Md. Code Regs. 26.09.02.05

Current through Register Vol. 51, No. 22, November 1, 2024

Section 26.09.02.05 - Compliance Certification and Early Reductions

A. Compliance Certification Report.

(1) Applicability and Deadline. For each control period in which a CO₂ budget source is subject to the CO₂ budget emissions limitation, the CO₂ authorized account representative of the source shall submit a compliance certification report by the March 1 following the relevant control period.

(2) Contents of Report. The CO₂ authorized account representative shall include in the compliance certification report the following:

(a) Identification of the source and each CO₂ budget unit at the source;

(b) 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 for the control period, including the serial numbers of any CO₂ offset allowances that are to be deducted subject to applicable limitations; and

(c) The compliance certification required by §A(3) of this regulation.

(3) Compliance Certification. In the compliance certification report, the CO₂ authorized account representative shall certify whether the source and each CO₂ budget unit at the source for which the compliance certification is submitted was operated during the control period in compliance with the requirements of this subtitle, including:

(a) Whether each CO₂ budget unit at the source was operated in compliance with the CO₂ budget emissions limitation;

(b) Whether the monitoring plan applicable to each unit at the source:

(i) Has been maintained to reflect the actual operation and monitoring of the unit; and

(ii) Contains all information necessary to track CO₂ emissions from the unit;

(c) Whether all CO₂ emissions from each unit at the source were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including:

(i) Whether all conditional data was reported in the quarterly reports; or

(ii) If conditional data were reported, whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions have been made;

(d) Whether the basis for certification or for using an excepted monitoring method or approved alternative monitoring method has changed; and

(e) If a change is required to be reported, include:

(i) The nature and reasons for the change;

(ii) When the change occurred; and

(iii) How the unit's compliance status was determined after the change, including the method used to determine emissions when a change mandated the need for monitor recertification.

(4) Format of report. The CO₂ authorized account representative shall submit the compliance certification report in the following manner:

(a) Electronically to the CO₂ allowance tracking system; and

(b) Directly to the Department in a hard copy.

B. Audit of Compliance Certifications.

(1) The Department, at its discretion, may review and conduct independent audits of any compliance certification or other submission required under this subtitle.

(2) The Department may deduct CO₂ allowances from, or transfer CO₂ allowances to, a compliance account to correct errors in the account or to accurately reflect CO₂ emissions, based on the information in the compliance certification or other submissions.

C. CO₂ Early Reduction Allowances. The Department may award CO₂ early reduction allowances (ERAs) to a CO₂ budget source for reductions in emissions, including all reductions from CO₂ budget units that are achieved during the early reduction period, 2006, 2007, and 2008, if:

(1) The CO₂ budget source submits an application for the award by May 1, 2009; and

(2) The CO₂ budget source:

(a) Demonstrates that all CO₂ budget units that existed at the source during the baseline period of 2003, 2004, and 2005 are included as CO₂ budget units for the early reduction period; and

(b) Includes new CO₂ budget units added at the CO₂ budget source during the early reduction period.

D. Calculation of Early Reduction Allowances.

(1) The Department shall calculate the number of ERAs to be awarded to a CO₂ budget source for the early reduction period based on the following methodology:

(a) If the total heat input for all CO₂ budget units at the CO₂ budget source during the early reduction period is less than or equal to the total heat input for all the CO₂ budget units at the CO₂ budget source during the baseline period, then ERAs shall be calculated as follows:

ERAs = ((AEER_BASELINE - AEER_ERP) x (EO_ERP + (TO_ERP / 3.413))/2000

where:

(i) AEER_BASELINE = the average CO₂ emissions rate resulting from electric energy output and thermal energy output for all of the CO₂ budget units at the CO₂ budget source during the baseline period (in pounds of CO₂/megawatt hours (MWh_th+e);

(ii) AEER_ERP = the average CO₂ emissions rate resulting from electric energy output and thermal energy output for all of the CO₂ budget units at the CO₂ budget source during the early reduction period (in pounds of CO₂/ megawatt hours (MWh_th+e);

(iii) EO_ERP = the total electric energy output from all CO₂ budget units at the CO₂ budget source during the early reduction period (in megawatt hours (MWh_e); and

(iv) TO_ERP = the total useful thermal energy output from all CO₂ budget units at the CO₂ budget source during the early reduction period (in MMBtu). For purposes of this regulation, thermal energy output is converted to units of MWh by the conversion factor 1 MWh = 3.413 MMBtu;

(b) If the total heat input to all CO₂ budget units at the CO₂ budget source during the early reduction period is greater than the total heat input for all the CO₂ budget units at the CO₂ budget source during the baseline period, then:

ERAs = E_BASELINE - E_ERP

where:

(i) E_BASELINE = the total CO₂ emissions from all of the CO₂ budget units at the CO₂ budget source during the baseline period (in tons); and

(ii) E_ERP = the total CO₂ emissions from all of the CO₂ budget units at the CO₂ budget source during the early reduction period (in tons).

(2) The CO₂ budget source shall demonstrate that the data submitted in support of the early reduction application was recorded in compliance with applicable requirements for all of the baseline years and the early reduction years for which the budget source was required to report CO₂ data pursuant to 40 CFR Part 75.

(3) A CO₂ budget source that was not required to submit CO₂ data pursuant to 40 CFR Part 75 for any of the years contained in the baseline period or early reduction period may petition the Department as part of its application for the use of an alternative data source or sources for the calculation of early reduction allowances.

(4) Following confirmation of a CO₂ budget source's early reductions, the Department shall award the ERAs to the CO₂ budget source's compliance account by December 31, 2009.

(5) Total facility shutdowns are not eligible for ERAs.

Md. Code Regs. 26.09.02.05

Regulation .05A amended as an emergency provision effective December 28, 2009 (37:4 Md. R. 336); amended permanently effective May 3, 2010 (37:9 Md. R. 674); August 6, 2012 (39:15 Md. R. 964)