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 achievable emission rates (LAER) as applicable; and

(3) Has not been constructed pursuant to an order issued by the Public Service Commission of Maryland or by agreement with the State.

C. Allocation of CO2 Allowances.

(1) The Department shall allocate CO2 allowances from the Consumer Energy Efficiency Account to the Clean Generation Set-aside Account so that the total number of CO2 allowances in the Clean Generation Set-aside Account is:

(a) 1,687,679 CO2 allowances for 2018;

(b) 1,500,159 CO2 allowances for 2019;

(c) 1,312,639 CO2 allowances for 2020;

(d) 1,125,119 CO2 allowances for 2021; and

(e) 937,599 CO2 allowances for 2022.

D. Awarding of CO2 Allowances.

(1) Within 60 days after the end of the calendar year, the Department shall award one CO2 allowance to an eligible CO2 budget unit from the Clean Generation Set-aside Account for each ton of CO2 actually emitted by the eligible CO2 budget unit for that calendar year.

(2) Calculating Award of CO2 Allowances for Early Applicants until December 31, 2022.

(a) Except as directed in §D(2)(b) of this regulation, each Early Applicant is guaranteed the following allowances from the Clean Generation Set-aside Account:

(i) 421,920 CO2 allowances for 2018;

(ii) 375,040 CO2 allowances for 2019;

(iii) 328,160 CO2 allowances for 2020;

(iv) 281,280 CO2 allowances for 2021; and

(v) 234,400 CO2 allowances for 2022.

(b) Early Applicants may not be awarded more CO2 allowances than they are eligible to receive as directed in §D(1) of this regulation.

(3) Calculating Award of CO2 Allowances When Requests Are Less than Allocation.

(a) If, after all the allowances are awarded under §D(2)(a), the Department finds that it has only received requests for CO2 allowances for a calendar year from Early Applicants, and the number of allowances requested does not exceed the remaining number of allowances in the Clean Generation Set-aside Account, the remaining CO2 allowances will be awarded based on the number of CO2 allowances requested by the number of eligible Early-Applicants for each calendar year, not to exceed the amount directed in §D(1) of this regulation.

(b) If, after all the allowances are awarded under §D(2)(a), the Department finds that it has received requests for allowances for a calendar year from both Early Applicants and Non-early Applicants, and the number of CO2 allowances requested by both Early Applicants and Non-early Applicants does not exceed the number of remaining CO2 allowances in the Clean Generation Set-aside Account, the remaining CO2 allowances will be awarded based on the number of CO2 allowances requested by the number of eligible Early Applicants and Non-early Applicants, not to exceed the amount directed in §D(1) of this regulation.

(4) Calculating Award of CO2 Allowances When Requests Are Greater than Allocation.

(a) If, after all the allowances are awarded under §D(2)(a), the Department finds that it has only received requests for CO2 allowances for a calendar year from Early Applicants, and the number of allowances requested by Early Applicants exceeds the number of remaining allowances in the Clean Generation Set-aside Account, the remaining CO2 allowances will be awarded in proportion to the number of CO2 allowances requested by the number of eligible Early-Applicants for each calendar year, not to exceed the amount directed in D(1) of this regulation.

(b) If, after all the allowances are awarded under §D)(2)(a), the Department finds that it has received requests for allowances for a calendar year from both Early Applicant and Non-early Applicants, and the number of CO2 allowances requested by both Early Applicants and Non-early Applicants exceeds the number of remaining CO2 allowances in the Clean Generation Set-aside Account, the remaining CO2 allowances will be awarded in proportion to the number of CO2 allowances requested by the number of eligible Early Applicants and Non-early Applicants, not to exceed the amount directed in §D(1) of this regulation.

E. All CO2 allowances awarded by the Department under this regulation shall be maintained in the CO2 budget unitís compliance account and shall only be used to demonstrate compliance.

F. CO2 allowances awarded by the Department under this regulation may not be resold by the recipient of the award.

G. At the end of each calendar year, any CO2 allowances that remain in the Clean Generation Set-aside Account will remain in the Clean Generation Set-aside Account. After awarding CO2 allowances for the preceding calendar year, the Department shall transfer from the Consumer Energy Efficiency Account the number of CO2 allowances needed to restore the balance of the Clean Generation Set-aside Account to the allocations defined in §C(1)(a)—(e) of this regulation.

H. The Clean Generation Set-aside Account shall expire on January 1, 2023.