Final Text
Part VII
CO2 Budget Trading Program
Article 1
CO2 Budget Trading Program General Provisions
9VAC5-140-6010. Purpose.
This part establishes the Virginia component of the CO2
Budget Trading Program, which is designed to reduce anthropogenic emissions of
CO2, a greenhouse gas, from CO2 budget sources in an
economically efficient manner a manner that is protective of human health
and the environment and is economically efficient.
9VAC5-140-6020. Definitions.
A. As used in this part, all words or terms not defined here shall have the meanings given them in 9VAC5-10 (General Definitions), unless otherwise required by the context.
B. For the purpose of this part and any related use, the words or terms shall have the meanings given them in this section.
C. Terms defined.
"Account number" means the identification number given by the department or its agent to each COATS account.
"Acid rain emission limitation" means, as defined in 40 CFR 72.2, a limitation on emissions of sulfur dioxide (SO2) or nitrogen oxides (NOX) under the Acid Rain Program under Title IV of the CAA.
"Acid Rain Program" means a multistate SO2 and NOX air pollution control and emission reduction program established by the administrator under Title IV of the CAA and 40 CFR Parts 72 through 78.
"Adjustment for banked allowances" means an
adjustment applied to the Virginia CO2 Budget Trading Program base
budget for allocation years 2021 through 2025 to address allowances held in
general and compliance accounts, including compliance accounts established
pursuant to 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 [ initial ] control
period in 2020 and as reflected in the CO2 Allowance Tracking System
on March [ 17 15 ], 2021.
"Administrator" means the administrator of the U.S. Environmental Protection Agency or the administrator's authorized representative.
"Allocate" or "allocation" means the
determination by the department of the number of [ CO2 ]
conditional allowances [ allocated to a CO2 budget
unit recorded in the conditional allowance account of a CO2
budget unit ] or to the Department of Mines, Minerals and Energy
(DMME) pursuant to 9VAC5-140-6211.
"Allocation year" means a calendar year for which
the department allocates [ CO2 ] conditional
allowances pursuant to Article 5 (9VAC5-140-6190 et seq.) of this part. The
allocation year of each [ CO2 ] conditional
allowance is reflected in the unique identification number given to the
allowance pursuant to 9VAC5-140-6250 C.
"Allowance" means an allowance up to one ton of
CO2 purchased from the consignment auction in accordance with
Article 9 (9VAC5-140-6410 et seq.) of this part and that may be deposited in
the compliance account of a CO2 budget source.
"Allowance auction" or "auction" means an
auction in which the department or its agent offers [ CO2
conditional ] allowances for sale.
"Alternate CO2 authorized account
representative" means, for a CO2 budget source and each CO2
budget unit at the source, the alternate natural person who is authorized by
the owners and operators of the source and all CO2 budget units at
the source, in accordance with Article 2 (9VAC5-140-6080 et seq.) of this part,
to represent and legally bind each owner and operator in matters pertaining to
the CO2 Budget Trading Program or, for a general account, the
alternate natural person who is authorized, under Article 6 (9VAC5-140-6220 et
seq.) of this part, to transfer or otherwise dispose of CO2 allowances
held in the general account. If the CO2 budget source is also
subject to the Acid Rain Program, CSAPR NOX Annual Trading Program,
CSAPR NOX Ozone Season Trading Program, CSAPR SO2 Group 1
Trading Program, or CSAPR SO2 Group 2 Trading Program then, for a CO2
Budget Trading Program compliance account, this alternate natural person shall
be the same person as the alternate designated representative as defined in the
respective program.
"Attribute" means 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" means a credit that represents the attributes related to one megawatt-hour of electricity generation.
"Automated Data Acquisition and Handling System" or "DAHS" means that component of the Continuous Emissions Monitoring System (CEMS), or other emissions monitoring system approved for use under Article 8 (9VAC5-140-6330 et seq.) of this part, 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 Article 8 (9VAC5-140-6330 et seq.) of this part.
"Billing meter" means a measurement device used to measure electric or thermal output for commercial billing under a contract. The facility selling the electric or thermal output shall have different owners from the owners of the party purchasing the electric or thermal output.
"Boiler" means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.
"CO2 allowance" means a limited authorization by the department or another participating state under the CO2 Budget Trading Program to emit up to one ton of CO2, subject to all applicable limitations contained in this part. CO2 offset allowances generated by other participating states will be recognized by the department.
"CO2 allowance deduction" or
"deduct CO2 allowances" means the permanent withdrawal of
CO2 allowances by the department or its agent from a COATS
compliance account to account for the number of tons of CO2 emitted
from a CO2 budget source for the [ initial control
period, ] a control period [ , ] or an
interim control period [ , ] determined in accordance
with Article 8 (9VAC5-140-6330 et seq.) of this part, or for the forfeit or
retirement of CO2 allowances as provided by this part.
"CO2 Allowance Tracking System" or "COATS" means the system by which the department or its agent records allocations, deductions, and transfers of CO2 allowances under the CO2 Budget Trading Program. The tracking system may also be used to track CO2 allowance prices and emissions from affected sources.
"CO2 Allowance Tracking System account" means an account in COATS established by the department or its agent for purposes of recording the allocation, holding, transferring, or deducting of CO2 allowances.
"CO2 allowance transfer deadline" means
midnight of March 1 occurring after the end of the [ relevant
initial control period, the ] 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 shall be submitted for
recordation in a CO2 budget source's compliance account for the
source to meet the CO2 requirements of 9VAC5-140-6050 C for
[ the initial control period, a ] control period
[ , ] and each interim control period immediately preceding
such deadline.
"CO2 allowances held" or "hold CO2 allowances" means the CO2 allowances recorded by the department or its agent, or submitted to the department or its agent for recordation, in accordance with Article 6 (9VAC5-140-6220 et seq.) and Article 7 (9VAC5-140-6300 et seq.) of this part, in a COATS account.
"CO2 authorized account representative" means, for a CO2 budget source and each CO2 budget unit at the source, the natural person who is authorized by the owners and operators of the source and all CO2 budget units at the source, in accordance with Article 2 (9VAC5-140-6080 et seq.) of this part, to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the natural person who is authorized, under Article 6 (9VAC5-140-6220 et seq.) of this part, to transfer or otherwise dispose of CO2 allowances held in the general account. If the CO2 budget source is also subject to the Acid Rain Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season Trading Program, CSAPR SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 Trading Program, then for a CO2 Budget Trading Program compliance account, this natural person shall be the same person as the designated representative as defined in the respective program.
"CO2 authorized alternate account representative" means, for a CO2 budget source and each CO2 budget unit at the source, the alternate natural person who is authorized by the owners and operators of the source and all CO2 budget units at the source, in accordance with Article 2 (9VAC5-140-6080 et seq.) of this part, to represent and legally bind each owner and operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the alternate natural person who is authorized, under Article 6 (9VAC5-140-6220 et seq.) of this part, to transfer or otherwise dispose of CO2 allowances held in the general account. If the CO2 budget source is also subject to the Acid Rain Program, CSAPR NOX Annual Trading Program, CSAPR NOX Ozone Season Trading Program, CSAPR SO2 Group 1 Trading Program, or CSAPR SO2 Group 2 Trading Program then, for a CO2 Budget Trading Program compliance account, this alternate natural person shall be the same person as the alternate designated representative as defined in the respective program.
"CO2 budget emissions limitation"
means, for a CO2 budget source, the tonnage equivalent, in CO2
emissions in [ the initial control period, ] 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" means the portion of the legally binding permit issued by the department pursuant to 9VAC5-85 (Permits for Stationary Sources of Pollutants Subject to Regulation) to a CO2 budget source or CO2 budget unit that specifies the CO2 Budget Trading Program requirements applicable to the CO2 budget source, to each CO2 budget unit at the CO2 budget source, and to the owners and operators and the CO2 authorized account representative of the CO2 budget source and each CO2 budget unit.
"CO2 budget source" means a source that includes one or more CO2 budget units.
"CO2 Budget Trading Program" means the
Regional Greenhouse Gas Initiative (RGGI), a multistate CO2 air
pollution control and emissions reduction program established according to this
part and corresponding regulations in other states as a means of reducing
emissions of CO2 from CO2 budget sources.
"CO2 budget unit" means a unit that is subject to the CO2 Budget Trading Program requirements under 9VAC5-140-6040.
"CO2 cost containment reserve
allowance" or "CO2 CCR allowance" means [ a
conditional CO2 allowance that is offered for sale an
allowance that has been sold ] at an auction for the purpose of
containing the cost of CO2 allowances. CO2 CCR allowances
offered for sale at an auction are separate from and additional to CO2
allowances allocated from the Virginia CO2 Budget Trading Program
base and adjusted budgets. CO2 CCR allowances are subject to all
applicable limitations contained in this part.
"CO2 cost containment reserve trigger
price" or "CCR trigger price" means the minimum price at which
CO2 CCR allowances are offered for sale at an auction. Beginning in
2020 and each calendar year thereafter, the CCR trigger price shall be 1.025
multiplied by the CCR trigger price from the previous calendar year, rounded to
the nearest whole cent. The CCR trigger price in calendar year 2020 shall
be $10.77. The CCR trigger price in calendar year 2021 shall be $13. Each
calendar year thereafter, the CCR trigger price shall be 1.07 multiplied by the
CCR trigger price from the previous calendar year, rounded to the nearest whole
cent, as shown in Table 140-1A.
|
Table 140-1A CO2 CCR Trigger Price |
|
|
2020 |
$10.77 |
|
2021 |
$13.00 |
|
2022 |
$13.91 |
|
2023 |
$14.88 |
|
2024 |
|
|
2025 |
|
|
2026 |
|
|
2027 |
|
|
2028 |
|
|
2029 |
|
|
2030 |
|
"CO2 [ emission
emissions ] containment reserve allowance" or "CO2
ECR allowance" means a [ CO2
conditional ] 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 [ emission
emissions ] containment reserve trigger price" or "ECR
trigger price" means the price below which [ CO2
conditional ] allowances will be withheld from sale by the
department or its agent at an auction. The ECR trigger price in calendar year
2021 shall be $6.00. Each calendar year thereafter, the ECR trigger price shall
be 1.07 multiplied by the ECR trigger price from the previous calendar year,
rounded to the nearest whole cent, as shown in Table 140-1B.
|
Table 140-1B CO2 ECR Trigger Price |
|
|
2021 |
$ 6.00 |
|
2022 |
$ 6.42 |
|
2023 |
$ 6.87 |
|
2024 |
$ 7.35 |
|
2025 |
$ 7.86 |
|
2026 |
|
|
2027 |
$ 9.00 |
|
2028 |
$ 9.63 |
|
2029 |
|
|
2030 |
|
"CO2 offset allowance" means a CO2 allowance that is awarded to the sponsor of a CO2 emissions offset project by a participating state and is subject to the relevant compliance deduction limitations of the participating state's corresponding offset regulations as a means of reducing CO2 from CO2 budget sources.
"Combined cycle system" means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.
"Combustion turbine" means 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" means, 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. For a unit that is a CO2 budget unit under 9VAC5-140-6040 on the date the unit commences commercial operation, such date shall remain the unit's date of commencement of commercial operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO2 budget unit under 9VAC5-140-6040 on the date the unit commences commercial operation, the date the unit becomes a CO2 budget unit under 9VAC5-140-6040 shall be the unit's date of commencement of commercial operation.
"Commence operation" means to begin any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit's combustion chamber. For a unit that is a CO2 budget unit under 9VAC5-140-6040 on the date of commencement of operation, such date shall remain the unit's date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO2 budget unit under 9VAC5-140-6040 on the date of commencement of operation, the date the unit becomes a CO2 budget unit under 9VAC5-140-6040 shall be the unit's date of commencement of operation.
"Compliance account" means a COATS account,
established by the department or its agent for a CO2 budget source
under Article 6 (9VAC5-140-6220 et seq.) of this part, in which [ are
held ] CO2 allowances available for use by the
source for [ the initial control period, ] a control
period [ , ] and each interim control period
[ are held ] for the purpose of meeting the CO2
requirements of 9VAC5-140-6050 C.
"Conditional allowance" means an allowance
allocated by the department to [ a ] CO2
budget [ sources and source or ] to DMME.
Such conditional allowance shall be consigned by the entity to whom it is
allocated to the consignment auction as specified under Article 9 (9VAC5-140-6410
et seq.) of this part, after which the conditional allowance becomes an
allowance to be used for compliance purposes. a CO2 allowance
once it is sold to an auction participant. [ A conditional
allowance may also be contained in the CCR and may be auctioned. ]
"Conditional [ allowance account" means a general COATS account established by the department for CO2 budget sources and DMME or its contractor where conditional allowances allocated to CO2 budget sources and DMME are held until auction.
"Conditional cost containment reserve allowance"
or "conditional ] CCR allowance" means [ a
CCR an ] allowance that may be offered for sale when the
CCR is triggered. If any [ conditional ] CCR allowances
are unsold, they [ shall be returned to the CCR account and ]
may be offered for sale in future auctions during the same year. [ Conditional
CCR allowances offered for sale at an auction are separate from and additional
to conditional allowances allocated from the Virginia CO2 Budget Trading
Program base and adjusted budgets. Conditional CCR allowances are subject to
all applicable limitations contained in this part. ]
"Consignment auction" or "auction" means
the CO2 auction conducted on a quarterly basis by RGGI,
Inc. the CO2 Budget Trading Program, in which CO2
budget sources and DMME are allocated a share of allowances by the department
that CO2 budget sources and the holder of a public contract with
DMME consign into the auction, and auction revenue is returned to CO2
budget sources and the holder of a public contract with DMME in accordance with
procedures established by the department.
"Continuous Emissions Monitoring System" or "CEMS" means the equipment required under Article 8 (9VAC5-140-6330 et seq.) of this part to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated DAHS), 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 and Article 8 (9VAC5-140-6330 et seq.) of this part. The following systems are types of CEMS required under Article 8 (9VAC5-140-6330 et seq.) of this part:
a. A flow monitoring system, consisting of a stack flow
rate monitor and an automated DAHS and providing a permanent, continuous record
of stack gas volumetric flow rate, in standard cubic feet per hour (scf);
b. A NOX emissions rate (or NOX-diluent) monitoring system, consisting of a NOX pollutant concentration monitor, a diluent gas (CO2 or O2) monitor, and an automated DAHS and providing a permanent, continuous record of NOX concentration, in parts per million (ppm), diluent gas concentration, in percent CO2 or O2, and NOX emissions rate, in pounds per million British thermal units (lb/MMBtu);
c. A moisture monitoring system, as defined in 40 CFR 75.11(b)(2) and providing a permanent, continuous record of the stack gas moisture content, in percent H2O;
d. A CO2 monitoring system, consisting of a CO2 pollutant concentration monitor (or an O2 monitor plus suitable mathematical equations from which the CO2 concentration is derived) and an automated DAHS and providing a permanent, continuous record of CO2 emissions, in percent CO2; and
e. An O2 monitoring system, consisting of an O2 concentration monitor and an automated DAHS and providing a permanent, continuous record of O2, in percent O2.
"Control period" means a three-calendar-year time
period. The [ first fifth ] control
period is from January 1, 2021, to December 31, 2023, inclusive [ .
Each subsequent compliance control period shall be a sequential
three-calendar-year period. , which is the first control period of
Virginia's participation in the CO2 Budget Trading Program. ]
The first two [ compliance calendar ] years
of each control period are each defined as an interim control period, beginning
on January 1, [ 2022 2021 ].
"Cross State Air Pollution Rule (CSAPR) NOX Annual Trading Program" means a multistate NOX air pollution control and emission reduction program established in accordance with Subpart AAAAA of 40 CFR Part 97 and 40 CFR 52.38(a), including such a program that is revised in a SIP revision approved by the administrator under 40 CFR 52.38(a)(3) or (4) or that is established in a SIP revision approved by the administrator under 40 CFR 52.38(a)(5), as a means of mitigating interstate transport of fine particulates and NOX.
"Cross State Air Pollution Rule (CSAPR) NOX Ozone Season Trading Program" means a multistate NOX air pollution control and emission reduction program established in accordance with Subpart BBBBB of 40 CFR Part 97 and 40 CFR 52.38(b), including such a program that is revised in a SIP revision approved by the administrator under 40 CFR 52.38(b)(3) or (4) or that is established in a SIP revision approved by the administrator under 40 CFR 52.38(b)(5), as a means of mitigating interstate transport of ozone and NOX.
"Cross State Air Pollution Rule (CSAPR) SO2 Group 1 Trading Program" means a multistate SO2 air pollution control and emission reduction program established in accordance with Subpart CCCCC of 40 CFR Part 97 and 40 CFR 52.39(a), (b), (d) through (f), (j), and (k), including such a program that is revised in a SIP revision approved by the administrator under 40 CFR 52.39(d) or (e) or that is established in a SIP revision approved by the administrator under 40 CFR 52.39(f), as a means of mitigating interstate transport of fine particulates and SO2.
"Cross State Air Pollution Rule (CSAPR) SO2 Group 2 Trading Program" means a multistate SO2 air pollution control and emission reduction program established in accordance with Subpart DDDDD of 40 CFR Part 97 and 40 CFR 52.39(a), (c), and (g) through (k), including such a program that is revised in a SIP revision approved by the administrator under 40 CFR 52.39(g) or (h) or that is established in a SIP revision approved by the administrator under 40 CFR 52.39(i), as a means of mitigating interstate transport of fine particulates and SO2.
"Department" means the Virginia Department of Environmental Quality.
"DMME" means the Virginia Department of Mines, Minerals and Energy.
"Excess emissions" means any tonnage of CO2 emitted by a CO2 budget source during [ the initial control period or ] a control period that exceeds the CO2 budget emissions limitation for the source.
"Excess interim emissions" means any tonnage of CO2 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.
"Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.
"Fossil fuel-fired" means the combustion of fossil
fuel, alone or in combination with any other fuel, where the fossil fuel
combusted comprises, or is projected to comprise, more than 10% 5.0% of
the annual heat input on a Btu basis during any year.
"General account" means a COATS account
[ , ] established under Article 6 (9VAC5-140-6220 et
seq.) of this part that is not a compliance account.
"Gross generation" means the electrical output in MWe at the terminals of the generator.
"Initial control period" means the period beginning January 1, 2020, and ending December 31, 2020.
"Interim control period" means a one-calendar-year
time period [ , ] during each of the first and
second calendar years of each three-year control period. The first interim
control period starts January 1, 2021, and ends December 31, 2021, inclusive.
The second interim control period starts January 1, 2022, and ends December 31,
2022, inclusive. Each successive three-year control period will have two
interim control periods, comprised of each of the first two calendar years of
that control period.
"Life-of-the-unit contractual arrangement" means 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 pursuant to a contract:
a. For the life of the unit;
b. For a cumulative term of no less than 30 years, including contracts that permit an election for early termination; or
c. For 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 design heat input" means the ability
of a unit to combust a stated maximum amount of fuel per hour on a steady state
basis, as determined by the physical design and physical characteristics of the
unit.
"Maximum potential hourly heat input" means an hourly heat input used for reporting purposes when a unit lacks certified monitors to report heat input. If the unit intends to use Appendix D of 40 CFR Part 75 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" means, in calendar year
2020, $2.00 $2.32. 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" means any monitoring system that meets the requirements of Article 8 (9VAC5-140-6330 et seq.) of this part, including a CEMS, an excepted monitoring system, or an alternative monitoring system.
"Nameplate capacity" means the maximum electrical output in MWe that a generator can sustain over a specified period of time when not restricted by seasonal or other deratings as measured in accordance with the U.S. Department of Energy standards.
"Net-electric output" means the amount of gross generation in MWh the generators produce, including output from steam turbines, combustion turbines, and gas expanders, as measured at the generator terminals, less the electricity used to operate the plant (i.e., auxiliary loads); such uses include fuel handling equipment, pumps, fans, pollution control equipment, other electricity needs, and transformer losses as measured at the transmission side of the step up transformer (e.g., the point of sale).
"Non-CO2 budget unit" means a unit that does not meet the applicability criteria of 9VAC5-140-6040.
"Operator" means any person who operates, controls, or supervises a CO2 budget unit or a CO2 budget source and shall include any holding company, utility system, or plant manager of such a unit or source.
"Owner" means any of the following persons:
a. Any holder of any portion of the legal or equitable title in a CO2 budget unit;
b. Any holder of a leasehold interest in a CO2 budget unit, 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;
c. Any 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; or
d. With respect to any general account, any 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 the CO2 allowances.
"Participating state" means a state that has
established a corresponding regulation as part of participates in
the CO2 Budget Trading Program.
"Receive" or "receipt of" means, 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 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" means, 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.
"RGGI, Inc." means the 501(c)(3) nonprofit
corporation created to support development and implementation of the Regional
Greenhouse Gas Initiative (RGGI). Participating RGGI states use RGGI, Inc., as
their agent to conduct the consignment auction and to operate and manage COATS.
"Reserve price" means the minimum acceptable price
for each [ CO2 conditional ] allowance
in a specific auction. The reserve price at an auction is either the minimum
reserve price or the CCR trigger price, as specified in Article 9
(9VAC5-140-6410 et seq.) of this part.
"Serial number" means, when referring to CO2 allowances, the unique identification number assigned to each CO2 allowance by the department or its agent under 9VAC5-140-6250 C.
"Source" means any 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.
"State" means the Commonwealth of Virginia. The
term "state" shall have its conventional meaning where such meaning
is clear from the context.
"Submit" or "serve" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation:
a. In person;
b. By U.S. United States Postal Service; or
c. By other means of dispatch or transmission and delivery.
Compliance with any "submission," "service," or "mailing" deadline shall be determined by the date of dispatch, transmission, or mailing and not the date of receipt.
"Ton" or "tonnage" means any short ton, or 2,000 pounds. For the purpose of determining compliance with the CO2 requirements of 9VAC5-140-6050 C, total tons for [ the initial control period, an interim control period, or ] a control period shall be calculated as the sum of all recorded hourly emissions, or the tonnage equivalent of the recorded hourly emissions rates, in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part, with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one ton and any fraction of a ton less than 0.50 ton deemed to equal zero tons. A short ton is equal to 0.9072 metric tons.
"Total useful energy" means the sum of gross electrical generation and useful net thermal energy.
"Undistributed [ CO2
conditional ] allowances" means [ CO2
conditional ] allowances originally allocated to a set aside
account as pursuant to 9VAC5-140-6210 that were not distributed.
"Unit" means a fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system.
"Unit operating day" means a calendar day in which a unit combusts any fuel.
"Unsold [ CO2
conditional ] allowances" means [ CO2
conditional ] allowances that have been made available for sale in
an auction conducted by the department or its agent, but not sold.
"Useful net thermal energy" means energy:
1. In the form of direct heat, steam, hot water, or other thermal form that is used in the production and beneficial measures for heating, cooling, humidity control, process use, or other thermal end use energy requirements, excluding thermal energy used in the power production process (e.g., house loads and parasitic loads); and
2. For which fuel or electricity would otherwise be consumed.
"Virginia CO2 Budget Trading Program
adjusted budget" means an adjusted budget determined in accordance with
9VAC5-140-6210 and is the annual amount of CO2 tons available in
Virginia for allocation in a given allocation year, in accordance with the CO2
Budget Trading Program. [ CO2 Conditional ]
CCR allowances offered for sale at an auction are separate from and
additional to [ CO2 conditional ]
allowances allocated from the Virginia CO2 Budget Trading Program
adjusted budget.
"Virginia CO2 Budget Trading Program base
budget" means the budget specified in 9VAC5-140-6190. [ CO2
Conditional ] CCR allowances offered for sale at an auction are
separate from and additional to [ CO2
conditional ] allowances allocated from the Virginia CO2
Budget Trading Program base budget.
9VAC5-140-6030. Measurements, abbreviations, and acronyms.
Measurements, abbreviations, and acronyms used in this part are defined as follows:
Btu - British thermal unit.
CAA - federal Clean Air Act.
CCR - cost containment reserve.
CEMS - Continuous Emissions Monitoring System.
COATS - CO2 Allowance Tracking System.
CO2 - carbon dioxide.
DAHS - Data Acquisition and Handling System.
EEM - efficiency measure.
H2O - water.
lb - pound.
LME - low mass emissions.
MMBtu - million British thermal units.
MW - megawatt.
MWe - megawatt electrical.
MWh - megawatt hour.
NOX - nitrogen oxides.
O2 - oxygen.
ORIS - Office of Regulatory Information Systems.
QA/QC - quality assurance/quality control.
ppm - parts per million.
scf - standard cubic feet per hour.
SO2 - sulfur dioxide.
9VAC5-140-6040. Applicability.
A. Any fossil fuel-fired unit that serves an electricity generator with a nameplate capacity equal to or greater than 25 MWe shall be a CO2 budget unit, and any source that includes one or more such units shall be a CO2 budget source, subject to the requirements of this part.
B. Exempt from the requirements of this part is any
[ fossil fuel ] power generating unit owned by an
individual facility and located at that individual facility that generates
electricity and heat from fossil fuel for the primary use of operation of the
facility CO2 budget source located at or adjacent to and
physically interconnected with a manufacturing facility that, prior to January
1, 2019, and in every subsequent calendar year, met either of the following
requirements:
1. Supplies less than or equal to 10% of its annual net electrical generation to the electric grid; or
2. Supplies less than or equal to 15% of its annual total useful energy to any entity other than the manufacturing facility to which the CO2 budget source is interconnected.
For the purpose of subdivision 1 of this subsection, annual net electrical generation shall be determined as follows:
(ES – EP) / EG x 100
Where:
ES = electricity sales to the grid from the CO2 budget source
EP = electricity purchases from the grid by the CO2 budget source and the manufacturing facility to which the CO2 budget source is interconnected
EG = electricity generation
Such CO2 budget source shall have an operating permit containing the applicable restrictions under this subsection.
[ 9VAC5-140-6045. CO2 Budget Trading Program implementation.
In the event the allocation of conditional allowances by the department as required by 9VAC5-140-6190 B has not occurred by January 1, 2020, the program will be considered to be operating and effective as of the calendar year following the date on which the department allocates the conditional allowances as it corresponds to the schedule of 9VAC5-140-6190 A. Permitting and compliance dates, including the due date for a permit as required by 9VAC5-140-6150, shall be adjusted to be in force six months after the date the department allocates the conditional allowances. Any excess emissions tonnage identified by the new program implementation date may be addressed through program review and regulatory action as necessary to ensure compliance with the final compliance date. The department will notify the board and each affected CO2 budget source accordingly. ]
9VAC5-140-6050. Standard requirements.
A. Permit requirements shall be as follows.
1. The CO2 authorized account representative of each CO2 budget source required to have an operating permit pursuant to 9VAC5-85 (Permits for Stationary Sources of Pollutants Subject to Regulation) and each CO2 budget unit required to have an operating permit pursuant to 9VAC5-85 shall:
a. Submit to the department a complete CO2 budget permit application under 9VAC5-140-6160 in accordance with the deadlines specified in 9VAC5-140-6150; and
b. Submit in a timely manner any supplemental information that the department determines is necessary in order to review the CO2 budget permit application and issue or deny a CO2 budget permit.
2. The owners and operators of each CO2 budget source required to have an operating permit pursuant to 9VAC5-85 (Permits for Stationary Sources of Pollutants Subject to Regulation) and each CO2 budget unit required to have an operating permit pursuant to 9VAC5-85 for the source shall have a CO2 budget permit and operate the CO2 budget source and the CO2 budget unit at the source in compliance with such CO2 budget permit.
B. Monitoring requirements shall be as follows.
1. The owners and operators and, to the extent applicable, the CO2 authorized account representative of each CO2 budget source and each CO2 budget unit at the source shall comply with the monitoring requirements of Article 8 (9VAC5-140-6330 et seq.) of this part.
2. The emissions measurements recorded and reported in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part shall be used to determine compliance by the unit with the CO2 requirements under subsection C of this section.
C. CO2 requirements shall be as follows.
1. The owners and operators of each CO2 budget source and each CO2 budget unit at the source shall hold CO2 allowances available for compliance deductions under 9VAC5-140-6260, as of the CO2 allowance transfer deadline, in the source's compliance account in an amount not less than the total CO2 emissions [ that have been generated as a result of combusting fossil fuel ] for the [ initial control period, an interim control period, or ] control period from all CO2 budget units at the source, less the CO2 allowances deducted to meet the requirements of subdivision 2 of this subsection, with respect to the previous two interim control periods as determined in accordance with Article 6 (9VAC5-140-6220 et seq.) and Article 8 (9VAC5-140-6330 et seq.) of this part.
2. The owners and operators of each CO2 budget source and each CO2 budget unit at the source shall hold CO2 allowances available for compliance deductions under 9VAC5-140-6260, as of the CO2 allowance transfer deadline, in the source's compliance account in an amount not less than the total CO2 emissions [ that have been generated as a result of combusting fossil fuel ] for the [ initial control period, an interim control period, or ] for the interim control period from all CO2 budget units at the source multiplied by 0.50, as determined in accordance with Article 6 (9VAC5-140-6220 et seq.) and Article 8 (9VAC5-140-6330 et seq.) of this part.
3. Each ton of CO2 emitted in excess of the CO2 budget emissions limitation for [ the initial control period or ] a control period shall constitute a separate violation of this part and applicable state law.
4. Each ton of excess interim emissions shall constitute a separate violation of this part and applicable state law.
5. A CO2 budget unit shall be subject to the requirements under subdivision 1 of this subsection starting on the later of January 1, 2020, or the date on which the unit commences operation.
6. CO2 allowances shall be held in, deducted from, or transferred among COATS accounts in accordance with Article 5 (9VAC5-140-6190 et seq.), Article 6 (9VAC5-140-6220 et seq.), and Article 7 (9VAC5-140-6300 et seq.) of this part.
7. A CO2 allowance shall not be deducted, to comply with the requirements under subdivision 1 or 2 of this subsection, for a control period that ends prior to the year for which the CO2 allowance was allocated.
8. A CO2 allowance under the CO2 Budget Trading Program is a limited authorization by the department to emit one ton of CO2 in accordance with the CO2 Budget Trading Program. No provision of the CO2 Budget Trading Program, the CO2 budget permit application, or the CO2 budget permit or any provision of law shall be construed to limit the authority of the department or a participating state to terminate or limit such authorization.
9. A CO2 allowance under the CO2 Budget Trading Program does not constitute a property right.
D. The owners and operators of a CO2 budget
source that has excess emissions in [ any an initial
control period or a ] control period shall:
1. Forfeit the CO2 allowances required for deduction under 9VAC5-140-6260 D 1; and
2. Pay any fine, penalty, or assessment or comply with any other remedy imposed under 9VAC5-140-6260 D 2.
E. Recordkeeping and reporting requirements shall be as follows:
1. Unless otherwise provided, the owners and operators of the CO2 budget source and each CO2 budget unit at the source shall keep on site at the source each of the following documents for a period of 10 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 10 years, in writing by the department.
a. The account certificate of representation for the CO2 authorized account representative for the source and each CO2 budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with 9VAC5-140-6110, provided that the certificate and documents shall be retained on site at the source beyond such 10-year period until such documents are superseded because of the submission of a new account certificate of representation changing the CO2 authorized account representative.
b. All emissions monitoring information, in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part and 40 CFR 75.57.
c. Copies of all reports, compliance certifications, and other submissions and all records made or required under the CO2 Budget Trading Program.
d. Copies of all documents used to complete a CO2 budget permit application and any other submission under the CO2 Budget Trading Program or to demonstrate compliance with the requirements of the CO2 Budget Trading Program.
2. The CO2 authorized account representative of a CO2 budget source and each CO2 budget unit at the source shall submit the reports and compliance certifications required under the CO2 Budget Trading Program, including those under Article 4 (9VAC5-140-6170 et seq.) of this part.
F. Liability requirements shall be as follows.
1. No permit revision shall excuse any violation of the requirements of the CO2 Budget Trading Program that occurs prior to the date that the revision takes effect.
2. Any provision of the CO2 Budget Trading Program that applies to a CO2 budget source, including a provision applicable to the CO2 authorized account representative of a CO2 budget source, shall also apply to the owners and operators of such source and of the CO2 budget units at the source.
3. Any provision of the CO2 Budget Trading Program that applies to a CO2 budget unit, including a provision applicable to the CO2 authorized account representative of a CO2 budget unit, shall also apply to the owners and operators of such unit.
G. No provision of the CO2 Budget Trading Program, a CO2 budget permit application, or a CO2 budget permit shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the CO2 authorized account representative of the CO2 budget source or CO2 budget unit from compliance with any other provisions of applicable state and federal law or regulations.
9VAC5-140-6060. Computation of time.
A. Unless otherwise stated, any time period scheduled, under the CO2 Budget Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.
B. Unless otherwise stated, any time period scheduled, under the CO2 Budget Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.
C. Unless otherwise stated, if the final day of any time period, under the CO2 Budget Trading Program, falls on a weekend or a state or federal holiday, the time period shall be extended to the next business day.
9VAC5-140-6070. Severability.
If any provision of this part, or its application to any particular person or circumstances, is held invalid, the remainder of this part, and the application thereof to other persons or circumstances, shall not be affected thereby.
Article 2
CO2 Authorized Account Representative for CO2 Budget
Sources
9VAC5-140-6080. Authorization and responsibilities of the CO2 authorized account representative.
A. Except as provided under 9VAC5-140-6090, each CO2 budget source, including all CO2 budget units at the source, shall have one and only one CO2 authorized account representative, with regard to all matters under the CO2 Budget Trading Program concerning the source or any CO2 budget unit at the source.
B. The CO2 authorized account representative of the CO2 budget source shall be selected by an agreement binding on the owners and operators of the source and all CO2 budget units at the source and must act in accordance with the [ account ] certificate of representation under 9VAC5-140-6110.
C. Upon receipt by the department or its agent of a complete account certificate of representation under 9VAC5-140-6110, the CO2 authorized account representative of the source shall represent and, by his representations, actions, inactions, or submissions, legally bind each owner and operator of the CO2 budget source represented and each CO2 budget unit at the source in all matters pertaining to the CO2 Budget Trading Program, notwithstanding any agreement between the CO2 authorized account representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CO2 authorized account representative by the department or a court regarding the source or unit.
D. No CO2 budget permit shall be issued, and no COATS account shall be established for a CO2 budget source, until the department or its agent has received a complete account certificate of representation under 9VAC5-140-6110 for a CO2 authorized account representative of the source and the CO2 budget units at the source.
E. Each submission under the CO2 Budget Trading Program shall be submitted, signed, and certified by the CO2 authorized account representative for each CO2 budget source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CO2 authorized account representative: "I am authorized to make this submission on behalf of the owners and operators of the CO2 budget sources or CO2 budget units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."
F. The department or its agent will accept or act on a submission made on behalf of owners or operators of a CO2 budget source or a CO2 budget unit only if the submission has been made, signed, and certified in accordance with subsection E of this section.
9VAC5-140-6090. Alternate CO2 authorized
alternate account representative.
A. An account certificate of representation may designate
one and only one alternate CO2 authorized alternate account
representative who may act on behalf of the CO2 authorized account
representative. The agreement by which the alternate CO2
authorized alternate account representative is selected shall include a
procedure for authorizing the alternate CO2 authorized
alternate account representative to act in lieu of the CO2
authorized account representative.
B. Upon receipt by the department or its agent of a
complete account certificate of representation under 9VAC5-140-6110, any
representation, action, inaction, or submission by the alternate CO2
authorized alternate account representative shall be deemed to be a
representation, action, inaction, or submission by the CO2
authorized account representative.
C. Except in this section and 9VAC5-140-6080 A,
9VAC5-140-6100, 9VAC5-140-6110, and 9VAC5-140-6230, whenever the term "CO2
authorized account representative" is used in this part, the term shall be
construed to include the alternate CO2 authorized alternate
account representative.
9VAC5-140-6100. Changing the CO2 authorized
account representatives and the alternate CO2 authorized
alternate account representative; changes in the owners and operators.
A. The CO2 authorized account representative may
be changed at any time upon receipt by the department or its agent of a
superseding complete account certificate of representation under
9VAC5-140-6110. Notwithstanding any such change, all representations, actions,
inactions, and submissions by the previous CO2 authorized account
representative or alternate CO2 authorized alternate account
representative prior to the time and date when the department or its agent
receives the superseding account certificate of representation shall be binding
on the new CO2 authorized account representative and the owners and
operators of the CO2 budget source and the CO2 budget
units at the source.
B. The alternate CO2 authorized alternate
account representative may be changed at any time upon receipt by the
department or its agent of a superseding complete account certificate of
representation under 9VAC5-140-6110. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous or
alternate CO2 authorized alternate account representative or alternate
CO2 authorized alternate account representative prior to the time
and date when the department or its agent receives the superseding account
certificate of representation shall be binding on the new alternate CO2
authorized alternate account representative and the owners and operators of the
CO2 budget source and the CO2 budget units at the source.
C. Changes in the owners and operators shall be addressed as follows.
1. In the event a new owner or operator of a CO2
budget source or a CO2 budget unit is not included in the list of
owners and operators submitted in the account certificate of representation,
such new owner or operator shall be deemed to be subject to and bound by the
account certificate of representation, the representations, actions, inactions,
and submissions of the CO2 authorized account representative and any
alternate CO2 authorized alternate account representative of
the source or unit, and the decisions, orders, actions, and inactions of the
department, as if the new owner or operator were included in such list.
2. Within 30 days following any change in the owners and
operators of a CO2 budget source or a CO2 budget unit,
including the addition of a new owner or operator, the CO2
authorized account representative or alternate CO2
authorized alternate account representative shall submit a revision to the
account certificate of representation amending the list of owners and operators
to include the change.
9VAC5-140-6110. Account certificate of representation.
A. A complete account certificate of representation for a
CO2 authorized account representative or an alternate a
CO2 authorized alternate account representative shall include the
following elements in a format prescribed by the department or its agent:
1. Identification of the CO2 budget source and each CO2 budget unit at the source for which the account certificate of representation is submitted;
2. The name, address, email address, telephone number, and
facsimile transmission number of the CO2 authorized account
representative and any alternate CO2 authorized alternate
account representative;
3. A list of the owners and operators of the CO2 budget source and of each CO2 budget unit at the source;
4. The following certification statement by the CO2
authorized account representative and any alternate CO2
authorized alternate account representative: "I certify that I was
selected as the CO2 authorized account representative or alternate
CO2 authorized alternate account representative, as applicable, by
an agreement binding on the owners and operators of the CO2 budget
source and each CO2 budget unit at the source. I certify that I have
all the necessary authority to carry out my duties and responsibilities under
the CO2 Budget Trading Program on behalf of the owners and operators
of the CO2 budget source and of each CO2 budget unit at
the source and that each such owner and operator shall be fully bound by my
representations, actions, inactions, or submissions and by any decision or
order issued to me by the department or a court regarding the source or
unit."; and
5. The signature of the CO2 authorized account
representative and any alternate CO2 authorized alternate
account representative and the dates signed.
B. Unless otherwise required by the department or its agent, documents of agreement referred to in the account certificate of representation shall not be submitted to the department or its agent. Neither the department nor its agent shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.
9VAC5-140-6120. Objections concerning the CO2 authorized account representative.
A. Once a complete account certificate of representation under 9VAC5-140-6110 has been submitted and received, the department and its agent will rely on the account certificate of representation unless and until the department or its agent receives a superseding complete account certificate of representation under 9VAC5-140-6110.
B. Except as provided in 9VAC5-140-6100 A or B, no objection or other communication submitted to the department or its agent concerning the authorization, or any representation, action, inaction, or submission of the CO2 authorized account representative shall affect any representation, action, inaction, or submission of the CO2 authorized account representative or the finality of any decision or order by the department or its agent under the CO2 Budget Trading Program.
C. Neither the department nor its agent will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of any CO2 authorized account representative, including private legal disputes concerning the proceeds of CO2 allowance transfers.
9VAC5-140-6130. Delegation by CO2 authorized
account representative and alternate CO2 authorized alternate
account representative.
A. A CO2 authorized account representative may delegate, to one or more natural persons, his authority to make an electronic submission to the department or its agent under this part.
B. An alternate A CO2 authorized
alternate account representative may delegate, to one or more natural persons,
his authority to make an electronic submission to the department or its agent
under this part.
C. To delegate authority to make an electronic submission
to the department or its agent in accordance with subsections A and B of this
section, the CO2 authorized account representative or alternate
CO2 authorized alternate account representative, as appropriate,
shall submit to the department or its agent a notice of delegation, in a format
prescribed by the department that includes the following elements:
1. The name, address, email address, telephone number, and
facsimile transmission number of such CO2 authorized account
representative or alternate CO2 authorized alternate account
representative;
2. The name, address, email address, telephone number, and facsimile transmission number of each such natural person, referred to as the "electronic submission agent";
3. For each such natural person, a list of the type of electronic submissions under subsection A or B of this section for which authority is delegated to him; and
4. The following certification statement by such CO2
authorized account representative or alternate CO2 authorized
alternate account representative: "I agree that any electronic submission
to the department or its agent that is by a natural person identified in this
notice of delegation and of a type listed for such electronic submission agent
in this notice of delegation and that is made when I am a CO2
authorized account representative or alternate CO2 authorized
alternate account representative, as appropriate, and before this notice of
delegation is superseded by another notice of delegation under 9VAC5-140-6130 D
shall be deemed to be an electronic submission by me. Until this notice of
delegation is superseded by another notice of delegation under 9VAC5-140-6130
D, I agree to maintain an email account and to notify the department or its
agent immediately of any change in my email address unless all delegation
authority by me under 9VAC5-140-6130 is terminated."
D. A notice of delegation submitted under subsection C of
this section shall be effective, with regard to the CO2 authorized
account representative or alternate CO2 authorized alternate
account representative identified in such notice, upon receipt of such notice
by the department or its agent and until receipt by the department or its agent
of a superseding notice of delegation by such CO2 authorized account
representative or alternate CO2 authorized alternate account
representative as appropriate. The superseding notice of delegation may replace
any previously identified electronic submission agent, add a new electronic
submission agent, or eliminate entirely any delegation of authority.
E. Any electronic submission covered by the certification
in subdivision C 4 of this section and made in accordance with a notice of
delegation effective under subsection D of this section shall be deemed to be
an electronic submission by the CO2 authorized account
representative or alternate CO2 authorized alternate account
representative submitting such notice of delegation.
F. A CO2 authorized account representative may delegate, to one or more natural persons, his authority to review information in the CO2 allowance tracking system under this part.
G. An alternate A CO2 authorized
alternate account representative may delegate, to one or more natural persons,
his authority to review information in the CO2 allowance tracking
system under this part.
H. To delegate authority to review information in the CO2
allowance tracking system in accordance with subsections F and G of this
section, the CO2 authorized account representative or alternate
CO2 authorized alternate account representative, as appropriate, must
shall submit to the department or its agent a notice of delegation, in a format
prescribed by the department that includes the following elements:
1. The name, address, email address, telephone number, and
facsimile transmission number of such CO2 authorized account
representative or alternate CO2 authorized alternate account
representative;
2. The name, address, email address, telephone number, and facsimile transmission number of each such natural person, referred to as the "reviewer";
3. For each such natural person, a list of the type of information under subsection F or G of this section for which authority is delegated to him; and
4. The following certification statement by such CO2
authorized account representative or alternate CO2 authorized
alternate account representative: "I agree that any information that is
reviewed by a natural person identified in this notice of delegation and of a
type listed for such information accessible by the reviewer in this notice of
delegation and that is made when I am a CO2 authorized account
representative or alternate CO2 authorized alternate account
representative, as appropriate, and before this notice of delegation is
superseded by another notice of delegation under subsection I of this section
shall be deemed to be a reviewer by me. Until this notice of delegation is
superseded by another notice of delegation under subsection I of this section,
I agree to maintain an email account and to notify the department or its agent
immediately of any change in my email address unless all delegation authority
by me under this section is terminated."
I. A notice of delegation submitted under subsection H of
this section shall be effective, with regard to the CO2 authorized
account representative or alternate CO2 authorized alternate
account representative identified in such notice, upon receipt of such notice
by the department or its agent and until receipt by the department or its agent
of a superseding notice of delegation by such CO2 authorized account
representative or alternate CO2 authorized alternate account
representative as appropriate. The superseding notice of delegation may replace
any previously identified reviewer, add a new reviewer, or eliminate entirely
any delegation of authority.
Article 3
Permits
9VAC5-140-6140. CO2 budget permit requirements.
A. Each CO2 budget source shall have a permit issued by the department pursuant to 9VAC5-85 (Permits for Stationary Sources of Pollutants Subject to Regulation).
B. Each CO2 budget permit shall contain all applicable CO2 Budget Trading Program requirements and shall be a complete and distinguishable portion of the permit under subsection A of this section.
9VAC5-140-6150. Submission of CO2 budget permit applications.
For any CO2 budget source, the CO2 authorized account representative shall submit a complete CO2 budget permit application under 9VAC5-140-6160 covering such CO2 budget source to the department by the later of January 1, 2020, or 12 months before the date on which the CO2 budget source, or a new unit at the source, commences operation.
9VAC5-140-6160. Information requirements for CO2 budget permit applications.
A complete CO2 budget permit application shall include the following elements concerning the CO2 budget source for which the application is submitted, in a format prescribed by the department:
1. Identification of the CO2 budget source, including plant name and the ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration of the U.S. Department of Energy if applicable;
2. Identification of each CO2 budget unit at the CO2 budget source; and
3. The standard requirements under 9VAC5-140-6050.
Article 4
Compliance Certification
9VAC5-140-6170. Compliance certification report.
A. For [ the initial control period and ] each control period in which a CO2 budget source is subject to the CO2 requirements of 9VAC5-140-6050 C, the CO2 authorized account representative of the source shall submit to the department by March 1 following the relevant control period, a compliance certification report. A compliance certification report is not required as part of the compliance obligation during an interim control period.
B. The CO2 authorized account representative shall include in the compliance certification report under subsection A of this section the following elements, in a format prescribed by the department:
1. Identification of the source and each CO2 budget unit at the source;
2. At the CO2 authorized account representative's option, the serial numbers of the CO2 allowances that are to be deducted from the source's compliance account under 9VAC5-140-6260 for the control period; and
3. The compliance certification under subsection C of this section.
C. In the compliance certification report under subsection A of this section, the CO2 authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the CO2 budget units at the source in compliance with the CO2 Budget Trading Program, whether the source and each CO2 budget unit at the source for which the compliance certification is submitted was operated during the calendar years covered by the report in compliance with the requirements of the CO2 Budget Trading Program, including:
1. Whether the source was operated in compliance with the CO2 requirements of 9VAC5-140-6050 C;
2. Whether the monitoring plan applicable to each unit at the source has been maintained to reflect the actual operation and monitoring of the unit, and contains all information necessary to attribute CO2 emissions to the unit, in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part;
3. Whether all the CO2 emissions from the units at the source were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part. If conditional data were reported, the owner or operator shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions have been made;
4. Whether the facts that form the basis for certification under Article 8 (9VAC5-140-6330 et seq.) of this part of each monitor at each unit at the source, or for using an excepted monitoring method or alternative monitoring method approved under Article 8 (9VAC5-140-6330 et seq.) of this part, if any, have changed; and
5. If a change is required to be reported under subdivision 4 of this subsection, specify the nature of the change, the reason for the change, when the change occurred, and how the unit's compliance status was determined subsequent to the change, including what method was used to determine emissions when a change mandated the need for monitor recertification.
9VAC5-140-6180. Action on compliance certifications.
A. The department or its agent may review and conduct independent audits concerning any compliance certification or any other submission under the CO2 Budget Trading Program and make appropriate adjustments of the information in the compliance certifications or other submissions.
B. The department or its agent may deduct CO2 allowances from or transfer CO2 allowances to a source's compliance account based on the information in the compliance certifications or other submissions, as adjusted under subsection A of this section.
Article 5
CO2 Allowance Allocations
Editor's Note: Two versions of 9VAC5-140-6190 are
provided for comment. The board seeks comment on whether the base budget should
be 33 million tons or 34 million tons, with corresponding 3.0% per year reductions.
The first version (Version 1) represents a 33 million ton base budget, and the
second version (Version 2) represents a 34 million ton base budget.
9VAC5-140-6190. Base budgets.
Version 1, 33 million ton base budget:
A. The Virginia CO2 Budget Trading Program base budget shall be as follows:
1. For 2020, the Virginia CO2 Budget Trading
Program base budget is 33 28 million tons.
2. For 2021, the Virginia CO2 Budget Trading
Program base budget is 32.01 27.16 million tons.
3. For 2022, the Virginia CO2 Budget Trading
Program base budget is 31.02 26.32 million tons.
4. For 2023, the Virginia CO2 Budget Trading
Program base budget is 30.03 25.48 million tons.
5. For 2024, the Virginia CO2 Budget Trading
Program base budget is 29.04 24.64 million tons.
6. For 2025, the Virginia CO2 Budget Trading
Program base budget is 28.05 23.80 million tons.
7. For 2026, the Virginia CO2 Budget Trading
Program base budget is 27.06 22.96 million tons.
8. For 2027, the Virginia CO2 Budget Trading
Program base budget is 26.07 22.12 million tons.
9. For 2028, the Virginia CO2 Budget Trading
Program base budget is 25.08 21.28 million tons.
10. For 2029, the Virginia CO2 Budget Trading
Program base budget is 24.09 20.44 million tons.
11. For 2030, the Virginia CO2 Budget Trading
Program base budget is 23.10 19.60 million tons.
B. The department will allocate conditional allowances to
CO2 budget units and to DMME. After a conditional allowance has been
consigned in an auction by a CO2 budget unit [ and
or ] the holder of a public contract with DMME as specified under
Article 9 (9VAC5-140-6410 et seq.) of this part, the conditional allowance
becomes [ an allowance to be used for compliance purposes
a CO2 allowance once it is sold to an auction participant ].
C. For 2031 and each succeeding calendar year, the
Virginia CO2 Budget Trading Program base budget is 23.10 million
tons [ the department will review the Virginia CO2
Budget Trading Program base budget and recommend to the board appropriate
adjustments in the base budget for such succeeding years. The department will
consider the best available science and all relevant information and policies
available from any CO2 multistate trading program in which Virginia
is participating when considering further reductions. Absent any adjustment,
the Virginia CO2 Budget Trading Program base budget for each year of
the decade 2031-2040 shall be reduced by 840,000 tons from the preceding year
the Virginia CO2 Budget Trading Program base budget is 19.60 million
tons unless modified as a result of a program review and future regulatory
action ].
Version 2, 34 million ton base budget:
A. The Virginia CO2 Budget Trading Program
base budget shall be as follows:
1. For 2020, the Virginia CO2 Budget Trading
Program base budget is 34 million tons.
2. For 2021, the Virginia CO2 Budget Trading
Program base budget is 32.98 million tons.
3. For 2022, the Virginia CO2 Budget Trading
Program base budget is 31.96 million tons.
4. For 2023, the Virginia CO2 Budget Trading
Program base budget is 30.94 million tons.
5. For 2024, the Virginia CO2 Budget Trading
Program base budget is 29.92 million tons.
6. For 2025, the Virginia CO2 Budget Trading
Program base budget is 28.90 million tons.
7. For 2026, the Virginia CO2 Budget Trading
Program base budget is 27.88 million tons.
8. For 2027, the Virginia CO2 Budget Trading
Program base budget is 26.86 million tons.
9. For 2028, the Virginia CO2 Budget Trading
Program base budget is 25.84 million tons.
10. For 2029, the Virginia CO2 Budget Trading Program
base budget is 24.82 million tons.
11. For 2030, the Virginia CO2 Budget Trading
Program base budget is 23.80 million tons.
B. The department will allocate conditional allowances
to CO2 budget units and to DMME. After a conditional allowance has
been consigned in an auction by a CO2 budget unit and the holder of
a public contract with DMME as specified under Article 9 (9VAC5-140-6410 et
seq.) of this part, the conditional allowance becomes an allowance to be used
for compliance purposes.
C. For 2031 and each succeeding calendar year, the
Virginia CO2 Budget Trading Program base budget is 23.80 million
tons.
9VAC5-140-6200. Undistributed and unsold [ CO2
conditional ] allowances.
A. The department may will retire undistributed CO2
conditional allowances at the end of [ the initial control period
and ] each [ subsequent ] control period.
B. The department may will retire unsold CO2
conditional allowances at the end of [ the initial control period
and ] each [ subsequent ] control period.
Editor's Note: Two versions of
9VAC5-140-6210 are provided for comment. The board seeks comment on whether the
base budget should be 33 million tons or 34 million tons, with corresponding
3.0% per year reductions. The first version (Version 1) represents a 33 million
ton base budget, and the second version (Version 2) represents a 34 million ton
base budget.
9VAC5-140-6210. [ CO2
Conditional ] allowance allocations.
Version 1, 33 million ton base budget:
A. The department will allocate 95% of the Virginia
CO2 Budget Trading Program base budget [ conditional ]
allowances to CO2 budget sources to be consigned to auction to
the Virginia Consignment Auction Account.
B. The department will allocate 5.0% of the Virginia CO2
Budget Trading Program base budget to DMME to be consigned to auction by DMME
to assist the department for the abatement and control of air pollution,
specifically, CO2.
C. B. For allocation years 2020 through 2031,
the Virginia CO2 Budget Trading Program adjusted budget shall be the
maximum number of allowances available for allocation in a given allocation
year, except for [ CO2 conditional ]
CCR allowances.
D. C. [ Conditional allowances allocated
for a calendar year will be automatically transferred to the Virginia
Consignment Auction Account to be consigned to auction. Following each auction,
all conditional allowances sold at the auction will be transferred from the
Virginia Consignment Auction Account to winning bidders' accounts as CO2
allowances.
D. ] The cost containment reserve (CCR)
allocation shall be managed as follows. The department will allocate
[ CO2 conditional ] CCR
allowances, separate from and additional to the Virginia CO2 Budget
Trading Program base budget set forth in 9VAC5-140-6190 [ , ]
to the Virginia [ Consignment ] Auction Account. The
CCR allocation is for the purpose of containing the cost of CO2
allowances. The department will allocate [ CO2
conditional ] CCR allowances as follows [ .: ]
1. The Beginning in calendar year 2020, the
department will initially allocate 3.3 million [ CO2, ]
on a pro rata basis to CO2 budget sources, 2.8 million
[ conditional ] CO2 CCR allowances for
calendar year 2020.
2. On or before January 1, 2021, and each year thereafter, the
department will allocate , on a pro rata basis to CO2 budget
sources, current vintage year [ conditional ] CCR
allowances equal to the quantity in Table 140-5A [ , and
withdraw the number of CO2 CCR allowances that remain in the
Virginia Auction Account at the end of the prior calendar year ].
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Table 140-5A |
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2021 |
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2022 |
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2023 |
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2024 |
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2025 |
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2026 |
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2027 |
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2028 |
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2029 |
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2030 and each year thereafter |
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3. The pro rata calculation to be used for the distribution
of [ CO2 conditional ] CCR
allowances is as follows:
SAA/TAA * CCR = SCCR
Where:
SAA = source adjusted allocation
TAA = total adjusted allocation
SCCR = source CCR
[ 4. Conditional CCR allowances allocated for a calendar year will be automatically transferred to the Virginia Consignment Auction Account to be consigned to auction. Following each auction, all conditional CCR allowances sold at auction will be transferred to winning bidders' accounts as CO2 CCR allowances.
5. Unsold conditional CCR allowances will remain in the Virginia Consignment Auction Account to be re-offered for sale at auction within the same calendar year. Conditional CCR allowances remaining unsold at the end of the calendar year in which they were originated will be made unavailable for sale at future auctions. ]
[ E. ] Annual base budgets as described
in subsections A and B of this section may be decreased in any year as
necessary to account for transfers to the Virginia Emission Containment Reserve
(ECR) account and adjustments for banked allowances [ D. ]
In the event that the ECR is triggered during an auction, the department
will authorize its agent to withhold conditional allowances as needed. The
department will further authorize its agent to convert and transfer any CO2
conditional allowances that have been withheld from any auction in the prior
year into the Virginia ECR account. The ECR withholding is for the purpose
of additional emission reduction in the event of lower than anticipated
emission reduction costs. The department department's agent will
withhold CO2 ECR allowances as follows:
1. If the condition in 9VAC5-140-6420 D 1 is met at an auction, then the maximum number of CO2 ECR allowances that will be withheld from that auction will be equal to the quantity shown in Table 140-5B minus the total quantity of CO2 ECR allowances that have been withheld from any prior auction in that calendar year. Any CO2 ECR allowances withheld from an auction will be transferred into the Virginia ECR account.
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Table 140-5B |
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2021 |
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2022 |
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2023 |
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2024 |
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2025 |
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2026 |
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2027 |
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2028 |
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2029 |
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2030 and each year thereafter |
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2. Allowances that have been transferred into the Virginia ECR account shall not be withdrawn.
F. E. The adjustment for banked allowances shall
will be as follows. On March [ 15 17 ], 2021,
the department will may determine the third adjustment for banked
allowances quantity for allocation years 2021 through 2025 through the
application of the following formula:
TABA = ((TA – TAE)/5) x RS%
Where:
TABA is the adjustment for banked allowances quantity in tons.
TA, adjustment, is the total quantity of allowances of vintage years prior to 2021 held in general and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program but not including accounts opened by participating states, as reflected in the CO2 Allowance Tracking System on March 15, 2021.
TAE, adjustment emissions, is the total quantity of 2018,
2019, and 2020 emissions from all CO2 budget sources in all
participating states, reported pursuant to CO2 Budget Trading
Program as reflected in the CO2 Allowance Tracking System on March
[ 15 17 ], 2021.
RS% is Virginia budget divided by the regional budget.
G. F. CO2 Budget Trading Program adjusted
budgets for 2021 through 2025 shall be determined as follows. On April 15,
2021, the department will determine the Virginia CO2 Budget Trading
Program adjusted budgets for the 2021 through 2025 allocation years by the
following formula:
AB = BB – TABA
Where:
AB is the Virginia CO2 Budget Trading Program adjusted budget.
BB is the Virginia CO2 Budget Trading Program base budget.
TABA is the adjustment for banked allowances quantity in tons.
H. G. The department or its agent will publish the
CO2 trading program adjusted budgets for the 2021 through 2025
allocation years.
I. H. Timing requirements for [ CO2
conditional ] allowance allocations shall be as follows.:
1. By [ May 1 August 25 ],
2019, the department will submit to RGGI, Inc., its agent the CO2
conditional allowance allocations, in a format prescribed by RGGI, Inc., and
in accordance with 9VAC5-140-6215 A and B, for the initial control period,
2020.
2. By [ May 1 the month and day
established by subdivision 1 of this subsection ], 2020, the
department will submit to its agent 50% of the conditional allowance allocations
in accordance with 9VAC5-140-6215 A and B, for the 2021 control period. By
[ April 1 the month and day one month before the date
established by subdivision 1 of this subsection ], 2021, the
department will submit to its agent the remainder of the conditional allowance
allocations in accordance with 9VAC5-140-6215 A and B, for 2021.
3. By [ May 1, ] 2020
[ the month and day established by subdivision 1 of this subsection, ]
2021, and [ May 1 the month and day established by
subdivision 1 of this subsection ] of every third
subsequent year thereafter, the department will submit to RGGI, Inc.,
its agent the [ CO2 conditional ]
allowance allocations, in a format prescribed by RGGI, Inc., for the
applicable control period, and in accordance with 9VAC5-140-6215 A and
B.
I. J. Implementation of the CCR (subsection C
of this section), the ECR (subsection D of this section) and the banking
adjustment (subsection E of this section) shall be determined based on the
extent of the CO2 trading program.
[ K. Conditional allowances and conditional CCR allowances allocated for a calendar year will be automatically transferred to the Virginia Consignment Auction Account to be consigned to auction. Following each auction, all conditional allowances sold at the auction will be transferred from the Virginia Consignment Auction Account to winning bidders' accounts as CO2 allowances. Conditional CCR allowances sold at auction will be transferred to winning bidders' accounts as CO2 CCR allowances. Unsold conditional CCR allowances will remain in the Virginia Consignment Auction Account to be re-offered for sale at auction within the same calendar year. Conditional CCR allowances remaining unsold at the end of the calendar year in which they were originated will be made unavailable for sale at future auctions. ]
Version 2, 34 million ton base budget:
A. The department will allocate 95% of the Virginia CO2
Budget Trading Program base budget to CO2 budget sources to be
consigned to auction to the Virginia Consignment Auction Account.
B. The department will allocate 5.0% of the Virginia CO2
Budget Trading Program base budget to DMME to be consigned to auction by the
holder of a public contract with DMME to assist the department for the
abatement and control of air pollution, specifically CO2.
C. For allocation years 2020 through 2031, the Virginia
CO2 Budget Trading Program adjusted budget shall be the maximum
number of allowances available for allocation in a given allocation year,
except for CO2 CCR allowances.
D. The cost containment reserve (CCR) allocation shall
be managed as follows. The department will allocate CO2 CCR
allowances, separate from and additional to the Virginia CO2 Budget
Trading Program base budget set forth in 9VAC5-140-6190, to the Virginia
Auction Account. The CCR allocation is for the purpose of containing the cost
of CO2 allowances. The department will allocate CO2 CCR
allowances as follows.
1. The department will initially allocate 3.4 million CO2
CCR allowances for calendar year 2020.
2. On or before January 1, 2021, and each year
thereafter, the department will allocate current vintage year CCR allowances
equal to the quantity in Table 140-5A, and withdraw the number of CO2
CCR allowances that remain in the Virginia Auction Account at the end of the
prior calendar year.
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E. Annual base budgets as described in subsections A and
B of this section may be decreased in any year as necessary to account for
transfers to the Virginia Emission Containment Reserve (ECR) account and
adjustments for banked allowances. The department will convert and transfer any
CO2 allowances that have been withheld from any auction in the prior
year into the Virginia ECR account. The ECR withholding is for the purpose of
additional emission reduction in the event of lower than anticipated emission
reduction costs. The department will withhold CO2 ECR allowances as
follows:
1. If the condition in 9VAC5-140-6420 D 1 is met at an
auction, then the maximum number of CO2 ECR allowances that will be
withheld from that auction will be equal to the quantity shown in Table 140-5B
minus the total quantity of CO2 ECR allowances that have been
withheld from any prior auction in that calendar year. Any CO2 ECR
allowances withheld from an auction will be transferred into the Virginia ECR
account.
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2. Allowances that have been transferred into the
Virginia ECR account shall not be withdrawn.
F. The adjustment for banked allowances shall be as
follows. On March 15, 2021, the department will determine the third adjustment
for banked allowances quantity for allocation years 2021 through 2025 through
the application of the following formula:
TABA = ((TA – TAE)/5) x RS%
Where:
TABA is the adjustment for banked allowances quantity in
tons.
TA, adjustment, is the total quantity of allowances of
vintage years prior to 2021 held in general and compliance accounts, including
compliance accounts established pursuant to the CO2 Budget Trading
Program but not including accounts opened by participating states, as reflected
in the CO2 Allowance Tracking System on March 15, 2021.
TAE, adjustment emissions, is the total quantity of 2018,
2019, and 2020 emissions from all CO2 budget sources in all
participating states, reported pursuant to CO2 Budget Trading
Program as reflected in the CO2 Allowance Tracking System on March
15, 2021.
RS% is Virginia budget divided by the regional budget.
G. CO2 Budget Trading Program adjusted
budgets for 2021 through 2025 shall be determined as follows. On April 15,
2021, the department will determine the Virginia CO2 Budget Trading Program
adjusted budgets for the 2021 through 2025 allocation years by the following
formula:
AB = BB – TABA
Where:
AB is the Virginia CO2 Budget Trading Program
adjusted budget.
BB is the Virginia CO2 Budget Trading Program
base budget.
TABA is the adjustment for banked allowances quantity in
tons.
H. The department or its agent will publish the CO2
trading program adjusted budgets for the 2021 through 2025 allocation years.
I. Timing requirements for CO2 allowance
allocations shall be as follows:
1. By May 1, 2019, the department will submit to RGGI,
Inc., the CO2 conditional allowance allocations, in a format
prescribed by RGGI, Inc., and in accordance with 9VAC5-140-6215 A and B, for
the initial control period, 2020.
2. By May 1, 2020, and May 1 of every third year
thereafter, the department will submit to RGGI, Inc., the CO2
allowance allocations, in a format prescribed by RGGI, Inc., for the applicable
control period, and in accordance with 9VAC5-140-6215 A and B.
9VAC5-140-6211. [ CO2
Conditional ] allowance allocations, DMME allowances.
Notwithstanding 9VAC5-140-6210, the department will allocate 5.0% of the Virginia CO2 Budget Trading Program base or adjusted budget allowances, as applicable, to DMME to be consigned to auction by the holder of a public contract with DMME to assist the department for the abatement and control of air pollution, specifically CO2, by the implementation of programs that lower base and peak electricity demand and reduce the cost of the program to consumers and budget sources.
9VAC5-140-6215. [ CO2
Conditional ] allocation methodology.
A. The net-electric output in MWh used with respect to
[ CO2 conditional ] allowance
allocations under subsection B of this section for each CO2 budget
unit shall be:
1. For units operating on or before January 1, 2020, the average of the three amounts of the unit's net-electric output during 2016, 2017, and 2018 to determine allocations for the initial control period.
2. For all units operating in each control period after 2020, the average of the three amounts of the unit's total net-electric output during the three most recent years for which data are available prior to the start of the control period.
B. 1. For each control period beginning in 2020 and
thereafter, the department will allocate to all CO2 budget units
that have a net-electric output, as determined under subsection A of this
section, a total amount of [ CO2 ] conditional
allowances equal to the CO2 base budget.
2. The department will allocate [ CO2 ]
conditional allowances to each [ CO2
conditional ] budget unit under subdivision 1 of this subsection in
an amount determined by multiplying the total amount of CO2
allowances allocated under subdivision 1 of this subsection by the ratio of the
baseline electrical output of such CO2 budget unit to the total
amount of baseline electrical output of all such CO2 budget units
and rounding to the nearest whole allowance as appropriate.
3. New CO2 budget units will be allocated
[ CO2 ] conditional allowances once they
have established electrical output data to be used in the conditional allowance
allocation process.
C. For the purpose of the allocation process as described in subsections A and B of this section, CO2 budget units shall report the unit's net-electric output to the department on a yearly basis as follows:
1. By [ March 1 August 25 ],
2019, each CO2 budget unit shall report yearly net-electric output
data during 2016, 2017, and 2018.
2. By [ March 1, the month and day
established by subdivision 1 of this subsection, ] 2020, and each
year thereafter, each CO2 budget unit shall report yearly
net-electric output data for the previous year.
Article 6
CO2 Allowance Tracking System
9VAC5-140-6220. CO2 Allowance Tracking System accounts.
A. Consistent with 9VAC5-140-6230 A, the department or its
agent will establish one compliance account for each CO2 budget
source. Allocations of [ CO2 ] conditional
allowances pursuant to Article 5 (9VAC5-140-6190 et seq.) of this part and
deductions or transfers of [ CO2 ] conditional
allowances pursuant to 9VAC5-140-6180, 9VAC5-140-6260, 9VAC5-140-6280, or
Article 7 (9VAC5-140-6300 et seq.) of this part will be recorded in the
compliance accounts in accordance with this section.
B. Consistent with 9VAC5-140-6230 B, the department or its agent will establish, upon request, a general account for any person. Transfers of CO2 allowances pursuant to Article 7 (9VAC5-140-6300 et seq.) of this part will be recorded in the general account in accordance with this article.
9VAC5-140-6230. Establishment of accounts.
A. Upon receipt of a complete account certificate of
representation under 9VAC5-140-6110, the department or its agent will establish
a conditional allowance account and a compliance account for each CO2
budget source [ for which an account certificate of representation
was submitted ] and a conditional [ compliance
allowance ] account for DMME [ for which the account
certificate of representation was submitted ].
B. General accounts shall operate as follows.
1. Any person may apply to open a general account for the
purpose of holding and transferring CO2 allowances. An application
for a general account may designate one and only one CO2 authorized
account representative and one and only one alternate CO2 authorized
alternate account representative who may act on behalf of the CO2
authorized account representative. The agreement by which the alternate
CO2 authorized alternate account representative is selected shall
include a procedure for authorizing the alternate CO2
authorized alternate account representative to act in lieu of the CO2
authorized account representative. A complete application for a general account
shall be submitted to the department or its agent and shall include the
following elements in a format prescribed by the department or its agent:
a. Name, address, email address, telephone number, and
facsimile transmission number of the CO2 authorized account
representative and any alternate CO2 authorized
alternate account representative;
b. At the option of the CO2 authorized account representative, organization name and type of organization;
c. A list of all persons subject to a binding agreement for
the CO2 authorized account representative or any alternate CO2
authorized alternate account representative to represent their ownership
interest with respect to the CO2 allowances held in the general
account;
d. The following certification statement by the CO2
authorized account representative and any alternate CO2
authorized alternate account representative: "I certify that I was
selected as the CO2 authorized account representative or the CO2
alternate authorized alternate account representative, as applicable, by
an agreement that is binding on all persons who have an ownership interest with
respect to CO2 allowances held in the general account. I certify
that I have all the necessary authority to carry out my duties and
responsibilities under the CO2 Budget Trading Program on behalf of
such persons and that each such person shall be fully bound by my
representations, actions, inactions, or submissions and by any order or
decision issued to me by the department or its agent or a court regarding the
general account.";
e. The signature of the CO2 authorized account
representative and any alternate CO2 authorized alternate
account representative and the dates signed; and
f. Unless otherwise required by the department or its agent, documents of agreement referred to in the application for a general account shall not be submitted to the department or its agent. Neither the department nor its agent shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.
2. Authorization of the CO2 authorized account representative shall be as follows:
a. Upon receipt by the department or its agent of a complete application for a general account under subdivision 1 of this subsection:
(1) The department or its agent will establish a general account for the person for whom the application is submitted.
(2) The CO2 authorized account representative
and any alternate CO2 authorized alternate account
representative for the general account shall represent and, by his
representations, actions, inactions, or submissions, legally bind each person
who has an ownership interest with respect to CO2 allowances held in
the general account in all matters pertaining to the CO2 Budget
Trading Program, notwithstanding any agreement between the CO2
authorized account representative or any alternate CO2
authorized alternate account representative and such person. Any such person
shall be bound by any order or decision issued to the CO2 authorized
account representative or any alternate CO2 authorized
alternate account representative by the department or its agent or a court regarding
the general account.
(3) Any representation, action, inaction, or submission by
any alternate CO2 authorized alternate account representative
shall be deemed to be a representation, action, inaction, or submission by the
CO2 authorized account representative.
b. Each submission concerning the general account shall be
submitted, signed, and certified by the CO2 authorized account
representative or any alternate CO2 authorized alternate
account representative for the persons having an ownership interest with
respect to CO2 allowances held in the general account. Each such
submission shall include the following certification statement by the CO2
authorized account representative or any alternate CO2
authorized alternate account representative: "I am authorized to make this
submission on behalf of the persons having an ownership interest with respect
to the CO2 allowances held in the general account. I certify under
penalty of law that I have personally examined, and am familiar with, the
statements and information submitted in this document and all its attachments.
Based on my inquiry of those individuals with primary responsibility for
obtaining the information, I certify that the statements and information are to
the best of my knowledge and belief true, accurate, and complete. I am aware
that there are significant penalties for submitting false statements and
information or omitting required statements and information, including the
possibility of fine or imprisonment."
c. The department or its agent will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with subdivision 2 b of this subsection.
3. Changing CO2 authorized account representative
and alternate CO2 authorized alternate account
representative, and changes in persons with ownership interest, shall be
accomplished as follows:
a. The CO2 authorized account representative for
a general account may be changed at any time upon receipt by the department or
its agent of a superseding complete application for a general account under
subdivision 1 of this subsection. Notwithstanding any such change, all
representations, actions, inactions, and submissions by the previous CO2
authorized account representative, or the previous alternate CO2
authorized alternate account representative, prior to the time and date when
the department or its agent receives the superseding application for a general
account shall be binding on the new CO2 authorized account
representative and the persons with an ownership interest with respect to the
CO2 allowances in the general account.
b. The alternate CO2 authorized
alternate account representative for a general account may be changed at
any time upon receipt by the department or its agent of a superseding complete
application for a general account under subdivision 1 of this subsection.
Notwithstanding any such change, all representations, actions, inactions, and
submissions by the previous CO2 authorized account representative,
or the previous alternate CO2 authorized alternate account
representative, prior to the time and date when the department or its agent
receives the superseding application for a general account shall be binding on
the new alternate CO2 authorized account representative and the
persons with an ownership interest with respect to the CO2
allowances in the general account.
c. In the event a new person having an ownership interest
with respect to CO2 allowances in the general account is not
included in the list of such persons in the application for a general account,
such new person shall be deemed to be subject to and bound by the application
for a general account, the representations, actions, inactions, and submissions
of the CO2 authorized account representative and any alternate
CO2 authorized alternate account representative, and the decisions,
orders, actions, and inactions of the department or its agent, as if the new
person were included in such list.
d. Within 30 days following any change in the persons
having an ownership interest with respect to CO2 allowances in the
general account, including the addition or deletion of persons, the CO2
authorized account representative or any alternate CO2
authorized alternate account representative shall submit a revision to the
application for a general account amending the list of persons having an
ownership interest with respect to the CO2 allowances in the general
account to include the change.
4. Objections concerning CO2 authorized account representative shall be governed as follows:
a. Once a complete application for a general account under subdivision 1 of this subsection has been submitted and received, the department or its agent will rely on the application unless and until a superseding complete application for a general account under subdivision 1 of this subsection is received by the department or its agent.
b. Except as provided in subdivisions 3 a and 3 b of this
subsection, no objection or other communication submitted to the department or its
agent concerning the authorization, or any representation, action, inaction, or
submission of the CO2 authorized account representative or any alternate
CO2 authorized alternate account representative for a general
account shall affect any representation, action, inaction, or submission of the
CO2 authorized account representative or any alternate CO2
authorized alternate account representative or the finality of any decision or
order by the department or its agent under the CO2 Budget Trading
Program.
c. Neither the department nor its agent will adjudicate any
private legal dispute concerning the authorization or any representation,
action, inaction, or submission of the CO2 authorized account
representative or any alternate CO2 authorized alternate account
representative for a general account, including private legal disputes
concerning the proceeds of CO2 allowance transfers.
5. Delegation by CO2 authorized account
representative and alternate CO2 authorized alternate account
representative shall be accomplished as follows:
a. A CO2 authorized account representative may delegate, to one or more natural persons, his authority to make an electronic submission to the department or its agent provided for under this article and Article 7 (9VAC5-140-6300 et seq.) of this part.
b. An alternate A CO2 authorized
alternate account representative may delegate, to one or more natural persons,
his authority to make an electronic submission to the department or its agent
provided for under this article and Article 7 (9VAC5-140-6300 et seq.) of this
part.
c. To delegate authority to make an electronic submission
to the department or its agent in accordance with subdivisions 5 a and 5 b of
this subsection, the CO2 authorized account representative or alternate
CO2 authorized alternate account representative, as appropriate,
shall submit to the department or its agent a notice of delegation, in a format
prescribed by the department that includes the following elements:
(1) The name, address, email address, telephone number, and
facsimile transmission number of such CO2 authorized account
representative or alternate CO2 authorized alternate account
representative;
(2) The name, address, email address, telephone number, and facsimile transmission number of each such natural person, referred to as "electronic submission agent";
(3) For each such natural person, a list of the type of electronic submissions under subdivision 5 c (1) or 5 c (2) of this subsection for which authority is delegated to him; and
(4) The following certification statement by such CO2
authorized account representative or alternate CO2 authorized
alternate account representative: "I agree that any electronic submission
to the department or its agent that is by a natural person identified in this
notice of delegation and of a type listed for such electronic submission agent
in this notice of delegation and that is made when I am a CO2
authorized account representative or alternate CO2 authorized
alternate account representative, as appropriate, and before this notice of
delegation is superseded by another notice of delegation under 9VAC5-140-6230 B
5 d shall be deemed to be an electronic submission by me. Until this notice of
delegation is superseded by another notice of delegation under 9VAC5-140-6230 B
5 d, I agree to maintain an email account and to notify the department or its
agent immediately of any change in my email address unless all delegation
authority by me under 9VAC5-140-6230 B 5 is terminated."
d. A notice of delegation submitted under subdivision 5 c
of this subsection shall be effective, with regard to the CO2
authorized account representative or alternate CO2 authorized
alternate account representative identified in such notice, upon receipt of
such notice by the department or its agent and until receipt by the department
or its agent of a superseding notice of delegation by such CO2
authorized account representative or alternate CO2 authorized
alternate account representative as appropriate. The superseding notice of
delegation may replace any previously identified electronic submission agent,
add a new electronic submission agent, or eliminate entirely any delegation of
authority.
e. Any electronic submission covered by the certification
in subdivision 5 c (4) of this subsection and made in accordance with a notice
of delegation effective under subdivision 5 d of this subsection shall be
deemed to be an electronic submission by the CO2 authorized account
representative or alternate CO2 authorized alternate account
representative submitting such notice of delegation.
C. The department or its agent will assign a unique identifying number to each account established under subsection A or B of this section.
9VAC5-140-6240. CO2 Allowance Tracking System responsibilities of CO2 authorized account representative.
Following the establishment of a COATS account, all submissions to the department or its agent pertaining to the account, including submissions concerning the deduction or transfer of CO2 allowances in the account, shall be made only by the CO2 authorized account representative for the account.
9VAC5-140-6250. Recordation of [ CO2
conditional ] allowance allocations.
A. By January 1 of each calendar year, the department or its agent will record in the following accounts:
1. In each CO2 budget source's and DMME's conditional
allowance account, the [ CO2 ] conditional
allowances allocated to those sources and DMME by the department prior to being
consigned to auction; and
2. In each CO2 budget source's compliance account, the CO2 allowances purchased at auction by CO2 budget units at the source under 9VAC5-140-6210 A.
B. Each year the department or its agent will record
[ CO2 conditional ] allowances, as
allocated to the unit under Article 5 (9VAC5-140-6190 et seq.) of this part, in
the compliance account for the year after the last year for which [ CO2
conditional ] allowances were previously allocated to the
compliance account. Each year, the department or its agent will also record
[ CO2 conditional ] allowances, as
allocated under Article 5 (9VAC5-140-6190 et seq.) of this part, in an
allocation set-aside for the year after the last year for which [ CO2
conditional ] allowances were previously allocated to an allocation
set-aside.
C. Serial numbers for allocated [ CO2
conditional ] allowances shall be managed as follows. When
allocating [ CO2 conditional ] allowances
to and recording them in an account, the department or its agent will assign
each [ CO2 conditional ] allowance
a unique identification number that will include digits identifying the year
for which the [ CO2 conditional ]
allowance is allocated.
9VAC5-140-6260. Compliance.
A. CO2 allowances that meet the following criteria are available to be deducted for a CO2 budget source to comply with the CO2 requirements of 9VAC5-140-6050 C for [ the initial control period, ] a control period [ , ] or an interim control period.
1. The CO2 allowances are of allocation years that fall within [ an initial control period, ] a prior control period, the same control period, or the same interim control period for which the allowances will be deducted.
2. The CO2 allowances are held in the CO2 budget source's compliance account as of the CO2 allowance transfer deadline for that [ initial control period, ] control period [ , ] or interim control period or are transferred into the compliance account by a CO2 allowance transfer correctly submitted for recordation under 9VAC5-140-6300 by the CO2 allowance transfer deadline for that [ initial control period, ] control period [ , ] or interim control period.
3. For CO2 offset allowances generated by other
participating states, the number of CO2 offset allowances that are
available to be deducted in order for a CO2 budget source to comply
with the CO2 requirements of 9VAC5-140-6050 C for a control period
[ or an ] initial control period [ , or an
interim control period ] shall not exceed 3.3% of the CO2
budget source's CO2 emissions for that control period, or may not
exceed 3.3% of 0.50 times the CO2 budget source's CO2
emissions for an interim control period, as determined in accordance with this
article and Article 8 (9VAC5-140-6330 et seq.) of this part.
3. 4. The CO2 allowances are not
necessary for deductions for excess emissions for a prior [ initial
control period or a ] control period under subsection D of this
section.
B. Following the recordation, in accordance with 9VAC5-140-6310, of CO2 allowance transfers submitted for recordation in the CO2 budget source's compliance account by the CO2 allowance transfer deadline for [ the initial control period, ] a control period [ , ] or [ an ] interim control period, the department or its agent will deduct CO2 allowances available under subsection A of this section to cover the source's CO2 emissions, as determined in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part, for the [ initial control period, ] control period [ , ] or interim control period, as follows:
1. Until the amount of CO2 allowances deducted equals the number of tons of total CO2 emissions, or 0.50 times the number of tons of total CO2 emissions for an interim control period, determined in accordance with Article 8 (9VAC5-140-6330 et seq.) of this part, from all CO2 budget units at the CO2 budget source for the [ initial control period, ] control period [ , ] or interim control period; or
2. If there are insufficient CO2 allowances to complete the deductions in subdivision 1 of this subsection, until no more CO2 allowances available under subsection A of this section remain in the compliance account.
C. Identification of available CO2 allowances by serial number and default compliance deductions shall be managed as follows:
1. The CO2 authorized account representative for a source's compliance account may request that specific CO2 allowances, identified by serial number, in the compliance account be deducted for emissions or excess emissions for [ the initial control period, ] a control period [ , ] or interim control period in accordance with subsection B or D of this section. Such identification shall be made in the compliance certification report submitted in accordance with 9VAC5-140-6170.
2. The department or its agent will deduct CO2 allowances for [ the initial control period, an interim control period, or ] a control period from the CO2 budget source's compliance account, in the absence of an identification or in the case of a partial identification of available CO2 allowances by serial number under subdivision 1 of this subsection, as follows: Any CO2 allowances that are available for deduction under subdivision 1 of this subsection. CO2 allowances shall be deducted in chronological order (i.e., CO2 allowances from earlier allocation years shall be deducted before CO2 allowances from later allocation years). In the event that some, but not all, CO2 allowances from a particular allocation year are to be deducted, CO2 allowances shall be deducted by serial number, with lower serial number allowances deducted before higher serial number allowances.
D. Deductions for excess emissions shall be managed as follows.
1. After making the deductions for compliance under subsection B of this section, the department or its agent will deduct from the CO2 budget source's compliance account a number of CO2 allowances equal to three times the number of the source's excess emissions. In the event that a source has insufficient CO2 allowances to cover three times the number of the source's excess emissions, the source shall be required to immediately transfer sufficient allowances into its compliance account.
2. Any CO2 allowance deduction required under subdivision 1 of this subsection shall not affect the liability of the owners and operators of the CO2 budget source or the CO2 budget units at the source for any fine, penalty, or assessment, or their obligation to comply with any other remedy, for the same violation, as ordered under applicable state law. The following guidelines will be followed in assessing fines, penalties, or other obligations:
a. For purposes of determining the number of days of violation, if a CO2 budget source has excess emissions for a control period, each day in the control period constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered.
b. Each ton of excess emissions is a separate violation.
c. For purposes of determining the number of days of violation, if a CO2 budget source has excess interim emissions for an interim control period, each day in the interim control period constitutes a day in violation unless the owners and operators of the unit demonstrate that a lesser number of days should be considered.
d. Each ton of excess interim emissions is a separate violation.
3. The propriety of the department's determination that a CO2 budget source had excess emissions and the concomitant deduction of CO2 allowances from that CO2 budget source's account may be later challenged in the context of the initial administrative enforcement, or any civil or criminal judicial action arising from or encompassing that excess emissions violation. The commencement or pendency of any administrative enforcement, or civil or criminal judicial action arising from or encompassing that excess emissions violation will not act to prevent the department or its agent from initially deducting the CO2 allowances resulting from the department's original determination that the relevant CO2 budget source has had excess emissions. Should the department's determination of the existence or extent of the CO2 budget source's excess emissions be revised either by a settlement or final conclusion of any administrative or judicial action, the department will act as follows:
a. In any instance where the department's determination of the extent of excess emissions was too low, the department will take further action under subdivisions 1 and 2 of this subsection to address the expanded violation.
b. In any instance where the department's determination of the extent of excess emissions was too high, the department will distribute to the relevant CO2 budget source a number of CO2 allowances equaling the number of CO2 allowances deducted which are attributable to the difference between the original and final quantity of excess emissions. Should such CO2 budget source's compliance account no longer exist, the CO2 allowances will be provided to a general account selected by the owner or operator of the CO2 budget source from which they were originally deducted.
E. The department or its agent will record in the appropriate compliance account all deductions from such an account pursuant to subsections B and D of this section.
F. Action by the department on submissions shall be as follows:
1. The department may review and conduct independent audits concerning any submission under the CO2 Budget Trading Program and make appropriate adjustments of the information in the submissions.
2. The department may deduct CO2 allowances from or transfer CO2 allowances to a source's compliance account based on information in the submissions, as adjusted under subdivision 1 of this subsection.
9VAC5-140-6270. Banking.
Each CO2 allowance that is held in a compliance account or a general account will remain in such account unless and until the CO2 allowance is deducted or transferred under 9VAC5-140-6180, 9VAC5-140-6260, 9VAC5-140-6280, or Article 7 (9VAC5-140-6300 et seq.) of this part.
9VAC5-140-6280. Account error.
The department or its agent may, at its sole discretion and on its own motion, correct any error in any COATS account. Within 10 business days of making such correction, the department or its agent will notify the CO2 authorized account representative for the account.
9VAC5-140-6290. Closing of general accounts.
A. A CO2 authorized account representative of a general account may instruct the department or its agent to close the account by submitting a statement requesting deletion of the account from the COATS and by correctly submitting for recordation under 9VAC5-140-6300 a CO2 allowance transfer of all CO2 allowances in the account to one or more other COATS accounts.
B. If a general account shows no activity for a period of one year or more and does not contain any CO2 allowances, the department or its agent may notify the CO2 authorized account representative for the account that the account will be closed in the COATS 30 business days after the notice is sent. The account will be closed after the 30-day period unless before the end of the 30-day period the department or its agent receives a correctly submitted transfer of CO2 allowances into the account under 9VAC5-140-6300 or a statement submitted by the CO2 authorized account representative demonstrating to the satisfaction of the department or its agent good cause as to why the account should not be closed. The department or its agent will have sole discretion to determine if the owner or operator of the unit demonstrated that the account should not be closed.
Article 7
CO2 Allowance Transfers
9VAC5-140-6300. Submission of CO2 allowance transfers.
The CO2 authorized account representatives seeking recordation of a CO2 allowance transfer shall submit the transfer to the department or its agent. To be considered correctly submitted, the CO2 allowance transfer shall include the following elements in a format specified by the department or its agent:
1. The numbers identifying both the transferor and transferee accounts;
2. A specification by serial number of each CO2 allowance to be transferred;
3. The printed name and signature of the CO2 authorized account representative of the transferor account and the date signed;
4. The date of the completion of the last sale or purchase transaction for the allowance, if any; and
5. The purchase or sale price of the allowance that is the subject of a sale or purchase transaction under subdivision 4 of this section.
9VAC5-140-6310. Recordation.
A. Within five business days of receiving a CO2 allowance transfer, except as provided in subsection B of this section, the department or its agent will record a CO2 allowance transfer by moving each CO2 allowance from the transferor account to the transferee account as specified by the request, provided that:
1. The transfer is correctly submitted under 9VAC5-140-6300; and
2. The transferor account includes each CO2 allowance identified by serial number in the transfer.
B. A CO2 allowance transfer into or out of a compliance account that is submitted for recordation following the CO2 allowance transfer deadline and that includes any CO2 allowances that are of allocation years that fall within a control period prior to or the same as the control period to which the CO2 allowance transfer deadline applies will not be recorded until after completion of the process pursuant to 9VAC5-140-6260 B.
C. Where a CO2 allowance transfer submitted for recordation fails to meet the requirements of subsection A of this section, the department or its agent will not record such transfer.
9VAC5-140-6320. Notification.
A. Within five business days of recordation of a CO2 allowance transfer under 9VAC5-140-6310, the department or its agent will notify each party to the transfer. Notice will be given to the CO2 authorized account representatives of both the transferor and transferee accounts.
B. Within 10 business days of receipt of a CO2 allowance transfer that fails to meet the requirements of 9VAC5-140-6310 A, the department or its agent will notify the CO2 authorized account representatives of both accounts subject to the transfer of (i) a decision not to record the transfer and (ii) the reasons for such nonrecordation.
C. Nothing in this section shall preclude the submission of a CO2 allowance transfer for recordation following notification of nonrecordation.
Article 8
Monitoring, Reporting, and Recordkeeping
9VAC5-140-6330. General requirements.
A. The owners and operators, and to the extent applicable,
the CO2 authorized account representative of a CO2 budget
unit shall comply with the monitoring, recordkeeping, and reporting
requirements as provided in this section and all applicable sections of 40 CFR
Part 75. Where referenced in this article, the monitoring requirements of 40
CFR Part 75 shall be adhered to in a manner consistent with the purpose of
monitoring and reporting CO2 mass emissions pursuant to this part.
For purposes of complying with such requirements, the definitions in
9VAC5-140-6020 and in 40 CFR 72.2 shall apply, and the terms "affected
unit," "designated representative," and "CEMS" in 40
CFR Part 75 shall be replaced by the terms "CO2 budget
unit," "CO2 authorized account representative," and
"CEMS," respectively, as defined in 9VAC5-140-6020. For units not
subject to an acid rain emissions limitation, the term
"administrator" in 40 CFR Part 75 shall be replaced with "the
department or its agent." Owners or operators of a CO2 budget
unit who monitor a non-CO2 budget unit pursuant to the common,
multiple, or bypass stack procedures in 40 CFR 75.72(b)(2)(ii), or 40 CFR 75.16
(b)(2)(ii)(B) pursuant to 40 CFR 75.13, for purposes of complying with this
part, shall monitor and report CO2 mass emissions from such non-CO2
budget unit units according to the procedures for CO2 budget
units established in this article.
B. The owner or operator of each CO2 budget unit shall meet the following general requirements for installation, certification, and data accounting.
1. Install all monitoring systems necessary to monitor CO2 mass emissions in accordance with 40 CFR Part 75, except for equation G-1. Equation G-1 in Appendix G shall not be used to determine CO2 emissions under this part. This may require systems to monitor CO2 concentration, stack gas flow rate, O2 concentration, heat input, and fuel flow rate.
2. Successfully complete all certification tests required under 9VAC5-140-6340 and meet all other requirements of this section and 40 CFR Part 75 applicable to the monitoring systems under subdivision 1 of this subsection.
3. Record, report, and quality-assure the data from the monitoring systems under subdivision 1 of this subsection.
C. The owner or operator shall meet the monitoring system certification and other requirements of subsection B of this section on or before the following dates. The owner or operator shall record, report, and quality-assure the data from the monitoring systems under subdivision B 1 of this section on and after the following dates:
1. The owner or operator of a CO2 budget unit, except for a CO2 budget unit under subdivision 2 of this subsection, shall comply with the requirements of this section by January 1, 2020.
2. The owner or operator of a CO2 budget unit
that commences commercial operation July 1, 2020, shall comply with the
requirements of this section by (i) January 1, 2021, or (ii) the earlier of 90
unit operating days after the date on which the unit commences commercial
operation , or 180 calendar days after the date on which the unit
commences commercial operation.
3. For the owner or operator of a CO2 budget unit for which construction of a new stack or flue installation is completed after the applicable deadline under subdivision 1 or 2 of this subsection by the earlier of (i) 90 unit operating days after the date on which emissions first exit to the atmosphere through the new stack or flue or (ii) 180 calendar days after the date on which emissions first exit to the atmosphere through the new stack or flue.
D. Data shall be reported as follows:
1. Except as provided in subdivision 2 of this subsection, the owner or operator of a CO2 budget unit that does not meet the applicable compliance date set forth in subsection C of this section for any monitoring system under subdivision B 1 of this section shall, for each such monitoring system, determine, record, and report maximum potential, or as appropriate minimum potential, values for CO2 concentration, CO2 emissions rate, stack gas moisture content, fuel flow rate, heat input, and any other parameter required to determine CO2 mass emissions in accordance with 40 CFR 75.31(b)(2) or (c)(3) or Section 2.4 of Appendix D of 40 CFR Part 75 as applicable.
2. The owner or operator of a CO2 budget unit that does not meet the applicable compliance date set forth in subdivision C 3 of this section for any monitoring system under subdivision B 1 of this section shall, for each such monitoring system, determine, record, and report substitute data using the applicable missing data procedures in Subpart D, or Appendix D of 40 CFR Part 75, in lieu of the maximum potential, or as appropriate minimum potential, values for a parameter if the owner or operator demonstrates that there is continuity between the data streams for that parameter before and after the construction or installation under subdivision C 3 of this section.
a. CO2 budget units subject to an acid rain emissions limitation or CSAPR NOX Ozone Season Trading Program that qualify for the optional SO2, NOX, and CO2 (for acid rain) or NOX (for CSAPR NOX Ozone Season Trading Program) emissions calculations for low mass emissions (LME) units under 40 CFR 75.19 and report emissions for such programs using the calculations under 40 CFR 75.19, shall also use the CO2 emissions calculations for LME units under 40 CFR 75.19 for purposes of compliance with these regulations.
b. CO2 budget units subject to an acid rain emissions limitation that do not qualify for the optional SO2, NOX, and CO2 (for acid rain) or NOX (for CSAPR NOX Ozone Season Trading Program) emissions calculations for LME units under 40 CFR 75.19 shall not use the CO2 emissions calculations for LME units under 40 CFR 75.19 for purposes of compliance with these regulations.
c. CO2 budget units not subject to an acid rain emissions limitation shall qualify for the optional CO2 emissions calculation for LME units under 40 CFR 75.19, provided that they emit less than 100 tons of NOX annually and no more than 25 tons of SO2 annually.
3. The owner or operator of a CO2 budget unit shall report net-electric output data to the department as required by Article 5 (9VAC5-140-6190 et seq.) of this part.
E. Prohibitions shall be as follows.
1. No owner or operator of a CO2 budget unit shall use any alternative monitoring system, alternative reference method, or any other alternative for the required CEMS without having obtained prior written approval in accordance with 9VAC5-140-6380.
2. No owner or operator of a CO2 budget unit shall operate the unit so as to discharge, or allow to be discharged, CO2 emissions to the atmosphere without accounting for all such emissions in accordance with the applicable provisions of this article and 40 CFR Part 75.
3. No owner or operator of a CO2 budget unit shall disrupt the CEMS, any portion thereof, or any other approved emissions monitoring method, and thereby avoid monitoring and recording CO2 mass emissions discharged into the atmosphere, except for periods of recertification or periods when calibration, quality assurance testing, or maintenance is performed in accordance with the applicable provisions of this article and 40 CFR Part 75.
4. No owner or operator of a CO2 budget unit shall retire or permanently discontinue use of the CEMS, any component thereof, or any other approved emissions monitoring system under this article, except under any one of the following circumstances:
a. The owner or operator is monitoring emissions from the unit with another certified monitoring system approved, in accordance with the applicable provisions of this article and 40 CFR Part 75, by the department for use at that unit that provides emissions data for the same pollutant or parameter as the retired or discontinued monitoring system; or
b. The CO2 authorized account representative submits notification of the date of certification testing of a replacement monitoring system in accordance with 9VAC5-140-6340 D 3 a.
9VAC5-140-6340. Initial certification and recertification procedures.
A. The owner or operator of a CO2 budget unit shall be exempt from the initial certification requirements of this section for a monitoring system under 9VAC5-140-6330 B 1 if the following conditions are met:
1. The monitoring system has been previously certified in accordance with 40 CFR Part 75; and
2. The applicable quality-assurance and quality-control requirements of 40 CFR 75.21 and Appendix B and Appendix D of 40 CFR Part 75 are fully met for the certified monitoring system described in subdivision 1 of this subsection.
B. The recertification provisions of this section shall apply to a monitoring system under 9VAC5-140-6330 B 1 exempt from initial certification requirements under subsection A of this section.
C. Notwithstanding subsection A of this section, if the administrator has previously approved a petition under 40 CFR 75.72(b)(2)(ii), or 40 CFR 75.16(b)(2)(ii)(B) as pursuant to 40 CFR 75.13 for apportioning the CO2 emissions rate measured in a common stack or a petition under 40 CFR 75.66 for an alternative requirement in 40 CFR Part 75, the CO2 authorized account representative shall submit the petition to the department under 9VAC5-140-6380 A to determine whether the approval applies under this program.
D. Except as provided in subsection A of this section, the owner or operator of a CO2 budget unit shall comply with the following initial certification and recertification procedures for a CEMS and an excepted monitoring system under Appendix D of 40 CFR Part 75 and under 9VAC5-140-6330 B 1. The owner or operator of a unit that qualifies to use the low mass emissions excepted monitoring methodology in 40 CFR 75.19 or that qualifies to use an alternative monitoring system under Subpart E of 40 CFR Part 75 shall comply with the procedures in subsection E or F of this section, respectively.
1. For initial certification, the owner or operator shall ensure that each CEMS required under 9VAC5-140-6330 B 1, which includes the automated DAHS, successfully completes all of the initial certification testing required under 40 CFR 75.20 by the applicable deadlines specified in 9VAC5-140-6330 C. In addition, whenever the owner or operator installs a monitoring system to meet the requirements of this article in a location where no such monitoring system was previously installed, initial certification in accordance with 40 CFR 75.20 is required.
2. For recertification, the following requirements shall apply.
a. Whenever the owner or operator makes a replacement, modification, or change in a certified CEMS under 9VAC5-140-6330 B 1 that the administrator or the department determines significantly affects the ability of the system to accurately measure or record CO2 mass emissions or to meet the quality-assurance and quality-control requirements of 40 CFR 75.21 or Appendix B to 40 CFR Part 75, the owner or operator shall recertify the monitoring system according to 40 CFR 75.20(b).
b. For systems using stack measurements such as stack flow, stack moisture content, CO2 or O2 monitors, whenever the owner or operator makes a replacement, modification, or change to the flue gas handling system or the unit's operation that the administrator or the department determines to significantly change the flow or concentration profile, the owner or operator shall recertify the CEMS according to 40 CFR 75.20(b). Examples of changes that require recertification include replacement of the analyzer, change in location or orientation of the sampling probe or site, or change of flow rate monitor polynomial coefficients.
3. The approval process for initial certifications and
recertification shall be as follows: Subdivisions subdivisions 3 a
through 3 d of this subsection apply to both initial certification and
recertification of a monitoring system under 9VAC5-140-6330 B 1. For
recertifications, replace the words "certification" and "initial
certification" with the word "recertification," replace the word
"certified" with "recertified," and proceed in the manner
prescribed in 40 CFR 75.20(b)(5) and (g)(7) in lieu of subdivision 3 e of this
subsection.
a. The CO2 authorized account representative shall submit to the department or its agent, the appropriate EPA Regional Office and the administrator a written notice of the dates of certification in accordance with 9VAC5-140-6360.
b. The CO2 authorized account representative shall submit to the department or its agent a certification application for each monitoring system. A complete certification application shall include the information specified in 40 CFR 75.63.
c. The provisional certification date for a monitor shall be determined in accordance with 40 CFR 75.20(a)(3). A provisionally certified monitor may be used under the CO2 Budget Trading Program for a period not to exceed 120 days after receipt by the department of the complete certification application for the monitoring system or component thereof under subdivision 3 b of this subsection. Data measured and recorded by the provisionally certified monitoring system or component thereof, in accordance with the requirements of 40 CFR Part 75, will be considered valid quality-assured data, retroactive to the date and time of provisional certification, provided that the department does not invalidate the provisional certification by issuing a notice of disapproval within 120 days of receipt of the complete certification application by the department.
d. The department will issue a written notice of approval or disapproval of the certification application to the owner or operator within 120 days of receipt of the complete certification application under subdivision 3 b of this subsection. In the event the department does not issue such a notice within such 120-day period, each monitoring system that meets the applicable performance requirements of 40 CFR Part 75 and is included in the certification application will be deemed certified for use under the CO2 Budget Trading Program.
(1) If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of 40 CFR Part 75, then the department will issue a written notice of approval of the certification application within 120 days of receipt.
(2) If the certification application is incomplete, then the department will issue a written notice of incompleteness that sets a reasonable date by which the CO2 authorized account representative shall submit the additional information required to complete the certification application. If the CO2 authorized account representative does not comply with the notice of incompleteness by the specified date, then the department may issue a notice of disapproval under subdivision 3 d (3) of this subsection. The 120-day review period shall not begin before receipt of a complete certification application.
(3) If the certification application shows that any monitoring system or component thereof does not meet the performance requirements of 40 CFR Part 75, or if the certification application is incomplete and the requirement for disapproval under subdivision 3 d (2) of this subsection is met, then the department will issue a written notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional certification is invalidated by the department and the data measured and recorded by each uncertified monitoring system or component thereof shall not be considered valid quality assured data beginning with the date and hour of provisional certification. The owner or operator shall follow the procedures for loss of certification in subdivision 3 e of this subsection for each monitoring system or component thereof, which is disapproved for initial certification.
(4) The department may issue a notice of disapproval of the certification status of a monitor in accordance with 9VAC5-140-6350 B.
e. If the department issues a notice of disapproval of a certification application under subdivision 3 d (3) of this subsection or a notice of disapproval of certification status under subdivision 3 d (3) of this subsection, then:
(1) The owner or operator shall substitute the following
values for each disapproved monitoring system, for each hour of unit operation
during the period of invalid data beginning with the date and hour of
provisional certification and continuing until the time, date, and hour
specified under 40 CFR 75.20(a)(5)(i) or 40 CFR 75.20(g)(7): (i) for units
using or intending to monitor for CO2 mass emissions using heat
input or for units using the low mass emissions excepted methodology under 40
CFR 75.19, the maximum potential hourly heat input of the unit; or (ii) for
units intending to monitor for CO2 mass emissions using a CO2
pollutant concentration monitor and a flow monitor, the maximum potential
concentration of CO2 and the maximum potential flow rate of the unit
under Section 2.1 of Appendix A of 40 CFR Part 75 [ .; ]
(2) The CO2 authorized account representative shall submit a notification of certification retest dates and a new certification application in accordance with subdivisions 3 a and 3 b of this subsection; and
(3) The owner or operator shall repeat all certification tests or other requirements that were failed by the monitoring system, as indicated in the department's notice of disapproval, no later than 30 unit operating days after the date of issuance of the notice of disapproval.
E. The owner or operator of a unit qualified to use the low mass emissions excepted methodology under 9VAC5-140-6330 D 3 shall meet the applicable certification and recertification requirements of 40 CFR 75.19(a)(2), 40 CFR 75.20(h), and this section. If the owner or operator of such a unit elects to certify a fuel flow meter system for heat input determinations, the owner or operator shall also meet the certification and recertification requirements in 40 CFR 75.20(g).
F. The CO2 authorized account of each unit for which the owner or operator intends to use an alternative monitoring system approved by the administrator and, if applicable, the department under Subpart E of 40 CFR Part 75 shall comply with the applicable notification and application procedures of 40 CFR 75.20(f).
9VAC5-140-6350. Out-of-control periods.
A. Whenever any monitoring system fails to meet the quality assurance/quality control (QA/QC) requirements or data validation requirements of 40 CFR Part 75, data shall be substituted using the applicable procedures in Subpart D or Appendix D of 40 CFR Part 75.
B. Whenever both an audit of a monitoring system and a review of the initial certification or recertification application reveal that any monitoring system should not have been certified or recertified because it did not meet a particular performance specification or other requirement under 9VAC5-140-6340 or the applicable provisions of 40 CFR Part 75, both at the time of the initial certification or recertification application submission and at the time of the audit, the department or administrator will issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this subsection, an audit shall be either a field audit or an audit of any information submitted to the department or the administrator. By issuing the notice of disapproval, the department or administrator revokes prospectively the certification status of the monitoring system. The data measured and recorded by the monitoring system shall not be considered valid quality-assured data from the date of issuance of the notification of the revoked certification status until the date and time that the owner or operator completes subsequently approved initial certification or recertification tests for the monitoring system. The owner or operator shall follow the initial certification or recertification procedures in 9VAC5-140-6340 for each disapproved monitoring system.
9VAC5-140-6360. Notifications.
The CO2 authorized account representative for a CO2 budget unit shall submit written notice to the department and the administrator in accordance with 40 CFR 75.61.
9VAC5-140-6370. Recordkeeping and reporting.
A. The CO2 authorized account representative shall comply with all recordkeeping and reporting requirements in this section, the applicable recordkeeping and reporting requirements under 40 CFR 75.73, and the requirements of 9VAC5-140-6080 E.
B. The owner or operator of a CO2 budget unit shall submit a monitoring plan in the manner prescribed in 40 CFR 75.62.
C. The CO2 authorized account representative shall submit an application to the department within 45 days after completing all CO2 monitoring system initial certification or recertification tests required under 9VAC5-140-6340, including the information required under 40 CFR 75.63 and 40 CFR 75.53(e) and (f).
D. The CO2 authorized account representative shall submit quarterly reports, as follows:
1. The CO2 authorized account representative shall report the CO2 mass emissions data for the CO2 budget unit, in an electronic format prescribed by the department unless otherwise prescribed by the department for each calendar quarter.
2. The CO2 authorized account representative shall submit each quarterly report to the department or its agent within 30 days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in Subpart H of 40 CFR Part 75 and 40 CFR 75.64. Quarterly reports shall be submitted for each CO2 budget unit, or group of units using a common stack, and shall include all of the data and information required in Subpart G of 40 CFR Part 75, except for opacity, heat input, NOX, and SO2 provisions.
3. The CO2 authorized account representative shall submit to the department or its agent a compliance certification in support of each quarterly report based on reasonable inquiry of those persons with primary responsibility for ensuring that all of the unit's emissions are correctly and fully monitored. The certification shall state that:
a. The monitoring data submitted were recorded in accordance with the applicable requirements of this article and 40 CFR Part 75, including the quality assurance procedures and specifications;
b. For a unit with add-on CO2 emissions controls and for all hours where data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emissions controls were operating within the range of parameters listed in the QA/QC program under Appendix B of 40 CFR Part 75 and the substitute values do not systematically underestimate CO2 emissions; and
c. The CO2 concentration values substituted for missing data under Subpart D of 40 CFR Part 75 do not systematically underestimate CO2 emissions.
9VAC5-140-6380. Petitions.
A. Except as provided in subsection C of this section, the CO2 authorized account representative of a CO2 budget unit that is subject to an acid rain emissions limitation may submit a petition to the administrator under 40 CFR 75.66 and to the department requesting approval to apply an alternative to any requirement of 40 CFR Part 75. Application of an alternative to any requirement of 40 CFR Part 75 is in accordance with this article only to the extent that the petition is approved in writing by the administrator, and subsequently approved in writing by the department.
B. Petitions for a CO2 budget unit that is not subject to an acid rain emissions limitation shall meet the following requirements.
1. The CO2 authorized account representative of a CO2 budget unit that is not subject to an acid rain emissions limitation may submit a petition to the administrator under 40 CFR 75.66 and to the department requesting approval to apply an alternative to any requirement of 40 CFR Part 75. Application of an alternative to any requirement of 40 CFR Part 75 is in accordance with this article only to the extent that the petition is approved in writing by the administrator and subsequently approved in writing by the department.
2. In the event that the administrator declines to review a petition under subdivision 1 of this subsection, the CO2 authorized account representative of a CO2 budget unit that is not subject to an acid rain emissions limitation may submit a petition to the department requesting approval to apply an alternative to any requirement of this article. That petition shall contain all of the relevant information specified in 40 CFR 75.66. Application of an alternative to any requirement of this article is in accordance with this article only to the extent that the petition is approved in writing by the department.
C. The CO2 authorized account representative of a CO2 budget unit that is subject to an acid rain emissions limitation may submit a petition to the administrator under 40 CFR 75.66 and to the department requesting approval to apply an alternative to a requirement concerning any additional CEMS required under the common stack provisions of 40 CFR 75.72 or a CO2 concentration CEMS used under 40 CFR 75.71(a)(2). Application of an alternative to any such requirement is in accordance with this article only to the extent the petition is approved in writing by the administrator and subsequently approved in writing by the department.
9VAC5-140-6390. (Reserved.)
9VAC5-140-6400. (Reserved.)
Article 9
Auction of CO2 CCR and ECR Allowances
9VAC5-140-6410. Purpose.
The following requirements shall apply to each allowance auction. The department or its agent 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.
9VAC5-140-6420. General requirements.
A. The department's agent will include the following information in the auction notice for each auction:
1. The number of [ CO2
conditional ] allowances offered for sale at the auction, not
including any [ CO2 conditional ]
CCR allowances;
2. The number of [ CO2
conditional ] CCR allowances that will be offered for sale at the
auction if the condition of subdivision [ B ] 1 of this
[ subsection section ] is met;
3. The minimum reserve price for the auction;
4. The CCR trigger price for the auction;
5. The maximum number of [ CO2
conditional ] allowances that may be withheld from sale at the
auction if the condition of subdivision D 1 of this section is met; and
6. The ECR trigger price for the auction.
B. The department's agent will follow these rules for the
sale of [ CO2 conditional ] CCR
allowances.
1. [ CO2 Conditional ]
CCR allowances shall only be sold at an auction in which total demand for
allowances, above the CCR trigger price, exceeds the number of [ CO2
conditional ] allowances available for purchase at the auction, not
including any [ CO2 conditional ]
CCR allowances.
2. If the condition of subdivision 1 of this subsection is
met at an auction, then the number of [ CO2
conditional ] CCR allowances offered for sale by the department or
its agent at the auction shall be equal to the number of [ CO2
conditional ] CCR allowances in the Virginia [ auction
account Consignment Auction Account ] at the time of the
auction.
3. After all of the [ CO2
conditional ] CCR allowances in the Virginia [ auction
Consignment Auction Account ] account have been sold in a given
calendar year, no additional [ CO2
conditional ] CCR allowances will be sold at any auction for the
remainder of that calendar year, even if the condition of subdivision 1 of this
subsection is met at an auction.
4. At an auction in which [ CO2
conditional ] CCR allowances are sold, the reserve price for the
auction shall be the CCR trigger price.
5. If the condition of subdivision 1 of this subsection is
not satisfied, no [ CO2 conditional ]
CCR allowances shall be offered for sale at the auction, and the reserve
price for the auction shall be equal to the minimum reserve [ prices
price ].
C. The department's agent shall implement the reserve price as follows: (i) no allowances shall be sold at any auction for a price below the reserve price for that auction and (ii) if the total demand for allowances at an auction is less than or equal to the total number of allowances made available for sale in that auction, then the auction clearing price for the auction shall be the reserve price.
D. The department's agent will meet the following rules for the withholding of CO2 ECR allowances from an auction.
1. CO2 ECR allowances shall only be withheld from an auction if the demand for allowances would result in an auction clearing price that is less than the ECR trigger price prior to the withholding from the auction of any ECR allowances.
2. If the condition in subdivision 1 of this subsection is met at an auction, then the maximum number of CO2 ECR allowances that may be withheld from that auction will be equal to the quantity shown in Table 140-5B of 9VAC5-140-6210 E minus the total quantity of CO2 ECR allowances that have been withheld from any prior auction in that calendar year. Any CO2 ECR allowances withheld from an auction will be transferred into the Virginia ECR Account.
9VAC5-140-6430. Consignment auction.
In accordance with Article 5 (9VAC5-140-6190 et seq.) of
this part, one quarter of the annual conditional allowances
allowance allocation shall be consigned by the CO2 budget source to whom
they are allocated or the holder of a public contract with DMME to each auction
on a quarterly pro rata basis in accordance with procedures specified by
the department. At the completion of the consignment auction, a conditional
allowance sold at auction shall become an allowance to be used for
compliance purposes a CO2 allowance.
9VAC5-140-6435. Other auction.
Notwithstanding the requirements of 9VAC5-140-6430, the department may participate in a direct auction of allowances without consignment in accordance with requirements established by the Virginia General Assembly. A "direct auction" means a CO2 auction conducted by a CO2 Budget Trading Program in which Virginia is a participating state.
Article 10
Program Monitoring and Review
9VAC5-140-6440. Program monitoring and review.
In conjunction with the CO2 Budget Trading Program program monitoring and review process, the department will evaluate impacts of the program specific to Virginia, including economic, energy, and environmental impacts and impacts on vulnerable and environmental justice and underserved communities. The department will, in evaluating the impacts on environmental justice communities, including low income, minority, and tribal communities, develop and implement a plan to ensure increased participation of environmental justice communities in the review.