Rhode Island Code of Regulations › Title 250 - Department of Environmental Management › Chapter 120 - Air Resources › Subchapter 05 - Air Pollution Control › Part 47 - CO[2] Budget Trading Program Allowance Distribution › Section 250-RICR-120-05-47.4 - Definitions

Current through June 14, 2024
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 CO2
				  allowances. 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.