7 Del. Admin. Code § 1147-5.0
Current through Register Vol. 28, No. 1, July 1, 2024
Section 1147-5.0 - CO[2] Allowance Allocations5.1 State of Delaware CO2 Trading Program base budget. 5.1.1 For the 2018 allocation year, the State of Delaware CO2 Trading Program annual base budget is 3,763,577 tons.5.1.2 For 2019, the State of Delaware CO2 Budget Trading Program base budget is 3,613,361 tons.5.1.3 For 2020 the State of Delaware CO2 Budget Trading Program base budget is 3,523,027 tons.5.1.4 For 2021, the State of Delaware CO2 Budget Trading Program base budget is 3,383,313 tons.5.1.5 For 2022, the State of Delaware CO2 Budget Trading Program base budget is 3,280,789 tons.5.1.6 For 2023, the State of Delaware CO2 Budget Trading Program base budget is 3,178,264 tons.5.1.7 For 2024, the State of Delaware CO2 Budget Trading Program base budget is 3,075,739 tons.5.1.8 For 2025, the State of Delaware CO2 Budget Trading Program base budget is 2,973,215 tons.5.1.9 For 2026, the State of Delaware CO2 Budget Trading Program base budget is 2,870,690 tons.5.1.10 For 2027, the State of Delaware CO2 Budget Trading Program base budget is 2,768,165 tons.5.1.11 For 2028, the State of Delaware CO2 Budget Trading Program base budget is 2,665,641 tons.5.1.12 For 2029, the State of Delaware CO2 Budget Trading Program base budget is 2,563,116 tons.5.1.13 For 2030 and each succeeding calendar year, the State of Delaware CO2 Budget Trading Program base budget is 2,460,591 tons.5.2 Undistributed and Unsold CO2 Allowances 5.2.1 The Department may retire undistributed CO2 allowances at the end of each control period.5.2.2 The Department may retire unsold CO2 allowances at the end of each control period.5.3 CO2 allowance allocations. 5.3.1General allocations. Beginning with 2014 CO2 allowances, the Department or its agent shall auction 100% of allowances available to Delaware.5.3.2Delaware Auction Allowances. The Department shall direct allowances in accordance with Title 7, Chapter 60 to the Delaware Auction Account. Except for as provided by subsection 5.3.4, the Department shall make available for auction 100 percent of the allowances annually as described by subsection 5.3.1 for public benefit purposes and as described by Title 7, Chapter 60.5.3.3CO2 Allowances available for allocation. For allocation years 2014 through 2030, the State of Delaware 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.5.3.4Cost Containment Reserve (CCR) allocation. The Department shall allocate CO2 CCR allowances, separate from and additional to the State of Delaware CO2 Budget Trading Program base budget set forth in subsection 5.1, to the State of Delaware Auction Account. The CCR allocation is for the purpose of containing the cost of CO2 allowances. The Department shall allocate CO2 CCR allowances in the following manner:5.3.4.1 The Department shall initially allocate 228,829 CO2 CCR allowances for calendar year 2014.5.3.4.2 On or before January 1 of 2015 through 2020, the Department shall allocate CO2 CCR allowances in an amount equal to 457,658, minus the number of CO2 CCR allowances that remain in the State of Delaware Auction Account at the end of the prior calendar year.5.3.4.3 On or before January 1, 2021 and each year thereafter, the Department shall allocate current vintage year CCR allowances equal to the quantity in Table 3, and withdraw the number of CO2 CCR allowances that remain in the State of Delaware Auction Account at the end of the prior calendar year: | Table 3. CCR allowances from 2021 forward. |
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 and each year thereafter |
| 338,331 | 328,078 | 317,826 | 307,573 | 297,321 | 287,069 | 276,816 | 266,564 | 256,311 | 246,059 |
5.3.5 Emissions Containment Reserve (ECR) Withholding. The Department shall convert and transfer any CO2 allowances that have been withheld from any auction(s) into the State of Delaware ECR Account. The ECR withholding is for the purpose of additional emissions reductions in the event of lower than anticipated emissions reduction costs. The Department shall withhold CO2 ECR allowances in the following manner. 5.3.5.1 If the condition in subsection 9.2.4.1 is met at an auction, then the maximum number of CO2 ECR allowances that will be withheld from that auction will be equal to the quantity shown in Table 4 minus the total quantity of CO2 ECR allowances that have been withheld from any prior auction(s) in that calendar year. Any CO2 ECR allowances withheld from an auction will be transferred into the State of Delaware ECR Account. | Table 4. ECR Allowances from 2021 forward. |
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 and each year thereafter |
| 338,331 | 328,078 | 317,826 | 307,573 | 297,321 | 287,069 | 276,816 | 266,564 | 256,311 | 246,059 |
5.3.5.2 Allowances that have been transferred into State of Delaware ECR Account shall not be withdrawn.5.3.6First control period adjustment for banked allowances. By January 15, 2014, the Department shall establish the first control period interim adjustment for banked allowances quantity for allocation years 2014 through 2020. | Table 5. First control period adjustment for banked allowances. |
| 2014 | 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| 375,603 | 375,603 | 375,603 | 375,603 | 375,603 | 375,603 | 375,603 |
5.3.7Second control period adjustment for banked allowances. On March 17, 2014, the Department shall establish the second control period adjustment for banked allowances quantity the allocation years 2015 through 2020. | Table 6. Second control period adjustment for banked allowances. |
| 2015 | 2016 | 2017 | 2018 | 2019 | 2020 |
| 626,202 | 626,202 | 626,202 | 626,202 | 626,202 | 626,202 |
5.3.8 Third adjustment for banked allowances. On March 15, 2021, the Department shall determine the third adjustment for banked allowances quantity for allocation years 2021 through 2025 through the application of the following formula: TABA = ((TA - TAE)/5) x RS%
Where:
TABA is the third adjustment for banked allowances quantity in tons.
TA, third adjustment, is the total quantity of allowances of vintage years prior to 2021 held in general and compliance accounts, including compliance accounts established pursuant to the CO2 Budget Trading Program, but not including accounts opened by participating states, as reflected in the CO2 Allowance Tracking System on March 15, 2021.
TAE, 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 CO2 Budget Trading Program as reflected in the CO2 Allowance Tracking System on March 15, 2021.
RS% is State of Delaware CO2 Base Budget divided by the Regional Budget.
5.3.9 CO2 Budget Trading Program adjusted budgets for 2018 through 2020. On April 15, 2014 the Department shall establish the State of Delaware CO2 Budget Trading Program adjusted budgets for the 2018 through 2020 allocation years in the following table: | Table 7. CO2 Budget Trading Adjusted budgets: |
| 2018 | 2019 | 2020 |
| 2,761,771 | 2,611,556 | 2,521,222 |
5.3.10 CO2 Budget Trading Program adjusted budgets for 2021 through 2025. On April 15, 2021 the Department shall establish the State of Delaware CO2 Budget Trading Program adjusted budgets for the 2021 through 2025 allocation years by the following formula: AB = BB - TABA
Where:
AB is the State of Delaware CO2 Budget Trading Program adjusted budget.
BB is the State of Delaware CO2 Budget Trading Program base budget.
TABA is the third adjustment for banked allowances quantity in tons.
5.3.11 After making the determination in subsection 5.3.10, the Department or its Agent will publish the CO2 trading program adjusted budgets for the 2021 through 2025 allocation years.12/11/18
7 Del. Admin. Code § 1147-5.0
17 DE Reg. 644 (12/1/2013)
22 DE Reg. 511 (12/1/2018) (Final)