The Department shall administer the Limited Industrial Exemption in accordance with the procedures of this regulation. A CO2 budget source is exempt from the requirements of Regulation .03K of this chapter if it meets the following criteria: Obtains from the Department a condition in its CO2 budget permit that limits the CO2 budget source's annual electrical output to the electric grid in the PJM region to not more than 10 percent of its annual gross generation; Submits a request for and receives the Department's approval of a climate action plan which requires reduction of CO2e emissions through reasonably available reduction practices not limited to the following: Energy efficiency; Fuel switching; Alternative transportation options; and Modification to manufacturing processes; and Receives written notice of the Department's approval of the exemption based on the criteria in §B(1) and (2) of this regulation. Once the Department approves the CO2 budget source's exemption and notifies the CO2 budget source of its approval, the exemption shall become effective as follows: For a CO2 budget source that commenced operation before January 1, 2009, retroactively on the January 1 that began a control period; or For a CO2 budget source that commenced operation after January 1, 2009, the January 1 of the calendar year that the CO2 budget source commenced operation. An exempt CO2 budget source shall: Comply with the CO2 budget permit condition issued pursuant to §B(1) of this regulation; Comply with the terms of the climate action plan approved pursuant to §B(2) of this regulation; Beginning the April 1 of the year after the Department approved the CO2 budget source's exemption, report annually to the Department the following: Its annual gross electricity generation; and The amount of electricity that it supplied to the electric grid in the PJM region during the calendar year; Report reductions achieved by the approved climate action plan; and Retain all reports required by this regulation at the CO2 budget source for a period of 10 years from the date the reports are created. A CO2 budget source's exemption pursuant to §B of this regulation shall no longer apply if the CO2 budget source fails to comply with any of the requirements of §D of this regulation. On or after January 1, 2027, the Department may reallocate any CO2 allowances previously allocated for retirement on behalf of CO2 budget sources eligible for the Limited Industrial Exemption to the Consumer Energy Efficiency Account..