promotion of energy efficiency measures;
(b)
Direct mitigation of electricity ratepayer impacts attributable to the implementation of this subtitle;
(c)
Promotion of renewable or non-carbon-emitting energy technologies;
(d)
Stimulation or reward of investment in the development of innovative carbon emissions abatement technologies with significant carbon reduction potential; and
(e)
Funding to implement this subtitle.
(43)
“Continuous emissions monitoring system (CEMS)” means the equipment used to sample, analyze, measure, and provide a permanent record of stack parameters and pollutant concentrations.
(44)
“Control period” means a 3-calendar year time period beginning January 1, 2009, to December 31, 2011, and each subsequent 3-year period.
(45)
“Current vintage year” means a CO2 allowance that was originated in the current calendar year.
(46)
“Department” means the Department of the Environment or its designated agent.
(47)
"Early Applicant” means an eligible CO2 budget unit that commences operation prior to or on December 31, 2017.
(48)
“Electricity supplier” has the meaning given that term in Public Utility Companies Article, §1-101(j), Annotated Code of Maryland.
(49)
“Electronic submission agent” means one or more persons designated by the authorized account representative or the alternate authorized account representative of a compliance or general account to have the authority to provide information electronically.
(50)
Eligible Biomass.
(a)
“Eligible biomass” means sustainably harvested woody and herbaceous fuel that is available on a renewable or recurring basis.
(b)
“Eligible biomass” includes:
(i)
Dedicated energy crops and trees;
(ii)
Agricultural food and feed crop residues;
(iii)
Aquatic plants;
(iv)
Unadulterated wood and wood residues;
(v)
Animal wastes;
(vi)
Other clean organic wastes not mixed with other solid wastes;
(vii)
Biogas; and
(viii)
Other neat liquid biofuels derived from the fuel sources.
(c)
“Eligible biomass” does not include old growth timber.
(51)
“Emission containment reserve account” means a general account established by the Department for the purpose of withholding CO2 allowances from sale at an auction by the Department for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs.
(52)
“Excess emissions” means the tons of CO2 emitted by a CO2 budget unit during a control period that exceeds the CO2 budget emissions limitation for the source.
(53)
“Excess interim emissions” means, during an interim control period, the amount in tons of CO2 emitted by a CO2 budget source that exceeds 50 percent of the CO2-budget emissions limitation for the source.
(54)
Fossil Fuel-Fired.
(a)
“Fossil fuel-fired” means, for a unit that commenced operation before January 1, 2005, 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 percent of the annual heat input on a Btu basis during any year.
(b)
“Fossil fuel-fired” means, for a unit that commenced or commences operation on or after January 1, 2005, 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 percent of the annual heat input on a Btu basis during any year.
(55)
“Fund” means any fund authorized by the legislature to hold proceeds from the auction of CO2 allowances for any of the uses identified in this subtitle.
(56)
“GATS” means the Generation Attribute Tracking System of PJM Environmental Information Services, Inc.
(57)
“GATS reserve subaccount” means a repository in a GATS account that is designed for one-way transfers of certificates, such as RECs, for removal from circulation, as with retirement.
(58)
“General account” means a CO2 account that is not a compliance account.
(59)
“Gross generation” means the electrical output in megawatts at the terminals of the generator.
(60)
“Independent verifier” means an individual that has been approved to conduct verification activities.
(61)
“Interim control period” means a 1-calendar-year time period, during each of the first and second calendar years of each 3-year control period, further defined as follows:
(a)
The first interim control period begins on January 1, 2015 and ends on December 31, 2015, inclusive;
(b)
The second interim control period begins on January 1, 2016, and ends on December 31, 2016, inclusive; and
(c)
Each successive 3-year control period will include two interim control periods, comprised of each of the first 2 calendar years of that control period.
(62)
“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 or associated energy from any specified unit pursuant to a contract:
(a)
For the life of the unit;
(b)
For a cumulative term of not 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 economic 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.
(63)
“Long Term Contract Price” shall be:
(a)
$2.00 in calendar year 2014; and
(b)
For each calendar year thereafter, the LTCP from the previous year multiplied by 1.025, rounded to the nearest whole cent.
(64)
“Limited Industrial Exemption” means industrial generators of at least 25 megawatts which have taken a permit condition that limits the unit’s annual electrical output to the electric grid to less than or equal to 10 percent of its annual gross generation.
(65)
“Long Term Contract Set-aside Account” means a general account established by the Department from which allowances will be awarded to CO2 budget units with long term contracts after demonstration by the budget unit that purchasing allowances equal to the budget unit’s CO2 emissions will affect the financial viability of the plant.
(66)
“Market penetration rate” means a measure of the diffusion of a technology, product, or practice in a defined market, as represented by:
(a)
The percentage of annual sales for a product or practice;
(b)
A percentage of the existing installed stock for a product or category of products; or
(c)
The percentage of existing installed stock that utilizes a practice.
(67)
“Maryland CO2 Budget Trading Program base budget” is specified in COMAR 26.09.02.03A, and does not include CO2 CCR tier 1 and CO2 CCR tier 2 allowances offered for sale at an auction:
(68)
“Minimum reserve price” shall be, except for CO2 CCR tier 1 and CO2 CCR tier 2 allowances:
(a)
$9.00 in calendar year 2027; and
(b)
For each calendar year thereafter, the minimum reserve price from the previous calendar year multiplied by 1.07, rounded to the nearest whole cent as follows:
(i)
$9.63 for 2028;
(ii)
$10.30 for 2029;
(iii)
$11.02 for 2030;
(iv)
$11.79 for 2031;
(v)
$12.62 for 2032;
(vi)
$13.50 for 2033;
(vii)
$14.45 for 2034;
(viii)
$15.46 for 2035;
(ix)
$16.54 for 2036; and
(x)
$17.70 for 2037.
(69)
“Nameplate capacity” means the maximum electrical output, in megawatts, that a generator can sustain over a specified period of time when not restricted by seasonal or other deratings as measured in accordance with the United States Department of Energy standards.
(70)
Net-Electric Output.
(a)
“Net-electric output” means the amount of gross generation the generator(s) produce, as measured at the generator terminals, less the electricity used to operate the plant (i.e., auxiliary loads), including but not limited to the following:
(i)
Output from steam turbine(s);
(ii)
Combustion turbine(s);
(iii)
Gas expander(s); and
(iv)
Other generator types deemed fit by the Department.
(b)
Such uses include fuel handling equipment, pumps, fans, pollution control equipment, other electricity needs, and transformer losses as measured at the transmission side of the step up transformer (e.g., the point of sale).
(71)
“Non-CO2 budget unit” means a unit that does not serve a generator with a nameplate capacity equal to or greater than 25 megawatts.
(72)
“Non-early Applicant” means an eligible CO2 budget unit that commences operation after December 31, 2017.
(73)
“Off-site” means a location that is not contiguous with the property where the anaerobic digester is located.
(74)
“Open auction” means an auction where a specified number of CO2 allowances are made available for purchase by any authorized auction participant, including owners or operators of budget units, environmental groups, brokers, and investment facilities.
(75)
“Participating state” means a state that has established corresponding regulations as part of the CO2 Budget Trading Program.
(76)
“Permanently retired” means allowances or credits that have been placed in a retirement account and rendered unusable.
(77)
“Person” means an individual, receiver, trustee, guardian, personal representative, fiduciary, or representative of any kind and any firm, partnership, association or corporation, or other entity including any public or municipal corporation and any agency, bureau, department, or instrumentality of federal, State, or local government.
(78)
“PJM Environmental Information Services, Inc. (EIS)” means the entity that owns and operates the GATS.
(79)
“PJM region” means the control area administered by the PJM Interconnection, Inc., as the area may change from time to time.
(80)
“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, commonly referred to as a community digester or centralized digester.
(81)
“Renewable energy” has the meaning given that term in Public Utility Companies Article, §7-701(l) and (m), Annotated Code of Maryland.
(82)
“Renewable energy credit (REC)” has the meaning given that term in Public Utility Companies Article, §7-701(i), Annotated Code of Maryland, and is created or acquired pursuant Public Utility Companies Article, Title 7, Subtitle 7, Annotated Code of Maryland.
(83)
“Renewable energy facility” has the meaning given that term in COMAR 20.61.01.03B(11).
(84)
“Renewable energy portfolio standard (RPS)” has the meaning given that term in Public Utility Companies Article, §7-701(j), Annotated Code of Maryland.
(85)
“Renewable on-site generator” has the meaning given that term in the Public Utility Companies Article §7-701(k), Annotated Code of Maryland.
(86)
“Renewable portfolio standard” means the renewable energy portfolio standard.
(87)
“Reserve price” means the minimum acceptable price at which a CO2 allowance will be sold in a given auction, defined as either the minimum reserve price, the CCR tier 1 trigger price, or the CCR tier 2 trigger price.
(88)
“Retail marketer” means, for the purposes of the voluntary renewable set-aside account, a person who provides renewable energy or renewable energy attribute credits to a retail customer through a retail sales transaction, or a person who provides to a retail customer the service of procuring and retiring renewable energy attribute credits on the customer’s behalf.
(89)
“Serial number” means the unique identification number assigned to each CO2 allowance.
(90)
“Ton or tonnage” means any “short ton”, or 2,000 pounds. For the purpose of determining compliance with the CO2 requirements of Regulations .04 and .05 of this chapter, total CO2 emissions for a control period and 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 COMAR 26.09.02.10 and .11: with
(a)
Any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal 1 ton;
(b)
Any fraction of a ton less than 0.50 ton deemed to equal zero tons; and
(c)
A short ton is equal to 0.9072 metric tons.
(91)
“Total solids” means the total of all solids in a sample, including the total suspended solids, total dissolved solids, and volatile suspended solids.
(92)
“Transmission or distribution entity” means the assets and equipment used to transmit and distribute electricity from an electric generator to the electrical load of a customer, including all related assets and equipment located within the service territory of the entity, as specified by the applicable state regulatory agency.
(93)
“Unsold allowance” means a CO2 allowance that has been offered for sale in an auction conducted by the Department, but not sold.
(94)
“Vintage year” means the calendar year that a CO2 allowance was originated.
(95)
“Volatile solids” means the fraction of total solids that is comprised primarily of organic matter.
(96)
“Voluntary renewable CO2 emissions factor” means the average release rate of carbon dioxide (CO2) from the fossil fuel electrical generation units that supply electricity to the PJM region relative to the total megawatt hours (MwH) supplied as expressed in pounds of CO2 per MwH or metric ton of CO2 per MwH.
(97)
“Voluntary renewable energy purchase” means the purchase of electricity from renewable energy generation or renewable energy attribute credits by a retail electricity customer on a voluntary basis where the purchase may not be used by the generator or purchaser to meet any regulatory mandate, such as a renewable portfolio standard.
(98)
“Voluntary renewable set-aside account” means a general account established by the Department from which allowances will be permanently retired based upon documented purchases of voluntary renewable energy by ratepayers in Maryland.

Regulation .03 Incorporation by Reference.Copy Citation

A.
In this subtitle, the following documents are incorporated by reference.
B.
Documents Incorporated.
(1)
40 CFR §72.2, as amended.
(2)
40 CFR Part 75, including Appendices B, D, E, F, and G and Section 2.1 of Appendix A, as amended.
(3)
New York State Renewable Energy Standard Biomass Power Guide, June 2018.

Regulation .04 Selection and Responsibilities of COCopy Citation

A.
By January 1, 2009, the Department shall establish a single compliance account for each CO2 budget source.
B.
Each CO2 budget source shall have a CO2 authorized account representative and an alternate CO2 authorized account representative.
C.
The CO2 authorized account representative and alternate CO2 authorized account representative of the CO2 budget source shall be selected by an agreement binding on the owners and operators of the source and all CO2 budget units at the source and must act in accordance with the certificate of representation under §J of this regulation.
D.
The agreement by which the alternate CO2 authorized account representative is selected shall include a procedure for authorizing the alternate CO2 authorized account representative to act instead of the CO2 authorized account representative.
E.
Upon receipt of a complete account certificate of representation:
(1)
The CO2 authorized account representative and alternate CO2 authorized account representative shall represent and, by representations, actions, inactions, or submissions, legally bind each owner or operator of the CO2 budget source represented and each CO2 budget unit at the source in all matters pertaining to this subtitle, notwithstanding any agreement between the CO2 authorized account representative, alternate CO2 authorized account representative, and the owners or operators; and
(2)
The owners or operators shall be bound by any decision or order issued to the CO2 authorized account representative or alternate CO2 authorized account representative by the Department or a court regarding the CO2 budget source or unit.
F.
A CO2 budget permit may not be issued or a compliance account established for a CO2 budget source until the Department has received a complete account certificate of representation for a CO2 authorized account representative and alternate CO2 authorized account representative of the source and the CO2 budget units at the source.
G.
Each submission shall be signed and certified by the CO2 authorized account representative or alternate CO2 authorized account representative on behalf of each CO2 budget source and shall include the following statement by the CO2 authorized account representative or alternate CO2 authorized account representative: “I am authorized to make the submission on behalf of the owners or operators of the CO2 budget sources or CO2 budget units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in the 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”.
H.
Changing the CO2 Authorized Account Representative.
(1)
The CO2 authorized account representative may be changed at any time upon receipt of a superseding complete account certificate of representation.
(2)
All representations, actions, inactions, and submissions by the previous CO2 authorized account representative before the time and date when the Department receives the superseding account certificate of representation are binding on the new CO2 authorized account representative and the owners or operators of the CO2 budget source and the CO2 budget units at the CO2 budget source.
I.
Changes in the Owners and Operators.
(1)
If a new owner or operator of a CO2 budget source or a CO2 budget unit is not included in the list of owners or operators submitted in the account certificate of representation, the new owner or operator shall be deemed to be subject to and bound by the account certificate of representation, the representations, actions, inactions, and submissions of the CO2 authorized account representative or alternate CO2 authorized account representative of the CO2 budget source or unit, and the decisions, orders, actions, and inactions of the Department, as if the new owner or operator were included in the list.
(2)
Within 30 days following any change in the owners or operators of a CO2 budget source or a CO2 budget unit, including the addition or deletion of an owner or operator, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit a revision to the account certificate of representation amending the list of owners or operators to include the change.
J.
Account Certificate of Representation.
(1)
A complete account certificate of representation for a CO2 authorized account representative or alternate CO2 authorized account representative shall include the following:
(a)
Identification of the CO2 budget source and each CO2 budget unit at the source for which the account certificate of representation is submitted;
(b)
The name, address, email address, telephone number, and facsimile transmission number of the CO2 authorized account representative;
(c)
A list of the owners or operators of the CO2 budget source and of each CO2 budget unit at the source;
(d)
The following certification statement by the CO2 authorized account representative or alternate CO2 authorized account representative: “I certify that I was selected as the CO2 authorized account representative or alternate CO2 authorized account representative, as applicable, by an agreement binding on the owners or operators of the CO2 budget source and each CO2 budget unit at the source. I certify that I have all the necessary authority to carry out my duties and responsibilities under this subtitle on behalf of the owners or operators of the CO2 budget source and of each CO2 budget unit at the source and that each owner or operator shall be fully bound by my representations, actions, inactions, or submissions and by any decision or order issued to me by the Department or a court regarding the source or unit.”; and
(e)
The signature of the CO2 authorized account representative or alternate CO2 authorized account representative and the dates signed.
(2)
Unless otherwise required, documents of agreement referred to in the account certificate of representation are not submitted, and the Department is not under any obligation to review or evaluate the sufficiency of these documents, if submitted.
K.
Objections Concerning the CO2 Authorized Account Representative or Alternate CO2 Authorized Account Representative.
(1)
Once a complete account certificate of representation has been submitted and received, the Department shall rely on the account certificate of representation until the Department receives a superseding complete account certificate of representation.
(2)
An objection or other communication submitted concerning the authorization, or any representation, action, inaction, or submission of the CO2 authorized account representative or alternate CO2 authorized account representative does not affect any representation, action, inaction, or submission of the CO2 authorized account representative or alternate CO2 authorized account representative or the finality of any decision or order by the Department under this subtitle.
(3)
The Department may not adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CO2 authorized account representative or alternate CO2 authorized account representative, including private legal disputes concerning the proceeds of CO2 allowance transfers.
L.
Delegation by CO2 Authorized Account Representative or Alternate CO2 Authorized Account Representative.
(1)
A CO2 authorized account representative or alternate CO2 authorized account representative may delegate to one or more individuals the authority to make an electronic submission under this subtitle.
(2)
In order to delegate authority to make an electronic submission, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit a notice of delegation in a format prescribed by the Department that includes the following:
(a)
The name, address, email address, telephone number, and facsimile transmission number of the CO2 authorized account representative or alternate CO2 authorized account representative;
(b)
The name, address, email address, telephone number, and facsimile transmission number of each individual, referred to in this subtitle as the electronic submission agent;
(c)
For each electronic submission agent, a list of the types of electronic submissions for which authority is delegated to that individual; and
(d)
The following certification statements by the CO2 authorized account representative or alternate CO2 authorized account representative:
(i)
“I agree that any electronic submission by an individual identified in this notice of delegation and of a type listed for the electronic submission agent in this notice of delegation and that is made while I am a CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under COMAR 26.09.01.04L shall be deemed to be an electronic submission by me.”; and
(ii)
“Until this notice of delegation is superseded by another notice of delegation, I agree to maintain an email account and to notify the Department immediately of any change in email address unless all delegation authority by me under COMAR 26.09.01.04L is terminated”.
(3)
A notice of delegation submitted under this regulation is effective upon receipt of the notice by the Department and until receipt by the Department of a superseding notice of delegation by the CO2 authorized account representative or alternate CO2 authorized account representative.
(4)
The superseding notice of delegation may replace any previously identified electronic submission agent, add a new electronic submission agent, or eliminate entirely any delegation of authority.
(5)
An electronic submission covered by the certification and made in accordance with a notice of delegation is deemed to be an electronic submission by the CO2 authorized account representative or alternate CO2 authorized account representative submitting the notice of delegation.
(6)
A CO2 authorized account representative may delegate, to one or more natural persons, his or her authority to review information in the CO2 allowance tracking system under this regulation.
(7)
An alternate CO2 authorized account representative may delegate, to one or more natural persons, his or her authority to review information in the CO2 allowance tracking system under this regulation.
(8)
In order to delegate authority to review information in the CO2 allowance tracking system in accordance with §L(6) and (7) of this regulation, the CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, must submit to the Department a notice of delegation, in a format prescribed by the Department that includes the following:
(a)
The name, address, e-mail address, telephone number, and facsimile transmission number of such CO2 authorized account representative or alternate CO2 authorized account representative;
(b)
The name, address, e-mail address, telephone number and facsimile transmission number of each such natural person, herein referred to as the “reviewer”;
(c)
For each such natural person, a list of the type of information under §L(6) and (7) of this regulation for which reviewing authority is delegated to him or her; and
(d)
The following certification statements by such CO2 authorized account representative or alternate CO2 authorized account representative:
(i)
“I agree that any information that is reviewed by a natural person identified in this notice of delegation and of a type listed for such information accessible by the reviewer in this notice of delegation and that is made while I am a CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under COMAR 26.09.01.04L shall be deemed to be reviewed by me.”
(ii)
“Until this notice of delegation is superseded by another notice of delegation under COMAR 26.09.01.04L, I agree to maintain an e-mail account and to notify the Department immediately of any change in my e-mail address unless delegation authority by me under COMAR 26.09.01.04L is terminated.”
(9)
A notice of delegation submitted under §L8 of this regulation shall be effective, with regard to the CO2 authorized account representative or alternate CO2 authorized 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 superseding notice of delegation by such CO2 authorized account representative or alternate CO2 authorized account representative as appropriate. The superseding notice of delegation may replace any previously identified review, add a new review, or eliminate entirely any delegation of authority.
(10)
Reviewed information covered by the certification and done in accordance with a notice of delegation is deemed to be reviewed by the CO2 authorized account representative or alternate CO2 authorized account representative submitting the notice of delegation.

Regulation .05 Selection and Responsibilities of General Account Authorized Account Representatives.Copy Citation

A.
Upon request, the Department shall establish a general account for any person that designates a CO2 authorized account representative and an alternate CO2 authorized account representative.
B.
The agreement by which the alternate CO2 authorized account representative is selected shall include a procedure for authorizing the alternate CO2 authorized account representative to act instead of the CO2 authorized account representative.
C.
A complete application for a general account submitted to the Department shall include the following:
(1)
Name, address, email address, telephone number, and facsimile transmission number of the CO2 authorized account representative and the alternate CO2 authorized account representative;
(2)
Organization name and type of organization;
(3)
A list of all persons subject to a binding agreement for the CO2 authorized account representative or the alternate CO2 authorized account representative to represent their ownership interest with respect to the CO2 allowances held in the general account;
(4)
The following certification statement by the CO2 authorized account representative and the alternate CO2 authorized account representative: “I certify that I was selected as the CO2 authorized account representative or the CO2 alternate authorized 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 these persons and that each 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 a court regarding the general account.”; and
(5)
The signature of the CO2 authorized account representative and the alternate CO2 authorized account representative and the dates signed.
D.
Unless otherwise required, documents of agreement referred to in the application for a general account are not submitted to the Department and the Department is not under any obligation to review or evaluate the sufficiency of any submitted documents.
E.
The CO2 authorized account representative and the alternate CO2 authorized account representative for the general account shall represent and, by 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 this subtitle, notwithstanding any agreement between the CO2 authorized account representative or the alternate CO2 authorized account representative and the owner.
F.
The owner is bound by any order or decision issued to the CO2 authorized account representative or the alternate CO2 authorized account representative by the Department or a court regarding the general account.
G.
Each submission concerning the general account shall be signed and certified by the CO2 authorized account representative or the alternate CO2 authorized account representative for the persons having an ownership in the CO2 allowances held in the general account.
H.
Each submission shall include the following certification statement by the CO2 authorized account representative or the alternate CO2 authorized 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”.
I.
Changing CO2 Authorized Account Representatives.
(1)
The CO2 authorized account representative or alternate CO2 authorized account representative for a general account may be changed at any time upon receipt of a superseding complete application for a general account.
(2)
Notwithstanding any changes, all representations, actions, inactions, and submissions by the previous CO2 authorized account representative or alternate CO2 authorized account representative before the time and date when the Department receives the superseding application for a general account are binding on the new CO2 authorized account representative or alternate CO2 authorized account representative and the persons with an ownership in the CO2 allowances in the general account.
J.
Changes in Persons with Ownership Interest.
(1)
If a new person having an ownership interest with respect to CO2 allowances in the general account is not included in the list of persons in the application for a general account, the new person shall be deemed to be subject to and bound by the application for a general account, the representations, actions, inactions, and submissions of the CO2 authorized account representative or alternate CO2 authorized account representative, and the decisions, orders, actions, and inactions of the Department, as if the new person were included in the list.
(2)
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 or deletion of persons, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit a revision to the application for a 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.
K.
Objections Concerning CO2 Authorized Account Representative or Alternate CO2 Authorized Account Representative.
(1)
Following receipt of a complete application for a general account, the Department shall rely on the application until a superseding complete application for a general account is received by the Department.
(2)
An objection or other communication submitted to the Department concerning the authorization, or any representation, action, inaction, or submission of the CO2 authorized account representative or alternate CO2 authorized account representative for a general account does not affect any representation, action, inaction, or submission of the CO2 authorized account representative or alternate CO2 authorized account representative or the finality of any decision or order by the Department under this subtitle.
(3)
The Department may not adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of the CO2 authorized account representative or alternate CO2 authorized account representative for a general account, including private legal disputes concerning the proceeds of CO2 allowance transfers.
L.
Delegation by CO2 Authorized Account Representative.
(1)
A CO2 authorized account representative or alternate CO2 authorized account representative may delegate, to one or more individuals, the authority to make an electronic submission.
(2)
In order to delegate authority to make an electronic submission, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit a notice of delegation, in a format prescribed by the Department.
(3)
Notice of Delegation. The notice of delegation shall include the following elements:
(a)
The name, address, email address, telephone number, and facsimile transmission number of the CO2 authorized account representative or alternate CO2 authorized account representative;
(b)
The name, address, email address, telephone number, and facsimile transmission number of each individual, referred to in this subtitle as the electronic submission agent;
(c)
For each electronic submission agent, a list of the type of electronic submissions for which authority is delegated to that individual; and
(d)
The following certification statements by the CO2 authorized account representative or alternate CO2 authorized account representative:
(i)
“I agree that any electronic submission to the Department by an individual identified in this notice of delegation and of a type listed for the electronic submission agent in this notice of delegation and that is made when I am a CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation shall be deemed to be an electronic submission by me.”; and
(ii)
“Until this notice of delegation is superseded by another notice of delegation, I agree to maintain an email account and to notify the Department or its agent immediately of any change in my email address unless all delegation authority by me is terminated”.
(4)
A notice of delegation is effective upon receipt of the notice by the Department and until receipt of a superseding notice of delegation by the CO2 authorized account representative or alternate CO2 authorized account representative.
(5)
The superseding notice of delegation may replace any previously identified electronic submission agent, add a new electronic submission agent, or eliminate entirely any delegation of authority.
(6)
An electronic submission covered by the certification and made in accordance with a notice of delegation is deemed to be an electronic submission by the CO2 authorized account representative or alternate CO2 authorized account representative submitting the notice of delegation.
(7)
A CO2 authorized account representative may delegate, to one or more natural persons, his or her authority to review information in the CO2 allowance tracking system under this regulation.
(8)
An alternate CO2 authorized account representative may delegate, to one or more natural persons, his or her authority to review information in the CO2 allowance tracking system under this regulation.
(9)
In order to delegate authority to review information in the CO2 allowance tracking system in accordance with §L7 and 8 of this regulation, the CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, must submit to the Department a notice of delegation, in a format prescribed by the Department that includes the following:
(a)
The name, address, e-mail address, telephone number, and facsimile transmission number of such CO2 authorized account representative or alternate CO2 authorized account representative;
(b)
The name, address, e-mail address, telephone number and facsimile transmission number of each such natural person, herein referred to as the “reviewer”;
(c)
For each such natural person, a list of the type of information under §L(7) and (8) of this regulation for which authority is delegated to him or her; and
(d)
The following certification statements by such CO2 authorized account representative or alternate CO2 authorized account representative:
(i)
“I agree that any information that is reviewed by a natural person identified in this notice of delegation and of a type listed for such information accessible by the reviewer in this notice of delegation and that is made when I am a CO2 authorized account representative or alternate CO2 authorized account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under COMAR 26.09.01.05L shall be deemed to be reviewed by me.”
(ii)
“Until this notice of delegation is superseded by another notice of delegation under COMAR 26.09.01.05L, 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 delegation authority by me under COMAR 26.09.01.05L is terminated.”
(10)
A notice of delegation submitted under §L(9) of this regulation shall be effective, with regard to the CO2 authorized account representative or alternate CO2 authorized 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 superseding notice of delegation by such CO2 authorized account representative or alternate CO2 authorized account representative as appropriate. The superseding notice of delegation may replace any previously identified review, add a new review, or eliminate entirely any delegation of authority.
(11)
Reviewed information covered by the certification and done in accordance with a notice of delegation is deemed to be reviewed by the CO2 authorized account representative or alternate CO2 authorized account representative submitting the notice of delegation.
(12)
Account Identification. The Department shall assign a unique identifying number to each account established.
M.
Repealed.
N.
Closing of General Accounts.
(1)
A CO2 authorized account representative or alternate CO2 authorized account representative of a general account may close the account by submitting a statement to the Department requesting deletion of the account and by submitting 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 1 year or more and does not contain any CO2 allowances, the Department may notify the CO2 authorized account representative for the account that the account will be closed 30 business days after the notice is sent.
(3)
The general account shall be closed after the 30-day period unless, before the end of the 30-day period, the Department receives the following:
(a)
A transfer of CO2 allowances into the account; or
(b)
A statement submitted by the CO2 authorized account representative or alternate CO2 authorized account representative demonstrating to the satisfaction of the Department good cause as to why the account should not be closed.

Regulation .06 COCopy Citation

A.
CO2 Allowance Transfers. To transfer a CO2 allowance, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit the following information to the Department:
(1)
The account numbers of both the transferor and the transferee;
(2)
The serial numbers of each CO2 allowance to be transferred;
(3)
The printed name and signature of the CO2 authorized account representative of the transferor account and the date signed;
(4)
The date when the last sale or purchase transaction was completed for each allowance, if any; and
(5)
The purchase or sale price of the allowances that are to be sold or purchased.
B.
Recording the Transfer of Allowances.
(1)
The Department shall record the transfer of each CO2 allowance from the transferor account to the transferee account within 5 business days of receiving a CO2 allowance transfer, if:
(a)
The transfer was submitted in accordance with the provisions in §A of this regulation;
(b)
At the time of the transfer, the transferor account contains each CO2 allowance, identified by serial number, to be transferred.
(2)
The Department may not record the allowance transfer within 5 business days if:
(a)
The request for allowance transfer is received after the CO2 allowance transfer deadline; and
(b)
The transfer includes CO2 allowances that belong to the allocation years that fall within the same or prior control periods to which the CO2 allowance transfer deadline applies.
(3)
When all requirements are satisfied, the Department shall record the transfer after deducting allowances for compliance.
C.
Notification of a Transfer.
(1)
Notice of Recording a Transfer. The Department shall notify the CO2 authorized account representatives or alternate CO2 authorized account representatives of both the transferor and transferee accounts of a transfer of CO2 allowances within 5 business days of recording the transfer.
(2)
Notice of Not Recording a Transfer. Within 10 business days of receipt of a request for CO2 transfer that fails to meet the requirements of this regulation, the Department shall notify the CO2 authorized account representatives or alternate CO2 authorized account representatives of both accounts of the decision not to record the transfer and the reasons for the decision.
(3)
Upon satisfying applicable requirements, a CO2 allowance transfer may be resubmitted for recording.
Chapter annotations
Authority: Environment Article, §§1-101, 1-404, 2-103, and 2-1002(g), Annotated Code of Maryland
History: Effective date: July 17, 2008 (35:14 Md. R. 1247)
History: Regulation .01 amended effective December 31, 2018 (45:26 Md. R. 1249)
History: Regulation .02B amended effective May 18, 2009 (36:10 Md. R. 717)
History: Regulation .02B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)
History: Regulation .02B amended as an emergency provision effective February 1, 2011 (38:4 Md. R. 263); amended permanently effective May 16, 2011 (38:10 Md. R. 617)
History: Regulation .02B amended effective August 6, 2012 (39:15 Md. R. 964); January 21, 2013 (40:1 Md. R. 22); January 6, 2014 (40:26 Md. R. 2165); February 12, 2018 (45:3 Md. R. 157); December 31, 2018 (45:26 Md. R. 1249); March 30, 2026 (53:6 Md. R. 292)
History: Regulation .03B amended effective May 18, 2009 (36:10 Md. R. 717)
History: Regulation .03B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674)
History: Regulation .03B amended effective January 6, 2014 (40:26 Md. R. 2165); December 31, 2018 (45:26 Md. R. 1249); March 30, 2026 (53:6 Md. R. 292)
History: Regulation .04 amended effective May 18, 2009 (36:10 Md. R. 717)
History: Regulation .04C, L amended effective December 31, 2018 (45:26 Md. R. 1249)
History: Regulation .04L amended effective March 30, 2026 (53:6 Md. R. 292)
History: Regulation .05 amended effective May 18, 2009 (36:10 Md. R. 717)
History: Regulation .05L, N amended effective December 31, 2018 (45:26 Md. R. 1249)
History: Regulation .05M repealed as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); repealed permanently effective May 3, 2010 (37:9 Md. R. 674)
History: Regulation .06 amended effective May 18, 2009 (36:10 Md. R. 717)