Code of Massachusetts Regulations › 310 CMR - DEPARTMENT OF ENVIRONMENTAL PROTECTION › Title 310 CMR 7.00 - Air Pollution Control › Section 7.74 - Reducing CO[2] Emissions from Electricity Generating Facilities

Current through Register 1525, July 5, 2024
(1)
Purpose, Authority and
			 Scope
. The purpose of 310 CMR 7.74, promulgated in conjunction
			 with
			 310 CMR
			 7.75, is to assist the Commonwealth in
			 achieving the greenhouse gas emissions reduction goals adopted pursuant to
			 M.G.L. c. 21N, § 3(b), by establishing declining annual aggregate
			 CO2 emissions limits that will reduce
			 CO2 emissions from electricity generating facilities. To
			 achieve those goals, the Executive Office of Energy and Environmental Affairs
			 (EEA) and the Department pursuant to M.G.L. c. 21A, §§ 2 and 8 and
			 M.G.L. c. 21N, §§ 3(c), 4 and 7 hereby jointly promulgate 310 CMR
			 7.74, following consultation with the Department of Energy Resources and based
			 on the considerations specified in M.G.L. c. 21N, § 3(c). 310 CMR 7.74 is
			 also promulgated pursuant to M.G.L. c. 21A, § 16, M.G.L. c. 21N, §
			 3(d) and M.G.L. c. 111, §§ 2C and 142A through 142E. In exercising
			 their broad authority and discretion under M.G.L. c. 21N, §§ 3(c) and
			 3(d), EEA and MassDEP have determined that additional emissions limits on
			 in-state electricity generating facilities' greenhouse gas emissions, along
			 with other climate policies and programs, will ensure achievement of the
			 greenhouse gas emissions limits as established under M.G.L. c. 21N, and that
			 the 310 CMR 7.74 limits are consistent with, and take account of, regional
			 programs such as the Regional Greenhouse Gas Initiative (RGGI) and the
			 Renewable Portfolio Standard (RPS). The CO2 emissions
			 limits set forth in 310 CMR 7.74(5) are applicable for the years 2021 through
			 2050 beginning January 1, 2021.
(2)
Definitions
. The terms used in 310 CMR 7.74 are
			 defined in 310 CMR 7.74(2) and
			 310 CMR
			 7.00:
Definitions
. Where a term is
			 defined in
			 310 CMR
			 7.00:
Definitions
and 310 CMR 7.74,
			 the definition in 310 CMR 7.74 shall apply.
Allowance
means a limited
				authorization to emit one metric ton of CO2 in
				compliance with 310 CMR 7.74.
Allowance Registry
means the database
				that tracks allowances held by electricity generating facilities and used for
				compliance. The Department shall establish an account in the allowance registry
				for each electricity generating facility.
Annual CO2
				Emissions
means the total amount of CO2
				emissions measurements recorded and reported for a calendar year in accordance
				with the Massachusetts CO2 Budget Trading Program at
				310 CMR
				7.70(8)(e)4., converted from
				short tons to metric tons and adjusted, as applicable, for the production of
				useful net thermal energy pursuant to the Massachusetts
				CO2 Budget Trading Program at
				310 CMR
				7.70(8)(i).
Bidder
means a party qualified,
				pursuant to 310 CMR 7.74(6)(h)4.a., to participate in an auction.
Calendar Year
or
Year
means January 1st
				through December 31st.
Deduct
or
Deduction
means the permanent removal of allowances
				from an account in the allowance registry.
Designated Representative
means the
				person who is authorized by the owner and operator of an electricity generating
				facility to represent and legally bind the owner and operator in matters
				pertaining to 310 CMR 7.74.
Electricity Generating Facility
means
				a facility that includes one or more electricity generating units for which the
				owner or operator is required to report CO2 emissions
				pursuant to the Massachusetts CO2 Budget Trading Program
				at
				310 CMR
				7.70(8); provided, however,
				that the following facilities are not electricity generating facilities for
				purposes of 310 CMR 7.74: MWRA Deer Island and MBTA South Boston Power.
Existing Facility Aggregate
				CO
2
Emissions
				Limit
means, with respect to calendar year 2018, the sum of all
				existing facilities' CO2 emissions limits, as listed in
				310 CMR 7.74(5)(a):
Table A.
Emergency
means a period during when
				the regional transmission organization has issued an alert that an abnormal
				condition affecting the reliability of the power system exists or is
				anticipated in Massachusetts.
Massachusetts
				CO
2
Budget Trading
				Program
means the program the Department promulgated at 310 CMR
				7.70 to reduce greenhouse gas emissions from CO2 Budget
				Sources as defined in 310 CMR 7.70.
New Electricity Generating Facility
means, with respect to calendar year 2018, 2019 and 2020, an electricity
				generating facility that is not an existing electricity generating
				facility.
New Facility Aggregate
				CO
2
Emissions
				Limit
means, with respect to calendar year 2018, the sum of all
				new electricity generating facility CO2 emissions
				limits, as listed in 310 CMR 7.74(5)(a):
Table A.
Offset
means to use allowances to
				cover CO2 emissions from an electricity generating
				facility pursuant 310 CMR 7.74.
Operator
means any person or group of
				persons who operates, controls, or supervises an electricity generating
				facility including, but not limited to, any holding company, utility system,
				plant manager, or operations manager of the electricity generating
				facility.
Owner
means any of the following
				persons or group of persons:
(a) Any
			 holder(s) of any portion of the legal or equitable title in an electricity
			 generating facility; or
(b) Any
			 holder(s) of a leasehold interest in an electricity generating facility.
Reserve Price
means the minimum
				acceptable price for each allowance in a specific auction.
Sealed Bid, Uniform Price Auction
means a single or multiple round sealed-bid auction in which bidders may submit
				multiple bids at different prices; the price paid by all awarded bidders will
				be uniform.
Serial Number
means, when referring to
				allowances, the unique identification number assigned by the Department to each
				allowance.
Total Aggregate
				CO
2
Emissions
				Limit
means, with respect to a particular calendar year, the
				maximum allowable aggregate limit on CO2 emissions from
				all electricity generating facilities subject to 310 CMR 7.74, as listed in 310
				CMR 7.74(5)(a):
Table A.