N.M. Code R. § 20.2.81.108

Current through Register Vol. 35, No. 11, June 11, 2024

Section 20.2.81.108 - USE OF ALLOWANCES FROM A PREVIOUS YEAR

A. Any allowance that is held in a compliance account or general account shall remain in such an account unless and until the allowance is deducted in conjunction with the compliance process, or transferred to another account.

B. In order to demonstrate compliance under Subsection A of 20.2.81.109 NMAC for a control period, WEB sources shall only use allowances allocated for that current control period or any previous year. Because all allowances held in a special reserve compliance account for a WEB source that monitors certain units in accordance with Subsection B of 20.2.81.106 NMAC will be deducted for compliance for each control period, no banking of such allowances for use in a subsequent year is permitted by 20.2.81 NMAC.

C. If flow control procedures for the current control period have been triggered as outlined in section C4.2 of the sulfur dioxide milestones and backstop trading program implementation plan, then the use of allowances that were allocated for any previous year shall be limited as follows.

(1) The number of allowances that are held in each compliance account and general account as of the allowance transfer deadline for the immediately previous year and that were allocated for any previous year shall be determined.

(2) The number determined in Paragraph 1 shall be multiplied by the flow control ratio established in accordance with section C4.2 of the sulfur dioxide milestones and backstop trading program implementation plan to determine the number of allowances that were allocated for a previous year that can be used without restriction for the current control period.

(3) Allowances that were allocated for a previous year in excess of the number determined in Paragraph 2 may also be used for the current control period. If such allowances are used to make a deduction, three allowances shall be deducted for each deduction of one allowance required under 20.2.81.109 NMAC.

D. Special provisions for the year 2018. After compliance with the 2017 allowance limitation has been determined in accordance with Subsection A of 20.2.81.109 NMAC, allowances allocated for any year prior to 2018 shall not be used for determining compliance with the 2018 allowance limitation or any future allowance limitation.

N.M. Code R. § 20.2.81.108

20.2.81.108 NMAC - N, 12/31/03; A, 07/06/11