(1) Purpose, Authority and Scope. The purpose of 310 CMR 7.74, promulgated in conjunction with 310 CMR 7.75, is to assist the Commonwealth in achieving the greenhouse gas emissions reduction goals adopted pursuant to M.G.L. c. 21N, § 3(b), by establishing declining annual aggregate CO2 emissions limits that will reduce CO2 emissions from electricity generating facilities. To achieve those goals, the Executive Office of Energy and Environmental Affairs (EEA) and the Department pursuant to M.G.L. c. 21A, §§ 2 and 8 and M.G.L. c. 21N, §§ 3(c), 4 and 7 hereby jointly promulgate 310 CMR 7.74, following consultation with the Department of Energy Resources and based on the considerations specified in M.G.L. c. 21N, § 3(c). 310 CMR 7.74 is also promulgated pursuant to M.G.L. c. 21A, § 16, M.G.L. c. 21N, § 3(d) and M.G.L. c. 111, §§ 2C and 142A through 142E. In exercising their broad authority and discretion under M.G.L. c. 21N, §§ 3(c) and 3(d), EEA and MassDEP have determined that additional emissions limits on in-state electricity generating facilities' greenhouse gas emissions, along with other climate policies and programs, will ensure achievement of the greenhouse gas emissions limits as established under M.G.L. c. 21N, and that the 310 CMR 7.74 limits are consistent with, and take account of, regional programs such as the Regional Greenhouse Gas Initiative (RGGI) and the Renewable Portfolio Standard (RPS). The CO2 emissions limits set forth in 310 CMR 7.74(5) are applicable for the years 2021 through 2050 beginning January 1, 2021.
(2) Definitions. The terms used in 310 CMR 7.74 are defined in 310 CMR 7.74(2) and 310 CMR 7.00: Definitions. Where a term is defined in 310 CMR 7.00: Definitions and 310 CMR 7.74, the definition in 310 CMR 7.74 shall apply.
Allowance means a limited
authorization to emit one metric ton of CO2 in
compliance with
310
CMR 7.74.
Allowance Registry means the database
that tracks allowances held by electricity generating facilities and used for
compliance. The Department shall establish an account in the allowance registry
for each electricity generating facility.
Annual CO2
Emissions means the total amount of
CO2 emissions measurements recorded and reported for a
calendar year in accordance with the Massachusetts CO2
Budget Trading Program at
310
CMR 7.70(8)(e)4., converted
from short tons to metric tons and adjusted, as applicable, for the production
of useful net thermal energy pursuant to the Massachusetts
CO2 Budget Trading Program at
310
CMR 7.70(8)(i).
Bidder means a party qualified
pursuant to
310
CMR 7.74(6)(h)4.a., to
participate in an auction.
Calendar Year or
Year means January 1st
through December 31st.
Deduct or Deduction means the
permanent removal of allowances from an account in the allowance
registry.
Designated Representative means the
person who is authorized by the owner and operator of an electricity generating
facility to represent and legally bind the owner and operator in matters
pertaining to
310
CMR 7.74.
Electricity Generating Facility means
a facility that includes one or more electricity generating units for which the
owner or operator is required to report CO2 emissions
pursuant to the Massachusetts CO2 Budget Trading Program
at 310 CMR
7.70(8); provided, however
that the following facilities are not electricity generating facilities for
purposes of
310
CMR 7.74: MWRA Deer Island and MBTA South
Boston Power.
Existing Facility Aggregate
CO2
Emissions
Limit means, with respect to calendar year 2018, the sum of all
existing facilities' CO2 emissions limits, as listed in
310 CMR 7.74(5)(a): Table A.
Emergency means a period during when
the regional transmission organization has issued an alert that an abnormal
condition affecting the reliability of the power system exists or is
anticipated in Massachusetts.
Massachusetts
CO2
Budget Trading
Program means the program the Department promulgated at 310 CMR
7.70 to reduce greenhouse gas emissions from CO2 Budget
Sources as defined in 310 CMR 7.70.
New Electricity Generating Facility
means, with respect to calendar year 2018, 2019 and 2020, an electricity
generating facility that is not an existing electricity generating
facility.
New Facility Aggregate
CO2
Emissions
Limit means, with respect to calendar year 2018, the sum of all
new electricity generating facility CO2 emissions
limits, as listed in 310 CMR 7.74(5)(a): Table A.
Offset means to use allowances to
cover CO2 emissions from an electricity generating
facility pursuant 310 CMR 7.74.
Operator means any person or group of
persons who operates, controls, or supervises an electricity generating
facility including, but not limited to, any holding company, utility system
plant manager, or operations manager of the electricity generating
facility.
Owner means any of the following
persons or group of persons:
(a) Any
holder(s) of any portion of the legal or equitable title in an electricity
generating facility; or
(b) Any
holder(s) of a leasehold interest in an electricity generating facility
Reserve Price means the minimum
acceptable price for each allowance in a specific auction.
Sealed Bid, Uniform Price Auction
means a single or multiple round sealed-bid auction in which bidders may submit
multiple bids at different prices; the price paid by all awarded bidders will
be uniform.
Serial Number means, when referring to
allowances, the unique identification number assigned by the Department to each
allowance.
Total Aggregate
CO2
Emissions
Limit means, with respect to a particular calendar year, the
maximum allowable aggregate limit on CO2 emissions from
all electricity generating facilities subject to 310 CMR 7.74, as listed in 310
CMR 7.74(5)(a): Table A.
(3) Applicability. 310 CMR 7.74 applies to all owners and operators of an electricity generating facility.
(4) Compliance with CO2 Emissions Limits. The owner or operator of an electricity generating facility shall offset annual CO2 emissions using allowances in its allowance registry account pursuant to 310 CMR 7.74(6) and (7).
(5) CO2 Emissions Limits.
(a)
Total
Aggregate CO2
Emissions
Limits. The total aggregate CO2 emissions
limit for 2018 is 9,149,979 metric tons of CO2. The
total aggregate CO2 emissions limit for 2019 is
8,731,175. The total aggregate CO2 emissions limit
declines by 223,876 metric tons each year thereafter until it reaches 8,507,299
metric tons of CO2 in 2020 and 1,791,019 metric tons of
CO2 in 2050. For 2018, the existing facility aggregate
CO2 emissions limit and the new facility aggregate
CO2 emissions limit were calculated from the total
aggregate CO2 emissions limit, such that their sum
equals the total aggregate CO2 emissions limit. The
existing facility aggregate CO2 emissions limit, and new
facility aggregate CO2 emissions limit for calendar year
2018 are shown in 310 CMR 7.74(5)(a): Table A.
310 CMR 7.74(5)(a): Table A
2018 Existing Facility Aggregate and New Facility Aggregate
CO2 Emissions Limits in Metric Tons
|
Year
|
Existing Facility Aggregate CO2
Emissions Limit
|
New Facility Aggregate CO2
Emissions Limit
|
|
2018
|
7,649,979
|
1,500,000
|
(b)
Existing Individual Electricity Generating Facility
CO2
Emissions Limits for
2018. The CO2 emissions limits for existing
electricity generating facilities are shown in 310 CMR 7.74(5)(b)
Table B.
310 CMR 7.74(5)(b): Table B
Existing Individual Electricity Generating Facility
CO2 Emissions Limits in Metric Tons
|
Facility
|
Limit
|
|
ANP Bellingham
|
860,250
|
|
ANP Blackstone
|
787,429
|
|
Bellingham
|
233,789
|
|
Berkshire Power
|
437,049
|
|
Braintree Electric
|
24,425
|
|
Canal Station
|
101,922
|
|
Cleary Flood
|
|
...
