06-096-158 Me. Code R. § 2

Current through 2024-44, October 30, 2024

Section 096-158-2 - Definitions

A.Applicant. "Applicant" means a party submitting an application.

B.Ascending price, multiple round auction. "Ascending price, multiple round auction" means a multiple-round auction starting with an opening price which increases each round by predetermined increments. In each round, bidders offer the quantity they are willing to purchase at the posted price. Rounds continue so long as demand exceeds the quantity offered for sale. At the completion of the final round, the Department or its agent may allocate allowances:

(1) at the final price to remaining bidders and withhold unsold allowances for a future auction;

(2) at the penultimate price, first to final round bidders and then to bidders in the penultimate round in chronological order of bid during the penultimate round for all remaining allowances; or

(3) according to an alternative mechanism designed to effectuate the objectives of this Chapter.

C.Beneficial interest. "Beneficial interest" means profit, benefit, or advantage resulting from the ownership of a CO₂allowance.

D.Bidder. "Bidder" means a party that has met the requirements of subsection 3(C) of this Chapter to participate in an auction.

E.CO²allowance auction or auction. "CO₂allowance auction or auction" means an auction in which the Department or its agent offers CO₂ allowances for sale.

F. CO²allowance auction website. "CO₂ allowance auction website" means a website established by the Department or its agent that will contain information regarding the CO₂ Budget Trading Program and auctions to be conducted pursuant to this Chapter.

G.CO₂ budget source. "CO₂ budget source" means a source that includes one or more CO₂ budget units.

H.CO₂budget source compliance account or compliance account. "CO₂ budget source compliance account" or "compliance account" means the account established by the Department or its agent for a CO₂ budget source wherein CO₂ allowances are held and available for compliance purposes under CO₂ Budget Trading Program, 06-096 CMR 156.

I.CO₂ Budget Trading Program. "CO₂ Budget Trading Program" means a multi-state CO₂ air pollution control and emissions reduction program established pursuant to this regulation and corresponding regulations in other states as a means of reducing emissions of CO₂ from CO₂ budget sources.

J. CO₂ budget unit ."CO₂ budget unit" means a fossil fuel-fired unit that serves a generator with a nameplate capacity equal to or greater than 25 MW electrical output.

K.CO₂ cost containment reserve allowance or CO₂ CCR allowance. "CO₂ cost containment reserve allowance or CO₂ CCR allowance" means a CO₂ allowance that is offered for sale at an auction by the Department for the purpose of containing the cost of CO₂ allowances. CO₂ CCR allowances offered for sale at an auction are separate from and additional to CO₂ allowances allocated from the CO₂ Budget Trading Program base and adjusted budgets. CO₂ CCR allowances are subject to all applicable limitations contained in this Chapter.

L.Consumer Benefit Account. "Consumer Benefit Account" means a general account established by the Department or its agent from which CO₂ allowances will be sold or distributed in order to provide funds to encourage and foster the following: promotion of energy efficiency measures, direct mitigation of electricity ratepayer impacts attributable to the implementation of the CO₂ Budget Trading Program, promotion of renewable or non-carbon-emitting energy technologies, stimulation or reward of investment in the development of innovative carbon emissions abatement technologies with significant carbon reduction potential, promotion and reward for combined heat and power projects, and/or the administration of Maine's component of the CO₂ Budget Trading Program.

M.Control period ."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. Beginning on January 1, 2015, the first two calendar years of each control period are each defined as an interim control period.

N.Cost containment reserve trigger price or CCR trigger price. "Cost containment reserve trigger price or CCR trigger price" means the minimum price at which CO₂ CCR allowances are offered for sale by the Department or its agent at an auction. The CCR trigger price shall be $4.00 per CO₂ allowance for calendar year 2014, $6.00 per CO₂ allowance in calendar year 2015, $8.00 per CO₂ allowance in calendar year 2016, and $10.00 per CO₂ allowance in calendar year 2017. Each calendar year thereafter through 2020, the CCR trigger price shall be 1.025 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in Table 1. The CCR trigger price in calendar year 2021 shall be $13.00. Each calendar year thereafter, the CCR trigger price shall be 1.07 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in Table 1.

Table 1. CO₂ CCR Trigger Price

2018	2019	2020	2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
$10.25	$10.51	$10.77	$13.00	$13.91	$14.88	$15.92	$17.03	$18.22	$19.50	$20.87	$22.33	$23.89

O.Current Market Price . "Current Market Price" means the volume-weighted average of (1) transaction prices reported to the Department or its agent, (2) prices as reported publicly through reputable sources, (3) CO₂ allowance award price(s) from preceding CO₂Allowance Auctions, or (4) any combination of these options.

P.Efficiency Maine Trust. "Efficiency Maine Trust" means the trust established by the Efficiency Maine Trust Act, 35-A M.R.S. §10103 that is authorized to receive revenue resulting from the sale of CO₂ allowances, deposit those allowances in the Regional Greenhouse Gas Initiative Trust Fund and expend that revenue in accordance with 35-A M.R.S. §10109.

Q.General account. "General account" means a CO₂ allowance tracking system account, established under 06-096 CMR 156 (7), that is not a compliance account.

R. Minimum Reserve Price or MRP. The "Minimum Reserve Price" or "MRP" in calendar year 2014 shall be $2.00. Each calendar year thereafter, the minimum reserve price shall be 1.025 multiplied by the minimum reserve price from the previous calendar year, rounded to the nearest whole cent.

S.Notice of CO₂ allowance auction or Auction Notice. "Notice of CO₂ allowance auction" or "Auction Notice" means the notification prior to each CO₂ allowance auction that will inform potential bidders of the date, time and location of the auction.

T.Participating state. "Participating state" means a state that has established a corresponding regulation as part of the CO₂ Budget Trading Program.

U.Reserve price. "Reserve Price" means the minimum acceptable price for each CO₂ allowance in a specific auction. The reserve price at an auction is either the minimum reserve price or the CCR trigger price, as specified in CO₂ Budget Trading Program, 06-096 CMR 156(2)(G).

V.Regional Greenhouse Gas Initiative or RGGI. "Regional Greenhouse Gas Initiative" or "RGGI" means the ongoing cooperative effort by the states of Maine, New Hampshire, Vermont, Connecticut, New Jersey, New York, Massachusetts, Rhode Island, Maryland and Delaware and such other states as may in the future become a part of the program to design and implement, using each state's individual sovereign authority, a regional CO₂ cap-and-trade program covering CO₂ emissions from CO₂ budget units in the signatory states.

W.Regional Greenhouse Gas Initiative Trust Fund. "Regional Greenhouse Gas Initiative Trust Fund" means the non-lapsing fund established by the Efficiency Maine Trust Act, 35-A M.R.S. §10109(2) and administered by the Efficiency Maine Trust to support the goals and implementation of the CO₂ Budget Trading Program, into which revenue resulting from the sale of CO₂ allowances shall be deposited.

X.Uniform-price, sealed-bid auction. "Uniform-price, sealed-bid auction" means a single round sealed-bid auction in which bidders may submit multiple bids at different prices; the price paid by all awarded bidders with the highest bid for the available allowances is equal to the highest rejected bid.

06-096 C.M.R. ch. 158, § 2