250 R.I. Code R. 250-RICR-120-05-46.8

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Current through December 26, 2024

Section 250-RICR-120-05-46.8 - CO[2] Allowance Allocations

46.8.1Rhode Island CO₂ trading program base budget is as follows:

A. The Rhode Island CO₂ Budget Trading Program base budget is 1,512,845 tons for the 2018 allocation year.

B. The Rhode Island CO₂ Budget Trading Program base budget is 2,005,354 tons for the 2019 allocation year.

C. The Rhode Island CO₂ Budget Trading Program base budget is 1,955,221 tons for the 2020 allocation year.

D. The Rhode Island CO₂ Budget Trading Program base budget is 1,877,683 tons for the 2021 allocation year.

E. The Rhode Island CO₂ Budget Trading Program base budget is 1,820,783 tons for the 2022 allocation year.

F. The Rhode Island CO₂ Budget Trading Program base budget is 1,763,884 tons for the 2023 allocation year.

G. The Rhode Island CO₂ Budget Trading Program base budget is 1,706,986 tons for the 2024 allocation year.

H. The Rhode Island CO₂ Budget Trading Program base budget is 1,650,085 tons for the 2025 allocation year.

I. The Rhode Island CO₂ Budget Trading Program base budget is 1,593,186 tons for the 2026 allocation year.

J. The Rhode Island CO₂ Budget Trading Program base budget is 1,536,286 tons for the 2027 allocation year.

K. The Rhode Island CO₂ Budget Trading Program base budget is 1,479,387 tons for the 2028 allocation year.

L. The Rhode Island CO₂ Budget Trading Program base budget is 1,422,488 tons for the 2029 allocation year.

M. The Rhode Island CO₂ Budget Trading Program base budget is 1,365,588 tons for the 2030 allocation year.

N. The Rhode Island CO₂ Budget Trading Program base budget for the 2031 allocation year and future years will be established through amendments following future program review.

46.8.2Undistributed and unsold CO₂ allowances

A. The Department may retire undistributed CO₂ allowances at the end of each control period.

B. The Department may retire unsold CO₂ allowances at the end of each control period.

46.8.3CO₂ allowance allocations

A. The Department shall allocate to the Rhode Island Auction/Sale Account CO₂ allowances to be auctioned or sold in accordance with Part 47 of this Subchapter (CO₂ Budget Trading Program Allowance Distribution).

B. CO₂ Allowances available for allocation.

1. For the allocation year 2018 and each succeeding calendar year, the Rhode Island CO₂ Budget Trading Program adjusted budget shall be the maximum number of allowances available for allocation in a given allocation year, except for CO₂ CCR allowances. In any year in which there is no adjusted budget, the adjusted budget shall equal the base budget.

C. Cost Containment Reserve (CCR) allocation.

1. The Department shall allocate CO₂ CCR allowances, separate from and additional to the Rhode Island CO₂ Budget Trading Program base budget set forth in §46.8.1 of this Part, to the Rhode Island auction account. The CCR allocation is for the purpose of containing the cost of CO₂allowances. The Department shall allocate CO₂ CCR allowances in the following manner:

a. The Department shall initially allocate 80,491 CO₂ CCR allowances for calendar year 2014.

b. On or before January 1, 2015, and each calendar year thereafter, through 2020, the Department or its agent shall allocate CO₂ CCR allowances in an amount equal to 160,987, minus the number of CO₂ CCR allowances that remain in the Rhode Island auction account at the end of the prior calendar year.

c. On or before January 1, 2021, and each year thereafter, the Department or its agent shall allocate current vintage year CCR allowances equal to the quantity in §46.8.3(C)(1)(c) ((1)) of this Part (Table 3), and withdraw the number of CO₂ CCR allowances that remain in the Rhode Island auction account at the end of the prior calendar year:

(1) Table 3

CCR allowances from 2021 forward
2021	2022	2023	2024	2025	2026	2027	2028	2029	2030 and each year thereafter
187,770	182,083	176,393	170,701	165,013	159,321	153,632	147,941	142,252	136,562

D. Emissions Containment Reserve (ECR) Withholding.

1. The Department or its agent shall convert and transfer any CO₂ allowances that have been withheld from any auction(s) into the Rhode Island ECR account. The ECR withholding is for the purpose of additional emissions reduction in the event of lower than anticipated emissions reduction costs. The Department shall withhold CO₂ ECR allowances in the following manner.

a. If the condition in § 47.11(A) of this Subchapter (CO₂ Budget Trading Program Allowance Distribution) 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 §46.8.3(D)(1)(a) ((1)) of this Part (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 Rhode Island ECR account.

(1) Table 4

ECR Allowances from 2021 forward
2021	2022	2023	2024	2025	2026	2027	2028	2029	2030 and each year thereafter
187,768	182,078	176,388	170,699	165,009	159,319	153,629	147,939	142,249	136,559

E. First control period adjustment for banked allowances.

1. By January 15, 2014, the Department shall establish the first control period adjustment for banked allowances quantity for allocation years 2014 through 2020 as shown in §46.8.3(E)(1)(a) of this Part (Table 5).

a. Table 5

First control period adjustment for banked allowances
2014	2015	2016	2017	2018	2019	2020
132,122	132,122	132,122	132,122	132,122	132,122	132,122

F. Second control period adjustment for banked allowances.

1. On March 17, 2014, the Department shall establish the second control period adjustment for banked allowances quantity the allocation years 2015 through 2020 as shown in §46.8.3(F)(1)(a) of this Part (Table 6).

a. Table 6

Second control period adjustment for banked allowances
2015	2016	2017	2018	2019	2020
220,273	220,273	220,273	220,273	220,273	220,273

G. Third adjustment for banked allowances.

1. 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 = third adjustment for banked allowances quantity in tons. TA (third adjustment) = 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) = 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% = Relevant RGGI state's 2021 budget divided by the 2021 regional budget.

H. CO₂ Budget Trading Program adjusted budgets for 2018 through 2020.

1. On April 15, 2014, the Department established the Rhode Island CO₂ Budget Trading Program adjusted budgets for the 2018 through 2020 allocation years in §46.8.3(H)(1)(a) of this Part (Table 7):

a. Table 7

CO₂ Budget Trading Adjusted budgets:
2018	2019	2020
1,160,450	1,652,960	1,602,826

I. CO₂ Budget Trading Program adjusted budgets for 2021 through 2025.

1. On or before April 15, 2021, the Department shall establish the Rhode Island CO₂ Budget Trading Program adjusted budgets for the 2021 through 2025 allocation years by the following formula:

AB = BB - TABA

Where:

AB = Rhode Island CO₂ Budget Trading Program adjusted budget

BB = Rhode Island CO₂ Budget Trading Program base budget

TABA = third adjustment for banked allowances quantity in tons.

J. After making the determinations in §46.8.3(G) of this Part, the Department or its agent will publish the CO₂ trading program adjusted budgets for the 2021 through 2025 allocation years.

K. Voluntary renewable energy market set-aside allocation.

1. The Department shall open and manage a general account for the voluntary renewable energy market set-aside for each allocation year.

2. The Department shall allocate one percent (1%) of the number of allowances of the annual base budget to the voluntary renewable energy market set-aside account.

3. The Department shall permanently retire CO₂ allowances from the voluntary renewable energy market set-aside account for a given allocation year. The number of allowances to be retired shall be made based on the following:

a. Any person may submit data to the Department or the Department may gather data documenting purchases of voluntary renewable energy that meet the requirements of §46.8.3(K)(3)(a) of this Part by no later than the March 1 immediately following the allocation year for which it is being made and must include information to assure that the voluntary renewable energy purchase demonstrates accreditable CO₂ emissions reductions. Such data must be from reputable sources, which may include retail electricity providers, organizations that certify renewable energy products, and other parties as determined by the Department. To be considered, data must be verifiable and document the following for voluntary renewable energy purchases:

(1) Documentation of voluntary renewable energy or renewable energy attribute credit purchases by retail customers, by customer class, in the State during the allocation year immediately preceding the application date.

(2) Documentation that the renewable energy or renewable energy attributes related to voluntary renewable energy or renewable energy attribute credit sales was procured by the retail provider.

(3) Time period when the retail purchase(s) was made.

(4) State where the electricity was generated or the renewable energy attribute credit was created, including documentation of facility name, unique generator identification number, and fuel type.

(5) Time period when the electricity was generated or the renewable energy attribute credit was created.

b. By October 31 following the March 1 application deadline established in §46.8.3(K)(3)(a) of this Part, the Department will determine the actual MWh of voluntary renewable energy market purchases that occurred during the allocation year. The department will retire CO₂ allowances from the voluntary renewable set-aside account in the amount up to the number of CO₂ tons represented by actual voluntary renewable energy market purchases, based on actual MWh purchases demonstrated by each applicant as follows:

CO₂ tons = MP x EF

Where: CO₂ tons = (rounded down to the nearest whole ton) the number of allowances to be retired from the set-aside account.

MP = MWh of voluntary renewable energy purchases in the State during the allocation year.

EF = CO₂ emissions factor for the control area where the electricity represented by the sale was generated.

In no event shall the department retire more than 1 % of the base budget for the allocation year.

4. After retiring the CO₂ allowances from the voluntary renewable energy market set-aside account, the Department may transfer any remaining CO₂ allowances from the set-aside account to the Rhode Island Auction/Sale Account.

250 R.I. Code R. 250-RICR-120-05-46.8

Amended effective 12/25/2018