§ 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 industrial, institutional or commercial 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 April 23, 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 April 23, 2022.
(6) A unit that loses its exemption in accordance with paragraph (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.
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