Section 22a-174-31 - Control of carbon dioxides emissions(a)Definitions and Abbreviations. Except as otherwise provided, for the purposes of this section and section 22a-174-31 a of the Regulations of Connecticut State Agencies:(1) "Account number" means the identification number given by the commissioner to each CO2 Allowance Tracking System account.(2) "Acid rain emissions limitation" means "Acid Rain emissions limitation", as defined in 40 CFR 72.2, regarding emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program.(3) "Acid Rain Program" means a multi-state sulfur dioxide and nitrogen oxides air pollution control and emissions reduction program established by the Administrator under Title IV of the federal Clean Air Act and 40 CFR 72 to 78, inclusive.(4) "Administrator" means "Administrator" as defined in section 22a-174-1 of the Regulations of Connecticut State Agencies.(5) "Allocate" or "allocation" means the determination by the commissioner of the number of CO2 allowances to be recorded in the compliance account of a CO2 budget source, the Connecticut Auction Account, an allocation set-aside account, the general account of the sponsor of an approved CO2 emissions offset project or an account established by any other person.(6) "Allocation year" means a calendar year for which the commissioner allocates CO allowances pursuant to subsection (f) of this section. The allocation year of each CO2 allowance is reflected in the unique identification number given to the allowance pursuant to subsection (g)(4)(E) of this section.(7) "Allowance auction" or "auction" means: (A) The open and transparent process by which the commissioner, or a contractor or trustee selected by the commissioner, offers for sale the CO2 allowances in the Connecticut Auction Account not less than once per year; or(B) To offer CO2 allowances in the Connecticut Auction Account for sale in an open transparent process conducted by the commissioner or a contractor or trustee selected by the commissioner.(8) "Attribute" means a characteristic associated with electricity generated using a particular renewable fuel, such as its generation date, facility geographic location, source vintage, emissions output, fuel, state program eligibility, or other characteristic that can be identified, accounted for, and tracked.(9) "Automated data acquisition and handling system" or "DAHS" means that component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under subsection (i) of this section, 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 subsection (i) of this section.(10) "Award" means an allocation through which the commissioner determines the number of CO2 offset allowances to be recorded in the general account of a project sponsor pursuant to section 22a-174-31 a of the Regulations of Connecticut State Agencies.(11) "Billing meter" means the measurement device used to measure electric or thermal output for commercial billing under a contract where the facility selling the electric or thermal output has different owners from the owners of the party purchasing the electric or thermal output.(12) "Boiler" means a fossil or other fuel-fired device that produces steam or heats water or any other heat transfer medium.(13) "Btu" means British Thermal Unit, a standard measurement used to quantify an amount of energy.(14) "Class I renewable energy source" means "Class I renewable energy source" as defined in section 16-1(a) of the Connecticut General Statutes.(15) "Clean Energy Fund" or "CEF" means the fund created by section 16-245n of the Connecticut General Statutes to address Connecticut's increasing energy needs and any individual authorized to act on behalf of such fund.(16) "CO2" means carbon dioxide.(17) "CO2 allowance" means a limited authorization by the commissioner or a participating state under the CO2 Budget Trading Program to emit up to one ton of CO2, subject to all the applicable conditions contained in this section.(18) "CO2 allowance deduction" or "deduct CO2 allowances" means the permanent withdrawal of CO2 allowances by the commissioner from a CO2 Allowance Tracking System compliance account.(19) "CO2 allowances held" or "hold CO2 allowances" means the CO2 allowances recorded by the commissioner, or submitted to the commissioner, in accordance with subsections (g) and (h) of this section, in a CO2 Allowance Tracking System account.(20) "CO2 Allowance Tracking System" or "COATS" means the system by which the commissioner records allocations, deductions, and transfers of CO2 allowances under the CO2 Budget Trading Program under this section, the system used to track CO2 offset allowance projects under section 22a-174-31 a of the Regulations of Connecticut State Agencies, and the system used to track emissions from affected sources.(21) "CO2 Allowance Tracking System account" means an account in the CO2 Allowance Tracking System established by the commissioner for purposes of recording the allocating, holding, transferring, or deducting of CO2 allowances.(22) "CO2 allowance transfer deadline" means midnight of March 1 occurring after the end of the relevant 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.(23) "CO2 authorized account representative" means the individual who is authorized by the owners or operators of the source and all CO2 budget sources at the source, in accordance with subsection (c) of this section, to represent and legally bind each owner or operator in matters pertaining to the CO2 Budget Trading Program or, for a general account, the individual who is authorized, in accordance with subsection (g) of this section, to transfer or otherwise dispose of CO2 allowances held in the general account.(24) "CO2 budget emissions limitation" means the tonnage equivalent, in CO2 emissions in a control period or an interim control period, of the CO2 allowances available for compliance deduction for the CO2 budget source for a control period or an interim control period.(25) "CO2 budget source" means a facility that includes one or more CO2 budget units.(26) "CO2 Budget Trading Program" means the multi-state CO2 air pollution control and emissions reduction program established pursuant to this section and corresponding regulations in other states as a means of reducing emissions of CO2 from CO2 budget sources.(27) "CO2 budget unit" means an emissions unit that is subject to the CO2 Budget Trading Program requirements under subsection (b) of this section.(28) "CO2 cost containment reserve allowance" or "CO2 CCR allowance" means a CO2 allowance that is offered for sale at auction in accordance with subsection (f)(5)(D) of this section.(29) "CO2 equivalent" means a metric measure used to compare the emissions from various greenhouse gases based upon their global warming potential (GWP).(30) "CO2 offset allowance" means a CO2 allowance that is awarded to the sponsor of a CO2 emissions offset project pursuant to section 22a-174-31 a of the Regulations of Connecticut State Agencies and is subject to the relevant compliance deduction limitations of this section.(31) "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.(32) "Combined Heat and Power" or "CHP" means "Combined heat and power system" as defined in section 22a-174-22 c of the Regulations of Connecticut State Agencies.(33) "Combined Heat and Power Useful Thermal Energy Set-aside Account" means a general account established by the commissioner to hold CO2 allowances that are allocated pursuant to subsection (f)(4) of this section.(34) "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.(35) "Commissioner" means "commissioner" as defined in section 22a-174-1 of the Regulations of Connecticut State Agencies.(36) "Compliance account" means a CO2 Allowance Tracking System account, established by the commissioner for a CO2 budget source under subsection (g) of this section, in which the CO2 allowance allocations for the source are initially recorded and in which are held CO2 allowances available for use by the source for a control period and each interim control period for the purpose of meeting the requirements of subsection (b)(3) of this section.(37) "Connecticut Auction Account" means a general account established by the commissioner to hold CO2 allowances that are allocated pursuant to subsection (f) of this section.(38) "Connecticut CO2 Allowance Retirement Account" means a general account established by the commissioner to hold CO2 allowances that have been permanently retired.(39) "Connecticut CO2 Budget Trading Program Adjusted Budget" means the adjusted budget of CO2 tons available in Connecticut for allocation for each allocation year as determined in accordance with subsection (f) of this section. CO2 offset allowances allocated to project sponsors and CO2 CCR allowances offered for sale at an auction are separate from and additional to CO2 allowances allocated for the budget trading Connecticut CO2 Budget Trading Program Adjusted Budget.(40) "Connecticut CO2 Budget Trading Program Base Budget" means the annual amount of CO2 tons available in Connecticut for allocation in a given allocation year, in accordance with the CO2 Budget Trading Program. CO2 CCR allowances and CO2 offset allowances allocated to project sponsors are separate from and additional to CO2 allowances allocated from the Connecticut CO2 Budget Trading Program Base Budget.(41) "Connecticut Green Bank" means the authority created by section 16-245n of the Connecticut General Statutes to administer the Clean Energy Fund.(42) "Connecticut Emissions Containment Reserve Account" or "Connecticut ECR Account" means a CO2 Allowance Tracking System account established by the commissioner to hold CO2 allowances that were offered for sale and transferred in accordance with subsection (f)(5)(I) to (K) of this section.(43) "Continuous emissions monitoring system" or "CEMS" means the equipment required under subsection (i) of this section to sample, analyze, measure, and provide, by means of readings recorded at least once every fifteen (15) minutes, using an automated data acquisition and handling system, 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 75 and subsection (i) of this section.(44) "Control period" means a three-calendar-year time period. The first control period is from January 1, 2009 to December 31, 2011, inclusive. Each subsequent sequential three-calendar-year period is a separate control period. The first two calendar years of each control period are each defined as an interim control period, beginning in January 1, 2015.(45) "Cost containment reserve trigger price" or "CCR trigger price" means the minimum price at which CO2 CCR allowances are offered for sale at auction.(46) "Customer-side distributed resources" or "CDR" means "customer-side distributed resources" as defined in Section 16-1(a) of the Connecticut General Statutes.(47) "Customer-side Distributed Resources (CDR) Set-aside Account" means a general account established by the commissioner to hold CO2 allowances that are allocated pursuant to subsection (f)(4) of this section.(48) "Eligible biomass" means sustainably harvested, as determined by the commissioner, woody and herbaceous fuel sources that are available on a renewable or recurring basis, excluding old-growth timber, but including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, unadulterated wood and wood residues, animal wastes, other clean organic wastes not mixed with other solid wastes and biogas. Eligible biomass does not include liquid biofuels.(49) "Emission containment reserve trigger price" or "ECR trigger price" means the price below which CO2 allowances offered for sale at an auction shall be transferred into the Connecticut ECR Account.(50) "Energy Efficiency Board" or "EEB" means the group convened by the commissioner pursuant to section 16-245m of the Connecticut General Statutes for the purpose of advising and assisting electric distribution companies in the development and implementation of cost-effective energy conservation programs and market transformation initiatives.(51) "Excess emissions" means any tonnage of CO2 emitted by a CO2 budget source during a control period that exceeds the CO2 budget emissions limitation for such source.(52) "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 such source.(53) "First control period interim adjustment for banked allowances" means an adjustment applied to the Connecticut CO2 Budget Trading Program Base Budget pursuant to subsection (f) of this section for Connecticut's proportional share of the regional surplus CO2 allowances from allocation years 2009 to 2011, inclusive.(54) "Fossil fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material, except that fossil fuel does not include tire-derived fuel.(55) "Fossil fuel-fired" means, with regard to an emissions unit that commenced operation prior to January 1, 2005, 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 fifty percent of the annual heat input on a Btu basis during any year, or, with respect to an emissions unit that commences operation on or after January 1, 2005, 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 five percent of the annual heat input on a Btu basis during any year.(56) "General account" means a CO2 Allowance Tracking System account, established under subsection (g) of this section, which is not a compliance account.(57) "Global warming potential" or "GWP" means a measure consistent with the values used in the Intergovernmental Panel on Climate Change (IPCC), Fifth Assessment Report of the radiative efficiency or heat-absorbing ability, of a particular gas relative to that of CO2 after taking into account the decay rate of each gas, the amount removed from the atmosphere over a given number of years, relative to that of CO2.(58) "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 is from January 1, 2015 to December 31, 2015, inclusive. The second interim control period is from January 1, 2016 to December 31, 2016, 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.(60) "Heat input" means the gross calorific value of all fuels combusted by a CO2 budget unit.(62) "Maximum potential hourly heat input" means an hourly heat input used for reporting purposes when a unit lacks certified monitors to report heat input calculated in accordance with 40 CFR 75.(63) "Monitoring system" means any monitoring system that meets the requirements of subsection (i) of this section, including a continuous emissions monitoring system, an excepted monitoring system, or an alternative monitoring system.(64) "MMBtu" means million Btu of heat input.(65) "MWe" means megawatt electrical.(66) "MWh" means megawatt-hour.(67) "Nameplate capacity" means the maximum electrical output in MWe that an electric generating unit can sustain over a specified period of time when not restricted by seasonal or other deratings as measured in accordance with the United States Department of Energy Standards.(68) "Non-CO2 budget unit" means a unit that does not meet the applicability criteria of subsection (b) of this section.(69) "NOx" means oxides of nitrogen.(71) "Operator" means any person who operates, controls, or supervises a CO2 budget unit or a CO2 budget source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.(72) "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 an agreement 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 in 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.(73) "Participating state" means a state that has established a regulation implementing a CO2 Budget Trading Program consistent with the Regional Greenhouse Gas Initiative model rule.(74) "Public Utilities Regulatory Authority" means the authority pursuant to section 16-2 of the Connecticut General Statutes.(75) "Receive" or "receipt of" means, when referring to the commissioner, to come into possession of a document, information, or correspondence, as indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the commissioner in the regular course of business.(76) "Recordation", "record" or "recorded" means, with regard to CO2 allowances, the movement of CO2 allowances by the commissioner from one CO2 Allowance Tracking System account to another, for purposes of allocation, transfer or deduction.(77) "Regional Independent System Operator" or "Regional ISO" means "regional independent system operator" as defined in section 16-1 of the Connecticut General Statutes.(78) "Renewable energy" means "Class I renewable energy source" as defined in section 16-1(a) of the Connecticut General Statutes.(79) "Renewable Energy Certificate" or "REC" means a certificate that represents the attributes related to one megawatt-hour of electricity generation.(80) "Second control period interim adjustment for banked allowances" means an adjustment applied to the Connecticut CO2 Budget Trading Program Base Budget pursuant to subsection (f) of this section for Connecticut's proportional share of regional surplus CO2 allowances from allocation years 2012 and 2013.(81) "Serial number" means, when referring to CO2 allowances, the unique identification number assigned to each CO2 allowance by the commissioner.(82) "SO2" means sulfur dioxide.(83) "Source" means "source" as defined in section 22a-174-1 of the Regulations of Connecticut State Agencies, provided that a source with multiple units, is a single facility.(84) "State" means, notwithstanding the definition set forth in section 22a-174-1 of the Regulations of Connecticut State Agencies, any state of the United States of America, the District of Columbia, and the following territories of the United States: the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa and the Commonwealth of the Northern Mariana Islands.(85) "Submit" means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation either in person, by United States Postal Service, or by other means of dispatch or transmission and delivery.(86) "Third adjustment for banked allowances" means an adjustment applied to the Connecticut CO2 Budget Trading Program Base Budget pursuant to subsection (f) of this section for Connecticut's proportional share of regional surplus CO2 allowances from allocation years prior to 2021.(87) "Ton" or "short ton" means a measure of weight equal to two thousand pounds or 0.9072 metric tons.(88) "Undistributed CO2 allowances" means CO2 allowances originally allocated to a set-aside account pursuant to subsection (f) of this section that were not utilized for the purpose of such set aside account.(89) "Unit" means a fossil fuel-fired stationary boiler, combustion turbine or combined cycle system.(90) "Unsold CO2 allowances" means CO2 allowances that have been made available for sale in an auction but not sold.(91) "Useful net thermal energy" means the energy output of thermal energy used for heating, cooling, industrial processes or other beneficial uses.(92) "Voluntary clean energy purchase" means electricity from renewable energy generation or renewable energy attribute credits representing such renewable energy generation, purchased by a retail electricity customer on a voluntary basis, provided that purchases used to meet any regulatory mandate, such as a renewable portfolio standard, shall not be a voluntary renewable energy purchase.(93) "Voluntary Clean Energy Purchase Set-aside Account" means a general account established by the commissioner to hold CO2 allowances that are allocated pursuant to subsection (f)(4) of this section.(b)Applicability and General Provisions.(1) Applicability. Any CO2 budget unit that, at any time on or after January 1, 2000, serves an electricity generator with a nameplate capacity equal to or greater than 25 MWe shall be a CO2 budget source, and any owner or operator of such source that includes one or more such units shall be the owner or operator of a CO2 budget source subject to the requirements of this section.(2) Monitoring. In order to determine compliance with the CO2 requirements of subdivision (3) of this subsection, the owner or operator of a CO2 budget source subject to this section shall comply with the applicable monitoring requirements set forth in subsection (i) of this section. The commissioner shall determine compliance with subdivision (3) of this subsection using the emissions measurements recorded and reported in accordance with subsection (i) of this section.(3) General Provisions and CO2 Requirements. (A) The owners and operators of each CO2 budget source shall hold CO2 allowances available for compliance deductions under subsection (g)(5) of this section, not later than the CO2 allowance transfer deadline, in the source's compliance account in an amount equal to or greater than the total CO2 emissions for each control period and each interim control period from all CO2 budget units at the source, as determined in accordance with subsections (g) and (i) of this section. In addition:(i) A CO2 allowance shall not be deducted to cover emissions for a control period or interim control period that ends prior to the year for which the CO2 allowance was allocated; and(ii) A CO2 offset allowance shall not be deducted to cover emissions beyond the applicable percent limitations set forth in subsection (g)(5)(B) of this section;(B) A CO2 budget source shall be subject to the requirements under subsection (c)(1) of this section starting on January 1, 2009, or the date on which the source commences operation, whichever is later;(C) CO2 allowances shall be held in, deducted from, or transferred among CO2 Allowance Tracking System accounts in accordance with subsections (f), (g) and (h) of this section and section 22a-174-31 a(j) of the Regulations of Connecticut State Agencies;(D) A CO2 allowance under the CO2 Budget Trading Program is a limited authorization by the commissioner or a participating state to emit one ton of CO2 in accordance with the CO2 Budget Trading Program;(E) A CO2 allowance under the CO2 Budget Trading Program does not constitute a property right;(F) For the purpose of determining compliance with subparagraph (A) of this subdivision, total CO2 emissions, in tons, for each applicable interim control period or 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 subsection (i) of this section, 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;(G) Each ton of CO2 emitted in excess of the CO2 budget emissions limitation shall constitute a separate violation of this section; and(H) Each ton of excess interim emissions shall constitute a separate violation of this section.(4) Excess emissions. The owner and operator of a CO2 budget source that has excess emissions in any control period or excess interim emissions in any interim control period shall after such control period or interim control period, as applicable, on a time frame established by the commissioner:(A) Forfeit the CO2 allowances required for deduction under subsection (g)(5)(G) of this section;(B) Not be authorized to cover any part of such excess emissions with CO2 offset allowances under section 22a-174-31 a of the Regulations of Connecticut State Agencies; and(C) Comply with the assessment of any fine, penalty or other obligation under subsection (g)(5)(G) of this section, provided that such assessment shall not limit additional enforcement action by the commissioner.(5) Recordkeeping and reporting. The owner and operator of a CO2 budget source shall comply with the following recordkeeping and reporting requirements: (A) Unless otherwise provided or extended by the commissioner prior to the end of the applicable ten year period, the owner or operator of a CO2 budget source and each CO2 budget unit at the source shall make and keep at the source each of the following documents for a period of ten years from the date the document is created:(i) Notwithstanding the provisions of subparagraph (A) of this subdivision, 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 truthfulness and accuracy of the statements made in the account certificate of representation, in accordance with subsection (c)(4) of this section, shall be retained on site at the source indefinitely until such documents are superseded by the submission of a new account certificate of representation changing the CO2 authorized account representative;(ii) All emissions monitoring information in accordance with subsection (i) of this section;(iii) Copies of all reports, compliance certifications, and other submissions and all records made or required under the CO2 Budget Trading Program; and(iv) Copies of all documents used to complete any submission under the CO2 Budget Trading Program or to demonstrate compliance with the requirements of the CO2 Budget Trading Program.(B) The CO2 authorized account representative of a CO2 budget source shall submit the reports and compliance certifications required under the CO2 Budget Trading Program, including those required under subsection (e) of this section.(6) Liability. The owner and operator of a CO2 budget source shall be subject to the following: (A) Any provision of the CO2 Budget Trading Program that applies to a CO2 budget source, or the CO2 authorized account representative of a CO2 budget source, shall also apply to the owner or operator of such source; and(B) Any provision of the CO2 Budget Trading Program that applies to a CO2 budget unit, or the CO2 authorized account representative of a CO2 budget unit, shall also apply to the owner or operator of such unit.(7) Effect on other authorities. No provision of the CO2 Budget Trading Program shall be construed as exempting or excluding the owner or operator and, to the extent applicable, the CO2 authorized account representative of a CO2 budget source from compliance with the provision of any other applicable state or federal law or regulation.(8) Computation of time. Notwithstanding section 22a-3a-2(d) of the Regulations of Connecticut State Agencies and unless otherwise stated, the owner or operator of a CO2 budget source shall be subject to the following computation of time requirements: (A) 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) 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; and(C) 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. Table 31-1 Incorporated Reference Material
Citation | Title or Subject | Date on Document |
40 CFR 75 including Appendices A, B, D & E | Part 75-Continuous Emission Monitoring, Appendix A Specification and Test Procedures, Appendix B Quality Assurance and Quality Control Procedures Fired and Oil-Fired Units Appendix E Optional NOx Emissions Estimation Protocol For Gas-Fired Peaking Units and Oil-Fired Peaking Units. | May 2012 Edition |
New York State Renewable Portfolio Standard Biomass Guidebook, Appendix B | May 2006 |
(9) Copies of documents incorporated by reference into this section are available by contacting: Connecticut Department of Energy and Environmental Protection
Bureau of Air Management
79 Elm Street
Hartford, Connecticut 06106
www.ct.gov/deep
(c)CO2 Authorized Account Representative for CO2 Budget Sources.(1) With respect to the CO2 authorized account representative, the owner or operator of each CO2 budget source subject to this section shall comply with the following:(A) Except as provided under subdivision (3)(B) of this subsection, each CO2 budget source, including all CO2 budget units at the source, shall have only one CO2 authorized account representative, with regard to all matters under the CO2 Budget Trading Program concerning such source;(B) The CO2 authorized account representative of the CO2 budget source shall be selected by an agreement binding on the owners or operators of the source;(C) The owner or operator of each CO2 budget source shall: (i) Be legally bound by any decision or order issued to the CO2 authorized account representative by the commissioner or a court regarding the source; and(ii) Be legally bound by any representations, including any actions, inactions or submissions, by the CO2 authorized account representative;(D) No CO2 Allowance Tracking System account shall be established for a CO2 budget unit at a source, until the commissioner has received a complete account certificate of representation under subdivision (4) of this subsection for a CO2 authorized account representative;(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, and shall:(i) 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."; and(ii) Be made, signed and certified in accordance with subsection (e)(1) of this section. Otherwise the commissioner shall not accept or act on a submission made on behalf of owners or operators of a CO2 budget source; and(F) If the CO2 budget source is also subject to section 22a-174-22 c of the Regulations of Connecticut State Agencies or the Acid Rain Program, the CO2 authorized account representative shall be the same person as the designated representative under such programs.(2) With respect to the CO2 authorized alternate account representative, the owner or operator of each CO2 budget source subject to this section shall comply with the following: (A) An account certificate of representation may designate only one CO2 authorized alternate account representative who may act on behalf of the CO2 authorized account representative. The agreement by which the CO2 authorized alternate account representative is selected shall include a procedure for authorizing the CO2 authorized alternate account representative to act in lieu of the CO2 authorized account representative;(B) Upon receipt by the commissioner of a complete account certificate of representation under subdivision (4) of this subsection, any representation, action, inaction, or submission by the CO2 authorized alternate account representative shall be deemed to be a representation, action, inaction, or submission by the CO2 authorized account representative;(C) Except as provided in this subdivision, subdivisions (1)(A), (3) and (4) of this subsection, and subsection (g)(2) of this section, wherever the term "CO2 authorized account representative" is used, such term shall be construed to include the CO2 authorized alternate account representative; and(D) If the CO2 budget source is also subject to section 22a-174-22 c of the Regulations of Connecticut State Agencies or the Acid Rain Program, the CO2 authorized alternate account representative shall be the same person as the alternate designated representative under such programs.(3) Transfers and name changes. With respect to changing the CO2 authorized account representative and the CO2 authorized alternate account representative or a change in ownership or operation of a CO2 budget source, the owner or operator of each CO2 budget source shall comply with the following: (A) Changing the CO2 authorized account representative. The CO2 authorized account representative may be changed at any time upon receipt by the commissioner of a superseding complete account certificate of representation under subdivision (4) of this subsection. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO2 authorized account representative or CO2 authorized alternate account representative prior to the time and date when the commissioner receives the superseding account certificate of representation shall be binding on the new CO2 authorized account representative and the owner or operator of the CO2 budget source and the CO2 budget units at the source;(B) Changing the CO2 authorized alternate account representative. The CO2 authorized alternate account representative may be changed at any time upon receipt by the commissioner of a superseding complete account certificate of representation under subdivision (2)(B) of this subsection. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO2 authorized account representative or CO2 authorized alternate account representative prior to the time and date when the commissioner receives the superseding account certificate of representation shall be binding on the new CO2 authorized alternate account representative and the owner or operator of the CO2 budget source and the CO2 budget units at the source;(C) Changes in the owners and operators. With respect to a change in ownership or control of the CO2 budget source, the owner or operator of each CO2 budget source shall comply with the following:(i) In the event a new owner or operator of a CO2 budget source 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 CO2 authorized alternate account representative of the source, and the decisions, orders, actions, and inactions of the commissioner, as if the new owner or operator were included in such list; and(ii) Not later than thirty (30) days following any change in the owner or operator 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 CO2 authorized alternate account representative shall submit a revision to the account certificate of representation amending the list of owners and operators to include such change.(4) Account certificate of representation. With respect to an account certificate of representation, the owner or operator of each CO2 budget source shall comply with the following: (A) A complete account certificate of representation for a CO2 authorized account representative or an CO2 authorized alternate account representative shall be submitted on forms prescribed by the commissioner and shall include the following elements:(i) Identification of the CO2 budget source for which the account certificate of representation is submitted;(ii) The name, address, electronic mail address, telephone number, and facsimile transmission number of the CO2 authorized account representative and any CO2 authorized alternate account representative;(iii) A list of the owners and operators of the CO2 budget source;(iv) The following certification statement by the CO2 authorized account representative and any CO2 authorized alternate account representative: "I certify that I was selected as the CO2 authorized account representative or 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 source 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 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 commissioner or a court regarding the source.";
(v) A statement that such CO2 authorized account representative is authorized to legally bind each owner or operator of the CO2 budget source represented by such CO2 authorized account representative in all matters pertaining to the CO2 Budget Trading Program, notwithstanding any agreement between the CO2 authorized account representative and such owners or operators; and(vi) The signature of the CO2 authorized account representative and any CO2 authorized alternate account representative and the dates signed; and(B) Unless otherwise required by the commissioner, documents of agreement referred to in the account certificate of representation shall not be submitted to the commissioner. The commissioner shall not be under any obligation to review or evaluate the sufficiency of such documents, if submitted.(5) Objections to the CO2 authorized account representative. (A) Once a complete account certificate of representation under subdivision (4) of this subsection has been submitted and received, the commissioner shall rely on the account certificate of representation unless and until the commissioner receives a superseding complete account certificate of representation under subdivision (4) of this subsection; and(B) Except as provided in subdivision (3)(A) or (B) of this subsection, no objection or other communication submitted to the commissioner 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 commissioner under the CO2 Budget Trading Program.(6) Delegation by CO2 authorized account representative and CO2 authorized alternate account representative.(A) A CO2 authorized account representative may delegate, to one or more individuals, such representative's authority to make an electronic submission to the commissioner under this section;(B) A CO2 authorized alternate account representative may delegate, to one or more individuals, such representative's authority to make an electronic submission to the commissioner under this section;(C) In order to delegate authority to make an electronic submission to the commissioner in accordance with subparagraphs (A) and (B) of this subdivision, the CO2 authorized account representative or CO2 authorized alternate account representative, as appropriate, shall submit to the commissioner a notice of delegation, in a format prescribed by the commissioner that includes the following elements: (i) The name, address, electronic mail address, telephone number, and facsimile transmission number of such CO2 authorized account representative or CO2 authorized alternate account representative;(ii) The name, address, electronic mail address, telephone number and facsimile transmission number of each such individual, in this section referred to as the "electronic submission agent"; and(iii) For each individual, a list of the type of electronic submissions under subparagraphs (A) or (B) of this subdivision for which authority is delegated to him or her;(D) A notice of delegation submitted under subparagraph (C) of this subdivision shall also include the following certification statements by such CO2 authorized account representative or CO2 authorized alternate account representative: (i) "I agree that any electronic submission to the commissioner that is by the individual 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 CO2 authorized alternate account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under section 22a-174-31(c)(6)(E) of the Regulations of Connecticut State Agencies shall be deemed to be an electronic submission by me."; and(ii) "Until this notice of delegation is superseded by another notice of delegation under section 22a-174-31(c)(6)(E) of the Regulations of Connecticut State Agencies, I agree to maintain an e-mail account and to notify the commissioner immediately of any change in my e-mail address unless all delegation authority by me under section 22a-174-31(c)(6) of the Regulations of Connecticut State Agencies is terminated.";(E) A notice of delegation submitted pursuant to subparagraph (C) of this subdivision shall be effective, with regard to the CO2 authorized account representative or CO2 authorized alternate account representative identified in such notice, upon receipt of such notice by the commissioner and until receipt by the commissioner of a superseding notice of delegation by such CO2 authorized account representative or 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; and(F) Any electronic submission covered by the certification in subparagraph (D)(i) of this subdivision and made in accordance with a notice of delegation effective under subparagraph (E) of this subdivision shall be deemed to be an electronic submission by the CO2 authorized account representative or CO2 authorized alternate account representative submitting such notice of delegation.(e)Compliance Certification.(1) Compliance certification report. The owner or operator of each CO2 budget source shall comply with the following compliance certification report requirements: (A) Applicability and deadline. For each control period in which a CO2 budget source is subject to the requirements of subsection (b)(3) of this section, the CO2 authorized account representative of the source shall submit to the commissioner not later than March 1st immediately following that control period, a compliance certification report.(B) Contents of report. The CO2 authorized account representative shall include in the compliance certification report required under subparagraph (A) of this subdivision the following elements, on forms prescribed by, or in a format otherwise acceptable to, the commissioner:(i) Identification of the source and each CO2 budget source at the source;(ii) 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 subsection (g)(5) of this section for the control period; and(iii) The compliance certification required by subparagraph (C) of this subdivision.(C) Compliance certification. In the compliance certification report required under subparagraph (A) of this subdivision, 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 sources in compliance with the CO2 Budget Trading Program, whether the source and each CO2 budget source for which the compliance certification is submitted was operated during the calendar year covered by the report in compliance with the requirements of the CO2 Budget Trading Program, including: (i) Whether the source was operated in compliance with the requirements of subsection (b)(3) of this section;(ii) 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 subsection (i) of this section;(iii) 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 subsection (i) of this section. 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;(iv) Whether the facts that form the basis for certification under subsection (i) of this section of each monitor at each unit at the source, or for using an excepted monitoring method or alternative monitoring method approved under subsection (i) of this section, if applicable, has changed; and(v) If a change is required to be reported under subsection (c)(4) of this section, 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.(2) Commissioner's action on compliance certifications.(A) The commissioner 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 commissioner 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 approved during the commissioner's review under subparagraph (A) of this subdivision.(f)CO2 Allowance Allocations.(1) The Connecticut CO2 Budget Trading Program Base Budget is as follows:(A) For the 2009 to 2013 allocation years, inclusive, the Connecticut CO2 Budget Trading Program Base Budget is 10,695,036 tons;(B) For the 2014 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,891,895 tons;(C) For the 2015 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,744,598 tons;(D) For the 2016 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,600,983 tons;(E) For the 2017 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,460,958 tons;(F) For the 2018 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,324,434 tons;(G) For the 2019 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,191,324 tons; (H) For the 2020 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 5,061,540 tons;(I) For the 2021 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,860,813 tons;(J) For the 2022 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,713,516 tons;(K) For the 2023 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,566,218 tons;(L) For the 2024 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,418,921 tons;(M) For the 2025 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,271,624 tons;(N) For the 2026 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 4,124,326 tons;(O) For the 2027 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 3,977,029 tons;(P) For the 2028 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 3,829,731 tons;(Q) For the 2029 allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 3,682,434 tons; and(R) For the 2030 allocation year and each succeeding allocation year, the Connecticut CO2 Budget Trading Program Base Budget is 3,535,137 tons.(2) CO2 allowances available for allocation. For each allocation year 2014 to 2030, inclusive, the Connecticut CO2 Budget Trading Program Adjusted Budget shall be the maximum number of allowances available for allocation in a given allocation year, except for CO2 offset allowances and CO2 CCR allowances.(A) CO2 cost containment reserve allowance allocation. The commissioner shall allocate CO2 CCR allowances, separate from and in addition to the Connecticut CO2 Budget Trading Program Base Budget set forth in subdivision (1) of this subsection, to the Connecticut Auction Account. The CO2 CCR allowance allocation shall be for the purpose of containing the cost of CO2 allowances. The commissioner shall allocate CO2 CCR allowances in the following manner: (i) The commissioner shall allocate 323,731 CO2 CCR allowances for calendar year 2014.(ii) The Connecticut CO2 CCR allowances shall be allocated as follows: (I) On or before January 1, 2015 and each calendar year thereafter through January 1, 2020, the commissioner shall allocate CO2 CCR allowances in an amount equal to 647,461, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(II) On or before January 1, 2021, the commissioner shall allocate CO2 CCR allowances in an amount equal to 486,081, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(III) On or before January 1, 2022, the commissioner shall allocate CO2 CCR allowances in an amount equal to 471,351, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(IV) On or before January 1, 2023, the commissioner shall allocate CO2 CCR allowances in an amount equal to 456,621, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(V) On or before January 1, 2024, the commissioner shall allocate CO2 CCR allowances in an amount equal to 441,892, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(VI) On or before January 1, 2025, the commissioner shall allocate CO2 CCR allowances in an amount equal to 427,162, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(VII) On or before January 1, 2026, the commissioner shall allocate CO2 CCR allowances in an amount equal to 412,432, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(VIII) On or before January 1, 2027, the commissioner shall allocate CO2 CCR allowances in an amount equal to 397,702, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(IX) On or before January 1, 2028, the commissioner shall allocate CO2 CCR allowances in an amount equal to 382,973, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year;(X) On or before January 1, 2029, the commissioner shall allocate CO2 CCR allowances in an amount equal to 368,243, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year; and(XI) On or before January 1, 2030 and each year thereafter, the commissioner shall allocate CO2 CCR allowances in an amount equal to 353,513, less the number of CO2 CCR allowances that remain in the Connecticut Auction Account at the end of the prior calendar year.(B) Connecticut ECR Account cap. The maximum number of CO2 allowances that can be transferred into the Connecticut ECR Account is as follows:(i) In calendar year 2021, the maximum number of CO2 allowances that can be transferred shall be equal to 486,081;(ii) In calendar year 2022, the maximum number of CO2 allowances that can be transferred shall be equal to 471,351;(iii) In calendar year 2023, the maximum number of CO2 allowances that can be transferred shall be equal to 456,621;(iv) In calendar year 2024, the maximum number of CO2 allowances that can be transferred shall be equal to 441,892;(v) In calendar year 2025, the maximum number of CO2 allowances that can be transferred shall be equal to 427,162;(vi) In calendar year 2026, the maximum number of CO2 allowances that can be transferred shall be equal to 412,432;(vii) In calendar year 2027, the maximum number of CO2 allowances that can be transferred shall be equal to 397,702;(viii) In calendar year 2028, the maximum number of CO2 allowances that can be transferred shall be equal to 382,973;(ix) In calendar year 2029, the maximum number of CO2 allowances that can be transferred shall be equal to 368,243; and(x) In calendar year 2030 and each year thereafter, the maximum number of CO2 allowances that can be transferred shall be equal to 353,513.(C) First control period interim adjustment for banked allowances. The first control period interim adjustment for banked allowances is as follows: Not later than March 15, 2014, the commissioner shall determine the first control period interim adjustment for banked allowances for allocation years 2014 to 2020, inclusive, by using the following formula:
FCPIABA = (FCPA/7) x (10,695,036/165,000,000)
Where:
(i) FCPIABA is the first control period interim adjustment for banked allowances, quantity in tons.(ii) FCPA is the total quantity of allocation year 2009, 2010, and 2011 CO2 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, as reflected in COATS on January 1, 2014.(iii) (10,695,036/165,000,000) is the Connecticut proportional share of the regional emissions CO2 emissions cap.(D) Second control period interim adjustment for banked allowances. The second control period interim adjustment for banked allowances is as follows: Not later than March 15, 2014, the commissioner shall determine the second control period interim adjustment for banked allowances for allocation years 2015 to 2020, inclusive, by using the following formula:
SCPIABA = ((SCPA ' SCPE)/6) x (10,695,036/165,000,000)
Where:
(i) SCPIABA is the second control period interim adjustment for banked allowances, quantity in tons.(ii) SCPA is the total quantity of allocation year 2012 and 2013 CO2 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, as reflected in COATS on March 15, 2014.(iii) SCPE is the total quantity of 2012 and 2013 emissions from all CO2 budget sources in all participating states, reported pursuant to CO2 Budget Trading Program, as reflected in COATS on March 15, 2014.(iv) (10,695,036/165,000,000) is the Connecticut proportional share of the regional emissions CO2 emissions cap.(E) Connecticut CO2 Budget Trading Program Adjusted Budget for 2014. The commissioner shall determine the Connecticut CO2 Budget Trading Program Adjusted Budget for the 2014 allocation year by the using the following formula: AB = BB - FCPIABA
Where:
(i) AB is the Connecticut CO2 Budget Trading Program Adjusted Budget for 2014.(ii) BB is the Connecticut CO2 Budget Trading Program Base Budget for 2014.(iii) FCPIABA is the first control period interim adjustment for banked allowances.(F) Connecticut CO2 Budget Trading Program Adjusted Budgets for 2015 to 2020, inclusive. Not later than April 15, 2014 the commissioner shall determine the Connecticut CO2 Budget Trading Program Adjusted Budgets for the 2015 to 2020, inclusive, allocation years by using the following formula: AB = BB - (FCPIABA + SCPIABA)
Where:
(i) AB is the Connecticut CO2 Budget Trading Program Adjusted Budget.(ii) BB is the Connecticut CO2 Budget Trading Program Base Budget.(iii) FCPIABA is the first control period interim adjustment for banked allowances.(iv) SCPIABA is the second control period interim adjustment for banked allowances.(G) Third adjustment for banked allowances. Not later than March 15, 2021, the commissioner shall determine the third adjustment for banked allowances for allocation years 2021 through 2025, inclusive, by using the following formula: TABA = ((TA-TAE)/5) x CTS%
Where:
(i) TABA is the third adjustment for banked allowances in tons.(ii) TA, third adjustment, is the total quantity of 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, as reflected in the CO2 Allowance Tracking System on March 15, 2021.(iii) TAE, third adjustment emissions, is the total quantity of 2018, 2019, and 2020 emissions from all CO2 budget sources in all participating states, reported pursuant to the CO2 Budget Trading Program as reflected in the CO2 Allowance Tracking System on March 15, 2021.(iv) CTS is Connecticut's CO2 Budget Trading Program Base Budget divided by the sum of the base budgets of all participating states.(H) Connecticut CO2 Budget Trading Program Adjusted Budgets for 2021 to 2025, inclusive. The commissioner shall determine the Connecticut CO2 Budget Trading Program Adjusted Budgets for the 2021 to 2025, inclusive, allocation years by using the following formula: AB = BB - TABA
Where:
(i) AB is the Connecticut CO2 Budget Trading Program Adjusted Budget.(ii) BB is the Connecticut CO2 Budget Trading Program Base Budget.(iii) TABA is the third adjustment for banked allowances.(I) After making the calculations in subparagraphs (B) to (H), inclusive, of this subdivision, the commissioner shall publish the Connecticut CO2 Trading Program Adjusted Budgets for allocation years 2014 to 2025, inclusive, on the Department of Energy and Environmental Protection's website.(3) Timing requirements for CO2 allowance allocations. Not later than January 1, 2014 and January 1 of each year thereafter, the commissioner shall determine the initial CO2 allowance allocations, in accordance with subdivision (4) of this subsection, for that allocation year.(4) CO2 allowance allocations.(A) In accordance with the timing provisions of subdivision (3) of this subsection, the commissioner shall allocate each annual Connecticut CO2 Budget Trading Program Adjusted Budget or CO2 Budget Trading Program Base Budget, as applicable, as follows: (i) One and one-half (1.5) percent to the Voluntary Clean Energy Purchase Set-aside Account;(ii) One and one-half (1.5) percent to the Customer-side Distributed Resources (CDR) Set-aside Account;(iii) One and one-half (1.5) percent to the Combined Heat and Power (CHP) Useful Thermal Energy Set-aside Account; and(iv) Ninety-five and one-half (95.5) percent shall be allocated to the Connecticut Auction Account;(B) Not later than April 1, 2009 and April 1 of each year thereafter, the commissioner shall allocate from the CHP Useful Thermal Energy Set-aside Account to the compliance account of each CO2 budget source generating useful net thermal energy from its CO2 budget units the number of CO2 allowances equal to the amount determined by the following equation (rounded to the nearest whole ton), subject to the limitation in subparagraph (C) of this subdivision. CO2 budget units that are eligible for allowances from the CDR Set-aside Account pursuant to subparagraph (F) of this subdivision shall not be eligible for allowances from the CHP Useful Thermal Output Set-aside Account; Click here to view
Where:
TEG = the average useful net thermal energy (in mmBtu) generated by CO2 budget units at the CO2 budget source during the two years preceding the allocation year of the allowances being allocated;
(C) IF [SIGMA] ACHP1<= ACHP1-ALLOCATED = ACHP1IF [SIGMA] ACHP1 > ACHP1-AV, THEN
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rounded to the nearest whole allowance.
Where:
ACHP1 = the number of CO2 allowances calculated for each CO2 budget source pursuant to subparagraph (B) of this subdivision;
[SIGMA] ACHP1 = the total number of CO2 allowances calculated for CO2 budget sources pursuant to subparagraph (B) of this subdivision;
ACHP1-AV = the number of CO2 allowances available for allocation from the CHP Useful Thermal Output Set-aside Account;
ACHP1-ALLOCATED = the number of CO2 allowances the commissioner shall allocate to the compliance account of each CO2 budget source;
The commissioner may adjust an allowance allocation under this subparagraph as necessary to not exceed ACHP1-AV;
(D) If [SIGMA] ACHP1 > ACHP1-AV, allowances from the CHP Useful Thermal Output Set-aside Account not allocated for a vintage year shall be transferred to the Connecticut Auction Account, from which such allowances shall be auctioned in accordance with subdivision (5) of this subsection;(E) Not later than March 1, 2009 and March 1 of each year thereafter, CO2 budget sources shall submit, on forms prescribed by the commissioner, information required for the equation specified in subparagraph (B) of this subdivision relating amount of useful net thermal energy generated by CO2 budget units at the CO2 budget source during the two years preceding the allocation year of the allowances being allocated. Such information shall be submitted to the commissioner as part of the annual output report required pursuant to subsection (i)(9)(J)(ii) of this section;(F) Not later than February 28, 2010 and February 28 of each year thereafter, the commissioner shall allocate from the CDR Set-aside Account to the compliance account of each CO2 budget source, which operates CO2 budget units that are also customer-side distributed resources that received funds pursuant to the customer-side distributed resources program established by the Public Utilities Regulatory Authority pursuant to section 16-243i of the Connecticut General Statutes, the number of CO2 allowances equal to the total number of tons of CO2 emissions emitted by such CO2 budget units in the previous calendar year (rounded to the nearest whole ton), subject to the limitation in subparagraph (G) of this subdivision;(G) IF [SIGMA] ACDR <= ACDR-AV, THEN ACDR-ALLOCATED = ACDR-AV
IF [SIGMA] ACDR > ACDR-AV, THEN
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rounded to the nearest whole allowance.
Where:
ACDR = the number of CO2 allowances calculated for each CO2 budget source pursuant to subparagraph (F) of this subdivision;
[SIGMA] ACDR = the total number of CO2 allowances calculated for CO2 budget sources pursuant to subparagraph (F) of this subdivision;
ACDR-AV = the number of CO2 allowances available for an allocation from the CDR Set-aside Account;
ACDR-ALLOCATED = the number of CO2 allowances the commissioner shall allocate to the compliance account of each CO2 budget source;
The commissioner may adjust an allowance allocation under this subparagraph as necessary to not exceed ACDR-AV; and
(H) If [SIGMA] ACDR < ACDR-AV, allowances from the CDR Set-aside Account not allocated for a vintage year shall be transferred to the Connecticut Auction Account, from which such allowances shall be auctioned in accordance with subdivision (5) of this subsection.(5) CO2 allowance and CO2 CCR allowance auctions.(A) The commissioner or a contractor or trustee selected by the commissioner shall auction the CO2 allowances in the Connecticut Auction Account at least once per year;(B) Except as provided by subparagraph (C) of this subdivision, by December 31 of each allocation year, the commissioner or a contractor or trustee selected by the commissioner shall auction the CO2 allowances with the same allocation year that are held in the Connecticut Auction Account;(C) CO2 allowances which are transferred to the Connecticut Auction Account from the CHP Useful Thermal Energy Set-aside Account pursuant to subdivision (4)(D) of this subsection, from the CDR Set-aside Account pursuant to subdivision (4)(H) of this subsection, or from the Voluntary Clean Energy Purchase Set-aside Account pursuant to subdivision (7)(C) of this subsection shall be offered for sale at the next auction held following the transfer of such allowances;(D) CO2 CCR allowances shall be auctioned in accordance with the procedures specified in subparagraphs (E) to (G), inclusive, of this subdivision;(E) CO2 CCR allowances shall only be sold at auction when the total demand for CO2 allowances exceeds the number of CO2 allowances available for purchase at the auction at a price above the following CCR trigger price: (i) $4.00 per CO2 allowance for calendar year 2014;(ii) $6.00 per CO2 allowance in calendar year 2015;(iii) $8.00 per CO2 allowance in calendar year 2016;(iv) $10.00 per CO2 allowance in calendar year 2017; (v) Beginning on January 1, 2018 and January 1 of each year thereafter through 2020, the CCR trigger price shall increase by 2.5% per year and be rounded to the nearest whole cent; and(vi) The CCR trigger price in calendar year 2021 shall be $13.00 per CO2 allowance. Each calendar year thereafter, the CCR trigger price shall increase by 7.0% per year and be rounded to the nearest whole cent;(F) If the total demand for CO2 allowances exceeds the number of CO2 allowances available for purchase at any auction at a price equal to or greater than that specified in subparagraph (E) of this subdivision, then the number of CO2 CCR allowances offered for sale by the commissioner at such auction shall be equal to the number of CO2 CCR allowances in the Connecticut Auction Account at the time of the auction; (G) After the annual supply of CO2 CCR allowances in the Connecticut Auction Account is exhausted, no additional CO2 CCR allowances may be offered at any auction for the remainder of that calendar year;(H) CO2 allowances offered for sale in an auction shall be transferred into the Connecticut ECR Account at an auction in accordance with the provisions specified in subparagraphs (I) to (K), inclusive, of this subdivision;(I) CO2 allowances shall be transferred into the Connecticut ECR Account at auction when the demand for CO2 allowances would result in an auction clearing price less than the ECR trigger price prior to the transfer. In 2021, the ECR trigger price shall be $6.00 per CO2 allowance. Each calendar year thereafter, the ECR trigger price shall increase by 7.0% per year, rounded to the nearest whole cent;(J) If the conditions in subparagraph (I) are met at an auction, then the maximum number of CO2 allowances offered for sale at an auction that are transferred into the Connecticut ECR Account shall be equal to the applicable quantity identified in subdivision (2)(B) minus the total quantity of CO2 allowances that has been transferred in any prior auction in that calendar year;(K) After the maximum number of CO2 allowances identified in subdivision (2)(B) of this subsection has been transferred into the Connecticut ECR Account, no additional CO2 allowances may be transferred at any auction for the remainder of that calendar year.(6) Distribution of auction proceeds. Not later than December 31, 2014 and December 31 of each year thereafter, proceeds derived from the sale of CO2 allowances or CO2 CCR allowances held in the Connecticut Auction Account shall be distributed as specified in subparagraphs (A) to (D), inclusive, of this subdivision:(A) Seven and one-half (7.5) percent of auction proceeds, less any amount of revenue refunded pursuant to subsection (j) of this section, shall be retained by the commissioner for use in accordance with section 22a-200c(c) of the Connecticut General Statutes;(B) Twenty-three (23) percent of proceeds from auctions, less any amount of revenue refunded pursuant to subsection (j) of this section, shall be transferred to an account held by the Connecticut Green Bank for the Clean Energy Fund. Proceeds are to be used to support the development of Class I renewable energy sources. The amount of proceeds to be transferred to CEF shall be determined based on the following criteria:(i) Not later than October 31, 2009 and October 31 of each year thereafter, CEF may apply for such funds on forms prescribed by the commissioner; and(ii) The commissioner shall transfer funds to CEF provided that CEF demonstrates such funds will be committed within twelve months from the date of receipt to support the development of Class I renewable energy sources and further provided that for the prior year ending June 30 there is no more than ten million dollars unallocated;(C) Sixty-nine and one-half (69.5) percent of proceeds from auctions, less any amount of revenue refunded pursuant to subsection (j) of this section, shall be distributed as follows: (i) From January 1, 2014 to June 30, 2015, inclusive, proceeds shall be transferred under this subdivision as follows: (I) Four and one one-hundredths (4.01) percent shall be transferred to an account held by the Connecticut Municipal Electric Energy Cooperative (CMEEC) for use in supporting energy efficiency programs, provided that the commissioner shall not transfer any funds to CMEEC for any calendar year for which the report required by subparagraph (D) of this subdivision is not received by April 30 of such calendar year, and further provided that the commissioner may withhold the transfer of any portion of the funds to CMEEC if the report filed by CMEEC fails to provide a full and accurate accounting of the use of all such funds;(II) Two and twenty-four one-hundredths (2.24) percent shall be distributed to the Wallingford Electric Division (WED) for use in supporting energy efficiency programs, provided that the commissioner shall not transfer any funds to WED for any calendar year for which the report required by subparagraph (D) of this subdivision is not received by April 30 of such calendar year, and further provided that the commissioner may withhold the transfer of any portion of the funds to WED if the report filed by WED fails to provide a full and accurate accounting of the use of all such funds;(III) Up to one million two hundred and fifty thousand dollars (1,250,000) shall be transferred, quarterly, to accounts held by Connecticut Light & Power (CL&P) and United Illuminating (UI) and overseen by the EEB for use in supporting energy efficiency programs. Such proceeds shall be allocated as follows: one million (1,000,000) dollars into an account held by CL&P and overseen by the EEB and two hundred and fifty thousand dollars (250,000) into an account held by UI and overseen by the EEB;(IV) In the event that there are any excess proceeds under this subparagraph after the distributions specified in subclause (I) to (III), inclusive, of this clause have been made, such excess proceeds shall be transferred to the Connecticut Green Bank pursuant to section 22a-200c of the general statutes to be used to support energy efficiency programs, provided that the total amount of such proceeds transferred to the Connecticut Green Bank under this subdivision shall not exceed twenty-five million four hundred thousand (25,400,000) dollars, and further provided that such proceeds may be allocated to the Connecticut Green Bank on a pro-rated quarterly basis; and(V) In the event that there are any excess proceeds under this subparagraph after the distributions specified in subclause (I) to (IV), inclusive, of this clause have been made, such excess proceeds shall be distributed to the CL&P account and the UI account for use in supporting energy efficiency programs, according to the following allocation: eighty (80) percent of such proceeds shall be transferred into an account held by CL&P and overseen by the EEB, and twenty (20) percent of such proceeds shall be transferred into an account held by UI and overseen by the EEB.(ii) On and after July 1, 2015, proceeds shall be transferred under this subdivision as follows:(I) Seventy-five (75) percent of such proceeds shall be transferred into an account held by CL&P and overseen by the EEB to be used to support energy efficiency programs;(II) Eighteen and three-fourths (18.75) percent shall be transferred into an account held by UI and overseen by the EEB to be used to support energy efficiency programs;(III) Four and one one-hundredths (4.01) percent shall be transferred to an account held by CMEEC to be used to support energy efficiency programs, provided that the commissioner shall not transfer any funds to CMEEC for any calendar year for which the report required by subparagraph (D) of this subdivision is not received by April 30 of such calendar year, and further provided that the commissioner may withhold the transfer of any portion of the funds to CMEEC if the report filed by CMEEC fails to provide a full and accurate accounting of the use of all such funds; and(IV) Two and twenty-four one-hundredths (2.24) percent shall be distributed to WED for to be used to support energy efficiency programs, provided that the commissioner shall not transfer any funds to WED for any calendar year for which the report required by subparagraph (D) of this subdivision is not received by April 30 of such calendar year, and further provided that the commissioner may withhold the transfer of any portion of the funds to WED if the report filed by WED fails to provide a full and accurate accounting of the use of all such funds.(D) CMEEC and WED shall each provide a full accounting of the use of funds transferred to the respective CMEEC and WED accounts in accordance with the provisions of subparagraph (C) of this subdivision. Such accounting shall be submitted in the form of a report to the commissioner, and the chairperson of the Energy Efficiency Board. CMEEC shall also submit a copy of its report to the chief elected officials in any municipality served by CMEEC municipal utilities not later than April 30, 2014 and annually thereafter through the year following the date of the final expenditure of any funds received pursuant to subparagraph (C) of this subdivision.(7) Retirement of Allowances. Any retirement of allowances shall be determined as follows: (A) The commissioner shall permanently retire a number of CO2 allowances from the Voluntary Clean Energy Purchase Set-aside Account based upon documented voluntary renewable energy purchases by customers in Connecticut that represent RECs sold through the Connecticut Clean Energy Options program or renewable energy generated from within any participating state represented as RECs sold to Connecticut customers through means other than the Connecticut Clean Energy Options program. The commissioner shall retire the number of CO2 allowances equal to the amount determined by the following equation (rounded to the nearest whole ton), subject to the limitations in subparagraph (B) of this subdivision and the requirements of subparagraphs (E) and (F) of this subdivision: (MWHCCEO + MWHRECS) x (0.554 tons CO2 / MWh)
Where:
MWHCCEO = the total number of RECs sold (in MWhs) to Connecticut customers through the Connecticut Clean Energy Options program in the year prior to the vintage year of the CO2 allowances to be retired;
MWHRECS = the total number of RECs from renewable energy sources located within any participating state sold (in MWhs) to Connecticut customers through means other than the Connecticut Clean Energy Options program in the year prior to the vintage year of the CO2 allowances to be retired;
(B) If the total number of allowances calculated to be retired pursuant to subparagraph (A) of this subdivision exceeds the number of CO2 allowances held in the Voluntary Clean Energy Purchase Set-aside Account, then the number of CO2 allowances to be retired shall be equal to the total number of CO2 allowances allocated in the Voluntary Clean Energy Purchase Set-aside Account pursuant to subdivision (4)(A) of this subsection;(C) If the total number of allowances calculated to be retired pursuant to subparagraph (A) of this subdivision is less than the number of CO2 allowances held in the Voluntary Clean Energy Purchase Set-aside Account, then allowances from the Voluntary Clean Energy Purchase Set-aside Account not allocated for a vintage year shall be transferred to the Connecticut Auction Account, from which such allowances shall be auctioned in accordance with subdivision (5) of this subsection;(D) Not later than October 1, 2009 and October 1 of each year thereafter, the commissioner shall retire the number of allowances determined pursuant to subparagraphs (A) and (B) of this subdivision by transferring them to the Connecticut CO2 Allowance Retirement Account;(E) Data for the total number of RECs sold to Connecticut customers through the Connecticut Clean Energy Options program required for the equation specified in subparagraph (A) of this subdivision shall be obtained from the Public Utilities Regulatory Authority;(F) Not later than June 30, 2009 and June 30 of each year thereafter, information required for the equation specified in subparagraph (A) of this subdivision relating to the number of RECs from renewable energy sources located within any participating state sold to Connecticut customers through means other than the Connecticut Clean Energy Options program in the previous year may be submitted by the retail provider that sold such RECs. Such information shall also include: (i) Documentation that the retail provider procured the renewable energy or renewable energy attributes related to voluntary renewable energy or renewable energy attribute credit;(ii) The time period when the retail purchase or purchases were made;(iii) The state where the REC was created, including documentation of facility name, unique generator identification number and fuel type; and(iv) Any additional information required by the commissioner necessary to demonstrate that such REC purchase is not being credited in more than one participating state.(G) The Commissioner may retire any undistributed CO2 allowances at the end of each control period;(H) The Commissioner may retire any unsold CO2 allowances at the end of each control period.(g)Allowance Tracking System.(1) CO2 Allowance Tracking System accounts.(A) Nature and function of compliance accounts. Consistent with subdivision (2)(A) of this subsection, the commissioner shall establish one compliance account for each CO2 budget source. Allocations of CO2 allowances pursuant to subsection (f) of this section and deductions or transfers of CO2 allowances pursuant to subdivisions (5) or (7) of this subsection or subsections (e)(2) or (h) of this section shall be recorded in the compliance accounts in accordance with this subsection; and(B) Nature and function of general accounts. Consistent with subdivision (2)(B) of this subsection, the commissioner shall establish, upon request, a general account for any person. Transfers of CO2 allowances pursuant to subsection (h) of this section shall be recorded in the general account in accordance with this subsection.(2) Establishment of accounts. (A) Compliance accounts. Upon receipt of a complete account certificate of representation under subsection (c)(4) of this section, the commissioner shall establish a compliance account for each CO2 budget source for which the account certificate of representation was submitted;(B) General accounts. Any person may apply to open a general account for the purpose of holding and transferring CO2 allowances. Such application shall:(i) Designate only one CO2 authorized account representative and only one CO2 authorized alternate account representative who may act on behalf of the CO2 authorized account representative; and(ii) Include a procedure for authorizing the CO2 authorized alternate account representative to act in lieu of the CO2 authorized account representative;(C) A complete application for a general account shall be submitted to the commissioner and shall include the following elements on forms prescribed by the commissioner: (i) Name, address, electronic mail address, telephone number, and facsimile transmission number of the CO2 authorized account representative and any CO2 authorized alternate account representative;(ii) At the option of the CO2 authorized account representative, organization name and type of organization;(iii) A list of all persons subject to a binding agreement for the CO2 authorized account representative or any CO2 authorized alternate account representative to represent their ownership interest with respect to the CO2 allowances held in the general account;(iv) The following certification statement by the CO2 authorized account representative and any CO2 authorized alternate account representative: "I certify that I was selected as the CO2 authorized account representative or the CO2 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 commissioner or a court regarding the general account.";(v) The signature of the CO2 authorized account representative and any CO2 authorized alternate account representative and the dates signed; and(vi) Unless otherwise required by the commissioner, documents of agreement referred to in the application for a general account shall not be submitted to the commissioner. The commissioner shall not be under any obligation to review or evaluate the sufficiency of such documents, if submitted;(D) Authorization of CO2 authorized account representative. Upon receipt by the commissioner of a complete application for a general account under subparagraph (C) of this subdivision: (i) The commissioner shall establish a general account for the person or persons for whom the application is submitted;(ii) The CO2 authorized account representative and any CO2 authorized alternate account representative for the general account shall represent and, by such 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 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 CO2 authorized alternate account representative by the commissioner or a court regarding the general account; and(iii) Any representation, action, inaction or submission by any CO2 authorized alternate account representative shall be deemed to be a representation, action, inaction or submission by the CO2 authorized account representative;(E) Each submission concerning the general account shall be submitted, signed and certified by the CO2 authorized account representative or any 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 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."
(F) The commissioner shall accept or act on a submission concerning the general account only if the submission has been made, signed and certified in accordance with subparagraph (E) of this subdivision;(G) Changing CO2 authorized account representative and CO2 authorized alternate account representative; changes in persons with ownership interest.(i) The CO2 authorized account representative for a general account may be changed at any time upon receipt by the commissioner of a superseding complete application for a general account under subparagraph (B) of this subdivision. Notwithstanding any such change, all representations, actions, inactions and submissions by the previous CO2 authorized account representative or the previous CO2 authorized alternate account representative prior to the time and date when the commissioner 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; and(ii) The CO2 authorized alternate account representative for a general account may be changed at any time upon receipt by the commissioner of a superseding complete application for a general account under subparagraph (B) of this subdivision. Notwithstanding any such change, all representations, actions, inactions and submissions by the previous CO2 authorized account representative or the previous CO2 authorized alternate account representative prior to the time and date when the commissioner receives the superseding application for a general account shall be binding on the new CO2 authorized alternate account representative and the persons with an ownership interest with respect to the CO2 allowances in the general account;(H) In the event of the addition of a new person or persons to the list of persons having an ownership interest with respect to CO2 allowances in the general account: (i) Such new person or persons 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 CO2 authorized alternate account representative of the source, and the decisions, orders, actions and inactions of the commissioner, as if the new individual were included in such list; and(ii) Not later than thirty (30) days following any change in the list of persons having an ownership interest with respect to CO2 allowances in the general account, including the addition of a new person or persons, the CO2 authorized account representative or any CO2 authorized alternate account representative shall submit a revision to the application for a general account that amends the list of persons having an ownership interest with respect to the CO2 allowances in the general account to include the change;(I) Objections concerning CO2 authorized account representative. (i) Once a complete application for a general account under subparagraph (C) of this subdivision has been submitted and received, the commissioner shall rely on such application unless and until the commissioner receives a superseding complete application for a general account under subparagraph (C) of this subdivision; and(ii) Except as provided in subparagraphs (G)(i) and (ii) of this subdivision, no objection or other communication submitted to the commissioner concerning the authorization, or any representation, action, inaction or submission of the CO2 authorized account representative or any 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 CO2 authorized alternate account representative or the finality of any decision or order by the commissioner under the CO2 Budget Trading Program; and (J) Account identification. The commissioner shall assign a unique identification number to each account established under subparagraph (A) or (B) of this subdivision.(3) CO2 Allowance Tracking System responsibilities of CO2 authorized account representative. Following the establishment of a CO2 Allowance Tracking System account, all submissions to the commissioner pertaining to the account, including, but not limited to, 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.(4) Recordation of CO2 allowance allocations.(A) Not later than January 1, 2014, the commissioner shall record in the Connecticut Auction Account and the CHP Useful Thermal Energy Set-aside Account the CO2 allowances for the allocation year 2014;(B) Not later than February 28, 2009 and February 28 of each year thereafter, the commissioner shall record any CO2 allowances allocated pursuant to subsections (f)(4)(F) and (f)(4)(G) of this section in the CO2 budget source's compliance account;(C) Not later than October 1, 2009 and October 1 of each year thereafter, the commissioner shall record any CO2 allowances retired pursuant to subsection (f)(7) of this section in the Connecticut CO2 Allowance Retirement Account;(D) Not later than seven business days after the results of an auction conducted pursuant to subsection (f)(5) of this section are deemed final by the commissioner, the commissioner or the commissioner's trustee shall record CO2 allowances purchased from the Connecticut Auction Account; and(E) Serial numbers for allocated CO2 allowances. When allocating CO2 allowances to and recording them in an account, the commissioner shall assign each CO2 allowance a unique identification number that shall include digits identifying the year for which the CO2 allowance is allocated.(5) Compliance. (A) Allowances available for compliance deduction. CO2 allowances that meet the following criteria are available to be deducted in order for a CO2 budget source to comply with the requirements of subsection (b)(3) of this section for a control period or an interim control period. (i) The CO2 allowances are of allocation years that fall within a prior control period, the same control period, or the same interim control period for which the allowances will be deducted; and(ii) The CO2 allowances are held in the CO2 budget source's compliance account as of the CO2 allowance transfer deadline for that control period or interim control period or are transferred into the compliance account by a CO2 allowance transfer correctly submitted for recordation under subsection (h)(1) of this section by the CO2 allowance transfer deadline for that control period or interim control period;(B) For CO2 offset allowances, the number of CO2 offset allowances that are available to be deducted in order for a CO2 budget source to comply with the requirements of subsection (b)(3) of this section for a control period or an interim control period may not exceed three and three tenths (3.3) percent of the CO2 budget source's CO2 emissions for that control period, or of one-half of the CO2 budget source's CO2 emissions for an interim control period, as determined in accordance with subsection (i) of this section;(C) CO2 allowances are not necessary for deductions for excess emissions for a prior control period under subparagraph (G) of this subdivision;(D) Deductions for compliance. Following the recordation, in accordance with subsection (h)(2) of this section, of CO2 allowance transfers submitted for recordation in the CO2 budget source's compliance account by the CO2 allowance transfer deadline for a control period or interim control period, the commissioner shall deduct CO2 allowances available under subparagraph (A) of this subdivision to cover the source's CO2 emissions, as determined in accordance with subsection (i) of this section, for the control period or interim control period, as follows: (i) Until the amount of CO2 allowances deducted equals the number of tons of total CO2 emissions, or one-half of the number of tons of total CO2 emissions for the interim control period, less any CO2 emissions attributable to the burning of eligible biomass, determined in accordance with subsection (i) of this section, from all CO2 budget units at the CO2 budget source for the control period or interim control period; or(ii) If there are insufficient CO2 allowances to complete the deductions in clause (i) of this subparagraph, until no more CO2 allowances available under subparagraph (A) of this subdivision remain in the compliance account;(E) Identification of CO2 allowances by serial number. 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 a control period or interim control period in accordance with subparagraph (D) or (G) of this subdivision. Such identification shall be made in the compliance certification report submitted in accordance with subsection (e)(1) of this section;(F) The commissioner shall deduct CO2 allowances for a control period or interim 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 CO2 allowances by serial number under subparagraph (E) of this subdivision, in the following order: (i) The commissioner shall first deduct CO2 offset allowances subject to the relevant compliance deduction limitations under subparagraphs (D) and (G) of this subdivision. CO2 offset allowances shall be deducted in chronological order (i.e., CO2 offset allowances from earlier allocation years shall be deducted before CO2 offset allowances from later allocation years). In the event that chronological order cannot be determined, the commissioner shall deduct CO2 offset allowances by serial number, with lower serial numbered CO2 offset allowances deducted before higher serial number allowances; and(ii) The commissioner shall next deduct any CO2 allowances, other than CO2 offset allowances, that are available for deduction under subparagraph (A) of this subdivision. 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 chronological order cannot be determined, the commissioner shall deduct CO2 allowances by serial number, with lower serial numbered CO2 allowances deducted before higher serial number allowances.(G) Deductions for excess emissions. After making the deductions for compliance under subparagraph (D) of this subdivision, the commissioner shall deduct from the CO2 budget source's compliance account a number of CO2 allowances, from allocation years that occur after the control period in which the source has excess emissions, equal to three times the number of the source's excess emissions. No CO2 offset allowances shall be deducted to account for the source's excess emissions. Any such CO2 allowance deduction shall not affect the liability of the owners and operators of the CO2 budget source or the CO2 budget sources 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. When assessing fines, penalties or other obligations, the commissioner shall: (i) Consider each day in the control period a day in violation when determining the number of days of violation if a CO2 budget source has excess emissions for a control period unless the owner or operator of the source demonstrates that a lesser number of days should be considered;(ii) Consider each ton of excess emissions as a separate violation;(iii) Consider each day in the interim control period a day in violation when determining the number of days of violation if a CO2 budget source has excess interim emissions for an interim control period unless the owner or operator of the source demonstrates that a lesser number of days should be considered; and(iv) Consider each ton of excess interim emissions as a separate violation.(H) The commissioner shall record in the appropriate compliance account all deductions from such an account pursuant to subparagraphs (D) and (G) of this subdivision; and(I) Action by the commissioner on submissions. The commissioner 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, including but not limited to, deductions of CO2 allowances from or transfer of CO2 allowances to a source's compliance account based on information in any such submissions.(6) Banking. Each CO2 allowance that is held in a compliance account or a general account shall remain in such account unless and until the CO2 allowance is deducted or transferred under subdivision (5) or (7) of this subsection and under subsection (e)(2), or (h) of this section.(7) Account error. The commissioner may correct any error in any CO2 Allowance Tracking System account. Not later than ten (10) business days after making such correction, the commissioner shall notify the CO2 authorized account representative for the account.(8) Closing of general accounts. The commissioner may close a general account for one of the following reasons:(A) A CO2 authorized account representative or a CO2 authorized alternate account representative of a general account may instruct the commissioner to close the account by submitting a statement requesting deletion of the account from the CO2 Allowance Tracking System and by correctly submitting for recordation under subsection (h)(1) of this section a CO2 allowance transfer of all CO2 allowances in the account to one or more other CO2 Allowance Tracking System accounts; or(B) If a general account shows no activity for a period of one year or more and does not contain any CO2 allowances, the commissioner may notify the CO2 authorized account representative or a CO2 authorized alternate account representative for the account that the account shall be closed and deleted from the CO2 Allowance Tracking System following thirty (30) business days after the notice is sent. The account shall be closed after the thirty day period unless before the end of such thirty day period the commissioner receives a correctly submitted transfer of CO2 allowances into the account under subsection (h)(1) of this section or a statement submitted by the CO2 authorized account representative or a CO2 authorized alternate account representative demonstrating to the satisfaction of the commissioner good cause as to why the account should not be closed.(h)CO2 Allowance Transfers.(1) Submission of CO2 allowance transfers. The CO2 authorized account representatives seeking recordation of a CO2 allowance transfer shall submit the transfer to the commissioner. The CO2 allowance transfer shall include the following information: (A) The numbers identifying both the transferor and transferee accounts;(B) A specification by serial number of each CO2 allowance to be transferred; and(C) The printed name and signature of the CO2 authorized account representative of the transferor account and the date signed.(2) Recordation. (A) Not later than five (5) business days after receiving a CO2 allowance transfer, except as provided in subparagraph (B) of this subdivision, the commissioner shall 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: (i) The transfer is correctly submitted under subdivision (1) of this subsection; and(ii) 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 shall not be recorded until after completion of the process pursuant to subsection (g)(5)(D) of this section; and(C) Where a CO2 allowance transfer submitted for recordation fails to meet the requirements of subparagraph (A) of this subdivision, the commissioner shall not record such transfer.(3) Notification. (A) Notification of recordation. Not later than five (5) business days after recordation of a CO2 allowance transfer under subdivision (2) of this subsection, the commissioner shall notify each party to the transfer. Notice shall be given to the CO2 authorized account representatives of both the transferor and transferee accounts;(B) Notification of non-recordation. Not later than ten (10) business days after receipt of a CO2 allowance transfer that fails to meet the requirements of subdivision (2)(A) of this subsection, the commissioner shall 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 non-recordation.(C) Nothing in this section shall preclude the submission of a CO2 allowance transfer for recordation following notification of non-recordation.(i)Monitoring and Reporting.(1) For the purposes of this subsection the definitions in subsection (a) of this section and in 40 CFR 72.2 shall apply. In the case of conflict or inconsistency between the definitions in subsection (a) of this section and in 40 CFR 72.2, the definition in subsection (a) of this section shall control. The terms "affected unit" and "designated representative" in 40 CFR 75 shall be replaced by the terms "CO2 budget unit", and "CO2 authorized account representative", respectively, as defined in subsection (a) of this section, except as otherwise provided. The definition of "continuous emission monitoring system" or "CEMS" in 40 CFR 75 shall be replaced with the definition in subsection (a) of this section. If a CO2 budget unit is not subject to an acid rain emissions limitation, the term "Administrator" shall be replaced by the term "commissioner" as defined in subsection (a) of this section.(2) The owner or operator and, to the extent applicable, the CO2 authorized account representative of a CO2 budget source shall comply with the monitoring, recordkeeping and reporting requirements as provided in this subsection. The owner or operator of a CO2 budget source shall comply with the monitoring, recordkeeping and reporting requirements set forth in 40 CFR 75 applicable to CO2 mass emissions. The owner or operator of a CO2 budget unit who monitors 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) as pursuant to 40 CFR 75.13, for purposes of complying with this section, shall monitor and report CO2 mass emissions from such non-CO2 budget unit according to the procedures for CO2 budget units established in subdivisions (2) to (8), inclusive, of this subsection. (A) Requirements for installation, certification, and data accounting. The owner or operator of each CO2 budget source shall: (i) Install all monitoring systems necessary to monitor CO2 mass emissions in accordance with 40 CFR 75, except for equation G-1. Equation G-1 in Appendix G of 40 CFR 75 shall not be used to determine CO2 emissions under this section. This may require systems to monitor CO2 concentration, stack gas flow rate, O2 concentration, heat input and fuel flow rate;(ii) Successfully complete all certification tests required under this subsection and meet all other requirements of this subsection and 40 CFR 75 applicable to the monitoring systems installed under subparagraph (A)(i) of this subdivision; and(iii) Make and keep records, report and test for quality assurance of the data from the monitoring systems installed under subparagraph (A)(i) of this subdivision;(B) Compliance dates. The owner or operator shall meet the monitoring system certification and other requirements of subparagraphs (A)(i) to (A)(iii), inclusive, of this subdivision on or before the following dates: (i) The owner or operator of a CO2 budget source that commences commercial operation before July 1, 2008, shall comply with the requirements of this subsection not later than January 1, 2009;(ii) The owner or operator of a CO2 budget source that commences commercial operation on or after July 1, 2008, shall comply with the requirements of this subsection by the later of January 1, 2009, or one hundred and eighty (180) calendar days after the date on which the source commences commercial operation; and(iii) For the owner or operator of a CO2 budget source for which construction of a new stack or flue installation is completed after the applicable deadline under clauses (i) or (ii) of this subparagraph by the earlier of ninety (90) source operating days after the date on which emissions first exit to the ambient air through the new stack or flue or one hundred and eighty (180) calendar days after the date on which emissions first exit to the ambient air through the new stack or flue;(C) Reporting data. (i) Except as provided in clause (ii) of this subparagraph, the owner or operator of a CO2 budget source that does not meet the applicable compliance date set forth in subparagraphs (B)(i) and (B)(ii) of this subdivision for any monitoring system under subparagraph (A) of this subdivision shall, for each such monitoring system, determine, record and report maximum potential or, as appropriate, minimum potential, values for CO2 concentration, CO2 emission 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 40 CFR 75.31(c)(3), section 2.4 of Appendix D of 40 CFR 75 or Appendix E of 40 CFR 75;(ii) The owner or operator of a CO2 budget source that does not meet the applicable compliance date set forth in subparagraph (B)(iii) of this subdivision for any monitoring system under subparagraph (A)(i) of this subdivision shall, for each such monitoring system, determine, record and report substitute data using the applicable missing data procedures in 40 CFR 75, Subpart D, or 40 CFR 75, Appendix D or E, 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 of a new stack or flue installation under subparagraph (B)(iii) of this subdivision;(iii) CO2 budget units subject to an acid rain emissions limitation or to section 22a-174-22 c of the Regulations of Connecticut State Agencies that qualify for the optional SO2, NOX, and CO2 emissions calculations for low mass emissions (LME) units, as applicable, under 40 CFR 75.19 and report emissions for such programs using the calculations provided in 40 CFR 75.19, shall also use the CO2 emissions calculations for LME units under 40 CFR 75.19 for purposes of demonstrating compliance with this section;(iv) CO2 budget units subject to an acid rain emissions limitation or to section 22a-174-22 c of the Regulations of Connecticut State Agencies that do not qualify for the optional SO2, NOX, and CO2 emissions calculations for LME units, as applicable, under 40 CFR 75.19, shall not use the CO2 emissions calculations for LME units under 40 CFR 75.19 for purposes of demonstrating compliance with this section; and (v) CO2 budget units not subject to an acid rain emissions limitation or to section 22a-174-22 c of the Regulations of Connecticut State Agencies shall qualify for the optional CO2 emissions calculation for LME units under 40 CFR 75.19, provided that such units emit less than 100 tons of NOX annually and no more than 25 tons of SO2 annually;(D) Prohibitions. 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 continuous emission monitoring system without having obtained prior written approval in accordance with subsection (i)(6) of this section;(E) No owner or operator of a CO2 budget unit shall operate the source 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 subsection and 40 CFR 75;(F) No owner or operator of a CO2 budget unit shall disrupt the continuous emission monitoring system, any portion thereof, or any other approved emission 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 subsection and 40 CFR 75; and(G) No owner or operator of a CO2 budget unit shall retire or permanently discontinue use of the continuous emission monitoring system, any component thereof, or any other approved emission monitoring system under this subsection, except under any one of the following circumstances:(i) The owner or operator is monitoring emissions from the source with another certified monitoring system approved by the permitting authority, in accordance with the applicable provisions of this subsection and 40 CFR 75, for use at that source that provides emission data for the same pollutant or parameter as the retired or discontinued monitoring system; or(ii) The CO2 authorized account representative submits notification of the date of certification testing of a replacement monitoring system in accordance with subparagraph (B)(ii) of this subdivision.(3) Initial certification and recertification procedures.(A) The owner or operator of a CO2 budget source shall be exempt from the initial certification requirements of this section for a monitoring system under subdivision (2)(A)(i) of this subsection if the following conditions are met: (i) The monitoring system has been previously certified in accordance with 40 CFR 75; and(ii) The applicable quality-assurance and quality-control requirements of 40 CFR 75.21 and 40 CFR 75 Appendices B, D, and E are fully met for the certified monitoring system described in subdivision (2)(A) of this subsection;(B) Continuous emission monitoring systems required under this section include, but are not limited to, the following: (i) A flow monitoring system, consisting of a stack flow rate monitor and an automated data acquisition and handling system and providing a permanent, continuous record of stack gas volumetric flow rate, in standard cubic feet per hour;(ii) A nitrogen oxides emission rate or NOx-diluent monitoring system, consisting of a NOx pollutant concentration monitor, a diluent gas monitor, and an automated data acquisition and handling system and providing a permanent, continuous record of NOx concentration, in parts per million, diluent gas concentration, in percent CO2 or O2; and NOx emission rate, in lb/MMBtu;(iii) A moisture monitoring system, as described in 40 CFR 75.11(b)(2), which provides a permanent, continuous record of the stack gas moisture content, in percent H2O;(iv) A carbon dioxide monitoring system, consisting of a CO2 pollutant concentration monitor, or an oxygen monitor plus suitable mathematical equations from which the CO2 concentration is derived, and an automated data acquisition and handling system and providing a permanent, continuous record of CO2 emissions, in percent CO2; and(v) An oxygen monitoring system, consisting of an O2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O2 in percent O2;(C) The recertification provisions of this section shall apply to a monitoring system under subdivision (2)(A) of this subsection exempt from initial certification requirements under subparagraph (A) of this subdivision;(D) 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 emission rate measured in a common stack or a petition under 40 CFR 75.66 of this chapter for an alternative requirement in 40 CFR 75, the CO2 authorized account representative shall submit the petition to the commissioner under subdivision (7)(A) of this subsection to determine whether the Administrator's approval applies under this program;(E) Except as provided in subparagraph (A) of this subdivision, the owner or operator of a CO2 budget source shall comply with the following initial certification and recertification procedures for a continuous emission monitoring system and an excepted monitoring system under 40 CFR 75, Appendices D and E, and under subdivision (2)(A)(i) of this subsection. The owner or operator of a source 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 40 CFR 75, Subpart E, shall comply with the procedures in subparagraph (A) or (B)(iv) of this subdivision;(F) Requirements for initial certification. The owner or operator shall ensure that each continuous emissions monitoring system required under subdivision (2)(A)(i) of this subsection completes all of the initial certification testing required under 40 CFR 75.20 by the applicable deadlines specified in subdivision (2)(B) of this subsection. In addition, whenever the owner or operator installs a monitoring system in order to meet the requirements of this subsection in a location where no such monitoring system was previously installed, initial certification in accordance with 40 CFR 75.20 is required;(G) Requirements for recertification. Whenever the owner or operator makes a replacement, modification, or change in a certified continuous emission monitoring system under subdivision (2)(A)(i) of this subsection that the Administrator or the commissioner 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 75, the owner or operator shall recertify the monitoring system according to 40 CFR 75.20(b). Furthermore, whenever the owner or operator makes a replacement, modification or change to the flue gas handling system or the source's operation that the Administrator or the commissioner determines to significantly change the flow or concentration profile, the owner or operator shall recertify the continuous emissions monitoring system in accordance with 40 CFR 75.20(b). Examples of changes that require recertification include, but are not limited to: replacement of the analyzer, change in location or orientation of the sampling probe or site, or changing of flow rate monitor polynomial coefficients;(H) Approval process for initial certifications and recertification. (i) Notification of certification. The CO2 authorized account representative shall submit to the commissioner a written notice of the dates of certification in accordance with subdivision (5) of this subsection;(ii) Certification application. The CO2 authorized account representative shall submit to the commissioner a certification application for each monitoring system. A complete certification application shall include the information specified in 40 CFR 75.63; and(iii) Provisional certification data. 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 commissioner of the complete certification application for the monitoring system or component thereof under subparagraph (H)(ii) of this subdivision. Data measured and recorded by the provisionally certified monitoring system or component thereof, in accordance with the requirements of 40 CFR 75, shall be considered valid quality-assured data, provided that the permitting authority does not invalidate the provisional certification by issuing a notice of disapproval not later than 120 days after receipt of the complete certification application by the commissioner;(I) Certification application approval process. The commissioner shall issue a written notice of approval or disapproval of the certification application to the owner or operator not later than 120 days after receipt of the complete certification application in accordance with subparagraph (H)(ii) of this subdivision. In the event the commissioner does not issue such a notice not later than such 120-day period, each monitoring system that meets the applicable performance requirements of 40 CFR 75 and is included in the certification application shall be deemed certified for use under the CO2 Budget Trading Program. (i) Approval notice. If the certification application is complete and shows that each monitoring system meets the applicable performance requirements of 40 CFR 75, then the commissioner shall issue a written notice of approval of the certification application not later than 120 days after receipt of such complete application;(ii) Incomplete application notice. If the certification application is not complete, then the commissioner shall issue a written notice of incompleteness and set a reasonable date by which the CO2 authorized account representative shall submit the additional information required to complete the certification application. The commissioner may issue a notice of disapproval under subparagraph (I)(iii) of this subdivision if the CO2 authorized account representative does not comply with the notice of incompleteness by the specified date. The 120 day review period shall not begin before receipt of a complete certification application;(iii) Disapproval notice. If the certification application shows that any monitoring system or component thereof does not meet the performance requirements of 40 CFR 75, or if the certification application is incomplete and the requirement for disapproval under subparagraph (I)(ii) of this subdivision is met, then the commissioner shall issue a written notice of disapproval of the certification application. Upon issuance of such notice of disapproval, the provisional certification shall no longer be valid 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 subparagraph (J) of this subdivision for each monitoring system or component thereof, which is disapproved for initial certification; and(iv) Audit decertification. The commissioner may issue a notice of disapproval of the certification status of a monitor in accordance with subdivision (4)(B) of this subsection;(J) Procedures for loss of certification. If the commissioner issues a notice of disapproval of a certification application under subparagraph (I)(iii) of this subdivision or a notice of disapproval of certification status under subparagraph (I)(iv) of this subdivision, then the owner or operator shall substitute the following values for each disapproved monitoring system, for each hour of source 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 sources using or intending to monitor for CO2 mass emissions using heat input or for sources using the low mass emission excepted methodology under 40 CFR 75.19, the maximum potential hourly heat input of the source; and(ii) For sources 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 source under 40 CFR 75, Appendix A section 2.1;(K) For each disapproved monitoring system, the CO2 authorized account representative shall submit a notification of certification retest dates and a new certification application in accordance with subparagraphs (H)(i) and (ii) of this subdivision; and the owner or operator shall repeat all certification tests or other requirements, as indicated in the commissioner's notice of disapproval, no later than thirty (30) source operating days after the date of issuance of the notice of disapproval;(L) Initial certification and recertification procedures for low mass emission. The owner or operator of a source qualified to use the low mass emissions excepted methodology under subdivisions (2)(C)(iii) or (2)(C)(iv) of this subsection shall meet the applicable certification and recertification requirements of 40 CFR 75.19(a)(2), 40 CFR 75.20(h) and subdivision (3) of this subsection. If the owner or operator of such a source elects to certify a fuel flow meter system for heat input determinations, the owner or operator shall also meet the certification and recertification requirements of 40 CFR 75.20(g); and(M) Certification and recertification procedures for alternative monitoring systems. The CO2 authorized account of each source for which the owner or operator intends to use an alternative monitoring system approved by the commissioner under 40 CFR 75, Subpart E, shall apply for certification to the commissioner prior to use of the system under the CO2 Budget Trading Program. The CO2 authorized account representative shall apply for recertification following a replacement, modification or change according to the procedures in subparagraph (C) of this subdivision. The owner or operator of an alternative monitoring system shall comply with the notification and application requirements for certification according to the procedures specified in subparagraph (H) of this subdivision and 40 CFR 75.20(f).(4) Out of control periods. (A) Whenever any monitoring system fails to meet the quality assurance and quality control requirements or data validation requirements of 40 CFR 75, data shall be substituted using the applicable procedures in 40 CFR 75, Subpart D, Appendix D or E; and(B) Audit decertification. 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 subdivision (3) of this subsection or the applicable provisions of 40 CFR 75, both at the time of the initial certification or recertification application submission and at the time of the audit, the commissioner shall issue a notice of disapproval of the certification status of such monitoring system. For the purposes of this subparagraph, an audit shall be either a field audit or an audit of any information submitted to the commissioner. By issuing the notice of disapproval, the commissioner shall revoke 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 set forth in subdivision (3) of this subsection for each disapproved monitoring system.(5) Notifications. The CO2 authorized account representative for a CO2 budget source shall submit written notice to the commissioner in accordance with 40 CFR 75.61.(6) Recordkeeping and reporting. (A) General provisions. The CO2 authorized account representative shall comply with all recordkeeping and reporting requirements in this section, the applicable record keeping and reporting requirements under 40 CFR 75.73 and with the certification requirements of subsection (c)(1)(E) of this section;(B) Monitoring plans. The owner or operator of a CO2 budget source shall comply with requirements of 40 CFR 75.62;(C) Certification applications. The CO2 authorized account representative shall submit an application to the commissioner not later than 45 days after completing all initial certification or recertification tests required under subdivision (3) of this subsection including the information required under CFR 75.63 and 40 CFR 75.73(c) and (e);(D) Quarterly reports. The CO2 authorized account representative shall report the CO2 mass emission data for the CO2 budget source, in an electronic format prescribed by the commissioner for each calendar quarter as follows: (i) For a source that commences commercial operation before July 1, 2008, the calendar quarter covering January 1, 2009 to March 31, 2009, inclusive; or(ii) For a source commencing commercial operation on or after July 1, 2008, the calendar quarter corresponding to, the earlier of the date of provisional certification or the applicable deadline for initial certification under subdivision (2)(B) of this subsection or, unless such quarter is the third or fourth quarter of 2008, in which case reporting shall commence in the quarter covering January 1, 2009 to March 31, 2009, inclusive;(E) The CO2 authorized account representative shall submit each quarterly report to the commissioner not later than thirty (30) days following the end of the calendar quarter covered by the report. Quarterly reports shall be submitted in the manner specified in 40 CFR 75, Subpart H, and 40 CFR 75.64;(F) For each CO2 budget unit, or group of units using a common stack, quarterly reports shall include all of the data and information required in 40 CFR 75, Subpart G, except for the provisions concerning opacity, NOx and SO2;(G) Compliance certification. The CO2 authorized account representative shall submit to the commissioner 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 source's emissions are correctly and fully monitored. The certification shall state that: (i) The monitoring data submitted were recorded in accordance with the applicable requirements of this subsection and 40 CFR 75, including the quality assurance procedures and specifications;(ii) For a source with add-on CO2 emission controls and for all hours where data are substituted in accordance with 40 CFR 75.34(a)(1), the add-on emission controls were operating within the range of parameters listed in the quality assurance quality control program under 40 CFR 75, Appendix B and the substitute values do not systematically underestimate CO2 emissions; and(iii) The CO2 concentration values substituted for missing data under 40 CFR 75, Subpart D do not systematically underestimate CO2 emissions; and(H) Alternative reporting. In lieu of reporting required data to the commissioner pursuant to subparagraphs (D) to (G), inclusive, of this subdivision, the CO2 authorized account representative may report CO2 mass emission data for the CO2 budget source solely in an electronic format to the regional CO2 Allowance Tracking System or any successor electronic reporting platform identified by the commissioner. Nothing in this subparagraph excuses the owner or operator of the CO2 budget source from making and keeping the records required by subparagraphs (D) to (G), inclusive, of this subdivision, and such records shall be made available to the commissioner upon request.(7) Petitions. (A) Except as provided in subparagraph (B) of this subdivision, 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 commissioner requesting approval to apply an alternative to any requirement of 40 CFR Part 75. The application of an alternative to any requirement of 40 CFR Part 75 shall be in accordance with this subsection only if the petition is approved in writing by the Administrator, and subsequently approved in writing by the commissioner;(B) 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 commissioner 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). The application of an alternative to any such requirement shall be in accordance with this subsection only if the petition is approved in writing by the Administrator, and subsequently approved in writing by the commissioner; and(C) Petitions for a CO2 budget unit that is not subject to an acid rain emissions limitation.(i) 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 commissioner requesting approval to apply an alternative to any requirement of 40 CFR 75. The application of an alternative to any requirement of 40 CFR 75 shall be in accordance with this subsection only if the petition is approved in writing by the Administrator, and subsequently approved in writing by the commissioner; and(ii) In the event that the Administrator declines to review a petition under clause (i) of this subparagraph, 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 commissioner requesting approval to apply an alternative to any requirement of this subsection. That petition shall contain all of the relevant information specified in 40 CFR 75.66. The application of an alternative to any requirement of this subsection shall be in accordance with this subsection only if the petition is approved in writing by the commissioner;(8) CO2 budget units that co-fire eligible biomass. (A) The CO2 authorized account representative of a CO2 budget unit that co-fires eligible biomass as a compliance mechanism under this subsection, shall report the following information to the commissioner for each calendar quarter: (i) For each shipment of solid eligible biomass fuel fired at the CO2 budget unit, the total eligible biomass fuel input, on an as-fired basis, in pounds;(ii) For each shipment of solid eligible biomass fuel fired at the CO2 budget unit, the moisture content, on an as-fired basis, as a fraction by weight;(iii) For each distinct type of gaseous eligible biomass fuel fired at the CO2 budget unit, the density of the biogas, on an as-fired basis, in pounds per standard cubic foot;(iv) For each distinct type of gaseous eligible biomass fuel fired at the CO2 budget unit, the moisture content of the biogas, as a fraction by total weight;(v) For each distinct type of gaseous eligible biomass fuel fired at the CO2 budget unit, the total eligible biomass fuel input, in standard cubic feet;(vi) For each distinct type of eligible biomass fuel fired at the CO2 budget unit, the dry basis carbon content of the fuel type, as a fraction by dry weight;(vii) For each distinct type of eligible biomass fuel fired at the CO2 budget unit, the dry basis higher heating value, in MMBtu per dry pound;(viii) For each distinct type of eligible biomass fuel fired at the CO2 budget unit, the total dry basis eligible biomass fuel input, in pounds, calculated in accordance with subparagraph (B) of this subdivision;(ix) The total amount of CO2 emitted from the CO2 budget unit due to firing eligible biomass fuel, in tons, calculated in accordance with subparagraph (C) of this subdivision;(x) For each distinct type of eligible biomass fuel fired at the CO2 budget unit, the total eligible biomass fuel heat input, in MMBtu, calculated in accordance with subparagraph (D)(i) of this subdivision;(xi) The total amount of heat input to the CO2 budget unit due to firing eligible biomass fuel, in MMBtu, calculated in accordance with subparagraph (D)(ii) of this subdivision;(xii) A description and documentation of monitoring technology employed, and a description and documentation of fuel sampling methodology employed, including sampling frequency; and(xiii) For each distinct type of eligible biomass fuel fired at the CO2 budget unit, chemical analysis, including heating value and carbon content;(B) An owner or operator of a CO2 budget unit shall calculate and submit to the commissioner on a quarterly basis the total dry weight for each distinct type of eligible biomass fired by the CO2 budget unit during the reporting quarter. The total dry weight shall be determined for each fuel type as follows:(i) For solid fuel types: Click here to view
Where:
Fj = Total eligible biomass dry basis fuel input (lbs) for fuel type j;
Fi = Eligible biomass as fired fuel input (lbs) for fired shipment i;
Mi = Moisture content (fraction) for fired shipment i;
i = Fired fuel shipment;
j = Fuel type; and
m = Number of shipments;
(ii) For gaseous fuel types: Fj = Dj x Vj x (1 - Mj)
Where:
Fj = Total eligible biomass dry basis fuel input (lbs) for fuel type j;
Dj = Density of biogas (lbs/scf) for fuel type j;
Vj = Total volume (scf) for fuel type j;
Mj = Moisture content (fraction) for fuel type j; and
j = Fuel type;
(C) CO2 emissions due to firing of eligible biomass shall be determined as follows: (i) For any full calendar quarter during which no fuel other than eligible biomass is combusted at the CO2 budget unit, as measured and recorded in accordance with subdivisions (1) to (7), inclusive, of this subsection; or(ii) For any full calendar quarter during which fuels other than eligible biomass are combusted at the CO2 budget unit, as determined using the following equation: Click here to view
Where:
CO2 tons = CO2 emissions due to firing of eligible biomass for the reporting quarter;
Fj = Total eligible biomass dry basis fuel input (lbs) for fuel type j, as calculated in subparagraph (B) of this subdivision;
Cj = Carbon fraction (dry basis) for fuel type j;
Oj = Oxidation factor for eligible biomass fuel type j, derived for solid fuels based on the ash content of the eligible biomass fired and the carbon content of this ash, as determined pursuant to subparagraph (A)(xii) of this subdivision; for gaseous eligible biomass fuels, a default oxidation factor of 0.995 may be used;
44/12 = Number of tons of carbon dioxide that are created when one ton of carbon is combusted (44/12);
0.0005 = Number of short tons which is equal to one pound;
j = Fuel type; and
n = Number of distinct fuel types;
(D) Heat input due to firing of eligible biomass for each quarter shall be determined as follows: (i) For each distinct fuel type: Hj = Fj x HHVj
Where:
Hj = Heat input (MMBtu) for fuel type j;
Fj = Total eligible biomass dry basis fuel input (lbs) for fuel type j, as calculated in subparagraph (B) of this subdivision;
HHVj = Higher heating value (MMBtu/lb), dry basis, for fuel type j, as determined through chemical analysis; and
j = Fuel type
(ii) For all fuel types: Click here to view
Where:
Hj = Heat input (MMBtu) for fuel type j;
j = Fuel type; and,
n = Number of distinct fuel types
(E) Fuel sampling methods and fuel sampling technology shall be consistent with the New York State Renewable Portfolio Standard Biomass Guidebook, May 2006.(9) Additional requirements to provide output data.(A) Not later than March 1, 2009 and March 1 of each year thereafter, CO2 budget sources shall submit to the commissioner electricity generation data, in MWhs, associated with operation of CO2 budget units at the CO2 budget sources. The following MWh data shall be included, if applicable:(i) CO2 budget sources that are required to submit generation data to the Regional ISO shall submit to the commissioner the same CO2 budget unit-level MWh values submitted to the Regional ISO and a statement certifying that the MWh of electrical output reported reflects the total actual electrical output of the CO2 budget units at the CO2 budget source used by the Regional ISO to determine settlement resources of energy market participants;(ii) CO2 budget sources that report gross hourly MW data to the Administrator, shall submit to the commissioner an annual summation of the CO2 budget unit-level gross output data submitted to the Administrator; and(iii) CO2 budget sources that do not submit generation data to the Regional ISO or to the Administrator shall submit to the commissioner net electrical output information in accordance with subparagraph (D) of this subdivision. A CO2 budget source whose electrical output is not used in Regional ISO energy market settlement determinations shall propose to the commissioner a method for quantification of net electrical output;(B) CO2 budget sources creating useful thermal energy and selling steam shall use billing meters to determine net steam output. A CO2 budget source whose steam output is not measured by billing meters or whose steam output is combined with output from a non-CO2 budget source prior to measurement by the billing meter shall propose to the commissioner an alternative method for quantification of net steam output. If data for steam output is not available, the CO2 budget source may report heat input providing useful steam output as a surrogate for steam output;(C) Monitoring. Not later than March 1, 2009, CO2 budget sources shall provide an output monitoring plan containing the elements described in subparagraphs (D) to (G), inclusive, of this subdivision;(D) The output monitoring plan submitted by the CO2 budget source pursuant to subparagraph (C) of this subdivision shall include a diagram of the electrical or steam system for which output is being monitored, specifically including: (i) For net electric output, the diagram shall contain all CO2 budget sources and all generators served by each CO2 budget source and the relationship between CO2 Budget sources and generators. If a generator served by a CO2 budget source is also served by a non-affected source, the non-affected source and its relationship to each generator shall be indicated on the diagram as well. The diagram shall indicate where the net electric output is measured and shall include all electrical inputs and outputs to and from the plant. If net electric output is determined using a billing meter, the diagram shall show each billing meter used to determine net sales of electricity and shall show that all electricity measured at the point of sale is generated by the CO2 budget sources; and(ii) For net thermal output, the diagram shall include all steam or hot water coming into the net steam system, including steam from CO2 budget sources and non-affected sources, and all exit points of steam or hot water from the net steam system. In addition, each input and output stream shall have an estimated temperature, pressure and phase indicator, and an enthalpy in Btu/lb. The diagram of the net steam system shall identify all useful loads, house loads, parasitic loads, any other steam loads and all boiler feed water returns. The diagram shall represent all energy losses in the system as either usable or unusable losses. The diagram shall also indicate all flow meters, temperature or pressure sensors or other equipment used to calculate gross thermal output. If a sales agreement is used to determine net thermal output, the diagram shall show the monitoring equipment used to determine the sales of steam;(E) The output monitoring plan submitted by the CO2 budget source pursuant to subparagraph (C) of this subdivision shall include a description of each output monitoring system. The description of the output monitoring system shall include a written description of the output system and the equations used to calculate output. For net thermal output systems, descriptions and justifications of each useful load shall be included;(F) The output monitoring plan submitted by the CO2 budget source pursuant to subparagraph (C) of this subdivision shall include a detailed description of all quality assurance and quality control activities performed to maintain the output system in accordance with subparagraph (I) of this subdivision;(G) The output monitoring plan submitted by the CO2 budget source pursuant to subparagraph (C) of this subdivision shall include documentation supporting any output values to be used as a missing data value if there are periods of invalid output data. The missing data output value shall be either zero or an output value that is likely to be lower than a measured value and that is approved as part of the monitoring plan required under this section;(H) Initial Certification. CO2 authorized account representatives shall submit a certification statement stating that either the output monitoring system consists entirely of billing meters or that the output monitoring system meets one of the accuracy requirements for non-billing meters below. This statement may be submitted with the certification application required pursuant to subdivision (6)(C) of this subsection.(i) Billing Meters. The billing meter shall record the electric or thermal output. Any electric or thermal output values that the facility reports shall be the same as the values used in billing for the output. Any output measurement equipment used as a billing meter in commercial transactions requires no additional certification or testing requirements;(ii) Non-Billing Meters. For non-billing meters, the output monitoring system shall either meet an accuracy of ten (10) percent of the reference value, or each component monitor for the output system shall meet an accuracy of three (3) percent of the full scale value, whichever is less stringent, as determined pursuant to clause (iii) or (iv) of this subparagraph;(iii) The system approach to accuracy shall include a determination of how the system accuracy of ten (10) percent is achieved using the individual components in the system and shall include data loggers and any watt meters used to calculate the final net electric output data or any flow meters for steam or condensate, temperature measurement devices, absolute pressure measurement devices and differential pressure devices used for measuring thermal energy; or(iv) A component approach to accuracy. If testing a piece of output measurement equipment shows that the output readings are not accurate to three (3) percent or less of the full scale, then the owner or operator of a CO2 budget source shall retest or replace the measurement equipment to achieve such level of accuracy. Data shall be considered invalid, prospectively, for purposes of determining allocations. Data remain invalid until the output measurement equipment passes an accuracy test or is replaced with another piece of equipment that passes the accuracy test;(I) Ongoing quality assurance and quality control. Ongoing quality assurance and quality control activities shall be performed by the owner or operator of a CO2 budget source in order to maintain the output system, which shall include the following:(i) Billing Meters. In the case where billing meters are used to determine output, no quality assurance and quality control activities beyond those already performed are required;(ii) Non-Billing Meters. Certain types of equipment such as potential transformers, current transformers, nozzle and venture type meters, and the primary element of an orifice plate only require an initial certification of calibration and do not require periodic recalibration unless the equipment is physically changed. However, the pressure and temperature transmitters accompanying an orifice plate will require periodic retesting. For other types of equipment, the owner or operator of a CO2 budget source shall either recalibrate or re-verify the meter accuracy at least once every two years, unless a consensus standard allows for less frequent calibrations or accuracy tests. The system approach to accuracy or a component approach to accuracy shall be in accordance with subparagraphs (H)(ii) to (H)(iv), inclusive, of this subdivision. If testing a piece of output measurement equipment shows that the output readings are not accurate to 3.0 percent or less of the full scale value, then the owner or operator of a CO2 budget source shall retest or replace the measurement equipment to achieve such level of accuracy; and(iii) Out of Control Periods. If testing a piece of output measurement equipment shows that the output readings are not accurate to the certification value, data remain valid until the output measurement equipment passes an accuracy test or is replaced with another piece of equipment that passes an accuracy test. All invalid data shall be replaced by either zero output or an output value that is likely to be lower than a measured value and that is approved as part of the output monitoring plan under subparagraph (C) of this subdivision; and(J) Recordkeeping and Reporting. The CO2 authorized account representative shall comply with all recordkeeping and reporting requirements in this subparagraph and with the requirements of subsections (b)(5) and (c)(1)(E) of this section: (i) Recordkeeping. The owner or operator of a CO2 budget source shall retain data used to monitor, determine or calculate net generation for ten (10) years;(ii) Annual output reports. Not later than March 1, 2009 and March 1 of each year thereafter, the CO2 authorized account representative shall submit to the commissioner an annual output report containing until-level MWh data and all useful thermal output information not later than March 1 for the immediately preceding year; and(iii) The annual report shall be certified as follows: "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."
(j)Ratepayer relief.(1) If proceeds generated by the auction of CO2 allowances under subsection (f)(5) of this section in any calendar year exceed the threshold identified in subdivision (3) of this subsection, the commissioner shall return excess proceeds to the Public Utilities Regulatory Authority, in accordance with section 22a-200c of the Connecticut General Statutes, for return to Connecticut electric ratepayers, in accordance with section 16-19 of the Connecticut General Statutes.(2) If the proceeds generated by the auction of CO2 allowances under subsection (f)(5) of this section in any calendar year from the auction of CO2 allowances does not exceed the threshold price identified in subdivision (3) of this subsection, the commissioner shall distribute such auction proceeds pursuant to the requirements set forth in subsection (f)(6) of this section.(3) The amount of proceeds to be transferred to the Public Utilities Regulatory Authority shall be determined as follows: Ar = (Ap -Pt)
Where:
Ar = Auction proceeds to be returned to Connecticut electric ratepayers;
Ap = Annual proceeds generated by the auction of CO2 allowances under subsection (f)(5) of this section; and
Pt = the program threshold of thirty-five (35) million dollars, increased by two and one-half (2.5) percent on January 1, 2015 and January 1 of each year thereafter.
(k)Severability.Each provision of this section is deemed severable, and in the event that any provision of this section is held to be invalid, the remainder of this section shall continue in full force and effect.
Conn. Agencies Regs. § 22a-174-31
Adopted effective July 23, 2008; Amended December 9, 2013; amended 10/4/2019