§ 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 combined heat and power 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 Budget 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 1 MW-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 (relating to CO2 allowance tracking system) 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).
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.
Combined heat and power set-aside account—A general account established by the Department for the allocation of CO2 allowances in an amount sufficient to retire CO2 allowances equal to the CO2 emissions from combined heat and power units under § 145.342(k) (relating to CO2 allowance allocations).
Combined heat and power unit—An electric-generating unit that simultaneously produces both electricity and useful thermal energy.
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 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.
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.
General account—A COATS account established by the Department under § 145.351 that is not a compliance account.
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 10-year period beginning January 1, 2010, 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 2021 is $2.38. 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 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 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 reduce greenhouse gas emissions through energy efficiency measures, renewable or noncarbon-emitting energy technologies or innovative greenhouse gas emissions abatement technologies with significant greenhouse gas reduction potential.
Ton or tonnage—A short ton that is 2,000 pounds or 0.9072 metric ton.
Total useful energy—The sum of useful thermal energy and gross generation.
Undistributed CO2 allowance—A CO2 allowance originally allocated to a set-aside account under § 145.342 that was 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, air or other thermal form which is 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 in the definition of ‘‘alternative energy sources’’ 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).
Cross References This section cited in 25 Pa. Code § 145.305 (relating to limited exemption for CO2 budget units with electrical output to the electric grid restricted by permit conditions); 25 Pa. Code § 145.371 (relating to general monitoring requirements); and 25 Pa. Code § 145.395 (relating to CO2 emissions offset project standards).
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