250 R.I. Code R. 250-RICR-120-05-47.4

Current through December 26, 2024

Section 250-RICR-120-05-47.4 - Definitions

A. Unless otherwise expressly defined in this section, the terms used in this regulation shall be defined by reference to Part 0 of this Subchapter (General Definitions). As used in this regulation, the following terms shall, where the context permits, be construed as follows:

1. "Account" means the Rhode Island auction/sale account to be established by the Department into which Rhode Island CO₂ allowances shall be allocated.

2. "Agent" means an independent contractor, United States Environmental Protection Agency (USEPA), consumer trustee, or other entity including a regional entity.

3. "Applicant" means a party submitting a qualification application.

4. "Application" means the application that a prospective bidder or buyer must complete to participate in an auction or sale.

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

6. "Beneficial interest" means profit, benefit, or advantage resulting from the ownership of a CO₂ allowance.

7. "Central auction website" means a website containing information regarding the CO₂ Budget Trading Program and auctions to be conducted pursuant to this regulation.

8. "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.

9. "Compliance account" means a compliance account established under Part 46 of this Subchapter (CO₂ Budget Trading Program).

10. "Control period" means the control period established in Part 46 of this Subchapter (CO₂ Budget Trading Program).

11. "CO₂ cost containment reserve allowance" or "CO₂ CCR allowance" means a CO₂ allowance that is offered for sale at an auction by the Department or its agent for the purpose of containing the cost of CO₂allowances. CO₂ CCR allowances offered for sale at an auction are separate from and additional to CO₂ allowances allocated from the Rhode Island CO₂ Budget Trading Program base and adjusted budgets. CO₂ CCR allowances are subject to all applicable limitations contained in this Part.

12. "CO₂ 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 $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. 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 cent, as shown in § 47.4(A)(12)(a) of this Part (Table 1):

a. 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

13. "CO₂ emissions containment reserve allowance" or "CO₂ ECR allowance" means a CO₂ allowance that is withheld from sale at an auction by the Department or its agent for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs.

14. "CO₂ emissions containment reserve trigger price" or "ECR trigger price" means the price below which CO₂ allowances will be withheld from sale by the Department or its agent at an auction. The ECR trigger price in calendar year 2021 shall be $6.00. Each calendar year thereafter, the ECR trigger price shall be 1.07 multiplied by the ECR trigger price from the previous calendar year, rounded to the nearest whole cent, as shown in § 47.4(A)(14)(a) of this Part (Table 2):

a. Table 2

CO₂ ECR Trigger Price
2021	2022	2023	2024	2025	2026	2027	2028	2029	2030
$6.00	$6.42	$6.87	$7.35	$7.86	$8.41	$9.00	$9.63	$0.30	$11.02

15. "Current market price" means the volume-weighted average of:

a. Transaction prices reported to the Department or its agent,

b. Prices as reported publicly through reputable sources,

c. CO₂ allowance award price(s) from preceding CO₂ allowance auction(s), or

d. Any combination of these options.

16. "General account" means a general account established under Part 46 of this Subchapter (CO₂ Budget Trading Program).

17. "Minimum reserve price," means the minimum reserve price in calendar year 2014 shall be two dollars ($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.

18. "Notice" means an official notification of an auction or sale to be held at a predetermined date in the future.

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

20. "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.

21. "Sale" means a CO₂ Budget Allowance sale.

22. "Unsold allowance" means a CO₂ allowance that has been made available for sale in an auction or sale conducted by the Department or its agent, but not sold.

250 R.I. Code R. 250-RICR-120-05-47.4

Amended effective 12/25/2018