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 calculated pursuant to §C(1) of this regulation, the person, electricity supplier, retail marketer or renewable energy facility may submit the documentation identified in §B(2) of this regulation to the Department in exchange for the permanent retirement of CO2 allowances from the Voluntary Renewable Set-aside Account, if the renewable energy is generated or created, as applicable, in a state or states participating in a multi-state CO2 air pollution control and emissions reduction program established pursuant to this chapter or corresponding rules and regulations in other participating states as a means of reducing emissions of CO2 from CO2 budget sources.

(3) An electricity supplier, retail marketer, or a renewable energy facility may purchase RECs using funds provided to it for that purpose by a person residing or doing business in Maryland.

(4) An electricity supplier, retail marketer, or a renewable energy facility may demonstrate retirement of RECs purchased under §A(3) of this regulation by submitting the documentation identified in §B(2) of this regulation.

(5) A person residing or doing business in Maryland may acquire RECs by generating renewable energy that results in the creation of RECs.

(6) A person residing or doing business in Maryland may demonstrate retirement of RECs acquired by generating renewable energy under A(5) of this regulation by submitting documentation outlined in §B(2) of this regulation.

(7) A person residing or doing business in Maryland may acquire RECs from a renewable energy facility.

(8) A person residing or doing business in Maryland may demonstrate the retirement of RECs acquired from a renewable energy facility under A(7) of this regulation by submitting documentation outlined in §B(2) of this regulation.

(9) The Department shall, upon its approval of the documentation submitted under §A(4), (6), or (8) of this regulation, permanently retire CO2 allowances in accordance with this regulation.

(10) The Department shall permanently retire one CO2 allowance for every ton of CO2 emissions avoided as represented by the submitted RECs.

(11) The Department may not accept RECs that do not equal at least 1 ton of CO2 emissions.

(12) The Department may not permanently retire partial CO2 allowances.

(13) The Department shall permanently retire CO2 allowances into the CO2 Allowance Retirement Account at least annually and by not later than December 31 of the calendar year.

B. Documentation of Energy Purchases.

(1) Documentation of the purchase of RECs for the purpose of this regulation shall be submitted to the Department not later than July 1 of the year following purchase. All submittals received by the Department after July 1 of each year shall be applied toward retirement of CO2 allowances from the Voluntary Renewable Set-aside Account in the next calendar year.

(2) In order for the Department to retire CO2 allowances from the Voluntary Renewable Set-aside Account on behalf of voluntary purchases of RECs, a person, electricity supplier, retail marketer, or renewable energy facility shall submit to the Department for approval the following documentation:

(a) A GATS reserve subaccount report from PJM EIS that documents transfer of the REC to a GATS retirement subaccount for the purposes of this subtitle;

(b) The name of the state in which the REC was created, the name of the facility that generated the renewable energy and its unique generator ID number, and the fuel type;

(c) Any additional information that the Department determines necessary to demonstrate that the RECs purchased are not being credited in more than one state or to satisfy compliance with any state renewable energy portfolio standard program.

C. Determining the Number of CO2 Allowances to be Retired.

(1) The number of CO2 allowances to be retired by the Department shall equal the number of megawatt hours of renewable energy represented by the RECs submitted to the Department, multiplied by a voluntary renewable CO2 emissions factor as calculated annually using the previous yearís fuel mix data from GATS.

(2) If the total number of CO2 allowances calculated for retirement equals or exceeds the number of CO2 allowances in the Voluntary Renewable Set-aside Account, then the Department shall retire not more than the total number of allowances in the Voluntary Renewable Set-aside Account.

(3) For a given calendar year, if the number of CO2 allowances calculated for retirement is less than 350,000, the allowances remaining in the Voluntary Renewable Set-aside Account shall remain in that account. After the retirement of allowances for the preceding calendar year, the Department shall transfer from the Consumer Energy Efficiency Account the number of allowances needed to restore the balance of the Voluntary Renewable Set-aside Account to 350,000.

(4) Every 2 years, the Department, in consultation with the Committee, shall review, and if appropriate, increase the number of CO2 allowances allocated to the Voluntary Renewable Set-aside Account, considering projected voluntary renewable sales, REC market impact, associated impacts pertaining to Marylandís renewable portfolio standard, and other relevant factors.

D. The Voluntary Renewable Set-aside Account shall expire on March 1, 2018.