Air Pollution Control Regulation No. 46, 'CO2 Budget Trading Program'

46.1.1Purpose

The purpose of this regulation is to establish the Rhode Island component of the CO₂ Budget Trading Program, which is designed to reduce anthropogenic emissions of CO₂, a greenhouse gas, from the CO₂ budget sources in an economically efficient manner.

46.1.2Authority

These regulations are authorized pursuant to R.I. Gen. Laws § 42-17.1-2(19) and R.I. Gen. Laws Chapters 23-23 and 23-82, and have been promulgated pursuant to the procedures set forth in the Rhode Island Administrative Procedures Act, R.I. Gen. Laws Chapter 42-35.

The terms and provisions of this regulation shall be liberally construed to permit the Department to effectuate the purposes of state laws, goals and policies.

If any provision of this regulation or the application thereof to any person or circumstance, is held invalid by a court of competent jurisdiction, the validity of the remainder of the regulation shall not be affected thereby.

A.These regulations hereby adopt and incorporate 40 C.F.R. § 75 (2018) by reference, not including any further editions or amendments thereof and only to the extent that the provisions therein are not inconsistent with these regulations.

B.These regulations hereby adopt and incorporate the New York State Renewable Portfolio Standard Biomass Guidebook (2011) by reference, not including any further editions or amendments thereof and only to the extent that the provisions therein are not inconsistent with these regulations.

A.Unless otherwise expressly defined in this section, the terms used in this regulation shall be defined by reference to Part 0 of this Subchapter (General Definitions). As used in this regulation, the following terms shall, where the context permits, be construed as follows:

1.“Account number” means the identification number given by the Department or its agent to each CO₂ Allowance Tracking System account.

2.“Acid rain emissions limitation” means, a limitation on emissions of sulfur dioxide or nitrogen oxides under 42 U.S.C. §§ 7651-7651o (CAA §§ 401-416), as defined in 40 C.F.R. § 72.2.

3.“Acid rain program” means a multi-state sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under 42 U.S.C. §§ 7651-7651o (CAA §§ 401-416) and 40 C.F.R. §§ 72 through 78.

4.“Administrator” means the Administrator of the United States Environmental Protection Agency or the Administrator’s authorized representative.

5.“Agent” means an independent contractor, United States Environmental Protection Agency (USEPA), consumer trustee, or other entity including a regional entity.

6.“Allocate” or “allocation” means the determination by the Department of the number of CO₂ allowances to be recorded in the Voluntary Renewable Energy Market Set-aside Account or the Rhode Island Auction/Sale Account.

7. “Allocation year” means a calendar year for which the Department allocates CO₂ allowances pursuant to § 46.8 of this Part. The allocation year of each CO₂ allowance is reflected in the unique identification number given to the allowance pursuant to § 46.12.4(A) of this Part.

8.“Allowance auction” or “auction” means an auction in which the Department or its agent offers CO₂ allowances for sale.

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.“Automated data acquisition and handling system” or “DAHS” means that component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under §§ 46.13 and 46.14 of this Part, which is 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 in the measurement units required by §§ 46.13 and 46.14 of this Part.

12.“Billing meter” means a measurement device used to measure electric or thermal output for commercial billing under a contract where the facility selling the electric or thermal output has different owners from the owners of the party purchasing the electric or thermal output.

13.“Biogas” means the gas resulting from the decomposition of organic matter under anaerobic conditions. The principle constituents of which are methane and carbon dioxide.

14.“Boiler” means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

15.“British thermal unit” or “Btu” means the amount of heat required to raise the temperature of one pound of water one degree Fahrenheit.

16.“CO₂” means carbon dioxide.

17.“CO₂ allowance” means a limited authorization by the Department or a participating state under the CO₂ Budget Trading Program to emit up to one ton of CO₂, subject to all applicable limitations contained in this regulation.

18.“CO₂ allowance deduction” or “deduct CO₂ allowances” means the permanent withdrawal of CO₂ allowances, by the Department or its agent, from a CO₂ Allowance Tracking System Compliance Account to account for the number of tons of CO₂ emitted from a CO₂ budget source for a control period or an interim control period, determined in accordance with §§ 46.13 and 46.14 of this Part, or for the forfeit or retirement of CO₂ allowances as provided by this regulation.

19.“CO₂ allowances held” or “hold CO₂ allowances” means the CO₂ allowances, recorded by the Department or its agent or submitted to the Department or its agent for recordation in a CO₂ Allowance Tracking System account in accordance with §§ 46.11 and 46.12 of this Part.

20.“CO₂ allowance tracking system" or "COATS” means the system by which the Department or its agent records allocations, deductions, and transfers of CO₂ allowances under the CO₂ Budget Trading Program. The tracking system may also be used to track CO₂ emissions offset projects, CO₂ allowance prices and emissions from affected sources.

21.“CO₂ allowance tracking system account” means an account in the CO₂ Allowance Tracking System, established by the Department or its agent, for purposes of recording the allocation, holding, transferring, or deducting of CO₂ allowances.

22.“CO₂ allowance transfer deadline” means midnight of the March 1 occurring after the end of the relevant control period and each relevant interim control period or, if that March 1 is not a business day, midnight of the first business day thereafter and is the deadline by which CO₂ allowances must be submitted for recordation in a CO₂ budget source’s compliance account in order for the source to meet the CO₂ requirements for the control period and each interim control period immediately preceding such deadline under § 46.7(A) of this Part.

23.“CO₂ authorized account representative” means:

a.For a CO₂ budget source and each CO₂ budget unit at the source, the natural person who is authorized by the owners and operators of the source and all CO₂ budget units at the source to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program in accordance with § 46.9 of this Part.

b.For a general account, the natural person who is authorized, under § 46.12 of this Part, to transfer or otherwise dispose of CO₂ allowances held in the general account. If the CO₂ budget source is also subject to the Acid Rain Program, CSAPR NOx Annual Trading Program, CSAPR NOx Ozone Season Trading Program, CSAPR SO₂ Group 1 Trading Program or CSAPR SO₂ Group 2 Trading Program; then for a CO₂ Budget Trading program compliance account, this natural person shall be the same person as the designated representative as defined in the respective program.

24.“CO₂ authorized alternate account representative” means:

a.For a CO₂ budget source and each CO₂ budget unit at the source, the alternate natural person who is authorized by the owners and operators of the source and all CO₂ budget units at the source to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program in accordance with § 46.9 of this Part.

b.For a general account, the alternate natural person who is authorized, under § 46.12 of this Part, to transfer or otherwise dispose of CO₂ allowances held in the general account. If the CO₂ budget source is also subject to the Acid Rain Program, CSAPR NOx Annual Trading Program, CSAPR NOx Ozone Season Trading Program, CSAPR SO₂ Group 1 Trading Program or CSAPR SO₂ Group 2 Trading Program then for a CO₂ Budget Trading Program compliance account, this alternate natural person shall be the same person as the alternate designated representative as defined in the respective program.

25.“CO₂ budget emissions limitation” means the tonnage equivalent, in CO₂ emissions, in a control period or an interim control period, of the CO₂ allowances available for compliance deduction for the CO₂ budget source for a control period or an interim control period.

26.“CO₂ budget permit” means the legally binding written document or portion of a 42 U.S.C. §§ 7661-7661f (CAA §§ 501-507) operating permit, issued by the Department under this regulation, to a CO₂ budget source or CO₂ budget unit that specifies the CO₂ Budget Trading Program requirements applicable to the CO₂ budget source, to each CO₂ budget unit at the CO₂ budget source, and to the owners and operators and the CO₂ authorized account representative of the CO₂ budget source and each CO₂ budget unit.

27.“CO₂ budget source” means a source that includes one or more CO₂ budget units.

28.“CO₂ budget trading program” means a multi-state CO₂ emissions reduction program established, pursuant to this regulation and corresponding regulations in other states, as a means of reducing emissions of CO₂ from CO₂ budget sources.

29.“CO₂ budget unit” means a unit that is subject to the CO₂ Budget Trading Program requirements under § 46.6 of this Part.

30.“CO₂ cost containment reserve allowance" or “CO₂ CCR allowance” means a CO₂ allowance that is offered for sale at an auction by the Department or its agent for the purpose of containing the cost of CO₂ allowances. CO₂ CCR allowances offered for sale at an auction are separate from and additional to CO₂ allowances allocated from the Rhode Island CO₂ Budget Trading Program base and adjusted budgets. CO₂ CCR allowances are subject to all applicable limitations contained in this regulation.

31."CO₂ cost containment reserve trigger price,” or “CCR trigger price” means the minimum price at which CO₂ CCR allowances are offered for sale by the Department or its agent at an auction. The CCR trigger price shall be $10.00 per CO₂ allowance in calendar year 2017. Each calendar year thereafter, through 2020, the CCR trigger price shall be 1.025 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent. The CCR trigger price in calendar year 2021 shall be $13.00. Each calendar year thereafter, the CCR trigger price shall be 1.07 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in § 46.5(A)(31)(a) of this Part (Table 1).

Any unit that, at any time on or after January 1, 2005, serves an electricity generator with a nameplate capacity equal to or greater than twenty-five (25) MWe shall be a CO₂ budget unit, and any source that includes one or more such units shall be a CO₂ budget source subject to the requirements of this regulation.

A.Carbon dioxide requirements

1.The owners and operators of each CO₂ budget source and each CO₂ budget unit at the source shall hold CO₂ allowances available for compliance deductions, under § 46.12.5 of this Part, as of the CO₂ allowance transfer deadline, as defined in § 46.5(A)(22) of this Part, in the source’s compliance account in an amount not less than the total CO₂ emissions for the control period from all CO₂ budget units at the source, less the CO₂ allowances deducted to meet the requirements, with respect to the previous interim control periods, as determined in accordance with §§ 46.12 through 46.14 of this Part.

2.The owners and operators of each CO₂ budget source and each CO₂ budget unit at the source shall hold CO₂ allowances available for compliance deductions, under § 46.12.5 of this Part, as of the CO₂ allowance transfer deadline, as defined in § 46.5(A)(22) of this Part, in the source’s compliance account, in an amount not less than the total CO₂ emissions, for the interim control period from all CO₂ budget units at the source multiplied by 0.50, as determined in accordance with §§ 46.12 through 46.14 of this Part.

3.Each ton of CO₂ emitted in excess of the CO₂ budget emissions limitation for a control period shall constitute a separate violation of this regulation and applicable State law.

4.Each ton of excess interim emissions shall constitute a separate violation of this regulation and applicable State law.

5.A CO₂ budget unit shall be subject to the requirements under § 46.7(A)(1) of this Part starting January 1, 2009, or the date on which the unit commences operation, whichever is later.

6.CO₂ allowances shall be held in, deducted from, or transferred among CO₂ Allowance Tracking System accounts in accordance with §§ 46.8, 46.11, and 46.12 of this Part.

7.A CO₂ allowance shall not be deducted, in order to comply with the requirements under § 46.7(A) of this Part, for a control period or interim control period that ends prior to the year for which the CO₂ allowance was allocated. A CO₂ offset allowance shall not be deducted, in order to comply with the requirements under § 46.7(A) of this Part, beyond the applicable percent limitations set out in § 46.12.5(A)(1)(c) of this Part.

8.A CO₂ allowance under the CO₂ Budget Trading Program is a limited authorization by the Department or a participating state to emit one ton of CO₂ in accordance with the CO₂ Budget Trading Program. No provision of the CO₂ Budget Trading Program, the CO₂ budget permit application, the CO₂ budget permit or any provision of law shall be construed to limit the authority of the Department or a participating state to terminate or limit such authorization.

9.A CO₂ allowance under the CO₂ Budget Trading Program does not constitute a property right.

B.Excess emissions requirements

1.The owners and operators of a CO₂ budget source that has excess emissions in any control period, or excess interim emissions for any interim control period shall:

a.Forfeit the CO₂ allowances required for deduction under § 46.12.5(D)(1) of this Part; provided CO₂ offset allowances may not be used to cover any part of such excess emissions; and

b.Pay any fine, penalty, or assessment or comply with any other remedy imposed under § 46.12.5(D)(2) of this Part.

C.Recordkeeping and reporting requirements

1.Unless otherwise provided, the owners and operators of the CO₂ budget source and each CO₂ budget unit at the source shall keep on site at the source each of the following documents for a period of ten (10) years from the date the document is created. This period may be extended for cause, at any time prior to the end of ten (10) years, in writing by the Department.

a.The account certificate of representation for the CO₂ authorized account representative for the source and each CO₂ budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with § 46.9.5 of this Part, provided that the certificate and documents shall be retained on site at the source beyond such 10-year period until such documents are superseded because of the submission of a new account certificate of representation changing the CO₂ authorized account representative.

b.All emissions monitoring information, in accordance with §§ 46.13 and 46.14 of this Part and 40 C.F.R. § 75.57 incorporated in § 46.4(A) of this Part.

c.Copies of all reports, compliance certifications, and other submissions and all records made or required under the CO₂ Budget Trading Program.

d.Copies of all documents used to complete a CO₂ budget permit application and any other submission under the CO₂ Budget Trading Program or to demonstrate compliance with the requirements of the CO₂ Budget Trading Program.

2.The CO₂ authorized account representative of a CO₂ budget source and each CO₂ budget unit at the source shall submit the reports and compliance certifications required under the CO₂ Budget Trading Program, including those under §§ 46.13 through 46.15 of this Part.

D.Monitoring requirements

1.The owners and operators, and to the extent applicable, the CO₂ authorized account representative of each CO₂ budget source and each CO₂ budget unit at the source shall comply with the monitoring requirements of §§ 46.13 and 46.14 of this Part.

E.Liability

1.No permit revision shall excuse any violation of the requirements of the CO₂ Budget Trading Program that occurs prior to the date that the revision takes effect.

2.Any provision of the CO₂ Budget Trading Program that applies to a CO₂ budget source (including a provision applicable to the CO₂ authorized account representative of a CO₂ budget source) shall also apply to the owners and operators of such source and of the CO₂ budget units at the source.

3.Any provision of the CO₂ Budget Trading Program that applies to a CO₂ budget unit (including a provision applicable to the CO₂ authorized account representative of a CO₂ budget unit) shall also apply to the owners and operators of such unit.

4.Any person who negligently, willingly or knowingly violates any requirement or prohibition of the CO₂ Budget Trading Program or a CO₂ budget permit shall be subject to enforcement pursuant to applicable law.

5.Any person who negligently, willingly or knowingly makes a false material statement in any record, submission, or report under the CO₂ Budget Trading Program shall be subject to criminal enforcement pursuant to applicable law.

6.Each CO₂ budget source and each CO₂ budget unit shall meet the requirements of the CO₂ Budget Trading Program.

F.Effect on other authorities

1.No provision of the CO₂ Budget Trading Program, a CO₂ budget permit application, or a CO₂ budget permit, shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the CO₂ authorized account representative of a CO₂ budget source or CO₂ budget unit from compliance with any other provision of any Air Pollution Control Regulation, the Rhode Island State Implementation Plan, a federally enforceable permit, or the Clean Air Act (42 U.S.C. § 7401).

G.Computation of time

1.Unless otherwise stated, any time period scheduled, under the CO₂ Budget Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

2.Unless otherwise stated, any time period scheduled, under the CO₂ Budget Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.

3.Unless otherwise stated, if the final day of any time period, under the CO₂ Budget Trading Program, falls on a weekend or a State or Federal holiday, the time period shall be extended to the next business day.

H.Indemnification

1.Any and all persons subject to these regulations agree to indemnify and hold the Department harmless in the event of any dispute over their authority to submit any information to the Department and over their appointment as an authorized account representative or an alternate account representative.

46.8.1Rhode Island CO₂ trading program base budget is as follows:

A.The Rhode Island CO₂ Budget Trading Program base budget is 1,512,845 tons for the 2018 allocation year.

B.The Rhode Island CO₂ Budget Trading Program base budget is 2,005,354 tons for the 2019 allocation year.

C.The Rhode Island CO₂ Budget Trading Program base budget is 1,955,221tons for the 2020 allocation year.

D.The Rhode Island CO₂ Budget Trading Program base budget is 1,877,683 tons for the 2021 allocation year.

E.The Rhode Island CO₂ Budget Trading Program base budget is 1,820,783 tons for the 2022 allocation year.

F.The Rhode Island CO₂ Budget Trading Program base budget is 1,763,884 tons for the 2023 allocation year.

G.The Rhode Island CO₂ Budget Trading Program base budget is 1,706,986 tons for the 2024 allocation year.

H.The Rhode Island CO₂ Budget Trading Program base budget is 1,650,085 tons for the 2025 allocation year.

I.The Rhode Island CO₂ Budget Trading Program base budget is 1,593,186 tons for the 2026 allocation year.

J.The Rhode Island CO₂ Budget Trading Program base budget is 1,536,286 tons for the 2027 allocation year.

K.The Rhode Island CO₂ Budget Trading Program base budget is 1,479,387 tons for the 2028 allocation year.

L.The Rhode Island CO₂ Budget Trading Program base budget is 1,422,488 tons for the 2029 allocation year.

M.The Rhode Island CO₂ Budget Trading Program base budget is 1,365,588 tons for the 2030 allocation year.

N. The Rhode Island CO₂ Budget Trading Program base budget for the 2031 allocation year and future years will be established through amendments following future program review.

46.8.2Undistributed and unsold CO₂ allowances

A.The Department may retire undistributed CO₂ allowances at the end of each control period.

B.The Department may retire unsold CO₂ allowances at the end of each control period.

46.8.3CO₂ allowance allocations

A.The Department shall allocate to the Rhode Island Auction/Sale Account CO₂ allowances to be auctioned or sold in accordance with Part 47 of this Subchapter (CO₂ Budget Trading Program Allowance Distribution).

B.CO₂ Allowances available for allocation.

1.For the allocation year 2018 and each succeeding calendar year, the Rhode Island CO₂ Budget Trading Program adjusted budget shall be the maximum number of allowances available for allocation in a given allocation year, except for CO₂ CCR allowances. In any year in which there is no adjusted budget, the adjusted budget shall equal the base budget.

C.Cost Containment Reserve (CCR) allocation.

1.The Department shall allocate CO₂ CCR allowances, separate from and additional to the Rhode Island CO₂ Budget Trading Program base budget set forth in § 46.8.1 of this Part, to the Rhode Island 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 80,491 CO₂ CCR allowances for calendar year 2014.

b.On or before January 1, 2015, and each calendar year thereafter, through 2020, the Department or its agent shall allocate CO₂ CCR allowances in an amount equal to 160,987, minus the number of CO₂ CCR allowances that remain in the Rhode Island auction account at the end of the prior calendar year.

c.On or before January 1, 2021, and each year thereafter, the Department or its agent shall allocate current vintage year CCR allowances equal to the quantity in § 46.8.3(C)(1)(c)((1)) of this Part (Table 3), and withdraw the number of CO₂ CCR allowances that remain in the Rhode Island auction account at the end of the prior calendar year:

46.9.1Authorization and responsibilities of the CO₂ authorized account representative

A.Except as provided under § 46.9.2 of this Part, each CO₂ budget source, including all CO₂ budget units at the source, shall have one and only one CO₂ authorized account representative, with regard to all matters under the CO₂ Budget Trading Program concerning the source or any CO₂ budget unit at the source.

B.The 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 § 46.9.5 of this Part.

C.Upon receipt, by the Department or its agent, of a complete account certificate of representation under § 46.9.5 of this Part, the CO₂ authorized account representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CO₂ budget source represented and each CO₂ budget unit at the source in all matters pertaining to the CO₂ Budget Trading Program, notwithstanding any agreement between the CO₂ authorized account representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CO₂ authorized account representative by the Department or a court regarding the source or unit.

D.No CO₂ budget permit shall be issued, and no CO₂ Allowance Tracking System account shall be established for a CO₂ budget source, until the Department or its agent has received a complete account certificate of representation under § 46.9.5 of this Part, for a CO₂ authorized account representative of the source and the CO₂ budget units at the source.

E.Each submission under the CO₂ Budget Trading Program shall be submitted, signed, and certified by the CO₂ authorized account representative for each CO₂ budget source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CO₂ authorized account representative:

1.“I am authorized to make this submission on behalf of the owners and 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 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.”

F.The Department or its agent will accept or act on a submission made on behalf of owners or operators of a CO₂ budget source or a CO₂ budget unit only if the submission has been made, signed, and certified in accordance with § 46.9.1(E) of this Part.

46.9.2CO₂ authorized alternate account representative

A.An account certificate of representation may designate one (1) and only one (1) 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 selected shall include a procedure for authorizing the CO₂ authorized alternate account representative to act in lieu of the CO₂ authorized account representative.

B.Upon receipt by the Department or its agent of a complete account certificate of representation under § 46.9.5 of this Part, any representation, action, inaction, or submission by the CO₂ authorized alternate account representative shall be deemed to be a representation, action, inaction, or submission by the CO₂ authorized account representative.

C.Except in this section and §§ 46.9.1(A), 46.9.3, 46.9.4, 46.9.5, and 46.12.2 of this Part, whenever the term “CO₂ authorized account representative” is used in this regulation, the term shall be construed to include the CO₂ authorized alternate account representative.

46.9.3Changing the CO₂ authorized account representative and the CO₂ authorized alternate account representative

A.CO₂ authorized account representative.

1.The CO₂ authorized account representative may be changed at any time upon receipt, by the Department or its agent, of a superseding complete account certificate of representation under § 46.9.5 of this Part. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO₂ authorized account representative or CO₂ authorized alternate account representative prior to the time and date when the Department or its agent receives the superseding account certificate of representation shall be binding on the new CO₂ authorized account representative and the owners and operators of the CO₂ budget source and the CO₂ budget units at the source.

B.CO₂ authorized alternate account representative.

1.The CO₂ authorized alternate account representative may be changed at any time upon receipt, by the Department or its agent, of a superseding complete account certificate of representation under § 46.9.5 of this Part. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO₂ authorized account representative or CO₂ authorized alternate account representative prior to the time and date when the Department or its agent receives the superseding account certificate of representation shall be binding on the new CO₂ authorized alternate account representative and the owners and operators of the CO₂ budget source and the CO₂ budget units at the source.

46.9.4Changes in the owners and operators

A.In the event a new owner or operator of a CO₂ budget source or a CO₂ budget unit is not included in the list of owners and operators submitted in the account certificate of representation, such 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 and any CO₂ authorized alternate account representative of the source or unit, and the decisions, orders, actions, and inactions of the Department, as if the new owner or operator were included in such list.

B.Within thirty (30) days following any change in the owners and operators of a CO₂ budget source or a CO₂ budget unit, including the addition of a new owner or operator, the CO₂ authorized account representative or CO₂ authorized alternate account representative shall submit a revision to the account certificate of representation amending the list of owners and operators to include the change.

46.9.5Account certificate of representation

A.A complete account certificate of representation for a CO₂ authorized account representative or an CO₂ authorized alternate account representative shall include the following elements in a format prescribed by the Department or its agent:

1.Identification of the CO₂ budget source and each CO₂ budget unit at the source for which the account certificate of representation is submitted.

2.The name, address, e-mail address, telephone number, and facsimile transmission number (if any) of the CO₂ authorized account representative and any CO₂ authorized alternate account representative.

3.A list of the owners and operators of the CO₂ budget source and of each CO₂ budget unit at the source.

4.The following certification statement by the CO₂ authorized account representative and any CO₂ authorized alternate account representative:

a.“I certify that I was selected as the CO₂ authorized account representative or CO₂ authorized alternate account representative, as applicable, by an agreement binding on the owners and 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 the CO₂ Budget Trading Program on behalf of the owners and operators of the CO₂ budget source and of each CO₂ budget unit at the source and that each such owner and 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.”

5.The signature of the CO₂ authorized account representative and any CO₂ authorized alternate account representative and the dates signed.

B.Unless otherwise required by the Department or its agent, documents of agreement referred to in the account certificate of representation 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.

46.9.6Objections concerning the CO₂ authorized account representative

A.Once a complete account certificate of representation under § 46.9.5 of this Part, has been submitted and received, the Department and its agent will rely on the account certificate of representation unless and until the Department or its agent receives a superseding complete account certificate of representation under § 46.9.5 of this Part.

B.Except as provided in §§ 46.9.3(A) or (B) of this Part, 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 shall affect any representation, action, inaction, or submission of the CO₂ authorized account representative or the finality of any decision or order by the Department or its agent under the CO₂ Budget Trading Program.

C.The Department will not adjudicate the interest of private parties including but not limited to those concerning the authorization or any representation, action, inaction, or submission of any CO₂ authorized account representative, including private legal disputes concerning the proceeds of CO₂ allowance transfers.

46.9.7Delegation by CO₂ authorized account representative and CO₂ authorized alternate account representative

A.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 under this regulation.

B.An 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 under this regulation.

C.In order to delegate authority to make an electronic submission to the Department or its agent in accordance with §§ 46.9.7(A) and (B) of this Part, the CO₂ authorized account representative or CO₂ authorized alternate account representative, as appropriate, shall submit to the Department or its agent a notice of delegation, in a format prescribed by the Department that includes the following elements:

1.The name, address, e-mail address, telephone number, and facsimile transmission number (if any) of such CO₂ authorized account representative or CO₂ authorized alternate account representative.

2.The name, address, e-mail address, telephone number and facsimile transmission number (if any) of each such natural person, herein referred to as the “electronic submission agent”.

3.For each such natural person, a list of the type of electronic submissions under §§ 46.9.7(A) and (B) of this Part for which authority is delegated to them.

4.The following certification statements by such CO₂ authorized account representative or CO₂ authorized alternate account representative:

a.“I agree that any electronic submission to the Department or its agent that is by a natural person identified in this notice of delegation and of a type listed for such electronic submission agent in this notice of delegation and that is made when 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 250-RICR-120-05-46.9.7(D) (CO₂ Budget Trading Program) shall be deemed to be an electronic submission by me.”

b.“Until this notice of delegation is superseded by another notice of delegation under 250-RICR-120-05-46.9.7(D) (CO₂ Budget Trading Program), 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 250-RICR-120-05-46.9.7 (CO₂ Budget Trading Program) is terminated.”

D.A notice of delegation, submitted under § 46.9.7(C) of this Part, 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 superseding notice of delegation by such CO₂ authorized account representative or CO₂ authorized alternate account representative as appropriate. 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.

E.Any electronic submission covered by the certification in § 46.9.7(C)(4)(a) of this Part and made in accordance with a notice of delegation effective under § 46.9.7(D) of this Part 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.

F.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 § 46.9.7 of this Part.

G.A CO₂ authorized alternate account representative may delegate, to one or more natural persons, his or her authority to review information in the CO₂ allowance tracking system under § 46.9.7 of this Part.

H.In order to delegate authority to review information in the CO₂ allowance tracking system in accordance with §§ 46.9.7(F) and (G) of this Part, 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 the following elements:

1.The name, address, e-mail address, telephone number, and facsimile transmission number of such CO₂ authorized account representative or CO₂ authorized alternate account representative;

2.The name, address, e-mail address, telephone number, and facsimile transmission number of each such natural person, herein referred to as the "reviewer";

3.For each such natural person, a list of the type of information under §§ 46.9.7(F) and (G) of this Part for which authority is delegated to him or her; and

4.The following certification statements by such CO₂ authorized account representative or CO₂ authorized alternate account representative;

a."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 CO₂ authorized alternate account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under 250-RICR-120-05-46.9.7(I) (CO2 Budget Trading Program) shall be deemed to be a reviewer by me."

b."Until this notice of delegation is superseded by another notice of delegation under 250-RICR-120-05-46.9.7(I) (CO2 Budget Trading Program). 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 and until all delegation authority by me under 250-RICR-120-05-46.9 (CO2 Budget Trading Program) is terminated."

I.A notice of delegation submitted under § 46.9.7(H) of this Part 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 superseding notice of delegation by such CO₂ authorized account representative or CO₂ authorized alternate account representative as appropriate. The superseding notice of delegation may replace any previously identified reviewer, add a new reviewer, or eliminate entirely any delegation of authority.

46.10.1Permit requirements

A.Each CO₂ budget permit source and each CO₂ budget unit must have a CO₂ budget permit issued under the requirements of this regulation and shall:

1.Submit, to the Department, a complete CO₂ budget permit application under § 46.10.3 of this Part, in accordance with the deadline specified in § 46.10.2 of this Part; and

2.Submit, in a timely manner, any supplemental information that the Department determines is necessary in order to review a CO₂ budget permit application and issue or deny a CO₂ budget permit.

B.The owners and operators of each CO₂ budget source and each CO₂ budget unit shall operate the CO₂ budget source and CO₂ budget unit in compliance with the requirements of such CO₂ budget permit.

C.Each CO₂ budget permit is deemed to incorporate automatically the definitions of terms under § 46.5 of this Part.

46.10.2Submission of CO₂ budget permit applications

The CO₂ authorized account representative of any CO₂ budget source shall submit, to the Department or its agent, a complete CO₂ budget permit application under § 46.10.3 of this Part by January 1, 2009, or twelve (12) months before the date on which the CO₂ budget source, or a new unit at the source, commences operation, whichever is later.

46.10.3CO₂ budget permit applications

A.A complete CO₂ budget permit application shall include the following elements concerning the CO₂ budget source for which the application is submitted, in a format prescribed by the Department:

B.Identification of the CO₂ budget source, including plant name and the ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration of the United States Department of Energy, if applicable;

C.Identification of each CO₂ budget unit at the CO₂ budget source;

D.An output monitoring plan that meets the requirements in § 46.14.7(C) of this Part; and

E.Any other information requested by the Department.

46.10.4CO₂ budget permit revisions

If the CO₂ budget source is required to have a 42 U.S.C. §§ 7661-7661f (CAA §§ 501-507))operating permit under Part 29 of this Subchapter (Operating Permits), the CO₂ budget portion of the 42 U.S.C. §§ 7661-7661f (CAA §§ 501-507) operating permit shall be modified in accordance with the procedures in Part 29 of this Subchapter (Operating Permits).

46.10.5Duty to reapply

A.For a CO₂ budget source required to have a 42 U.S.C. §§ 7661-7661f (CAA §§ 501-507) operating permit, the CO₂ authorized account representative shall submit a complete CO₂ budget permit application under § 46.10.3 of this Part, for the CO₂ budget source covering the CO₂ budget units at the source in accordance with the provisions of Part 29 of this Subchapter (Operating Permits) addressing permit renewals.

B.For a CO₂ budget source not required to have a 42 U.S.C. §§ 7661-7661f (CAA §§ 501-507) operating permit, the CO₂ authorized account representative shall submit a complete CO₂ budget permit application under § 46.10.3 of this Part, for the CO₂ budget source covering the CO₂ budget units at the source in accordance with the provisions of Rhode Island Air Pollution Control Regulation Part 29 of this Subchapter (Operating Permits) addressing permit renewals.

46.11.1Submission of CO₂ allowance transfers

A.The CO₂ authorized account representatives seeking recordation of a CO₂ allowance transfer shall submit the transfer to the Department or its agent. To be considered correctly submitted, the CO₂ allowance transfer shall include the following elements in a format specified by the Department or its agent:

1.Both the transferor and transferee accounts;

2.A specification by serial number 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 of the completion of the last sale or purchase transaction for the allowance, if any; and

5.The purchase or sale price of the allowance that is the subject of a sale or purchase transaction under § 46.11.1(A)(4) of this Part.

46.11.2Recordation

A.Within five (5) business days of receiving a CO₂ allowance transfer, except as provided in § 46.11.2(B) of this Part, the Department or its agent will record a CO₂ allowance transfer by moving each CO₂ allowance from the transferor account to the transferee account as specified by the request, provided that:

1.The transfer is correctly submitted under § 46.11.1 of this Part;

2.The transferor account includes each CO₂ allowance identified by serial number in the transfer; and

3.The transfer meets all other requirements of this regulation.

B.A CO₂ allowance transfer into or out of a compliance account that is submitted for recordation following the CO₂ allowance transfer deadline, as defined in § 46.5(A)(22) of this Part, and that includes any CO₂ allowances that are of allocation years that fall within a control period or interim control period prior to or the same as the control period or interim control period to which the CO₂ allowance transfer deadline applies will not be recorded until after completion of the process pursuant to § 46.12.5(B) of this Part.

C.Where a CO₂ allowance transfer submitted for recordation fails to meet the requirements of § 46.11.2(A) of this Part, the Department or its agent will not record such transfer.

46.11.3Notification

A.Notification of recordation.

1.The Department or its agent will notify each party to the transfer within five (5) business days of recordation of a CO₂ allowance transfer under § 46.11.2 of this Part. Notice will be given to the CO₂ authorized account representatives of both the transferor and transferee accounts.

B.Notification of non-recordation.

1.The Department or its agent will notify the CO₂ authorized account representatives of both accounts subject to the transfer of the following within ten (10) business days of receipt of a CO₂ allowance transfer that fails to meet the requirements of § 46.11.2(A) of this Part:

a.A decision not to record the transfer, and

b.The reasons for such non-recordation.

C.Nothing in this section shall preclude the submission of a CO₂ allowance transfer for recordation following notification of non-recordation. All submissions of CO₂ allowances following notification of non-recordation are subject to the provisions of § 46.11 of this Part.

46.12.1CO₂ Allowance Tracking System accounts

A.Nature and function of compliance accounts.

1.Consistent with § 46.12.2(A) of this Part, the Department or its agent will establish one compliance account for each CO₂ budget source. Deductions or transfers of CO₂ allowances pursuant to §§ 46.11, 46.12.5, 46.12.7, or 46.15.2 of this Part will be recorded in the compliance accounts in accordance with § 46.12 of this Part.

B.Nature and function of general accounts.

1.Consistent with § 46.12.2(B) of this Part, the Department or its agent will establish, upon request, a general account for any person. Transfers of CO₂ allowances pursuant to § 46.11 of this Part, will be recorded in the general account in accordance with § 46.11 of this Part.

46.12.2Establishment of accounts

A.Compliance accounts.

1.Upon receipt of a complete account certificate of representation under § 46.9.5 of this Part, the Department or its agent will establish a compliance account for each CO₂ budget source for which the account certificate of representation was submitted.

B.General accounts.

1.Application for general account.

a.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 selected 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 the following elements in a format prescribed by the Department or its agent:

(1)Name, mailing address, e-mail address, telephone number, and facsimile transmission number (if any) of the CO₂ authorized account representative and any CO₂ authorized alternate account representative;

(2)At the option of the CO₂ authorized account representative, organization name and type of organization;

(3)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;

(4)The following certification statement by the CO₂ authorized account representative and any CO₂ authorized alternate account representative:

(AA)“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.”

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

(6)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.

2.Authorization of CO₂ authorized account representative.

a.Upon receipt by the Department or its agent of a complete application for a general account under § 46.12.2(B)(1) of this Part:

(1)The Department or its agent will establish a general account for the person or persons for whom the application is submitted.

(2)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.

(3)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.

b.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:

(1)“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.

c.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 § 46.12.2(B)(2)(b) of this Part.

3.Changing CO₂ authorized account representative and CO₂ authorized alternate account representative; changes in persons with ownership interest.

a.The CO₂ authorized account representative for a general account may be changed at any time upon receipt, by the Department or its agent, of a superseding complete application for a general account under § 46.12.2(B)(1) of this Part. Notwithstanding 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 a 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.

b.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 superseding complete application for a general account under § 46.12.2(B)(1) of this Part. Notwithstanding 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 a 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.

c.In the event a new person having an ownership interest with respect to CO₂ allowances in the general account 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 a 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.

d.Within thirty (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 any CO₂ authorized alternate 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.

4.Objections concerning CO₂ authorized account representative.

a.Once a complete application for a general account under § 46.12.2(B)(1) of this Part has been submitted and received, the Department or its agent will rely on the application unless and until a superseding complete application for a general account under § 46.12.2(B)(1) of this Part is received by the Department or its agent.

b.Except as provided in §§ 46.12.2(B)(3)(a) and (b) of this Part, 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.

c.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.

5.Delegation by CO₂ authorized account representative and CO₂ authorized alternate account representative.

a.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 §§ 46.11 and 46.12 of this Part.

b.An CO₂ authorized alternate account representative may delegate, to one or more natural person, his or her authority to make an electronic submission to the Department or its agent provided for under §§ 46.11 and 46.12 of this Part.

c.In order to delegate authority to make an electronic submission to the Department or its agent in accordance with §§ 46.12.2(B)(5)(a) and (b) of this Part, 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 the following elements:

(1)The name, address, e-mail address, telephone number, and facsimile transmission number (if any) of such CO₂ authorized account representative or CO₂ authorized alternate account representative;

(2)The name, address, e-mail address, telephone number and facsimile transmission number (if any) of each such natural person, herein referred to as “electronic submission agent”;

(3)For each such natural person, a list of the type of electronic submissions under §§ 46.12.2(A) or (B) of this Part for which authority is delegated to them; and

(4)The following certification statements by such CO₂ authorized account representative or CO₂ authorized alternate account representative:

(AA)“I agree that any electronic submission to the Department or its agent that is by a natural person identified in this notice of delegation and of a type listed for such electronic submission agent in this notice of delegation and that is made when 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 250-RICR-120-05-46.12.2(B)(5)(d) (CO2 Budget Trading Program) shall be deemed to be an electronic submission by me.”

(BB)“Until this notice of delegation is superseded by another notice of delegation under 250-RICR-120-05-46.12.2(B)(5)(d) (CO2 Budget Trading Program), 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 250-RICR-120-05-46.12.2(B)(5) (CO2 Budget Trading Program) is terminated.”

d.A notice of delegation submitted under § 46.12.2(B)(5)(c) of this Part 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 superseding notice of delegation by such CO₂ authorized account representative or CO₂ authorized alternate account representative as appropriate. 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.

e.Any electronic submission covered by the certification in § 46.12.2(B)(5)(c)((4))(AA) of this Part and made in accordance with a notice of delegation effective under § 46.12.2(B)(5)(d) of this Part 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.

C.Account identification.

1.The Department or its agent will assign a unique identifying number to each account established under §§ 46.12.2(A) or (B) of this Part.

46.12.3CO₂ Allowance Tracking System responsibilities of CO₂ authorized account representative

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.

46.12.4Recordation of CO₂ allowance allocations

A.By January 1 of each calendar year, the Department or its agent will record in the Rhode Island Auction/Sale Account, the CO₂ allowances allocated for auction/sale in that year.

B.By January 1 of each calendar year, the Department or its agent will record in the Voluntary Renewable Energy Market Set-aside Account, the CO₂ allowances allocated for the Voluntary Renewable Energy Market Set-aside in that year.

C.Serial numbers for allocated CO₂ allowances.

1.When allocating CO₂ allowances 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.

46.12.5Compliance

A.Allowances available for compliance deduction.

1.CO₂ allowances that meet the following criteria are available to be deducted in order for a CO₂ budget source to comply with the CO₂ requirements for a control period or an interim control period of § 46.7(A) of this Part.

a.The CO₂ allowances, other than CO₂ offset allowances, are of allocation years that fall within a prior control period, the same control period, or the same interim control period for which the allowances will be deducted.

b.The CO₂ allowances are held in the CO₂ budget source’s compliance account as of the CO₂ allowance transfer deadline, as defined in § 46.5(A)(22) of this Part, for that control period or interim control period are transferred into the compliance account by a CO₂ allowance transfer correctly submitted for recordation under § 46.11.1 of this Part, by the CO₂ allowance transfer deadline for that control period or interim control period.

c.For CO₂ offset allowances, the number of CO₂ offset allowances that are available to be deducted in order for a CO₂ budget source to comply with the CO₂ requirements of § 46.7(A) of this Part, for a control period or interim control period may not exceed 3.3 percent (3.3%) of the CO₂ budget source’s CO₂ emissions for that control period, or 3.3 percent of 0.50 times the CO₂ budget source’s CO₂ emissions for an interim control period, as determined in accordance with §§ 46.12 through 46.14 of this Part.

d.The CO₂ allowances are not necessary for deductions for excess emissions for a prior control period under § 46.12.5(D) of this Part.

B.Deductions for compliance.

1.Following the recordation, in accordance with § 46.11.2 of this Part, of CO₂ allowance transfers submitted for recordation in the CO₂ budget source’s compliance account by the CO₂ allowance transfer deadline for a control period, or interim control period, the Department or its agent will deduct CO₂ allowances available under § 46.12.5(A)(1) of this Part to cover the source’s CO₂ emissions (as determined in accordance with §§ 46.13 and 46.14 of this Part) for the control period, or interim control period as follows:

a.Until the amount of CO₂ allowances deducted equals the number of tons of total CO₂ emissions (or 0.50 times the number of tons of total CO₂ emissions for an interim control period), less any CO₂ emissions attributable to the burning of eligible biomass, determined in accordance with §§ 46.13 and 46.14 of this Part, from all CO₂ budget units at the CO₂ budget source for the control period or interim control period; or

b.If there are insufficient CO₂ allowances to complete the deductions in § 46.12.5(B)(1) of this Part, until no more CO₂ allowances available under § 46.12.5(B)(1)(a) of this Part remain in the compliance account.

C.Identification of available CO₂ allowances by serial number; default compliance deductions.

1.The CO₂ authorized account representative for a source’s compliance account may request that specific CO₂ allowances, identified by serial number, in the compliance account be deducted for emissions or excess emissions for a control period or interim control period in accordance with §§ 46.12.5(B) or (D) of this Part. Such identification shall be made in the compliance certification report submitted in accordance with § 46.15.1 of this Part.

2.In the absence of an identification or in the case of a partial identification of available CO2 allowances by serial number, the Department or its agent will deduct CO₂ allowances, for a control period or interim control period, from the CO₂ budget source’s compliance account under § 46.12.5(C)(1) of this Part, in the following order:

a.First, subject relevant compliance deduction limitations under §§ 46.12.5(A)(1)(c) and 46.12.5(D)(1) of this Part, CO₂ offset allowances. CO₂ offset allowances shall be deducted in chronological order (i.e., CO₂ offset allowances from earlier allocation years shall be deducted before CO₂ offset allowances from later allocation years). In the event that some, but not all, CO₂ offset allowances from a particular allocation year are to be deducted, CO₂ offset allowances shall be deducted by serial number, with lower serial number allowances deducted before higher serial number allowances.

b.Second, any CO₂ allowances, other than CO₂ offset allowances that are available for deduction under § 46.12.5(A)(1) of this Part, shall be deducted in chronological order (i.e., CO₂ allowances from earlier allocation years shall be deducted before CO₂ allowances from later allocation years). In the event that some, but not all, CO₂ allowances from a particular allocation year are to be deducted, CO₂ allowances shall be deducted by serial number, with lower serial number allowances deducted before higher serial number allowances.

D.Deductions for excess emissions.

1.After making the deductions for compliance under § 46.12.5(B) of this Part, the Department or its agent will deduct, from the CO₂ budget source’s compliance account, a number of CO₂ allowances from allocation years that occur after the control period in which the source has excess emissions, equal to three (3) times the number of the source’s excess emissions. In the event that a source has insufficient CO₂ allowances to cover three (3) times the number of the source’s excess emissions, the source shall be required to immediately transfer sufficient allowances into its compliance account. No CO₂ offset allowances may be deducted to account for the source’s excess emissions.

2.Any CO₂ allowance deduction required under § 46.12.5(D)(1) of this Part shall not affect the liability of the owners and operators of the CO₂ budget source or the CO₂ units at the source for any fine, penalty, or assessment, or their obligation to comply with any other remedy, for the same violation, as ordered under applicable State law. The following guidelines will be followed in assessing fines, penalties or other obligations:

a.For purposes of determining the number of days of violation, if a CO₂ budget source has excess emissions for a control period, each day in the control period constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered. The Department or its agent will have complete discretion to determine if the owner or operator of the unit demonstrated that a lesser number of days should be used.

b.Each ton of excess emissions is a separate violation.

c.For purposes of determining the number of days of violation, if a CO₂ budget source has excess interim emissions for an interim control period, each day in the interim control period constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered.

d.Each ton of excess interim emissions is a separate violation.

3.The propriety of the Department’s determination that a CO₂ budget source had excess emissions and the associated deduction of CO₂ allowances from that CO₂ budget source’s account may be later challenged in the context of an administrative enforcement, or any civil or criminal judicial action arising from or encompassing that excess emissions violation. The commencement or pendency of any administrative enforcement, or civil or criminal judicial action arising from or encompassing that excess emissions violation will not act to prevent the Department or its agent from initially deducting the CO₂ allowances resulting from the Department’s original determination that the relevant CO₂ budget source has had excess emissions. Should the Department’s determination of the existence or extent of the CO₂ budget source’s excess emissions be revised either by a settlement or final conclusion of any administrative or judicial action, the Department shall:

a.In any instance where the Department’s determination of the extent of excess emissions was too low, the Department will take further action under §§ 46.12.5(D)(1) and (2) of this Part to address the expanded violation.

b.In any instance where the Department’s determination of the extent of excess emissions was too high, the Department will distribute, to the relevant CO₂ budget source, a number of CO₂ allowances equaling the number of CO₂ allowances deducted which are attributable to the difference between the original and final quantity of excess emissions. Should such CO₂ budget source’s compliance account no longer exist, the CO₂ allowances will be provided to a general account selected by the owner or operator of the CO₂ budget source.

E.The Department will record, in the appropriate compliance account, all deductions from such an account pursuant to §§ 46.12.5(B) and (D) of this Part.

F.Action by the Department on submissions.

1.The Department may review and conduct independent audits concerning any submission under the CO₂ Budget Trading Program and make appropriate adjustments of the information in the submissions.

2.The Department may deduct CO₂ allowances from or transfer CO₂ allowances to a source’s compliance account based on information in the submissions, as adjusted under § 46.12.5(F)(1) of this Part.

46.12.6Banking

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 §§ 46.11, 46.12.5, 46.12.7, or 46.15.2 of this Part.

46.12.7Account error

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

46.12.8Closing of general accounts

A.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 by correctly submitting for recordation under § 46.11.1 of this Part, a CO₂ allowance transfer of all CO₂ allowances in the account to one or more other CO₂ Allowance Tracking System accounts.

B.If a general account shows no activity for a period of one (1) 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 thirty (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 § 46.11.1 of this Part, 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 owner or operator of the unit demonstrated that the account should not be closed.

46.13.1Monitoring requirements

A.The owners and operators, and to the extent applicable, the CO₂ authorized account representative of a CO₂ budget unit, shall comply with the monitoring requirements as provided in this subsection and all applicable sections of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part. Where referenced in §§ 46.13 and 46.14 of this Part, the monitoring requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part shall be adhered to in a manner consistent with the purpose of monitoring and reporting CO₂ mass emissions pursuant to this regulation. For purposes of complying with such requirements, the definitions in § 46.5 of this Part and in 40 C.F.R. § 72.2, shall apply, and the terms ‘‘affected unit’’, ‘‘designated representative’’, and ‘‘continuous emissions monitoring system" or "CEMS’’ in 40 C.F.R. § 75 shall be replaced by the terms ‘‘CO₂ budget unit,’’ ‘‘CO₂ authorized account representative,’’ and ‘‘continuous emissions monitoring system" or "CEMS’’, respectively, as defined in §§ 46.5(A)(29), (23), and (40) of this Part. For units not subject to an Acid Rain emissions limitation, the term “Administrator” in 40 C.F.R. § 75 shall be replaced with “the Department or its agent”. Owners or operators of a CO₂ budget unit who monitor a unit that is not a CO₂ budget unit pursuant to the common, multiple, or bypass stack procedures in 40 C.F.R. § 75.72(b)(2)(ii) incorporated in § 46.4(A) of this Part, or 40 C.F.R. § 75.16(b)(2)(ii)(B) incorporated in § 46.4(A) of this Part, as pursuant to 40 C.F.R. § 75.13 incorporated in § 46.4(A) of this Part, for purposes of complying with this regulation shall monitor and report CO₂ mass emissions from such unit that is not a CO₂ budget units according to the procedures for CO₂ budget units established in §§ 46.13 and 46.14 of this Part.

B.The emissions measurements recorded and reported in accordance with this section shall be used to determine compliance by the unit with the CO₂ requirements of § 46.7(A) of this Part.

46.13.2General requirements

A.Requirements for installation, certification, and data accounting.

1.The owner or operator of each CO₂ budget unit shall meet the following requirements.

a.Install all monitoring systems necessary to monitor CO₂ mass emissions in accordance with 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, except for equation G-1. Equation G-1 in Appendix G shall not be used to determine CO₂ emissions under this section. This may require systems to monitor CO₂ concentration, stack gas flow rate, O₂ concentration, heat input, and fuel flow rate.

b.Successfully complete all certification tests required under § 46.13.3 of this Part and meet all other requirements of § 46.13.2 of this Part and 40 C.F.R. § 75, incorporated in § 46.4(A) of this Part, applicable to the monitoring systems under § 46.13.2(A)(1)(a) of this Part.

c.Record, report and quality-assure the data from the monitoring systems under § 46.13.2(A)(1)(a) of this Part.

B.Compliance dates.

1.The owner or operator of a CO₂ budget unit shall meet the monitoring system certification and other requirements of § 46.13.2(A)(1)(a) through (c) of this Part on or before the following dates. The owner or operator of a CO₂ budget unit shall record, report and quality-assure the data from the monitoring systems under § 46.13.2(A)(1)(a) of this Part on and after the following dates:

a.The owner or operator of a CO₂ budget unit, except for a CO₂ budget unit under § 46.13.2(B)(1)(b) of this Part, that commences commercial operation before July 1, 2008, must comply with the requirements of § 46.13 of this Part by January 1, 2009.

b.The owner or operator of a CO₂ budget unit that commences commercial operation on or after July 1, 2008, must comply with the requirements of § 46.13 of this Part by the later of the following dates:

(1)January 1, 2009; or

(2)The earlier of:

(AA)Ninety (90) unit operating days after the date on which the unit commences commercial operation; or

(BB)One hundred eighty (180) calendar days after the date on which the unit commences commercial operation.

c.For the owner or operator of a CO₂ budget unit for which construction of a new stack or flue installation is completed after the applicable deadline under §§ 46.13.2(B)(1)(a) or (b) of this Part by the earlier of:

(1)Ninety (90) unit operating days after the date on which emissions first exit to the atmosphere through the new stack or flue; or

(2)One hundred eighty (180) calendar days after the date on which emissions first exit to the atmosphere through the new stack or flue.

C.Reporting data.

1.Except as provided in § 46.13.2(C)(2) of this Part, the owner or operator of a CO₂ budget unit that does not meet the applicable compliance date set forth in §§ 46.13.2(B)(1)(a) through (c) of this Part for any monitoring system under § 46.13.2(A)(1)(a) of this Part shall, for each such monitoring system, determine, record, and report maximum potential (or as appropriate minimum potential) values for CO₂ concentration, CO₂ emissions rate, stack gas moisture content, fuel flow rate, heat input, and any other parameter required to determine CO₂ mass emissions in accordance with 40 C.F.R. § 75.31(b)(2) or (c)(3) incorporated in § 46.4(A) of this Part, or 40 C.F.R. § 75, Section 2.4, Appendix D incorporated in § 46.4(A) of this Part as applicable.

2.The owner or operator of a CO₂ budget unit that does not meet the applicable compliance date set forth in § 46.13.2(B)(1)(c) of this Part for any monitoring system under § 46.13.2(A)(1)(a) of this Part shall, for each such monitoring system, determine, record, and report substitute data using the applicable missing data procedures in 40 C.F.R. § 75, Subpart D or Appendix D incorporated in § 46.4(A) of this Part, in lieu of the maximum potential (or as appropriate minimum potential) values for a parameter if the owner or operator demonstrates that there is continuity between the data streams for that parameter before and after the construction or installation under § 46.13.2(B)(1)(c) of this Part.

a.CO₂ budget units subject to an acid rain emissions limitation or CSAPR NOx Ozone Season Trading Program that qualify for the optional SO₂, NOx, and CO₂ (for acid rain) or NOx CSAPR NOx Ozone Season Trading Program emissions calculations for low mass emissions (LME) units under 40 C.F.R. § 75.19, and report emissions for such programs using the calculations under 40 C.F.R. § 75.19 incorporated in § 46.4(A) of this Part, shall also use the CO₂ emissions calculations for LME units under 40 C.F.R. § 75.19, incorporated in § 46.4(A) of this Part, for purposes of compliance with this regulation.

b.CO₂ budget units subject to an acid rain emissions limitation or that do not qualify for the optional SO₂, NOx, and CO₂ (for acid rain) or NOx CSAPR NOx Ozone Season Trading Program emissions calculations for LME units under 40 C.F.R. § 75.19, shall not use the CO₂ emissions calculations for LME units under 40 C.F.R. § 75.19 for purposes of compliance with this regulation.

c.CO₂ budget units not subject to an acid rain emissions limitation or CSAPR NOx Ozone Season Trading Program shall qualify for the optional CO₂ emissions calculation for LME units under 40 C.F.R. § 75.19, provided that they emit less than one hundred (100) tons of NOx annually and no more than twenty-five (25) tons of SO₂ annually.

D.Prohibitions.

1.No owner or operator of a CO₂ budget unit shall use any alternative monitoring system, alternative reference method, or any other alternative for the required continuous emissions monitoring system without having obtained prior written approval in accordance with § 46.14.5 of this Part.

2.No owner or operator of a CO₂ budget unit shall operate the unit so as to discharge, or allow to be discharged, CO₂ emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of § 46.13 of this Part and 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part.

3.No owner or operator of a CO₂ budget unit shall disrupt the continuous emissions monitoring system, any portion thereof, or any other approved emissions monitoring method, and thereby avoid monitoring and recording CO₂ mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of § 46.13 of this Part and 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part.

4.No owner or operator of a CO₂ budget unit shall retire or permanently discontinue use of the continuous emissions monitoring system, any component thereof, or any other approved emissions monitoring system under § 46.13 of this Part, except under any one of the following circumstances:

a.The owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of § 46.13 of this Part and 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, by the Department for use at that unit that provides emissions data for the same pollutant or parameter as the retired or discontinued monitoring system; or

b.The CO₂ authorized account representative submits notification of the date of certification testing of a replacement monitoring system in accordance with § 46.13.3(D)(3)(a)((1)) of this Part.

46.13.3Initial certification and recertification procedures

A.The owner or operator of a CO₂ budget unit shall be exempt from the initial certification requirements of § 46.13.3 of this Part for a monitoring system under § 46.13.1(A) of this Part, if the following conditions are met:

1.The monitoring system has been previously certified in accordance with 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part; and

2.The applicable quality-assurance and quality-control requirements of 40 C.F.R. § 75.21 incorporated in § 46.4(A) of this Part and 40 C.F.R. § 75, Appendix B and Appendix D incorporated in § 46.4(A) of this Part, are fully met for the certified monitoring system described in § 46.13.3(A)(1) of this Part.

B.The recertification provisions of § 46.13.3 of this Part shall apply to a monitoring system under § 46.13.2(A)(1)(a) exempt from initial certification requirements under § 46.13.3(A) of this Part.

C.Notwithstanding § 46.13.3(A) of this Part, if the Administrator has previously approved a petition under 40 C.F.R. § 75.72(b)(2)(ii) or 40 C.F.R. § 75.16(b)(2)(ii)(B) as pursuant to 40 C.F.R. § 75.13 for apportioning the CO₂ emissions rate measured in a common stack or a petition under 40 C.F.R. § 75.66 for an alternative requirement in 40 C.F.R. § 75, the CO₂ authorized account representative shall submit the petition to the Department under § 46.14.5(A) of this Part, to determine whether the approval applies under this program.

D.Except as provided in § 46.13.3(A) of this Part, the owner or operator of a CO₂ budget unit shall comply with the following initial certification and recertification procedures for a continuous emissions monitoring system and an excepted monitoring system under 40 C.F.R. § 75, Appendix D incorporated in § 46.4(A) of this Part, and under § 46.13.2(A)(1)(a) of this Part. The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology in 40 C.F.R. § 75.19 or that qualifies to use an alternative monitoring system under 40 C.F.R. § 75, Subpart E shall comply with the procedures in §§ 46.13.3(E)(1) or (F)(1) of this Part, respectively.

1.Requirements for initial certification.

a.The owner or operator shall ensure that each monitoring system required under § 46.13.2(A)(1)(a) of this Part, (which includes the automated data acquisition and handling system) successfully completes all of the initial certification testing required under 40 C.F.R. § 75.20 incorporated in § 46.4(A) of this Part. The owner or operator shall ensure that all applicable certification tests are successfully completed by the deadlines specified in § 46.13.2(B) of this Part. In addition, whenever the owner or operator installs a monitoring system in order to meet the requirements of § 46.13 of this Part in a location where no such monitoring system was previously installed, initial certification in accordance with 40 C.F.R. § 75.20 incorporated in § 46.4(A) of this Part is required.

2.Requirements for recertification.

a.Whenever the owner or operator makes a replacement, modification, or change in a certified monitoring system that the Administrator or the Department determines significantly affects the ability of the system to accurately measure or record CO₂ mass emissions or to meet the requirements of 40 C.F.R. § 75.21 or 40 C.F.R. § 75 Appendix B, the owner or operator shall recertify the monitoring system according to 40 C.F.R. § 75.20(b) incorporated in § 46.4(A) of this Part.

b.For systems using stack measurements such as stack flow, stack moisture content, CO₂ or O₂ monitors, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit’s operation that the Administrator or the Department determines to significantly change the flow or concentration profile, the owner or operator shall recertify the continuous emissions monitoring system according to 40 C.F.R. § 75.20(b) incorporated in § 46.4(A) of this Part. Examples of changes which require recertification include: replacement of the analyzer, change in location or orientation of the sampling probe or site, or changing of flow rate monitor polynomial coefficients.

3.Approval process for initial certifications and recertification.

a.§§ 46.13.3(D)(3)(a)((1)) through ((4)) of this Part apply to both initial certification and recertification of a monitoring system under § 46.13.2(A)(1)(a) of this Part. For re-certifications, replace the words “certification” and “initial certification” with the word “recertification,” replace the word “certified” with “recertified,” and proceed in the manner prescribed in 40 C.F.R. § 75.20(b)(5) and (g)(7) incorporated in § 46.4(A) of this Part in lieu of § 46.13.3(D)(3)(a)((5)) of this Part.

(1)Notification of certification - The CO₂ authorized account representative shall submit to the Department or its agent, the appropriate EPA Regional Office and the Administrator a written notice of the dates of certification in accordance with § 46.13.5 of this Part.

(2)Certification application - The CO₂ authorized account representative shall submit to the Department or its agent a certification application for each monitoring system. A complete certification application shall include the information specified in 40 C.F.R. § 75.63.

(3)Provisional certification data - The provisional certification date for a monitor shall be determined in accordance with 40 C.F.R. § 75.20(a)(3) incorporated in § 46.4(A) of this Part. A provisionally certified monitor may be used under the CO₂ budget Trading Program for a period not to exceed one hundred twenty (120) days after receipt, by the Department or its agent, of the complete certification application for the monitoring system or component thereof under § 46.13.3(D)(3)(a)((2)) of this Part. Data measured and recorded by the provisionally certified monitoring system or component thereof, in accordance with the requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, will be considered valid quality-assured data (retroactive to the date and time of provisional certification), provided that the Department or its agent does not invalidate the provisional certification by issuing a notice of disapproval within one hundred twenty (120) days of receipt of the complete certification application by the Department or its agent.

(4)Certification application approval process - The Department or its agent will issue a written notice of approval or disapproval of the certification application to the owner or operator within one hundred twenty (120) days of receipt of the complete certification application under § 46.13.3(D)(3)(a)((2)) of this Part. In the event the Department or its agent does not issue such a notice within such 120-day period, each monitoring system which meets the applicable performance requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part and is included in the certification application will be deemed certified for use under the CO₂ Budget Trading Program.

(AA)Approval notice - If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, then the Department or its agent will issue a written notice of approval of the certification application within one hundred twenty (120) days of receipt.

(BB)Incomplete application notice - If the certification application is not complete, the Department or its agent will issue a written notice of incompleteness that sets a reasonable date by which the CO₂ authorized account representative must submit the additional information required to complete the certification application. If the CO₂ authorized account representative does not comply with the notice of incompleteness by the specified date, the Department or its agent may issue a notice of disapproval under § 46.13.3(D)(3)(a)((4))((BB)) of this Part. The 120-day review period shall not begin before receipt of a complete certification application.

(CC)Disapproval notice - If the certification application shows that any monitoring system or component thereof does not meet the performance requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, or if the certification application is incomplete and the requirement for disapproval under § 46.13.3(D)(3)(a)((4))((CC)) of this Part is met, then the Department or its agent will issue a written notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional certification is invalidated by the Department or its agent and the data measured and recorded by each uncertified monitoring system or component thereof shall not be considered valid quality assured data beginning with the date and hour of provisional certification. The owner or operator shall follow the procedures for loss of certification in § 46.13.3(D)(3)(a)((5)) of this Part for each monitoring system or component thereof, which is disapproved for initial certification.

(DD)Audit decertification - The Department or its agent may issue a notice of disapproval of the certification status of a monitor in accordance with § 46.13.4(B) of this Part.

(5)Procedures for loss of certification - If the Department or its agent issues a notice of disapproval of a certification application under § 46.13.3(D)(3)(a)((4))((CC)) of this Part or a notice of disapproval of certification status under § 46.13.3(D)(3)(a)((4))((DD)) of this Part, then:

(AA)The owner or operator shall substitute the following values for each disapproved monitoring system, for each hour of unit operation during the period of invalid data beginning with the date and hour of provisional certification and continuing until the time, date, and hour specified under 40 C.F.R. § 75.20(a)(5)(i) or 40 C.F.R. § 75.20(g)(7)

(i)For units monitoring or intending to monitor, for CO₂ mass emissions using heat input or for units using the low mass emissions excepted methodology under 40 C.F.R. § 75.19, the maximum potential hourly heat input of the unit; or

(ii)For units monitoring or intending to monitor, for CO₂ mass emissions using a CO₂ pollutant concentration monitor and a flow monitor, the maximum potential concentration of CO₂ and the maximum potential flow rate of the unit under 40 C.F.R. § 75, Section 2.1 of Appendix A.

(BB)The CO₂ authorized account representative shall submit a notification of certification retest dates and a new certification application in accordance with §§ 46.13.3(D)(3)(a) ((1)) and ((2)) of this Part; and

(CC)The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the Department’s or its agent's notice of disapproval, no later than thirty (30) unit operating days after the date of issuance of the notice of disapproval.

E.Initial certification and recertification procedures for low mass emissions units using the excepted methodologies under § 46.13.2(C)(3) of this Part.

1.The owner or operator of a unit qualified to use the low mass emissions excepted methodology under § 46.13.2(C)(3) of this Part, shall meet the applicable certification and recertification requirements of 40 C.F.R. § 75.19(a)(2) incorporated in § 46.4(A) of this Part, 40 C.F.R. § 75.20(h) incorporated in § 46.4(A) of this Part, and § 46.13.3 of this Part. If the owner or operator of such a unit elects to certify a fuel flow meter system for heat input determinations, the owner or operator shall also meet the certification and recertification requirements in 40 C.F.R. § 75.20(g) incorporated in § 46.4(A) of this Part.

F.Certification/recertification procedures for alternative monitoring systems.

1.The CO₂ authorized account representative representing the owner or operator of each unit applying to monitor using an alternative monitoring system approved by the Administrator and, if applicable, the Department under 40 C.F.R. § 75 Subpart E, shall comply with the applicable notification and application procedures of 40 C.F.R. § 75.20(f) incorporated in § 46.4(A) of this Part.

46.13.4Out-of-control periods

A.Whenever any monitoring system fails to meet the quality assurance and quality control requirements or data validation requirements of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, data shall be substituted using the applicable procedures in 40 C.F.R. § 75, Subpart D or Appendix D incorporated in § 46.4(A) of this Part.

B.Audit decertification - Whenever both an audit of a monitoring system and a review of the initial certification or recertification application reveal that any monitoring system should not have been certified or recertified because it did not meet a particular performance specification or other requirement under § 46.13.3 of this Part or the applicable provisions of 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, both at the time of the initial certification or recertification application submission and at the time of the audit, the Department or Administrator will issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this paragraph, an audit shall be either a field audit or an audit of any information submitted to the Department or the Administrator. By issuing the notice of disapproval, the Department or Administrator revokes, prospectively, the certification status of the monitoring system. The data measured and recorded by the monitoring system shall not be considered valid, quality-assured data from the date of issuance of the notification of the revoked certification status until the date and time that the owner or operator completes subsequently approved initial certification or recertification tests for the monitoring system. The owner or operator shall follow the initial certification or recertification procedures in § 46.13.3 of this Part for each disapproved monitoring system.

46.13.5Notifications

The CO₂ authorized account representative for a CO₂ budget unit shall submit written notice to the Department and the Administrator in accordance with 40 C.F.R. § 75.61 incorporated in § 46.4(A) of this Part.

46.14.1General requirements

The CO₂ authorized account representative shall comply with all recordkeeping and reporting requirements in this section, the applicable record keeping and reporting requirements under 40 C.F.R. § 75.73 incorporated in § 46.4(A) of this Part and with the requirements of § 46.9.1(E) of this Part.

46.14.2Monitoring plans

The owner or operator of a CO₂ budget unit shall submit a monitoring plan in the manner prescribed in of 40 C.F.R. § 75.62 incorporated in § 46.4(A) of this Part.

46.14.3Certification applications 

The CO₂ authorized account representative shall submit an application to the Department or its agent within forty-five (45) days after completing all CO₂ monitoring system initial certification or recertification tests required under § 46.13.3 of this Part, including the information required under 40 C.F.R. § 75.63 and 40 C.F.R. § 75.53(g and (h), incorporated in § 46.4(A) of this Part.

46.14.4Quarterly reports

A.The CO₂ authorized account representative shall submit quarterly reports, as follows:

1.The CO₂ authorized account representative shall report the CO₂ mass emissions data for the CO₂ budget unit, in an electronic format prescribed by the Administrator, unless otherwise prescribed by the Department, for each calendar quarter beginning with:

a.For a unit that commences commercial operation before July 1, 2008, the calendar quarter covering January 1, 2009, through March 31, 2009; or

b.For a unit commencing commercial operation on or after July 1, 2008, the calendar quarter corresponding to the earlier of the date of provisional certification or the applicable deadline for initial certification under § 46.13.2(B) of this Part or, unless that quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009, through March 31, 2009.

2.The CO₂ authorized account representative shall submit each quarterly report to the Department or its agent within thirty (30) days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 C.F.R. § 75 Subpart H incorporated in § 46.4(A) of this Part, and 40 C.F.R. § 75.64 incorporated in § 46.4(A) of this Part. Quarterly reports shall be submitted for each CO₂ budget unit (or group of units using a common stack) and shall include all of the data and information required in 40 C.F.R. § 75, Subpart G, incorporated in § 46.4(A) of this Part, except for opacity, NOx and SO₂ provisions.

3.Compliance certification - The CO₂ authorized account representative shall submit, to the Department or its agent, a compliance certification in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit’s emissions are correctly and fully monitored. The certification shall state that:

a.The monitoring data submitted were recorded in accordance with the applicable requirements of §§ 46.13 and 46.14 of this Part and 40 C.F.R. § 75 incorporated in § 46.4(A) of this Part, including the quality assurance procedures and specifications;

b.For a unit with add-on CO₂ emissions controls and for all hours where data are substituted in accordance with 40 C.F.R. § 75.34(a)(1) incorporated in § 46.4(A) of this Part, the add-on emissions controls were operating within the range of parameters listed in the quality assurance/quality control program under 40 C.F.R. § 75, Appendix B incorporated in § 46.4(A) of this Part and the substitute values do not systematically underestimate CO₂ emissions; and

c.The CO₂ concentration values substituted for missing data under 40 C.F.R. § 75, Subpart D do not systematically underestimate CO₂ emissions.

46.14.5Petitions

A.Except as provided in § 46.14.5(C) of this Part, the CO₂ authorized account representative of a CO₂ budget unit that is subject to an Acid Rain emissions limitation may submit a petition to the Administrator under 40 C.F.R. § 75.66 and to the Department requesting approval to apply an alternative to any requirement of 40 C.F.R. § 75. Application of an alternative to any requirement of 40 C.F.R. § 75 is in accordance with §§ 46.13 and 46.14 of this Part only to the extent that the petition is approved in writing by the Administrator and subsequently approved in writing by the Department or its agent.

B.Petitions for a CO₂ budget unit that is not subject to an Acid Rain emissions limitation.

1.The CO₂ authorized account representative of a CO₂ budget unit that is not subject to an Acid Rain emissions limitation may submit a petition to the Administrator under 40 C.F.R. § 75.66 and to the Department or its agent requesting approval to apply an alternative to any requirement of 40 C.F.R. § 75. Application of an alternative to any requirement of 40 C.F.R. § 75 is in accordance with §§ 46.13 and 46.14 of this Part, only to the extent that the petition is approved in writing by the Administrator and subsequently approved in writing by the Department or its agent.

2.In the event that the Administrator declines to review a petition under § 46.14.5(B)(1) of this Part, the CO₂ authorized account representative of a CO₂ budget unit that is not subject to an Acid Rain emissions limitation may submit a petition to the Department or its agent requesting approval to apply an alternative to any requirement in §§ 46.13 and 46.14 of this Part. That petition shall contain all the relevant information specified in 40 C.F.R. § 75.66. Application of an alternative to any requirement in §§ 46.13 and 46.14 of this Part, is in accordance with §§ 46.13 and 46.14 of this Part, only to the extent that the petition is approved in writing by the Department or its agent.

C.The CO₂ authorized account representative of a CO₂ budget unit that is subject to an Acid Rain emissions limitation may submit a petition to the Administrator under 40 C.F.R. § 75.66 and to the Department or its agent requesting approval to apply an alternative to a requirement concerning any additional CEMS required under the common stack provisions of 40 C.F.R. § 75.72 or a CO₂ concentration CEMS used under 40 C.F.R. § 75.71(a)(2). Application of an alternative to any such requirement is in accordance with §§ 46.14 and 46.15 of this Part, only to the extent the petition is approved in writing by the Administrator, and subsequently approved in writing by the Department or its agent.

46.14.6CO₂ budget units that co-fire eligible biomass

A.The CO₂ authorized account representative of a CO₂ budget unit that co-fires eligible biomass as a compliance mechanism under this regulation, shall report the following information to the Department or its agent for each calendar quarter:

1.For each shipment of solid eligible biomass fuel fired at the CO₂ budget unit, the total eligible biomass fuel input, on an as-fired basis, in pounds.

2.For each shipment of solid eligible biomass fuel fired at the CO₂ budget unit, the moisture content, on an as-fired basis, as a fraction by weight.

3.For each distinct type of gaseous eligible biomass fuel fired at the CO₂ budget unit, on an as-fired basis, in pounds per standard cubic foot.

4.For each distinct type of gaseous eligible biomass fuel fired at the CO₂ budget unit, the moisture content of the biogas, as a fraction by total weight.

5.For each distinct type of gaseous eligible biomass fuel fired at the CO₂ budget unit, the total eligible biomass fuel input, in standard cubic feet.

6.For each distinct type of eligible biomass fuel fired at the CO₂ budget unit, the dry basis carbon content of the fuel type, as a fraction by dry weight.

7.For each distinct type of eligible biomass fuel fired at the CO₂ budget unit, the dry basis higher heating value, in MMBtu per dry pound.

8.For each distinct type of eligible biomass fuel fired at the CO₂ budget unit, the total dry basis eligible biomass fuel input, in pounds, calculated in accordance with § 46.14.6(B) of this Part.

9.The total amount of CO₂ emitted from the CO₂ budget unit due to firing eligible biomass fuel, in tons, calculated in accordance with § 46.14.6(C) of this Part.

10.For each distinct type of eligible biomass fuel fired at the CO₂ budget unit, the total eligible biomass fuel heat input in MMBtu, calculated in accordance with § 46.14.6(D)(1) of this Part.

11.The total amount of heat input to the CO₂ budget unit due to firing eligible biomass fuel in MMBtu, calculated in accordance with § 46.14.6(D)(2) of this Part.

12.Description and documentation of monitoring technology employed, and description and documentation of fuel sampling methodology employed, including sampling frequency; and

13.For each distinct type of eligible biomass fuel fired at the CO₂ budget unit, chemical analysis, including heating value and carbon content.

B.An owner or operator of a CO₂ budget unit shall calculate and submit, to the Department or its agent, on a quarterly basis, the total dry weight for each distinct type of eligible biomass fired by the CO₂ budget unit during the reporting quarter. The total dry weight shall be determined for each fuel type as follows:

1.For solid fuel types:

2.For gaseous fuel types:

C.CO₂ emissions due to firing of eligible biomass shall be determined as follows:

1.For any full calendar quarter during which no fuel other than eligible biomass combusted at the CO₂ budget unit, as measured and recorded in accordance with this section and § 46.13 of this Part; or

2.For any full calendar quarter during which fuels, other than eligible biomass, are combusted at the CO₂ budget unit, as determined using the following equation:

D.Heat input due to firing of eligible biomass for each quarter shall be determined as follows:

1.For each distinct fuel type:

2.For all fuel types:

E.Fuel sampling methods and fuel sampling technology shall be consistent with the New York State Renewable Portfolio Standard Biomass Guidebook, September 2011 incorporated in § 46.4(B) of this Part.

46.14.7Additional requirements to provide output data

A.A CO₂ budget source shall submit to the Department or its agent a method for quantification of net electrical output.

B.CO₂ budget sources selling steam should use billing meters to determine net steam output. A CO₂ budget source whose steam output is not measured by billing meters or whose steam output is combined with output from a unit that is not a CO₂ budget unit prior to measurement by the billing meter shall propose, to the Department or its agent, an alternative method for quantification of net steam output. If data for steam output is not available, the CO₂ budget source may report heat input providing useful steam output as a surrogate for steam output.

C.Monitoring - The owner or operator of each CO₂ budget unit shall submit an output monitoring plan. The output monitoring plan must include a description and diagram as stated below:

1.Submit a diagram of the electrical and/or steam system for which output is being monitored, specifically including the following:

a.If the CO₂ budget unit monitors net electric output, the diagram should contain all CO₂ budget unit and all generators served by each CO₂ budget units and generators. If a generator served by a CO₂ budget unit is also served by a unit that is not a CO₂ budget unit, the unit that is not a CO₂ budget unit and its relationship to each generator should be indicated on the diagram as well. The diagram should indicate where the net electric output is measured and should include all electrical inputs and outputs to and from the plant. If net electric output is determined using a billing meter, the diagram should show each billing meter used to determine net sales of electricity and should show that all electricity measured at the point of sale is generated by the CO₂ budget units.

b.If the CO₂ budget unit monitors net thermal output, the diagram should include all steam or hot water coming into the net steam system, including steam from CO₂ budget units and units that are not CO₂ budget units, and all exit points of steam or hot water from the net steam system. In addition, each input and output stream will have an estimated temperature, pressure and phase indicator, and an enthalpy in Btu/lb. The diagram of the net steam system should identify all useful loads, house loads, parasitic loads, any other steam loads and all boiler feedwater returns. The diagram will represent all energy losses in the system as either usable or unusable losses. The diagram will also indicate all flow meters, temperature or pressure sensors or other equipment used to calculate gross thermal output. If a sales agreement is used to determine net thermal output, the diagram should show the monitoring equipment used to determine the sales of steam.

2.Submit a description of each output monitoring system. The description of the output monitoring system should include a written description of the output system and the equations used to calculate output. For net thermal energy systems descriptions and justifications of each useful load should be included.

3.Submit a detailed description of all quality assurance/quality control activities that will be performed to maintain the output system in accordance with § 46.14.7(E) of this Part.

4.Submit documentation supporting any output value(s) to be used as a missing data value should there be periods of invalid output data. The missing data output value must be either zero or an output value that is likely to be lower than a measured value and that is approved as part of the monitoring plan required under this subsection.

D.Initial certification - A certification statement must be submitted by the CO₂ authorized account representative stating that either the output monitoring system consists entirely of billing meters or that the output monitoring system meets one of the accuracy requirements for non-billing meters in § 46.14.7(D)(2) of this Part. This statement may be submitted with the certification application required under § 46.14.3 of this Part.

1.Billing meters - The billing meter shall record the electric or thermal output. Any electric or thermal output values that the facility reports must be the same as the values used in billing for the output. Any output measurement equipment used as a billing meter in commercial transactions requires no additional certification or testing.

2.Non-billing meters - For non-billing meters, the output monitoring system shall either meet an accuracy of within ten percent (10%) of the reference value, or each component monitor for the output system must meet an accuracy of within three percent (3%) of the full-scale value, whichever is less stringent.

a.System approach to accuracy.

(1)The system approach to accuracy must include a determination of how the system accuracy of ten percent (10%) is achieved using the individual components in the system and should include data loggers and any wattmeters used to calculate the final net electric output data and/or any flowmeters for steam or condensate, temperature measurement devices, absolute pressure measurement devices, and differential pressure devices used for measuring thermal energy.

b.Component approach to accuracy.

(1)If testing a piece of output measurement equipment shows that the output readings are not accurate to within three percent (3.0%) of the full-scale value, then the equipment should be repaired or replaced to meet that requirement. Data shall remain invalid until the output measurement equipment passes an accuracy test or is replaced with another piece of equipment that passes the accuracy test.

E.Ongoing QA/QC. The following ongoing quality assurance/quality control activities must be performed in order to maintain the output system:

1.Billing meters.

a.In the case where billing meters are used to determine output, no QA/QC activities beyond what are already performed are required.

2.Non-billing meters.

a.Certain types of equipment such as potential transformers, current transformers, nozzle and venturi type meters, and the primary element of an orifice plate only require an initial certification of calibration and do not require periodic recalibration unless the equipment is physically changed. However, the pressure and temperature transmitters accompanying an orifice plate will require periodic retesting. For such pressure and temperature transmitters, and other types of equipment, either recalibrate or re-verify the meter accuracy at least once every two (2) years (i.e., every eight (8) calendar quarters), unless a consensus standard allows for less frequent calibrations or accuracy tests. For non-billing meters, the output monitoring system must either meet an accuracy of within ten percent (10%) of the reference value, or each component monitor for the output system must meet an accuracy of within three percent (3%) of the full-scale value, whichever is less stringent. If testing a piece of output measurement equipment shows that the output readings are not accurate to within three percent (3%) of the full-scale value, then the equipment should be repaired or replaced to meet that requirement.

3.Out-of-control periods.

a.If testing a piece of output measurement equipment shows that the output readings are not accurate to the certification value, data remain invalid until the output measurement equipment passes an accuracy test or is replaced with another piece of equipment that passes the accuracy test. All invalid data shall be replaced by either zero or an output value that is likely to be lower than a measured value and that is approved as part of the monitoring plan required under § 46.14.7(C) of this Part.

F.Recordkeeping and reporting

1.General provisions.

a.The CO₂ authorized account representative shall comply with all recordkeeping and reporting requirements in this section and with the requirements of §§ 46.7(C) and 46.9.1(E) of this Part.

2.Recordkeeping.

a.The owner or operator of a CO₂ budget unit shall retain data used to monitor, determine, or calculate net generation for ten (10) years from the date reported.

3.Annual reports.

a.The CO₂ authorized account representative shall submit annual output reports, as follows. The data must be sent both electronically and in hardcopy by March 1 for the immediately preceding calendar year to the Department or its agent. The annual report shall include the annual total unit level MWh, the annual total useful thermal energy and a certification statement from the CO₂ authorized account representative stating the following:

(1)“I am authorized to make this submission on behalf of the owners and 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 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.”

46.15.1Compliance certification report

A.Applicability and deadline. - For each control period in which a CO₂ budget source is subject to the CO₂ requirements of § 46.7(A) of this Part, the CO₂ authorized account representative of the source shall submit, to the Department or its agent, by the March 1 following the relevant control period, a compliance certification report. A compliance certification report is not required as part of the compliance obligation during an interim control period.

B.Contents of report - The CO₂ authorized account representative shall include in the compliance certification report under § 46.15.1(A) of this Part the following elements, in a format prescribed by the Department concerning each unit at the source and subject to the CO₂ budget emissions limitation for the control period covered by the report:

1.Identification of the source and each CO₂ budget unit at the source;

2.At the CO₂ authorized account representative's option, the serial numbers of the CO₂ allowances that are to be deducted from the source’s compliance account under § 46.12.5 of this Part, for the control period, including the serial numbers of any CO₂ offset allowances that are to be deducted subject to the limitations of § 46.12.5(A)(1)(c) of this Part; and

3.The compliance certification under 46.15.1(C) of this Part.

C.Compliance certification - In the compliance certification report under § 46.15.1(A) of this Part, the CO₂ authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the CO₂ budget units at the source in compliance with the CO₂ Budget Trading Program, whether the source and each CO₂ budget unit for which the compliance certification is submitted was operated during the calendar years covered by the report in compliance with the requirements of the CO₂ Budget Trading Program, applicable to the unit, including:

1.Whether the source was operated in compliance with the CO₂ requirements of § 46.7(A) of this Part;

2.Whether the monitoring plan applicable to each unit at the source has been maintained to reflect the actual operation and monitoring of the unit, and contains all information necessary to attribute CO₂ emissions to the unit, in accordance with §§ 46.13 and 46.14 of this Part;

3.Whether all the CO₂ emissions from the units at the source were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in accordance with §§ 46.13 and 46.14 of this Part. If conditional data were reported, the owner or operator shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions have been made;

4.Whether the facts that form the basis for certification under §§ 46.13 and 46.14 of this Part, of each monitor at each unit at the source, or for using an accepted monitoring method or alternative monitoring method approved under §§ 46.13 and 46.14 of this Part, if any, have changed; and

5.If a change is required to be reported under § 46.15.1(C)(4) of this Part, specify the nature of the change, the reason for the change, when the change occurred, and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitor recertification.

46.15.2Department’s action on compliance certifications

A.The Department or its agent may review and conduct independent audits concerning any compliance certification or any other submission under the CO₂ Budget Trading Program and make appropriate adjustments of the information in the compliance certifications or other submissions.

B.The Department or its agent may deduct CO₂ allowances from or transfer CO₂ allowances to a source’s compliance account based on the information in the compliance certifications or other submissions, as adjusted under § 46.15.2(A) of this Part.

Rhode Island will not accept CO₂ emissions offset project applications. All eligible CO₂ offset allowances awarded by any other participating RGGI state will be accepted by Rhode Island for compliance purposes in accordance with the limitations as specified in § 46.12.5(A)(1)(c) of this Part.

A.Issuance of a permit pursuant to the provisions of this regulation does not relieve the owner/operator from the responsibility to comply fully with any applicable state or federal air pollution control rules or regulations and any other requirements under local, state or federal law.

B.Any conditions included with a permit issued pursuant to this regulation shall have the full force and effect of rules and regulations.

C.Any person who receives a permit shall comply with all conditions included with the permit.

D.Failure to comply with any condition included in a permit issued pursuant to this regulation shall be considered failure to comply with this regulation.