[50 Pa.B. 6212]
[Saturday, November 7, 2020]
[Continued from previous Web Page]
Annex A
TITLE 25. ENVIRONMENTAL PROTECTION
PART I. DEPARTMENT OF ENVIRONMENTAL PROTECTION
Subpart C. PROTECTION OF NATURAL RESOURCES
ARTICLE III. AIR RESOURCES
CHAPTER 145. INTERSTATE POLLUTION TRANSPORT REDUCTION
Subchapter E. CO2 BUDGET TRADING PROGRAM (Editor's Note: Sections 145.301—145.409 are proposed to be added and are printed in regular type to enhance readability.)
GENERAL PROVISIONS Sec.
145.301. Purpose. 145.302. Definitions. 145.303. Measurements, abbreviations and acronyms. 145.304. Applicability. 145.305. Limited exemption for CO2 budget units with electrical output to the electric grid restricted by permit conditions. 145.306. Standard requirements. 145.307. Computation of time. § 145.301. Purpose.
This subchapter establishes the Pennsylvania component of the CO2 Budget Trading Program, which is designed to reduce anthropogenic emissions of CO2, a greenhouse gas, from CO2 budget sources in a manner that is protective of public health, welfare and the environment.
§ 145.302. Definitions.
The following words and terms, when used in this subchapter, have the following meanings, unless the context clearly indicates otherwise:
Account number—The identification number given by the Department or its agent to each CO2 Allowance Tracking System (COATS) account.
Acid rain emissions limitation—A limitation on emissions of sulfur dioxide or NOx under the Acid Rain Program under Title IV of the Clean Air Act (42 U.S.C.A. §§ 7651—7651o).
Acid Rain Program—A multi-state sulfur dioxide and NOx air pollution control and emission reduction program established by the Administrator under Title IV of the Clean Air Act and 40 CFR Parts 72—78.
Adjustment for banked allowances—An adjustment that may be applied to the Pennsylvania CO2 Budget Trading Program base budget for an allocation year to address CO2 allowances held in general and compliance accounts, including compliance accounts established under the CO2 Budget Trading Program, but not including accounts opened by participating states, that are in addition to the aggregate quantity of emissions from all CO2 budget sources in all of the participating states at the end of the control period immediately preceding the allocation year and as reflected in the CO2 Allowance Tracking System on March 15 of the year following the control period.
Administrator—The Administrator of the EPA or the Administrator's authorized representative.
Agent—A qualified entity that may assist the Department with technical and administrative support functions in accordance with the requirements of this subchapter.
Air pollution reduction account—The general account established by the Department from which CO2 allowances will be sold or distributed to provide funds for use in the elimination of air pollution in accordance with the act and Chapter 143 (relating to disbursements from the clean air fund) and the administration of the Pennsylvania component of the CO2 Budget Trading Program.
Allocate or allocation—The determination by the Department of the number of CO2 allowances to be recorded in the compliance account of a CO2 budget source, the waste coal set-aside account, the strategic use set-aside account, the cogeneration set-aside account, the air pollution reduction account, or the general account of the sponsor of an approved CO2 emissions offset project.
Allocation year—A calendar year for which the Department allocates or awards CO2 allowances under §§ 145.341 and 145.391—145.397 (relating to Pennsylvania CO2 trading program base budget; and CO2 emissions offset projects). The allocation year of each CO2 allowance is reflected in the unique identification number given to the allowance under § 145.354(c) (relating to recordation of CO2 allowance allocations).
Allowance auction or auction—A bidding process in which the Department or its agent offers CO2 allowances for sale.
Ascending price, multiple-round auction—A bidding process that starts with an opening price that increases each round by predetermined increments. In each round, a bidder offers the quantity of CO2 allowances the bidder is willing to purchase at the posted price. Rounds continue as long as demand exceeds the quantity of CO2 allowances offered for sale. At the completion of the final round, CO2 allowances will be allocated by one of three methods:
(i) At the final price to remaining bidders and unsold CO2 allowances to be withheld for a future auction.
(ii) At the penultimate price, first to final round bidders and then to bidders in the penultimate round in chronological order of bid during the penultimate round for all remaining CO2 allowances.
(iii) According to an alternative mechanism designed to effectuate the objectives of this subchapter.
Attribute—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.
Attribute credit—A unit that represents the attributes related to one megawatt-hour of electricity generation.
Automated Data Acquisition and Handling System—The component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under § 145.371 (relating to general monitoring requirements), 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 § 145.371.
Award—The determination by the Department of the number of CO2 offset allowances to be recorded in the general account of a project sponsor under § 145.397 (relating to award and recordation of CO2 offset allowances). Award is a type of allocation.
Beneficial interest—A profit, benefit or advantage resulting from the ownership of a CO2 allowance.
Bidder—A qualified participant who has met the requirements of §§ 145.405 and 145.406 (relating to auction participant requirements; and auction participant qualification) and has been determined by the Department to be eligible to participate in a specified CO2 allowance auction under § 145.406.
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.
CEMS—continuous emissions monitoring system—The equipment required under § 145.371 to sample, analyze, measure and provide, by means of readings recorded at least once every 15 minutes, using an automated data acquisition and handling system, a permanent record of stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration, as applicable, in a manner consistent with 40 CFR Part 75 (relating to continuous emission monitoring) and § 145.371. The following systems are types of continuous emissions monitoring systems required under § 145.371.
(i) A flow monitoring system, consisting of a stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetric flow rate, in standard cubic feet per hour.
(ii) A nitrogen oxides emissions rate (or NOx-diluent) monitoring system, consisting of a NOx pollutant concentration monitor, a diluent gas (CO2 or O2) monitor, and an automated data acquisition and handling system and providing a permanent, continuous record of NOx concentration, in parts per million, diluent gas concentration, in percent CO2 or O2; and NOx emissions rate, in pounds per million British thermal units (lb/MMBtu).
(iii) A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) (relating to specific provisions for monitoring SO2 emissions) and providing a permanent, continuous record of the stack gas moisture content, in percent H2O.
(iv) A carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2.
(v) An oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2, in percent O2.
COATS—CO2 allowance tracking system—
(i) A system by which the Department or its agent records allocations, deductions and transfers of CO2 allowances under the CO2 Budget Trading Program.
(ii) The system may also be used to track all of the following:
(A) CO2 emissions offset projects.
(B) CO2 allowance prices.
(C) Emissions from affected sources.
COATS account—An account established by the Department or its agent for purposes of recording the allocation, holding, transferring or deducting of CO2 allowances. The tracking system may also be used to track CO2 offset allowances, CO2 allowance prices and emissions from affected sources.
CO2 allowance—A limited authorization by the Department or a participating state under the CO2 Budget Trading Program to emit up to 1 ton of CO2, subject to all applicable limitations contained in this subchapter.
CO2 allowance auction or auction—The sale of CO2 allowances through competitive bidding as administered in accordance with §§ 145.401—145.409 (relating to CO2 allowance auctions).
CO2 allowance deduction or deduct CO2 allowances—The permanent withdrawal of CO2 allowances by the Department or its agent from a COATS compliance account to account for one of the following:
(i) 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 § 145.371.
(ii) The forfeit or retirement of CO2 allowances as provided by this subchapter.
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 §§ 145.351 and 145.361 (relating to CO2 Allowance Tracking System (COATS) accounts; and submission of CO2 allowance transfers), in a COATS account.
CO2 allowance price—The price for CO2 allowances in the CO2 Budget Trading Program for a particular time period as determined by the Department, calculated based on a volume-weighted average of transaction prices reported to the Department, and taking into account prices as reported publicly through reputable sources.
CO2 allowance transfer deadline—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 of § 145.306(c) (relating to standard requirements) for the control period and each interim control period immediately preceding the deadline.
CO2 authorized account representative—
(i) For a CO2 budget source and each CO2 budget unit at the source, the person who is authorized by the owner or operator of the source and all CO2 budget units at the source, in accordance with § 145.311 (relating to authorization and responsibilities of the CO2 authorized account representative), to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program.
(ii) For a general account, the person who is authorized under §§ 145.351—145.358 to transfer or otherwise dispose of CO2 allowances held in the general account.
CO2 authorized alternate account representative—
(i) For a CO2 budget source and each CO2 budget unit at the source, the alternate person who is authorized by the owner or operator of the source and all CO2 budget units at the source, in accordance with § 145.311, to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program.
(ii) For a general account, the alternate person who is authorized under §§ 145.351—145.358 to transfer or otherwise dispose of CO2 allowances held in the general account.
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 permit condition—The portion of the permit issued by the Department under Chapter 127 (relating to construction, modification, reactivation and operation of sources) to the owner or operator of a CO2 budget source which specifies the CO2 Budget Trading Program requirements applicable to the CO2 budget source.
CO2 budget source—A facility that includes one or more CO2 budget units.
CO2 Budget Trading Program—A multi-state CO2 air pollution control and emissions reduction program established under this subchapter and corresponding regulations in other participating states as a means 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 § 145.304 (relating to applicability).
CO2 CCR allowance or CO2 cost containment reserve allowance—A CO2 allowance that is offered for sale at an auction by the Department for the purpose of containing the cost of CO2 allowances.
CO2 CCR trigger price or CO2 cost containment reserve trigger price—The minimum price at which CO2 CCR allowances are offered for sale by the Department or its agent at an auction.
CO2 ECR allowance or CO2 emissions containment reserve allowance—A CO2 allowance that is withheld from sale at an auction by the Department for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs.
CO2 ECR trigger price or CO2 emissions containment reserve trigger price—The price below which CO2 allowances will be withheld from sale by the Department or its agent at an auction.
CO2e—CO2 equivalent—The quantity of a given greenhouse gas multiplied by its global warming potential.
CO2 offset allowance—A CO2 allowance that is awarded to the sponsor of a CO2 emissions offset project under § 145.397 and is subject to the relevant compliance deduction limitations of § 145.355(a)(3) (relating to compliance).
Cogeneration set-aside account—A general account established by the Department for the allocation of CO2 allowances for retirement in an amount equal to the adjustment of the compliance obligation of a cogeneration unit under § 145.342(k) (relating to CO2 allowance allocations).
Cogeneration unit—An electric-generating unit that simultaneously produces both electric and useful thermal energy from the same primary energy facility.
Combined cycle system—A system comprised of one or more combustion turbine, heat recovery steam generator and steam turbine configured to improve overall efficiency of electricity generation or steam production.
Combustion turbine—An enclosed fossil or other fuel-fired device that is comprised of a compressor, if applicable, a combustor and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine.
Commence commercial operation—With regard to a unit that serves a generator, to have begun to produce steam, gas or other heated medium used to generate electricity for sale or use, including test generation.
(i) For a unit that is a CO2 budget unit under § 145.304 on the date the unit commences commercial operation, the date shall remain the unit's date of commencement of commercial operation even if the unit is subsequently modified, reconstructed or repowered.
(ii) For a unit that is not a CO2 budget unit under § 145.304 on the date the unit commences commercial operation, the date the unit becomes a CO2 budget unit under § 145.304 is the unit's date of commencement of commercial operation.
Commence operation—To have begun any mechanical, chemical or electronic process, including, with regard to a unit, start-up of the unit's combustion chamber.
(i) For a unit that is a CO2 budget unit under § 145.304 on the date of commencement of operation, the date shall remain the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed or repowered.
(ii) For a unit that is not a CO2 budget unit under § 145.304 on the date of commencement of operation, the date the unit becomes a CO2 budget unit under § 145.304 shall be the unit's date of commencement of operation.
Compliance account—A COATS account, established by the Department or its agent for a CO2 budget source under § 145.351, that holds CO2 allowances available for use by the owner or operator of the source for a control period and each interim control period for the purpose of meeting the CO2 requirements of § 145.306(c).
Control period—A 3-calendar-year period. The fifth control period, which is the first control period in which Pennsylvania will participate in the CO2 Budget Trading Program, is from January 1, 2021, through December 31, 2023, inclusive. Each subsequent sequential 3-calendar-year period is a separate control period.
Decay rate—The amount of a gas removed from the atmosphere over a number of years.
Descending price, multiple-round auction—An auction that starts with a high provisional price, which falls in each round by predetermined increments. In each round, a bidder can lock in the purchase of some number of CO2 allowances at the current provisional price and wait for the price to fall. Rounds continue so long as the number of CO2 allowances locked-in is less than the quantity of CO2 allowances offered for sale.
Discriminatory price, sealed-bid auction—A single-round, sealed-bid auction in which a bidder may submit multiple bids for CO2 allowances at different prices. The price paid by winning bidders with the highest bids for CO2 allowances is their own bid price.
Electronic submission agent—The person who is delegated authority by a CO2 authorized account representative or a CO2 authorized alternate account representative to make an electronic submission to the Department or its agent under this subchapter.
Eligible biomass—
(i) Sustainably harvested woody and herbaceous fuel sources that are available on a renewable or recurring basis, including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, unadulterated wood and wood residues, animal wastes, other clean organic wastes not mixed with other solid wastes, biogas and other neat liquid biofuels derived from these fuel sources.
(ii) This term does not include old growth timber.
Excess emissions—The amount of CO2 emissions, in tons, emitted by a CO2 budget source during a control period that exceeds the CO2 budget emissions limitation for the source.
Excess interim emissions—The amount of CO2 emissions, in tons, emitted by a CO2 budget source during an interim control period multiplied by 0.50 that exceeds the CO2 budget emissions limitation for the source.
General account—A COATS account established by the Department under § 145.351 that is not a compliance account.
GWP—Global Warming Potential—
(i) A measure of the radiative efficiency or heat-absorbing ability of a particular gas relative to that of CO2 after taking into account the decay rate of each gas relative to that of CO2.
(ii) GWPs used in this subchapter are consistent with the values used in the Intergovernmental Panel on Climate Change, Fifth Assessment Report.
Gross generation—The electrical output in MWe at the terminals of the generator.
Interim control period—A calendar-year period, during each of the first and second calendar years of each control period. The first interim control period for the fifth control period starts on January 1, 2021, and ends on December 31, 2021, inclusive. The second interim control period for the fifth control period starts on January 1, 2022, and ends on December 31, 2022, inclusive. Each successive 3-year control period will have 2 interim control periods, comprised of each of the first 2 calendar years of that control period.
Legacy emissions—The amount of CO2 emissions in tons equal to the highest year of CO2 emissions from a waste coal-fired unit during the 5-year period beginning January 1, 2015, through December 31, 2019, as determined by the Department.
Life-of-the-unit contractual arrangement—A unit participation power sales agreement under which a customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity or associated energy from any specified unit under a contract for:
(i) The life of the unit.
(ii) A cumulative term of no less than 30 years, including a contract that permits an election for early termination.
(iii) A period equal to or greater than 25 years or 70% of the economic useful life of the unit determined as of the time the unit is built, with option rights to purchase or release some portion of the nameplate capacity and associated energy generated by the unit at the end of the period.
Maximum potential hourly heat input—An hourly heat input used for reporting purposes when a unit lacks certified monitors to report heat input. If the unit intends to use 40 CFR Part 75, Appendix D (relating to optional SO2 emissions data protocol for gas-fired and oil-fired units) to report heat input, this value shall be calculated, in accordance with 40 CFR Part 75, using the maximum fuel flow rate and the maximum gross calorific value. If the unit intends to use a flow monitor and a diluent gas monitor, this value shall be reported, in accordance with 40 CFR Part 75, using the maximum potential flow rate and either the maximum CO2 concentration in percent CO2 or the minimum O2 concentration in percent O2.
Minimum reserve price—The price for calendar year 2020 is $2.32. Each calendar year thereafter, the minimum reserve price shall be 1.025 multiplied by the minimum reserve price from the previous calendar year, rounded to the nearest whole cent.
Monitoring system—A monitoring system that meets the requirements of this subchapter, including a CEMS, an excepted monitoring system or an alternative monitoring system.
Nameplate capacity—The maximum electrical output in MWe that a generator can sustain over a specified period of time when not restricted by seasonal or other de-ratings as measured in accordance with the United States Department of Energy standards.
Notice of CO2 allowance auction—The notification for a specific auction or auctions issued under § 145.404 (relating to auction notice).
Operator—A person who operates, controls or supervises a CO2 budget unit or a CO2 budget source and shall include, but not be limited to, a holding company, utility system or plant manager of the unit or source.
Owner—Any of the following persons:
(i) A holder of any portion of the legal or equitable title in a CO2 budget unit or a CO2 budget source.
(ii) A holder of a leasehold interest in a CO2 budget unit or a CO2 budget source, other than a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the CO2 budget unit.
(iii) A purchaser of power from a CO2 budget unit under a life-of-the-unit contractual arrangement in which the purchaser controls the dispatch of the unit.
(iv) With respect to any general account, a person who has an ownership interest with respect to the CO2 allowances held in the general account and who is subject to the binding agreement for the CO2 authorized account representative to represent that person's ownership interest with respect to CO2 allowances.
Participating state—A state that has established a corresponding regulation as part of the CO2 Budget Trading Program.
Pennsylvania CO2 Budget Trading Program adjusted budget—The annual amount of CO2 tons available in Pennsylvania for allocation in a given allocation year, in accordance with the CO2 Budget Trading Program, determined in accordance with § 145.342. CO2 offset allowances allocated to project sponsors and CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated from the Pennsylvania CO2 Budget Trading Program adjusted budget.
Pennsylvania CO2 Budget Trading Program base bud- get—The annual amount of CO2 tons available in Pennsylvania for allocation in a given allocation year, in accordance with the CO2 Budget Trading Program and as specified in § 145.341. CO2 offset allowances allocated to project sponsors and CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated from the Pennsylvania CO2 Budget Trading Program base budget.
Qualified participant—A person who has submitted a qualification application under § 145.406(a) and that the Department determines to be qualified to participate in CO2 allowance auctions under § 145.406(e).
Receive or receipt of—When referring to the Department or its agent, to come into possession of a document, information or correspondence, whether sent in writing or by authorized electronic transmission, as indicated in an official correspondence log, or by a notation made on the document, information or correspondence, by the Department or its agent in the regular course of business.
Recordation, record or recorded—With regard to CO2 allowances, the movement of CO2 allowances by the Department or its agent from one COATS account to another, for purposes of allocation, transfer or deduction.
Reserve price—The minimum acceptable price for each CO2 allowance offered for sale in a specific auction. The reserve price at an auction is either the minimum reserve price or the CCR trigger price, as specified in § 145.382 (relating to general requirements).
Reviewer—The individual who is delegated authority by a CO2 authorized account representative or a CO2 authorized alternate account representative to review information in COATS under this subchapter.
Source—A governmental, institutional, commercial or industrial structure, installation, plant, building or facility that emits or has the potential to emit any air pollutant. A source, including a source with multiple units, shall be considered a single facility.
Strategic use set-aside account—A general account established by the Department for the distribution of CO2 allowances to encourage and foster promotion of energy efficiency measures, promotion of renewable or noncarbon-emitting energy technologies, stimulation or reward of investment in the development of innovative carbon emissions abatement technologies with significant carbon reduction potential.
Ton or tonnage—A short ton that is 2,000 pounds or 0.9072 metric ton.
Undistributed CO2 allowance—A CO2 allowance originally allocated to a set-aside account as under § 145.342 that were not distributed.
Uniform-price, sealed-bid auction—A single-round, sealed-bidding process in which a bidder may submit multiple bids at different prices. The price paid by all successful bidders will be uniform and equal to the highest rejected bid price.
Unit—A fossil fuel-fired stationary boiler, combustion turbine or combined cycle system.
Unit operating day—A calendar day in which a unit combusts any fuel.
Unsold CO2 allowance—A CO2 allowance that has been made available for sale in an auction conducted by the Department or its agent, but not sold.
Useful thermal energy—
(i) Energy in the form of direct heat, steam, hot water or other thermal form applied for a useful purpose in an industrial, institutional or commercial process.
(ii) This term does not include steam made available for electricity production.
Waste coal—The coal disposed or abandoned prior to July 31, 1982, or disposed of thereafter in a permitted coal refuse disposal site regardless of when disposed of and used to generate electricity, as defined under section 2 of the Alternative Energy Portfolio Standards Act (73 P.S. § 1648.2).
Waste coal-fired—The combustion of waste coal or, if in combination with any other fuel, waste coal comprises 75% or greater of the annual heat input on a Btu basis. Facilities combusting waste coal shall use at a minimum a circulating fluidized bed boiler and be outfitted with a limestone injection system and a fabric filter particulate removal system.
Waste coal set-aside account—A general account established by the Department for the allocation of CO2 allowances in an amount sufficient to provide CO2 allowances equal to the legacy emissions from all waste coal-fired units under § 145.342(i).
§ 145.303. Measurements, abbreviations and acronyms.
Measurements, abbreviations and acronyms used in this subchapter are defined as follows:
CH4—methane.
hr—hour.
lb—pounds.
MMBtu—Million Btu.
MW—megawatt.
MWe—megawatt electrical.
§ 145.304. Applicability.
(a) CO2 budget unit. Beginning ______ (Editor's Note: The blank refers to the effective date of this rulemaking, when published as a final-form rulemaking.), this subchapter applies to an owner or operator of a unit that, at any time on or after January 1, 2005, served or serves an electricity generator with a nameplate capacity equal to or greater than 25 MWe.
(b) CO2 budget source. Any source that includes one or more CO2 budget units shall be a CO2 budget source, subject to the requirements of this subchapter.
§ 145.305. Limited exemption for CO2 budget units with electrical output to the electric grid restricted by permit conditions.
(a) Exemption. Notwithstanding § 145.304 (relating to applicability), a CO2 budget source that has a permit issued by the Department containing a condition restricting the supply of the CO2 budget unit's annual electrical output to the electric grid to no more than 10% of the annual gross generation of the unit, or restricting the supply less than or equal to 15% of its annual total useful energy to any entity other than the manufacturing facility to which the CO2 budget source is interconnected and which complies with subsection (c), shall be exempt from the requirements of this subchapter, except for the provisions of this section, §§ 145.302, 145.303, and 145.307 (relating to definitions; measurements, abbreviations and acronyms; and computation of time) and, if applicable because of the allocation of CO2 allowances during the pre-exemption time period, §§ 145.341, 145.351 and 145.361 (relating to Pennsylvania CO2 Budget Trading Program base budget; CO2 Allowance Tracking System (COATS) accounts; and submission of CO2 allowance transfers).
(b) Effective date. The exemption under subsection (a) shall become effective as of the January 1 on or after the date on which the restriction on the percentage of annual gross generation that may be supplied to the electric grid and the provisions in the permit required under subsection (a) become final.
(c) Compliance.
(1) The owner or operator of a CO2 budget unit exempt under subsection (a) shall comply with the restriction on the percentage of annual gross generation that may be supplied to the electric grid described in subsection (a).
(2) The owner or operator of a CO2 budget unit exempt under subsection (a) shall report to the Department the amount of annual gross generation and the amount of annual gross generation supplied to the electric grid during the calendar year by the following March 1.
(3) For a period of 10 years from the date the records are created, the owner or operator of a CO2 budget unit exempt under subsection (a) shall retain, at the source that includes the unit, records demonstrating that the conditions of the permit under subsection (a) were met. The Department may, in writing, extend the 10-year period for keeping records, at any time prior to the end of the period. The owner or operator bears the burden of proof that the unit met the restriction on the percentage of annual gross generation that may be supplied to the electric grid.
(4) The owner or operator and, to the extent applicable, the CO2 authorized account representative of a CO2 budget unit exempt under subsection (a) shall comply with the requirements of this subchapter concerning all time periods for which the exemption is not in effect, even if the requirements arise, or must be complied with, after the exemption takes effect.
(5) A CO2 budget unit exempt under subsection (a) will lose its exemption, on the earlier of the following dates:
(i) The restriction on the percentage of annual gross generation that may be supplied to the electric grid described in subsection (a) is removed from the unit's permit or otherwise becomes no longer applicable in any year that commences on or after January 1, 2022.
(ii) The unit fails to comply or the owner or operator fails to meet their burden of proving that the unit is complying with the restriction on the percentage of annual gross generation that may be supplied to the electric grid described in subsection (a) during any year that commences on or after January 1, 2022.
(6) A unit that loses its exemption in accordance with paragraph (c)(5) shall be subject to the requirements of this subchapter. For the purposes of this subchapter, the unit shall be treated as commencing operation on the date the unit loses its exemption.
§ 145.306. Standard requirements.
(a) Permit requirements.
(1) The owner or operator of each CO2 budget source shall have a CO2 budget permit condition in their permit required under Chapter 127 (relating to construction, modification, reactivation and operation of sources) and shall submit to the Department the following:
(i) A complete application for a new, renewed or modified permit under § 145.323 (relating to contents of an application for a permit incorporating CO2 Budget Trading Program requirements) in accordance with the deadlines specified in § 145.322 (relating to submission of an application for a new, renewed or modified permit incorporating CO2 Budget Trading Program requirements).
(ii) Any supplemental information that the Department determines is necessary to review the permit application and issue or deny a permit, permit renewal or permit modification that includes CO2 Budget Trading Program requirements.
(2) The owner or operator of each CO2 budget source required to have a permit under Chapter 127 shall ensure that the permit incorporates the requirements of the CO2 Budget Trading Program and shall operate the CO2 budget source and each CO2 budget unit at the source in compliance with the permit.
(b) Monitoring requirements.
(1) The owner or operator 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 §§ 145.371—145.377 (relating to monitoring, reporting and recordkeeping requirements).
(2) The Department will use the emissions measurements recorded and reported in accordance with §§ 145.371—145.377 to determine the unit's compliance with the CO2 requirements under subsection (c).
(c) CO2 requirements. A CO2 budget unit shall be subject to the CO2 requirements starting on January 1, 2022, or the date on which the unit commences operation, whichever is later.
(1) For the purpose of determining compliance with subsection (c)(2), total tons for a control period or an interim control period shall be calculated as the sum of all recorded hourly emissions or the tonnage equivalent of the recorded hourly emissions rates, in accordance with §§ 145.371—145.377. The Department will round total CO2 emissions to the nearest whole ton, so that any fraction of a ton equal to or greater than 0.50 ton is deemed to equal 1 ton and any fraction of a ton less than 0.50 ton is deemed to equal zero tons.
(2) The owner or operator of each CO2 budget source and each CO2 budget unit at the source shall, as of the CO2 allowance transfer deadline, hold CO2 allowances available for compliance deductions under § 145.355 (relating to compliance), in the source's compliance account, as follows:
(i) For a control period, the amount of CO2 allowances held shall be no 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 of subsection (c)(2)(ii), with respect to the previous 2 interim control periods, as determined in accordance with §§ 145.351—145.358 (relating to CO2 allowance tracking system) and §§ 145.371—145.377.
(ii) For an interim control period, the amount of CO2 allowances held shall be no 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 §§ 145.351—145.358 and 145.371—145.377.
(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 subchapter and the act.
(4) Each ton of excess interim emissions shall constitute a separate violation of this subchapter and the act.
(5) CO2 allowances shall be held in, deducted from, or transferred among COATS accounts in accordance with §§ 145.341—145.343 (relating to CO2 allowance allocations), 145.351—145.358, and 145.361—145.363 (relating to CO2 allowance transfers) and 145.397 (relating to award and recordation of CO2 offset allowances).
(6) A CO2 allowance shall not be deducted, to comply with the requirements under subsection (c), for a control period or interim control period that ends prior to the year for which the CO2 allowance was allocated.
(7) A CO2 offset allowance shall not be deducted, to comply with the requirements under subsection (c), beyond the applicable percent limitations in § 145.355(a)(3).
(8) A CO2 allowance is a limited authorization by the Department or a participating state to emit 1 ton of CO2 in accordance with the CO2 Budget Trading Program. No provision of the CO2 Budget Trading Program, this subchapter, an application for a new, renewed or modified permit to incorporate the requirements of the CO2 Budget Trading Program, a permit that includes the requirements of the CO2 Budget Trading Program, or any provision of law shall be construed to limit the authority of the Department or a participating state to terminate or limit the authorization.
(9) A CO2 allowance under the CO2 Budget Trading Program does not constitute a property right.
(d) Excess emissions requirements. The owner or operator of a CO2 budget source that has excess emissions in any control period or excess interim emissions for any interim control period shall do the following:
(1) Forfeit the CO2 allowances required for deduction under § 145.355(d)(1) and (2).
(2) Pay any fine, penalty or assessment or comply with any other remedy imposed under § 145.355(d)(3).
(e) Recordkeeping and reporting requirements.
(1) Except as provided in subsection (e)(1)(i), the owner or operator of the CO2 budget source and each CO2 budget unit at the source shall maintain at a central location and provide upon request by the Department the following documents for 10 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 10 years, in writing by the Department.
(i) The account certificate of representation for the CO2 authorized account representative for the CO2 budget 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 § 145.314 (relating to account certificate of representation). The certificate and documents shall be retained beyond the 10-year period until the documents are superseded because of the submission of a new account certificate of representation changing the CO2 authorized account representative.
(ii) The emissions monitoring information, in accordance with §§ 145.371—145.377 and 40 CFR 75.57 (relating to general recordkeeping provisions).
(iii) Copies of all reports, compliance certifications and other submissions and all records made or required under the CO2 Budget Trading Program.
(iv) Copies of the documents used to complete an application for a new or modified permit that incorporates the requirements of the CO2 Budget Trading Program and any 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 this subchapter, including the requirements under §§ 145.331 and 145.332 (relating to compliance certification report; and Department action on compliance certifications).
(f) Liability.
(1) Except as provided under § 127.403 (relating to permitting of sources operating lawfully without a permit), a permit revision may not excuse any violation of the requirements of this subchapter that occurs prior to the date that the revision takes effect.
(2) Any provision of this subchapter that applies to a CO2 authorized account representative shall apply to the owner or operator of the source and of the CO2 budget units at the source.
(3) Any provision of this subchapter that applies to a CO2 budget source shall also apply to the owner or operator of the source and of the CO2 budget units at the source.
(4) Any provision of this subchapter that applies to a CO2 budget unit shall also apply to the owner or operator of the unit.
(g) Effect on other authorities. No provision of this subchapter, a permit application or a permit shall be construed as exempting or excluding the owner or operator and, to the extent applicable, the CO2 authorized account representative, from compliance with any provision of the act, the Clean Air Act or the regulations promulgated under the Clean Air Act or the act.
§ 145.307. Computation of time.
(a) 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.
(b) 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.
(c) 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.
CO2 AUTHORIZED ACCOUNT REPRESENTATIVE FOR A CO2 BUDGET SOURCE Sec.
145.311. Authorization and responsibilities of the CO2 authorized account representative. 145.312. CO2 authorized alternate account representative. 145.313. Changing the CO2 authorized account representative and the CO2 authorized alternate account representative; changes in the owners and operators. 145.314. Account certificate of representation. 145.315. Objections concerning the CO2 authorized account representative. 145.316. Delegation of authority to make electronic submissions and review information in COATS. § 145.311. Authorization and responsibilities of the CO2 authorized account representative.
(a) Except as provided under § 145.312 (relating to CO2 authorized alternate account representative), each CO2 budget source, including all CO2 budget units at the source, shall have 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 owner or operator of the source and all CO2 budget units at the source and must act in accordance with the certificate of representation under § 145.314 (relating to account certificate of representation).
(c) Upon receipt by the Department or its agent of a complete account certificate of representation under § 145.314, the CO2 authorized account representative of the source shall represent and, by their 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 the owner or operator. The owner or operator 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) The Department will issue a permit that incorporates the requirements of the CO2 Budget Trading Program and establish a COATS account for a CO2 budget source only after the Department or its agent has received a complete account certificate of representation under § 145.314 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 submission shall include the following certification statement by the CO2 authorized account representative:
''I am authorized to make this submission on behalf of the owner or operator 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 under 18 Pa.C.S. § 4904 for submitting false statements and information or omitting required statements and information.''
(f) The Department or its agent will accept or act on a submission made on behalf of the owner or operator of a CO2 budget source or a CO2 budget unit only if the submission has been made, signed and certified in accordance with subsection (e).
§ 145.312. CO2 authorized alternate account representative.
(a) An account certificate of representation may designate 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 instead of the CO2 authorized account representative.
(b) Upon receipt by the Department or its agent of a complete account certificate of representation under § 145.314 (relating to account certificate of representation), 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 §§ 145.311(a), 145.313, 145.314 and 145.352, whenever the term ''CO2 authorized account representative'' is used in this subchapter, the term shall include the CO2 authorized alternate account representative.
§ 145.313. Changing the CO2 authorized account representative and the CO2 authorized alternate account representative; changes in the owner or operator.
(a) Changing the CO2 authorized account representative. 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 § 145.314 (relating to account certificate of representation). Notwithstanding a change, the 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 owner or operator of the CO2 budget source and the CO2 budget units at the source.
(b) Changing the CO2 authorized alternate account representative. 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 § 145.314. Notwithstanding a change, the representations, actions, inactions and submissions by the previous 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 owner or operator of the CO2 budget source and the CO2 budget units at the source.
(c) Changes in the owner or operator.
(1) If a new owner or operator of a CO2 budget source or a CO2 budget unit is not included in the list of owners and operators submitted in the account certificate of representation, the new owner or operator shall be deemed to be subject to and bound by the account certificate of representation, the representations, actions, inactions and submissions of the CO2 authorized account representative 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 the list.
(2) Within 30 days following any change in the owner or operator 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.
§ 145.314. Account certificate of representation.
(a) A complete account certificate of representation for a CO2 authorized account representative or a 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 and telephone number 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:
''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 owner or operator 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 owner or operator of the CO2 budget source and of each CO2 budget unit at the source and that each 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. The Department and its agent are not under any obligation to review or evaluate the sufficiency of documents of agreement, if submitted.
§ 145.315. Objections concerning the CO2 authorized account representative.
(a) Once a complete account certificate of representation under § 145.314 (relating to account certificate of representation) has been submitted and received, the Department and its agent will rely on the account certificate of representation unless the Department or its agent receives a superseding complete account certificate of representation under § 145.314.
(b) Except as provided in § 145.313(a) or (b) (relating to changing the CO2 authorized account representative and the CO2 authorized alternate account representative; changes in the owners and operators), an 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 will not affect any representation, action, inaction or submission of the CO2 authorized account representative or the finality of a decision or order by the Department or its agent under the CO2 Budget Trading Program.
(c) The Department and its agent will not adjudicate any private legal dispute concerning the authorization or any representation, action, inaction or submission of a CO2 authorized account representative, including private legal disputes concerning the proceeds of CO2 allowance transfers.
§ 145.316. Delegation of authority to make electronic submissions and review information in COATS.
(a) A CO2 authorized account representative or a CO2 authorized alternate account representative may delegate, to one or more persons, their authority to make an electronic submission to the Department or its agent under this subchapter.
(b) To delegate authority to make an electronic submission to the Department or its agent, the CO2 authorized account representative or CO2 authorized alternate account representative must submit to the Department or its agent a notice of delegation, in a format prescribed by the Department that includes the following:
(1) The name, address, e-mail address and telephone number of the delegating CO2 authorized account representative or CO2 authorized alternate account representative.
(2) The name, address, e-mail address and telephone number of each electronic submission agent.
(3) For each electronic submission agent, a list of the type of electronic submissions under subsection (a) for which authority is delegated.
(4) The following certification statements by the delegating CO2 authorized account representative or CO2 authorized alternate account representative:
(i) ''I agree that any electronic submission to the Department or its agent that is by the electronic submission agent identified in this notice of delegation and of a type listed for the electronic submission agent in this notice of delegation and that is made when I am a CO2 authorized account representative or CO2 authorized alternate account representative and before this notice of delegation is superseded by another notice of delegation under subsection (d) shall be deemed to be an electronic submission by me.''
(ii) ''Until this notice of delegation is superseded by another notice of delegation under subsection (d), 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 this subsection is terminated.''
(c) A notice of delegation submitted under subsection (b) will be effective, with regard to the CO2 authorized account representative or CO2 authorized alternate account representative identified in the notice, upon receipt of the notice by the Department or its agent and until receipt by the Department or its agent of a superseding notice of delegation by the CO2 authorized account representative or CO2 authorized alternate account representative. 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.
(d) Any electronic submission covered by the certification under subsection (b)(4) and made in accordance with a notice of delegation effective under subsection (b) shall be deemed to be an electronic submission by the CO2 authorized account representative or CO2 authorized alternate account representative submitting the notice of delegation.
(e) A CO2 authorized account representative or a CO2 authorized alternate account representative may delegate, to one or more persons, their authority to review information in COATS under this subchapter.
(f) To delegate authority to review information in COATS under subsection (e), the CO2 authorized account representative or CO2 authorized alternate account representative must submit to the Department or its agent a notice of delegation, in a format prescribed by the Department that includes the following:
(1) The name, address, e-mail address and telephone number of the delegating CO2 authorized account representative or CO2 authorized alternate account representative.
(2) The name, address, e-mail address and telephone number of each reviewer.
(3) For each reviewer, a list of the type of information under subsection (e) for which authority is delegated.
(4) The following certification statements by the delegating CO2 authorized account representative or CO2 authorized alternate account representative:
(i) ''I agree that any information that is reviewed by the reviewer identified in this notice of delegation and of a type listed for the 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 and before this notice of delegation is superseded by another notice of delegation under subsection (g) shall be deemed to be a review by me.''
(ii) ''Until this notice of delegation is superseded by another notice of delegation under subsection (g), 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 this subsection is terminated.''
(g) A notice of delegation submitted under subsection (f) shall be effective, with regard to the CO2 authorized account representative or CO2 authorized alternate account representative identified in the notice, upon receipt of the notice by the Department or its agent and until receipt by the Department or its agent of a superseding notice of delegation by the CO2 authorized account representative or CO2 authorized alternate account representative. The superseding notice of delegation may replace any previously identified reviewer, add a new reviewer or eliminate entirely any delegation of authority.
PERMITS Sec.
145.321. General requirements for a permit incorporating CO2 Budget Trading Program requirements. 145.322. Submission of an application for a new, renewed or modified permit incorporating CO2 Budget Trading Program requirements. 145.323. Contents of an application for a permit incorporating CO2 Budget Trading Program requirements. § 145.321. General requirements for a permit incorporating CO2 Budget Trading Program requirements.
(a) Except as provided under § 127.403 (relating to permitting of sources operating lawfully without a permit), each CO2 budget source must have a permit issued by the Department under Chapter 127 (relating to construction, modification, reactivation and operation of sources).
(b) The permit for each CO2 budget source shall contain all applicable CO2 Budget Trading Program requirements.
§ 145.322. Submission of an application for a new, renewed or modified permit incorporating CO2 Budget Trading Program requirements.
(a) For any CO2 budget source, the owner or operator shall submit a complete permit application under Chapter 127 (relating to construction, modification, reactivation and operation of sources) incorporating the CO2 Budget Trading Program requirements in this subchapter to the Department by the later of the following:
(1) 6 months after ______ (Editor's Note: The blank refers to the effective date of this rulemaking, when published as a final-form rulemaking.)
(2) 12 months before the date on which the CO2 budget source, or a new unit at the source, commences operation.
(b) If the Department approves the incorporation of CO2 Budget Trading Program requirements into a permit, the Department will establish permit conditions in the permit that will enable the Department to readily verify whether emissions from the source operations meet the requirements of this subchapter. Such permit conditions will set forth replicable procedures, including monitoring, source emissions testing and recordkeeping and reporting procedures, sufficient to ensure that emissions are quantified and recorded and that compliance with the emissions limitation under this subchapter is enforceable.
§ 145.323. Contents of an application for a permit incorporating CO2 Budget Trading Program requirements.
A complete permit application shall include the following concerning the CO2 budget source for which the application is submitted, in a format prescribed by the Department:
(1) Identification of the CO2 budget source, including plant name and the 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.
(2) Identification of each CO2 budget unit at the CO2 budget source.
(3) The standard requirements under § 145.306 (relating to standard requirements).
(4) The compliance certification requirements under § 145.331 (relating to compliance certification report).
(5) The compliance requirements under § 145.355 (relating to compliance).
(6) The monitoring, recordkeeping and reporting requirements under §§ 145.371—145.377 (relating to monitoring, reporting and recordkeeping requirements).
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