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26.09.01.00.htm 26.09.01.00. Title 26 DEPARTMENT OF THE ENVIRONMENT Subtitle 09 MARYLAND CO2 BUDGET TRADING PROGRAM Chapter 01 General Administrative Provisions Authority: Environment Article, §1-101, 1-404, 2-103, and 2-1002(g) Annotated Code of Maryland
26.09.01.01.htm 26.09.01.01. 01 Purpose.. The purpose of this chapter is to define the terms used in this subtitle, to identify the documents that are incorporated by reference in this subtitle, and identify the selection process and responsibilities of CO2 authorized account representatives and alternate CO2 authorized account representatives that perform various functions on behalf of the owners or operators of CO2 budget sources or units. The definitions and documents incorporated by
26.09.01.02.htm 26.09.01.02. 02 Definitions.. A. In this subtitle, the following terms have the meanings indicated.. B. Terms Defined.. 1) "Account number" means the identification number given to each CO2 account.. 2) "Administrator" means the Administrator of the United States Environmental Protection Agency or the Administrator's authorized representative.3) "Allocate" means to distribute and record CO2 allowances in:. a) A CO2 budget unit's compliance account;. b) A set-aside account; or.
26.09.01.03.htm 26.09.01.03. 03 Incorporation by Reference.. A. In this subtitle, the following documents are incorporated by reference.. B. Documents Incorporated.. 1) 10 CFR Part 430, as amended.. 2) 40 CFR Part 60, Subpart Cc and Subpart WWW, as amended.. 3) 40 CFR §72.2, as amended.. 4) 40 CFR Part 75, including Appendices B, D, E, F, and G and Section 2.1 of Appendix A, as amended.. 5) American Society of Agricultural and Biological Engineers, ASABE D384.2, Manure Production and Characteristics, March 2005
26.09.01.04.htm 26.09.01.04. 04 Selection and Responsibilities of CO2 Budget Source Compliance Account Authorized Account Representatives.A. By January 1, 2009, the Department shall establish a single compliance account for each CO2 budget source.B. Each CO2 budget source shall have a CO2 authorized account representative and an alternate CO2 authorized account representative.C. The CO2 authorized account representative and alternate CO2 authorized account representative of the CO2 budget source sha
26.09.01.05.htm 26.09.01.05. 05 Selection and Responsibilities of General Account Authorized Account Representatives.. A. Upon request, the Department shall establish a general account for any person that designates a CO2 authorized account representative and an alternate CO2 authorized account representative.B. The agreement by which the alternate CO2 authorized account representative is selected shall include a procedure for authorizing the alternate CO2 authorized account representative to act instead o
26.09.01.06.htm 26.09.01.06. 06 CO2 Allowance Transfers.. A. CO2 Allowance Transfers. To transfer a CO2 allowance, the CO2 authorized account representative or alternate CO2 authorized account representative shall submit the following information to the Department:1) The account numbers of both the transferor and the transferee;. 2) The serial numbers of each CO2 allowance to be transferred;. 3) The printed name and signature of the CO2 authorized account representative of the transferor acc
26.09.01.9999.htm 26.09.01.9999. Administrative History Effective date: July 17, 2008 (35:14 Md. R. 1247). Regulation .01 amended effective December 31, 2018 (45:26 Md. R. 1249). Regulation .02B amended effective May 18, 2009 (36:10 Md. R. 717). Regulation .02B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336) amended permanently effective May 3, 2010 (37:9 Md. R. 674)Regulation .02B amended as an emergency provision effective February 1, 2011 (38:4 Md. R. 263) amend
26.09.02.00.htm 26.09.02.00. Title 26 DEPARTMENT OF THE ENVIRONMENT Subtitle 09 MARYLAND CO2 BUDGET TRADING PROGRAM Chapter 02 Applicability, Determining Compliance, and Allowance Distribution Authority: Environment Article, §1-101, 1-404, 2-103, and 2-1002(g) Annotated Code of Maryland
26.09.02.01.htm 26.09.02.01. 01 Purpose.. The purpose of this chapter is to establish emissions limitations and procedures that apply to CO2 budget sources and units for the use of CO2 allowances. In this chapter, compliance with emission limitations is achieved through a process that involves the transfer of allowances from and into CO2 budget source accounts.
26.09.02.02.htm 26.09.02.02. 02 Applicability.. A. The requirements of this chapter apply to the owner or operator of a CO2 budget unit. When this chapter establishes a requirement such as the submittal of a permit application, a report, a request for allowances or transfer of allowances, or general information, these actions shall be achieved through the CO2 authorized account representative on behalf of the owner or operator of the affected CO2 budget source or unit.B. When this chapter stat
26.09.02.03.htm 26.09.02.03. 03 Distribution of CO2 Allowances and Compliance.. A. The Maryland CO2 Budget Trading Program consists of allowances to cover CO2 emissions for the following:1) 18,671,045 tons for 2018;. 2) 17,931,922 tons for 2019;. 3) 17,483,623 tons for 2020;. 4) 16,790,271 tons for 2021;. 5) 16,281,475 tons for 2022;. 6) 15,772,679 tons for 2023;. 7) 15,263,882 tons for 2024;. 8) 14,755,086 tons for 2025;. 9) 14,246,290 tons for 2026;. 10) 13,737,494 tons for 2027;.
26.09.02.04.htm 26.09.02.04. 04 Permits.. A. CO2 Budget Permit Requirements.. 1) Each CO2 budget source shall apply for and have in effect a CO2 budget permit that contains all applicable requirements.2) The CO2 authorized account representative for the source shall submit an initial CO2 budget permit application by October 1, 2008, or 12 months before the date on which the CO2 budget source, or a new unit at the source, commences operation.3) The CO2 budget permit application shall include
26.09.02.05.htm 26.09.02.05. 05 Compliance Certification and Early Reductions.. A. Compliance Certification Report.. 1) Applicability and Deadline. For each control period in which a CO2 budget source is subject to the CO2 budget emissions limitation, the CO2 authorized account representative of the source shall submit a compliance certification report by the March 1 following the relevant control period. A compliance certification report is not required as part of the compliance obligat
26.09.02.06.htm 26.09.02.06. 06 Limited Industrial Exemption Set-aside Account.. A. The Department shall administer the Limited Industrial Exemption Set-aside Account in accordance with the procedures of this regulation.B. A CO2 budget source is exempt from the requirements of Regulation .03E of this chapter if it meets the following criteria:1) Obtains from the Department a condition in its CO2 budget permit that limits the CO2 budget source's annual electrical output to the electric grid
26.09.02.07.htm 26.09.02.07. 07 Long Term Contract Set-aside Account.. A. The Department shall administer the Long Term Contract Set-aside Account in accordance with the procedures of this regulation.B. A long term contract applicant may purchase allowances from the Long Term Contract Set-aside Account through direct sale from the Department at the long term contract price if:1) A long term contract with the applicant for the electrical output of its budget units has been in existence since January 1, 2001; and
26.09.02.08.htm 26.09.02.08. 08 Voluntary Renewable Set-aside Account.. A. Administration and Participation.. 1) The Department shall administer the Voluntary Renewable Set-aside Account in accordance with the procedures of this regulation.2) When a person, electricity supplier, retail marketer, or renewable energy facility residing or doing business in Maryland or on behalf of a person residing or doing business in Maryland accumulates renewable energy credits (RECs) equal to 1 or more tons of CO2 as calculat
26.09.02.09.htm 26.09.02.09. 09 Clean Generation Set-aside Account.. A. The Department shall administer the Clean Generation Set-aside Account in accordance with the procedures of this regulation.B. A CO2 budget unit that commences operation after January 1, 2009, is eligible for an award of CO2 allowances from the Clean Generation Set-aside Account if the CO2 budget unit:1) Uses gaseous fossil fuel as the primary fuel;. 2) Has applied best available control technology (BACT) or lowest achievabl
26.09.02.10.htm 26.09.02.10. 10 Monitoring Requirements.. A. General Requirements and Prohibitions.. 1) The owner or operator of a CO2 budget unit shall:. a) Install monitoring systems to monitor CO2 concentration, stack gas flow rate, oxygen concentration, heat input, and fuel flow rate;b) Install all monitoring systems in accordance with 40 CFR Part 75, except for equation G-1 in Appendix G;c) Record, report, and verify the data from the monitoring systems; and.
26.09.02.11.htm 26.09.02.11. 11 Record Keeping and Reporting.. A. General Provisions. The CO2 authorized account representative shall comply with all record-keeping and reporting requirements in this chapter and the applicable record-keeping and reporting requirements under 40 CFR §75.73.B. Quarterly Reports.. 1) The CO2 authorized account representative shall submit quarterly reports as described in this section.2) The report shall contain the CO2 mass emissions data for the CO2 budget
26.09.02.9999.htm 26.09.02.9999. Administrative History Effective date: July 17, 2008 (35:14 Md. R. 1247) ―. Chapter revised effective May 18, 2009 (36:10 Md. R. 717). Regulation .02 amended effective January 6, 2014 (40:26 Md. R. 2165). Regulation .03 amended effective January 21, 2013 (40:1 Md. R. 22) January 6, 2014 (40:26 Md. R. 2165) December 31, 2018 (45:26 Md. R. 1249)Regulation .04A amended effective December 31, 2018 (45:26 Md. R. 1249). Regulation .05A amended as an emergency provision
26.09.03.00.htm 26.09.03.00. Title 26 DEPARTMENT OF THE ENVIRONMENT Subtitle 09 MARYLAND CO2 BUDGET TRADING PROGRAM Chapter 03 Offset Projects Authority: Environment Article, §1-101, 1-404, 2-103, and 2-1002(g) Annotated Code of Maryland
26.09.03.01.htm 26.09.03.01. 01 Purpose.. The Department shall provide for the award of CO2 offset allowances to project sponsors of CO2 emissions offset projects that have demonstrated a reduction or avoidance of atmospheric loading of CO2, CO2 equivalent, or sequestered carbon. These requirements ensure that the awarded CO2 offset allowances represent real, additional, verifiable, enforceable, and permanent CO2 equivalent emission reductions or carbon sequestration. Subject to the rele
26.09.03.02.htm 26.09.03.02. 02 General Requirements for CO2 Emission Offset Projects.. A. Eligible CO2 Emissions Offset Projects. In order to qualify for the award of CO2 offset allowances, the following offset projects shall satisfy all applicable requirements identified in this chapter:1) Landfill methane capture and destruction;. 2) Sequestration of carbon due to reforestation, improved forest management, or avoided conversion; 3) Avoided methane emissions from agricultural manure management operations..
26.09.03.03.htm 26.09.03.03. 03 Landfill Methane Capture and Destruction Project Standards.. A. Offset projects that capture and destroy methane from landfills qualify for the award of CO2 offset allowances if they meet the requirements of this regulation.B. Eligibility. Eligible offset projects shall occur at landfills that are not subject to the New Source Performance Standards (NSPS) for municipal solid waste landfills, 40 CFR Part 60, Subpart Cc and Subpart WWW.C. Offset Project Descrip
26.09.03.04.htm 26.09.03.04. 04 Sequestration of Carbon due to Reforestation, Improved Forest Management, or Avoided Conversion.. A. Forest Offset Project Standards. Offset projects that involve reforestation, improved forest management, or avoided conversion shall qualify for the award of CO2 allowances if they meet the requirements of this regulation and the forest offset protocol.B. Eligibility. Eligible forest offset projects shall satisfy all eligibility requirements of the forest offset protocol and
26.09.03.05.htm 26.09.03.05. 05 Avoided Methane Emissions from Agricultural Manure Management Operations.. A. Offset projects that capture and destroy methane from animal manure and organic food waste using anaerobic digesters qualify for the award of CO2 offset allowances if they comply with the requirements of this regulation.B. Eligible offset projects shall consist of the destruction of that portion of methane generated by an anaerobic digester that would have been generated in the absence of the
26.09.03.06.htm 26.09.03.06. 06 Accreditation of Independent Verifiers.. A. Standards for Accreditation. Independent verifiers may be accredited by the Department to provide verification services as required by project sponsors if the independent verifiers meet the requirements of this regulation.B. Verifier Minimum Requirements. Each accredited independent verifier shall demonstrate knowledge of the following topics:1) Utilizing engineering principles;. 2) Quantifying greenhouse gas emissions;.
26.09.03.07.htm 26.09.03.07. 07 Awarding and Recording of CO2 Offset Allowances.. A. CO2 Emissions Offset Projects. Following the issuance of a consistency determination and the approval of a monitoring and verification report, the Department shall award one CO2 offset allowance for each ton of demonstrated reduction in CO2 or CO2 equivalent emissions or sequestration of CO2.B. The Department shall record awarded CO2 offset allowances in the project sponsor's general account.
26.09.03.08.htm 26.09.03.08. 08 Accreditation of Independent Verifiers.. A. Standards for Accreditation. Independent verifiers may be accredited by the Department to provide verification services as required by project sponsors if the independent verifiers meet the requirements of this regulation.B. Verifier Minimum Requirements. Each accredited independent verifier shall demonstrate knowledge of the following topics:1) Utilizing engineering principles;. 2) Quantifying greenhouse gas emissions;.
26.09.03.09.htm 26.09.03.09. 09 Awarding and Recording of CO2 Offset Allowances.. A. CO2 Emissions Offset Projects. Following the issuance of a consistency determination and the approval of a monitoring and verification report, the Department shall award one CO2 offset allowance for each ton of demonstrated reduction in CO2 or CO2 equivalent emissions or sequestration of CO2.B. The Department shall record awarded CO2 offset allowances in the project sponsor's general account.
26.09.03.9999.htm 26.09.03.9999. Administrative History Effective date: July 17, 2008 (35:14 Md. R. 1247). Regulation .01 amended effective January 6, 2014 (40:26 Md. R. 2165). Regulation .02 amended effective May 18, 2009 (36:10 Md. R. 717) January 6, 2014 (40:26 Md. R. 2165). Regulation .04A amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336) amended permanently effective May 3, 2010 (37:9 Md. R. 674)Regulation .04D amended effective May 18, 2009 (36:10 Md. R. 717) January 6
26.09.04.00.htm 26.09.04.00. Title 26 DEPARTMENT OF THE ENVIRONMENT Subtitle 09 MARYLAND CO2 BUDGET TRADING PROGRAM Chapter 04 Auctions Authority: Environment Article, §1-101, 1-404, 2-103, and 2-1002(g) Annotated Code of Maryland
26.09.04.01.htm 26.09.04.01. 01 Purpose.. The purpose of this chapter is to provide for the administration and implementation of CO2 allowance auctions under the Maryland CO2 Budget Trading Program.
26.09.04.02.htm 26.09.04.02. 02 Multistate Auctions.. A. The Department, in consultation with the Auction Advisory Committee (Committee) shall determine whether to participate in multistate regional CO2 allowance auctions in coordination with other participating states or to conduct Maryland-only auctions.B. In making its determination, the Department and the Committee shall consider whether:. 1) A multistate regional auction process, which includes the Department and other participating stat
26.09.04.03.htm 26.09.04.03. 03 Consumer Energy Efficiency Account.. A. The Department shall establish the Consumer Energy Efficiency Account, referred to in this subtitle as the Account, as described in COMAR 26.09.02. Each allowance to be auctioned shall be identified by its serial number as described in COMAR 26.09.02.B. The Department shall administer the Account in such a manner that allowances allocated to the Account or transferred to it from the Limited Industrial Exemption Set-aside A
26.09.04.04.htm 26.09.04.04. 04 Implementation of CO2 Allowance Auctions.. A. The Department shall design, implement, and administer CO2 allowance auctions in accordance with the objectives of this subtitle.B. Implementation and administrative support functions for any auction conducted may be performed by an agent of the Department, if the agent performs all functions under the direction and oversight of the Department.
26.09.04.05.htm 26.09.04.05. 05 Commencement, Frequency, and Quantity of CO2 Allowance Auctions.. A. The Department shall allocate allowances to the Account for auction as described in COMAR 26.09.02.B. The initial auction shall be conducted at a time and in a manner determined by the Department in consultation with the Committee.C. Frequency. Auctions shall be held at least annually and may be held as often as necessary to meet the objectives of this subtitle, at the Department's discretion and in con
26.09.04.06.htm 26.09.04.06. 06 Auction of CO2 Allowances.. A. The following rules shall apply to each allowance auction. The Department may specify additional information in the auction notice for each auction. Such additional information may include the time and location of the auction, auction rules, registration deadlines, and any additional information deemed necessary or useful.B. General Requirements.. 1) The Department shall include the following information in the auction notice for each auction:.
26.09.04.07.htm 26.09.04.07. 07 Auction Formats.. A. In conducting auctions, the Department may employ any of the following auction formats, or an auction format consisting of any or all of the components in §B―E of this regulation.B. Sealed Bid, Discriminatory Price. In this format:. 1) There is a single or multiple round sealed-bid auction in which the bidders may submit multiple bids at different prices; and2) Allowances are awarded to the highest bidders at their own bid price..
26.09.04.08.htm 26.09.04.08. 08 Participant Eligibility.. A. The Department, in consultation with the Committee, shall determine which categories of eligible bidders will be authorized to submit bids in each auction. Notification of the categories shall be included in each notice of CO2 allowance auction.B. Eligible categories of bidders for an auction may include:. 1) Owners of CO2 budget units located in Maryland;. 2) Owners of CO2 budget units located outside of Maryland but in a particip
26.09.04.09.htm 26.09.04.09. 09 Notice of Auctions.. A. Notice of CO2 Allowance Auction.. 1) A notice of CO2 allowance auction shall be published on the CO2 allowance auction website and in any other publication the Department considers appropriate not later than 45 days before the date upon which the auction may be conducted.2) Failure to publish the notice at least 45 days prior to the auction does not prohibit the Department from conducting an auction, if reasonable notice of the auction is provided.
26.09.04.10.htm 26.09.04.10. 10 Participation Requirements.. A. Qualification.. 1) Any party wishing to participate in an auction shall open and maintain a compliance or general account as described in COMAR 26.09.01.2) Any party wishing to participate in an auction shall be qualified by the Department.. 3) Only those bidders found qualified through the qualification application process will be permitted to submit a bid or bids or otherwise participate in bidding in any auction.4) As part of the qualifi
26.09.04.11.htm 26.09.04.11. 11 Audit and Certification.. The Department shall assign a designee to observe the conduct and outcome of each auction and to issue a report to the Committee.
26.09.04.12.htm 26.09.04.12. 12 Antideceptive Practices.. It is unlawful for a bidder to use or employ any manipulative, misleading, or deceptive practice in connection with its qualification application or purchase of allowances from the Department, including but not limited to any practice that is in contravention of any applicable federal or state law or regulation, this subtitle, and rules and regulations the Maryland Public Service Commission may prescribe as necessary or appropriate in the public
26.09.04.13.htm 26.09.04.13. 13 Transfer of CO2 Allowances.. Upon receipt and approval by the Committee of the report provided under Regulation .10 of this chapter and upon payment in full of purchased allowances by the successful bidder, the Department shall transfer or have transferred the corresponding CO2 allowances from the Account to the successful bidder's compliance or general account.
26.09.04.14.htm 26.09.04.14. 14 Publication of Results.. The Department shall publish on the CO2 allowance auction website the auction clearing price and the number of allowances purchased by a successful bidder through the auction.
26.09.04.9999.htm 26.09.04.9999. Administrative History Effective date:. Regulations .01―13 adopted as an emergency provision effective April 4, 2008 (35:9 Md. R. 895) adopted permanently effective August 25, 2008 (35:17 Md. R. 1490)Regulation .02C amended effective August 6, 2012 (39:15 Md. R. 964). Regulation .03B amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336) amended permanently effective May 3, 2010 (37:9 Md. R. 674)
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