310 CMR 7.70 Massachusetts Co[2] Budget Trading Program

• Library: Code of Massachusetts Regulations
• Edition: 2020
• Currency: Current through Register Vol. 1433, December 25, 2020
• Citation: 310 CMR 7.70
• Year: 2020

(1) CO2 Budget Trading Program General Provisions.

(a) Purpose. 310 CMR 7.70 establishes the Massachusetts CO2 Budget Trading Program, which is designed to reduce anthropogenic emissions of CO2, a greenhouse gas, from CO2 budget sources in an economically efficient manner.

(b) Definitions Account Number. The identification number given by the Department or its agent to each CO2 Allowance Tracking System account. Acid Rain Emissions Limitation. As defined in 40 CFR 40Definitions72.2, a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program under Title IV of the Clean Air Act. Acid Rain Program. Acid Rain Program means a multi-state sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under Title IV of the Clean Air Act, 42 U.S.C. 7401et seq. and 40 CFR Parts 72 through 78. Administrator. Administrator means the Administrator of the United States Environmental Protection Agency or the Administrator's authorized representative. Allocate or Allocation. The determination by the Department of the number of CO2 allowances to be recorded in the Voluntary Renewable Energy Account, or the Massachusetts Auction Account. Allocation Year. A calendar year for which the Department allocates or awards CO2 allowances pursuant to 310 CMR 7.70(5). The allocation year is the first year a CO2 allowance or a CO2 offset allowance can be used to demonstrate compliance with 310 CMR 7.70. The allocation year of each CO2 allowance is reflected in the unique identification number given to the allowance pursuant to 310 CMR 7.70(6)(d)4. Allowance Auction or Auction. An auction in which DOER offers CO2 allowances for sale, in accordance with 225 CMRDoer Co[2] Budget Trading Program Auction Regulation225 CMR 13.00: DOER CO2 Budget Trading Program Auction Regulation. Automated Data Acquisition and Handling System or DAHS. That component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under 310 CMR 7.70(8), 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 310 CMR 7.70(8). Billing Meter. The 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 a different owner(s) from the owner(s) of the party purchasing the electric or thermal output. Boiler. An enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium. CO2 Allowance. 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 310 CMR 7.70 or equivalent regulations in other participating states. CO2 Allowance Deduction or Deduct CO2 Allowances 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 310 CMR 7.70(8), or for the forfeit or retirement of CO2 allowances as provided by 310 CMR 7.70. CO2 Allowances Held or Hold CO2 Allowances. The CO2 allowances recorded by the Department or its agent, or submitted to the Department or its agent for recordation, in accordance with 310 CMR 7.70(6) and (7), in a CO2 Allowance Tracking System account. CO2 Allowance Tracking System (COATS). 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. CO2 Allowance Tracking System Account. 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. CO2 Allowance Transfer Deadline. Midnight of the March 1st occurring after the end of the relevant control period and each relevant interim control period or, if that March 1st 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 under 310 CMR 7.70(1)(e)3. for the control period and each interim control period immediately preceding such deadline. CO2 Authorized Account Representative. 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, in accordance with 310 CMR 7.70(2), to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the natural person who is authorized, under 310 CMR 7.70(6), 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 then, for a CO2 Budget Trading Program compliance account, this natural person shall be the same person as the designated representative under the Acid Rain Program. CO2 Authorized Alternate Account Representative. 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, in accordance with 310 CMR 7.70(2), to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the alternate natural person who is authorized, under 310 CMR 7.70(6), 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, then, for a CO2 Budget Trading Program compliance account, this alternate natural person shall be the same person as the alternate designated representative under the Acid Rain Program. CO2 Budget Emissions Control Plan. The legally binding permit issued by the Department pursuant to 310 CMR 7.70(1)(e)1. and (3) to a CO2 budget source or CO2 budget unit which 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. CO2 Budget Emissions Limitation. For a CO2 budget source, 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 source for a control period or an interim control period. CO2 Budget Source. A source that includes one or more CO2 budget units. CO2 Budget Trading Program. A multi-state CO2 air pollution control and emissions reduction program established by regulation in several states, including Massachusetts pursuant to 310 CMR 7.70, for the purpose of reducing emissions of CO2 from CO2 budget sources. CO2 Budget Unit. A unit that is subject to the CO2 Budget Trading Program requirements under 310 CMR 7.70(1)(d). CO2 Cost Containment Reserve Allowance or CO2 CCR Allowance A CO2 allowance that is offered for sale at an auction by DOER in accordance with 225 CMRDoer Co[2] Budget Trading Program Auction Regulation225 CMR 13.00: DOER CO2 Budget Trading Program Auction Regulation 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 from the CO2 Budget Trading Program base budget. CO2 CCR allowances are subject to all applicable limitations contained in 310 CMR 7.70 or equivalent regulations in other participating states. CO2 Cost Containment Reserve (CCR) Trigger Price. The CCR trigger price is the minimum price at which CO2 CCR allowances are offered for sale in an auction. The CCR trigger prices shall be established by DOER in 225 CMR 225 CMRDefinitions13.03 Table 1. CO2 Emissions Containment Reserve Allowance or CO2 ECR Allowance. A CO2 allowance that is withheld from sale at an auction by DOER in accordance with 225 CMRDoer Co[2] Budget Trading Program Auction Regulation225 CMR 13.00: DOER CO2 Budget Trading Program Auction Regulation for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs. CO2 Emissions Containment Reserve (ECR)...