1147 CO 2 Budget Trading Program

1.0 CO 2 Budget Trading Program General Provisions

This Regulation establishes the State of Delaware component of the CO 2 Budget Trading Program, which is designed to stabilize and then reduce anthropogenic emissions of CO 2. a greenhouse gas, from CO 2 budget sources in an economically efficient manner.

1.2.1 Units. Any unit that, at any time on or after January 1, 2005, serves an electricity generator with a nameplate capacity equal to or greater than 25 MWe shall be a CO 2 budget unit and any source that includes one or more such units shall be a CO 2 budget source, subject to the requirements of this regulation.

1.2.2 Limited exemption for units with electrical output to the electric grid restricted by permit conditions .

1.2.2.1 Applicability. Notwithstanding 1.2.1 of this regulation, a unit under 1.2.1 of this regulation that is covered by a permit issued pursuant to 7 DE Admin Code 1102 or 1130 containing a practically enforceable condition restricting the supply of the unit’s annual electrical output to the electric grid to less than or equal to 10 percent of the annual gross generation of the unit, and which complies with the provisions in 1.2.2.3 of this regulation, shall be exempt from the requirements of Regulation 1147, except for the provisions 1.3, 1.4, 1.6 of this regulation.

1.2.2.2 Effective date. The exemption under 1.2.2.1 of this regulation shall become effective as of the January 1 that is on or after the date on which the restriction on the percentage of annual gross generation that may be supplied to the electric grid and the provisions in the permit required under 1.2.2.1 of this regulation become final.

1.2.2.3 Compliance.

1.2.2.3.4 The owners and operators and, to the extent applicable, the CO 2 authorized account representative of a unit exempt under 1.2.2.1 of this regulation shall comply with all the requirements of this Regulation concerning all time periods for which the exemption is not in effect, even if such requirements arise, or must be complied with, after the exemption takes effect.

1.2.3.1 Applicability. Notwithstanding 1.2.1 of this regulation, a CO2 budget source under 1.2.1 of this regulation that is a petroleum refinery may elect to participate in the CO2 budget trading program by securing a permit issued pursuant to 7 DE Admin. Code 1102 or 1130 that contains practically enforceable conditions that require compliance with all of the provisions of this regulation, except CO2 budget emissions limitation shall mean for a CO2 budget source, the tonnage equivalent, in CO2 emissions associated with the gross electrical generation output to the electric grid in a control period from all CO2 Budget Units at the CO2 Budget Source, of the CO2 allowances available for compliance deduction for the source for a control period; and the amount of CO 2 allowances required to be held pursuant to 1.5.3.1, and deducted pursuant to 6.5.2.1 of this regulation shall include only the number of tons of total CO 2 emissions associated with gross generation output to the electric grid.

“ Account number ” means the identification number given by the Department or its agent to each CO 2 Allowance Tracking System account.

“ Acid rain emissions limitation ” means as defined in 40 CFR 72.2, a limitation on emissions of sulfur dioxide or nitrogen oxides under the Acid Rain Program under title IV of the Clean Air Act.

“ Acid Rain Program ” means a multi-state sulfur dioxide and nitrogen oxides air pollution control and emission reduction program established by the Administrator under title IV of the CAA and 40 CFR 72 through 78.

“ Administrator ” means the Administrator of the United States Environmental Protection Agency or the Administrator’s authorized representative.

“ Allocate or allocation ” means the determination by the Department of the number of CO 2 allowances to be recorded in the compliance account of a CO 2 budget unit, an allocation set-aside account, the consumer benefit or strategic energy purpose account, or the general account of the sponsor of an approved CO 2 emissions offset project.

“ Allocation year ” means a calendar year for which the Department allocates or awards CO 2 allowances pursuant to 5.0 and 10.0 of this regulation. The allocation year of each CO 2 allowance is reflected in the unique identification number given to the allowance pursuant to 6.4.5 of this regulation.

“ Allowance auction or auction ” means an auction in which the Department offers CO 2 allowances for sale.

“ Alternate CO2 authorized account representative ” means for a CO 2 budget source and each CO 2 budget unit at the source, the natural person who is authorized by the owners and operators of the source and all CO 2 budget units at the source, in accordance with 2.0 of this regulation, to represent and legally bind each owner and operator in matters pertaining to the CO 2 Budget Trading Program or, for a general account, the natural person who is authorized, under 6.0 of this regulation, to transfer or otherwise dispose of CO 2 allowances held in the general account.

If the CO 2 budget source is also subject to the Acid Rain Program, then for a CO 2 Budget Trading Program compliance account, this natural person shall be the same person as the alternate designated representative under the Acid Rain Program. If the CO 2 budget source is also subject to the Acid Rain Program CAIR NOx Ozone Season Trading Program, CAIR NOx Annual Trading Program Compliance Account, or CAIR SO2 Trading Program, then for a CO 2 Budget Trading Program compliance account, this natural person shall be the same person as the alternate designated representative under the Acid Rain Program.

“ Anaerobic digester ” means a device that promotes the decomposition of organic material to simple organics and gaseous biogas products, usually accomplished by means of controlling temperature and volume, and including a methane recovery system.

“ Anaerobic digestion ” means the degradation of organic material including manure brought about through the action of microorganisms in the absence of elemental oxygen.

“Anaerobic storage” means storage of organic material in an oxygen-free environment, or under oxygen-free conditions, including but not limited to, holding tanks, ponds, and lagoons.

“ Ascending Price, Multiple Round Auction ” means a multiple round auction starting with an opening price with increases each round by predetermined increments. In each round, bidders offer the quantity they are willing to purchase at the posted price. Rounds continue so long as demand exceeds the quantity offered for sale. At the completion of the final round, allowances may be allocated, subject to Section 11.5 of this regulation:

“ Attribute ” means a characteristic associated with electricity generated using a particular renewable fuel, such as its generation date, facility geographic location, unit vintage, emissions output, fuel, state program eligibility, or other characteristic that can be identified, accounted for, and tracked.

“ Attribute credit ” means an attribute credit represents the attributes related to one megawatt-hour of electricity generation.

“ Automated data acquisition and handling system or DAHS ” means that component of the continuous emissions monitoring system, or other emissions monitoring system approved for use under 8.0 of this regulation, designed to interpret and convert individual output signals from pollutant concentration monitors, flow monitors, diluent gas monitors, and other component parts of the monitoring system to produce a continuous record of the measured parameters in the measurement units required by 8.0 of this regulation.

“ Award ” means the determination by the Department of the number of CO 2 offset allowances to be recorded in the general account of a project sponsor pursuant to 10.7 of this regulation. Award is a type of allocation.

“ Billing meter ” means to qualify as a billing meter, the measurement device must be used to measure electric or thermal output for commercial billing under a contract. The facility selling the electric or thermal output must have different owners from the owners of the party purchasing the electric or thermal output.

“ Biogas ” means a gas resulting from the decomposition of organic matter under anaerobic conditions. The principle constituents are methane and carbon dioxide.

“ Boiler ” means an enclosed fossil or other fuel-fired combustion device used to produce heat and to transfer heat to recirculating water, steam, or other medium.

“Boiler (commercial)” means a self-contained, low-pressure appliance for supplying steam or hot water to a commercial building.

“Boiler (residential)” means a self-contained, low-pressure appliance for supplying steam or hot water to a residential building.

“ Building envelope ” means the elements of a building that separate conditioned space from unconditioned space, or that enclose semi-heated space, through which thermal energy may be transferred to or from the exterior, unconditioned space, or conditioned space. Includes all elements that separate the interior of a building from the outdoor environment, including walls, windows, foundation, basement slab, ceiling, roof, and insulation.

“ CO 2 e ” means carbon dioxide equivalent.

“ Commercial building ” means a building to which the provisions of ANSI/ASHRAE/IESNA Standard 90.1 apply, which includes buildings except low-rise residential buildings. Low-rise residential buildings include single family homes, multifamily structures of three stories or fewer above grade, and manufactured homes (modular and mobile).

“ Clean Air Interstate Rule (CAIR) NOx Annual Trading Program CAIR NOx Annual Trading Program ” means a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with 40 CFR Part 96 subparts AA through II and 40 CFR 51.123(o)(1) or (2) or established by the Administrator in accordance with subparts AA through II of 40 CFR Part 97 and 40 CFR 51.123(p) and 52.35, as a means of mitigating interstate transport of fine particulates and nitrogen oxides.

“ CAIR NOx Ozone Season Trading Program CAIR NOx Ozone Season Trading Program ” means a multi-state nitrogen oxides air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAAA through IIII of 40 CFR Part 96 and 40 CFR 51.123(aa)(1) or (2) (and (bb)(1)), (bb)(2), or (dd) or established by the Administrator in accordance with subparts AAAA through IIII of 40 CFR Part 97 and 40 CFR 51.123(ee) and 52.35, as a means of mitigating interstate transport of ozone and nitrogen oxides.

“ CAIR SO 2 Trading Program CAIR SO 2 Trading Program ” means a multi-state sulfur dioxide air pollution control and emission reduction program approved and administered by the Administrator in accordance with subparts AAA through III of 40 CFR Part 96 and 40 CFR 51.124(o)(1) or (2) or established by the Administrator in accordance with subparts AAA through III of 40 CFR Part 97 and 40 CFR 51.124(r) and 52.36, as a means of mitigating interstate transport of fine particulates and sulfur dioxide.

“ Cost Containment Reserve trigger price, or CCR trigger price ” means the CCR trigger price is also the minimum price at which CO 2 CCR allowances are offered for sale by the Department at auction. The CCR trigger price shall be $4.00 per CO 2 Allowance for calendar year 2014, $6.00 per CO 2 Allowance in calendar years 2015, $ 8.00 per CO 2 allowance in calendar year 2016, and $10.00 per CO 2 Allowances in calendar year 2017, each calendar year thereafter, 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.

“ CO 2 allowance ” means a limited authorization by the Department or a participating state under the CO 2 Budget Trading Program to emit up to one ton of CO 2. subject to all applicable limitations contained in this regulation.

www.dnrec.delaware.gov/ .

“ CO 2 allowance deduction or deduct CO 2 allowances ” means the permanent withdrawal of CO 2 allowances by the Department or its agent from a CO 2 Allowance Tracking System compliance account to account for the number of tons of CO 2 emitted from a CO 2 budget source for a control period, determined in accordance with 8.0 of this regulation, or for the forfeit or retirement of CO 2 allowances as provided by this regulation.

“ CO 2 allowance price ” means the price for CO 2 allowances in the CO 2 Budget Trading Program for a particular time period as determined by the Department or its agent, calculated based on a volume-weighted average of transaction prices reported to the Department or its agent, and taking into account prices as reported publicly through reputable sources.

“ CO 2 allowances held or hold CO 2 allowances ” means the CO 2 allowances recorded by the Department or its agent, or submitted to the Department or its agent for recordation, in accordance with 6.0 and 7.0 of this regulation, in a CO 2 Allowance Tracking System account.

“ CO 2 Allowance Tracking System ” means the system by which the Department or its agent records allocations, deductions, and transfers of CO 2 allowances under the CO 2 Budget Trading Program. The tracking system may also be used to track CO 2 emissions offset projects, CO 2 allowance prices and emissions from affected sources.

“ CO 2 Allowance Tracking System account ” means an account in the CO 2 Allowance Tracking System established by the Department or its agent for purposes of recording the allocation, holding, transferring, or deducting of CO 2 allowances.

“ CO 2 allowance transfer deadline ” means midnight of the March 1 occurring after the end of the relevant control period and each relevant interim control period, if that March 1 is not a business day, midnight of the first business day thereafter and is the deadline by which CO 2 allowances must be submitted for recordation in a CO 2 budget source’s compliance account in order for the source to meet the CO2 requirements of 1.5.3 of this regulation for the control period and each relevant interim control period immediately preceding such deadline.

“ CO 2 authorized account representative ” means for a CO 2 budget source and each CO 2 budget unit at the source, the natural person who is authorized by the owners and operators of the source and all CO 2 budget units at the source, in accordance with 2.0 of this regulation, to represent and legally bind each owner and operator in matters pertaining to the CO 2 Budget Trading Program or, for a general account, the natural person who is authorized, under 6.0 of this regulation, to transfer or otherwise dispose of CO 2 allowances held in the general account.

If the CO 2 budget source is also subject to the Acid Rain Program, then for a CO 2 Budget Trading Program compliance account, this natural person shall be the same person as the authorized account representative under the Acid Rain Program. If the CO 2 budget source is also subject to the CAIR NOx Ozone Season Trading Program, CAIR NOx Annual Trading Program, or CAIR SO 2 Trading Program then, for a CO 2 Budget Trading Program compliance account, this natural person shall be the same person as the CAIR designated representative under such programs.

“ CO 2 budget emissions limitation ” means for a CO 2 budget source, the tonnage equivalent, in CO 2 emissions in a control period or an interim control period, of the CO 2 allowances available for compliance deduction for the source for a control period or an interim control period.

“ CO 2 budget permit ” means the portion of the legally binding permit issued by the Department pursuant to Regulation 1102, 1130 and 1147 to a CO 2 budget source or CO 2 budget unit which specifies the CO 2 Budget Trading Program requirements applicable to the CO 2 budget source, to each CO 2 budget unit at the CO 2 budget source, and to the owners and operators and the CO 2 authorized account representative of the CO 2 budget source and each CO 2 budget unit.

“ CO 2 budget source ” means a source that includes one or more CO 2 budget units.

“ CO 2 Budget Trading Program ” means a multi-state CO 2 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 CO 2 from CO 2 budget sources.

“ CO 2 budget unit ” means a unit that is subject to the CO 2 Budget Trading Program requirements under 1.2 of this regulation.

“ CO 2 cost containment reserve allowance or CO 2 CCR allowance ” means a CO 2 allowance that is offered for sale at an auction by the Department for the purpose of containing the cost of CO 2 Allowances. CO 2 CCR allowances offered for sale at an auction are separate from and additional to CO 2 allowances allocated from Delaware’s CO 2 Budget Trading Program base and adjusted budgets. CO 2 CCR allowances are subject to all applicable limitations contained in this Part.

“ CO 2 equivalent ” means the quantity of a given greenhouse gas multiplied by its global warming potential (GWP).

“ CO 2 offset allowance ” means a CO 2 allowance that is awarded to the sponsor of a CO 2 emissions offset project pursuant to 10.7 of this regulation and is subject to the relevant compliance deduction limitations of 6.5.1.3 of this regulation.

“ Combined cycle system ” means a system comprised of one or more combustion turbines, heat recovery steam generators, and steam turbines configured to improve overall efficiency of electricity generation or steam production.

“ Combustion turbine ” means an enclosed fossil or other fuel-fired device that is comprised of a compressor (if applicable), a combustor, and a turbine, and in which the flue gas resulting from the combustion of fuel in the combustor passes through the turbine, rotating the turbine.

“ Commence commercial operation ” means with regard to a unit that serves a generator, to have begun to produce steam, gas, or other heated medium used to generate electricity for sale or use, including test generation. For a unit that is a CO 2 budget unit under 1.2 of this regulation on the date the unit commences commercial operation, such date shall remain the unit’s date of commencement of commercial operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO 2 budget unit under 1.2 of this regulation on the date the unit commences commercial operation, the date the unit becomes a CO 2 budget unit under 1.2 of this regulation shall be the unit’s date of commencement of commercial operation.

“ Commence operation ” means to begin any mechanical, chemical, or electronic process, including, with regard to a unit, start-up of a unit’s combustion chamber. For a unit that is a CO 2 budget unit under 1.2 of this regulation on the date of commencement of operation, such date shall remain the unit’s date of commencement of operation even if the unit is subsequently modified, reconstructed, or repowered. For a unit that is not a CO 2 budget unit under 1.2 of this regulation on the date of commencement of operation, the date the unit becomes a CO 2 budget unit under 1.2 of this regulation shall be the unit’s date of commencement of operation.

“ Commercial building ” means a building to which the provisions of ANSI/ASHRAE/ IESNA Standard 90.1-2010: “Energy Standard for Buildings Except Low-Rise Residential Buildings” apply, which includes buildings except low-rise residential buildings. Low-rise residential buildings include single family homes, multifamily structures of three stories or fewer above grade, and manufactured homes (modular and mobile).

“ Compliance account ” means a CO 2 Allowance Tracking System account, established by the Department or its agent for a CO 2 budget source under 6.0 of this regulation, in which the CO 2 allowance allocations for the source are initially recorded and in which are held CO 2 allowances available for use by the source for a control period and each interim control period for the purpose of meeting the CO2 requirements of 1.5.3 of this regulation.

“ Condensing mode ” means the design and operation of furnaces or boilers in a mode that leads to the production of condensate in flue gases.

“ Conflict of interest ” means a situation that may arise with respect to an individual in relation to any specific project sponsor, CO 2 emissions offset project or category of offset projects, such that the individual’s other activities or relationships with other persons or organizations render or may render the individual incapable of providing an impartial certification opinion, or otherwise compromise the individual’s objectivity in performing certification functions.

“ Continuous emissions monitoring system or CEMS ” means the equipment required under 8.0 of this regulation to sample, analyze, measure, and provide, by means of readings recorded at least once every 15 minutes (using an automated DAHS), a permanent record of stack gas volumetric flow rate, stack gas moisture content, and oxygen or carbon dioxide concentration (as applicable), in a manner consistent with 40 CFR 75 and 8.0 of this regulation. The following systems are types of continuous emissions monitoring systems required under 8.0 of this regulation.

(2) A nitrogen oxides emissions rate (or NO X -diluent) monitoring system, consisting of a NO X pollutant concentration monitor, a diluent gas (CO 2 or O 2 ) monitor, and an automated data acquisition and handling system and providing a permanent, continuous record of NO X concentration, in parts per million (ppm), diluent gas concentration, in percent CO 2 or O 2 ; and NO X emissions rate, in pounds per million British thermal units (lb/MMBtu);

A carbon dioxide monitoring system, consisting of a CO 2 pollutant concentration monitor (or an oxygen monitor plus suitable mathematical equations from which the CO 2 concentration is derived) and an automated data acquisition and handling system and providing a permanent, continuous record of CO 2 emissions, in percent CO 2 ; and

An oxygen monitoring system, consisting of an O 2 concentration monitor and an automated data acquisition and handling system and providing a permanent, continuous record of O 2. in percent O 2 .

“ Control period ” means a three-calendar-year time period. The first control period is from January 1, 2009 to December 31, 2011, inclusive. Each subsequent sequential three-calendar-year period is a separate control period. The first two calendar years of each control period are defined as an interim control period beginning in January 1, 2015.

“ Cooperating Regulatory Agency ” means a regulatory agency in a state or United States jurisdiction that is not a participating state that has entered into a memorandum of understanding with the appropriate regulatory agencies of all participating states to carry out certain obligations relative to CO 2 emissions offset projects in that state or United States jurisdiction, including but not limited to the obligation to perform audits of offset project sites, and report violations of this regulation.

“ Delaware Auction Account ” means an account administered by the Department of Natural Resources and Environmental Control or its agent for purposes of auctioning CO 2 allowances.

“ Department ” means the State of Delaware Department of Natural Resources and Environmental Control.

“ Eligible biomass ” means eligible biomass includes sustainably harvested woody and herbaceous fuel sources that are available on a renewable or recurring basis (excluding old-growth timber), including dedicated energy crops and trees, agricultural food and feed crop residues, aquatic plants, unadulterated wood and wood residues, animal wastes, other clean organic wastes not mixed with other solid wastes, biogas, and other neat liquid biofuels derived from such fuel sources. Sustainably harvested will be determined by the Department.

“ Energy conservation measure (ECM) or energy efficiency measure (EEM) ” means a set of activities designed to increase the energy efficiency of a building or improve the management of energy demand. An ECM/EEM may involve one or more of the following: physical changes to facility equipment, modifications to a building, revisions to operating and maintenance procedures, software changes, or new means of training or managing users of the building or operations and maintenance staff.

“ Energy performance ” means a measure of the relative energy efficiency of a building, building equipment, or building components, as measured by the amount of energy required to provide building services. For building equipment and components, a relative measure of the impact of equipment or components on building energy usage.

“ Energy services ” means a provision of useful services to building occupants, such as heating and hot water, cooling, and lighting.

“ Excess emissions ” means any tonnage of CO 2 emitted by a CO 2 budget source during a control period that exceeds the CO 2 budget emissions limitation for the source.

“ Excess interim emission ” means any tonnage of CO 2 emitted by a CO 2 budget source during an interim control period multiplied by 0.50 that exceeds the CO 2 budget emissions limitation for the source.

“ First control period interim adjustment for banked allowances ” means an adjustment applied to the State of Delaware CO 2 Budget Trading Program base budget for allocation years 2014 through 2020 to address the surplus allocation year 2009, 2010, and 2011 allowances held in general and compliance accounts, including compliance accounts established pursuant to the CO 2 Budget Trading Program, but not including accounts opened by participating states.

“ Forest offset project ” mean an offset project involving reforestation, improved forest management, or avoided conversion.

“ Forest offset project data report ” means the report prepared by a project sponsor each year that provides the information and documentation required by this Subpart or the forest offset protocol.

“ Forest offset protocol ” means the protocol titled “Regional Greenhouse Gas Initiative Offset Protocol U.S. Forest Projects”, published by the participating states on 02/08/13.

“ Fossil fuel ” means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material.

“ Fossil fuel-fired ” means:

“ Furnace ” means a self-contained, indirect-fired appliance that supplies heated air to a residential building through ducts to conditioned spaces and that has a heat input rate of less than 225,000 Btu/hr. May apply to a furnace that meets the above heat input rate criteria and is installed in a building.

“ General account ” means a CO 2 Allowance Tracking System account, established under 6.0, that is not a compliance account.

“ Global warming potential (GWP) ” means a measure of the radiative efficiency (heat-absorbing ability) of a particular gas relative to that of carbon dioxide (CO 2 ) after taking into account the decay rate of each gas (the amount removed from the atmosphere over a given number of years) relative to that of CO 2. Global warming potentials used in this Regulation are consistent with the values used in the Intergovernmental Panel on Climate Change, Third Assessment Report.

“ Gross generation ” means the electrical output (in MWe) at the terminals of the generator.

“ HVAC system ” means the system or systems that provide, either collectively or individually, heating, ventilation, or air conditioning to a building, including the equipment, distribution network, and terminals.

“ Independent verifier ” means an individual that has been approved by the Department or its agent to conduct verification activities.

“ Intentional Reversal ” means any reversal caused by a forest owner’s negligence, gross negligence, or willful intent, including harvesting, development, and harm to the area within the offset project boundary

“ Interim control period ” means an interim control period is a one-calendar-year time period, during each of the first and second calendar years of each three year control period. The first interim control period starts on January 1, 2015 and ends on December 31, 2015, inclusive. The second interim control period starts on January 1, 2016 and ends on December 31, 2016, inclusive. Each successive three year control period will have two interim control periods, comprised of each of the first two calendar years of that control period.

“ Life-of-the-unit contractual arrangement ” means a unit participation power sales agreement under which a customer reserves, or is entitled to receive, a specified amount or percentage of nameplate capacity and/or associated energy from any specified unit pursuant to a contract:

“ Market penetration rate ” means a measure of the diffusion of a technology, product, or practice in a defined market, as represented by the percentage of annual sales for a product or practice, or as a percentage of the existing installed stock for a product or category of products, or as the percentage of existing installed stock that utilizes a practice. The Department may determine an appropriate market definition and market penetration metric for a category of technology, product or practice, and may issue guidance specifying the technologies, products or practices that meet a specified market penetration rate.

“ Maximum design heat input ” means the ability of a unit to combust a stated maximum amount of fuel per hour on a steady state basis, as determined by the physical design and physical characteristics of the unit.

“ Maximum potential hourly heat input ” means an hourly heat input used for reporting purposes when a unit lacks certified monitors to report heat input. If the unit intends to use appendix D of 40 CFR 75 to report heat input, this value should be calculated, in accordance with 40 CFR 75, using the maximum fuel flow rate and the maximum gross calorific value. If the unit intends to use a flow monitor and a diluent gas monitor, this value should be reported, in accordance with 40 CFR 75, using the maximum potential flow rate and either the maximum carbon dioxide concentration (in percent CO 2 ) or the minimum oxygen concentration (in percent O 2 ).

“ Minimum reserve price ” means the minimum reserve price in calendar year 2014 shall be $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.

“ Monitoring system ” means any monitoring system that meets the requirements of 8.0 of this regulation, including continuous emissions monitoring system, an accepted monitoring system, or an alternative monitoring system.

“ Nameplate capacity ” means the maximum electrical output (in MWe) that a generator can sustain over a specified period of time when not restricted by seasonal or other de-ratings as measured in accordance with the United States Department of Energy standards.

“ Non-CO2 budget unit ” means a unit that does not meet the applicability criteria of 1.2 of this regulation.

“ Non-census water ” means streams, sloughs, estuaries, and canals more than 120 feet and less than 1/8 of a mile wide. Lakes, reservoirs, and ponds one (1) to 40 acres in size.

Offset project means an offset project includes all equipment, materials, items, or actions directly related to the reduction of CO2 equivalent emissions or the sequestration of carbon specified in a consistency application submitted pursuant to 10.4 of this regulation. Equipment, materials, items, or actions unrelated to an offset project reduction of CO2 equivalent emissions or the sequestration of carbon, but occurring at a location where an offset project occurs, shall not be considered part of an offset project, unless specified at 10.5 of this regulation.

“ On-site combustion ” means the combustion of fossil fuel at a building to provide building services, such as heating, hot water, or electricity.

“ Operator ” means any person who operates, controls, or supervises a CO 2 budget unit or a CO 2 budget source and shall include, but not be limited to, any holding company, utility system, or plant manager of such a unit or source.

“ Owner ” means any of the following persons:

(2) Any holder of a leasehold interest in a CO 2 budget unit, other than a passive lessor, or a person who has an equitable interest through such lessor, whose rental payments are not based, either directly or indirectly, upon the revenues or income from the CO 2 budget unit; or

(3) Any purchaser of power from a CO 2 budget unit under a life-of-the-unit contractual arrangement in which the purchaser controls the dispatch of the unit; or

(4) With respect to any general account, any person who has an ownership interest with respect to the CO 2 allowances held in the general account and who is subject to the binding agreement for the CO 2 authorized account representative to represent that person’s ownership interest with respect to the CO 2 allowances.

“ Participating state ” means a state that has established a corresponding regulation as part of the CO 2 Budget Trading Program.

“ Passive solar ” means a combination of building design features and building components that utilize solar energy to reduce or eliminate the need for mechanical heating and cooling and daytime artificial lighting.

“ Project commencement ” means for an offset project involving physical construction, other work at an offset project site, or installation of equipment or materials, the date of the beginning of such activity. For an offset project that involves the implementation of a management activity or protocol, the date on which such activity is first implemented or such protocol first utilized. For an offset project involving reforestation, improved forest management, or avoided conversion, the date specified in section 3.2 of the forest offset protocol.

“ Public Benefit Purpose ” shall mean purposes including the promotion of energy efficiency, the mitigation of electricity ratepayer impacts attributable to RGGI, the promotion of distributed renewable or non-carbon-emitting energy technologies, the stimulation and reward of investment in the development of innovative carbon emissions abatement technologies with significant carbon reduction potential, and funding of the administration of the Program established by Title 7, Chapter 60 .

“ Receive or receipt of ” means when referring to the Department or its agent, to come into possession of a document, information, or correspondence (whether sent in writing or by authorized electronic transmission), as indicated in an official correspondence log, or by a notation made on the document, information, or correspondence, by the Department or its agent in the regular course of business.

“ Recordation, record, or recorded ” means with regard to CO 2 allowances, the movement of CO 2 allowances by the Department or its agent from one CO 2 Allowance Tracking System account to another, for purposes of allocation, transfer, or deduction.

“ Regional-type anaerobic digester ” means an anaerobic digester using feedstock from more than one agricultural operation, or importing feedstock from more than one agricultural operation.Also commonly referred to as a “community digester” or “centralized digester.”

“ Renewable portfolio standard ” means a statutory or regulatory requirement that a load-serving entity provide a certain portion of the electricity it supplies to its customers from renewable energy sources, or any other statutory or regulatory requirement that a certain portion of electricity supplied to the electricity grid be generated from renewable energy sources.

“ Reporting Period ” means the period of time covered in by forest offset project data report. The first reporting period for an offset project in an initial crediting period may consist of 6 to 24 consecutive months; all subsequent reporting periods in an initial crediting and all reporting periods in any renewed crediting period must consist of 12 consecutive months.

“ Reserve Price ” means the minimum acceptable price for each CO 2 allowance in a specific auction. The reserve price at an auction is either the minimum reserve price or the CCR trigger price, as specified in 9.0 of this regulation.

“ Residential building ” means a low-rise residential building to which the provisions of ANSI/ASHRAE/ IESNA Standard 90.1-2004: “Energy Standard for Buildings Except Low-Rise Residential Buildings” and American Society of Heating, Refrigerating and Air-Conditioning Engineers, Inc. ANSI/ASHRAE/IESNA Addenda a, b, c, d, e, f, g, h, i, j, k, l, m, n, o, p, r, s, t, u, v, x, and ak, Supplement to ANSI/ASHRAE/IESNA Standard 90.1-2004:”Energy Standard for Buildings Except Low-Rise Residential Buildings, 2006” do not apply. Includes single family homes, multifamily structures of three stories or fewer above grade, and manufactured homes (modular and mobile).

“ Reversal ” means a GHG emission reduction or GHG removal enhancement for which CO 2 offset allowances have been issued that is subsequently released or emitted back into the atmosphere due to any intentional or unintentional circumstance.

“ Serial number ” means when referring to CO 2 allowances, the unique identification number assigned to each CO 2 allowance by the Department or its agent under 6.4.5 of this regulation.

“ Single Round Sealed-Bid Uniform Price Auction ” means a single round sealed-bid uniform price auction format, under which bidders may submit multiple bids at different prices; the price paid by all awarded bidders will be uniform and equal to the highest rejected bid price.

“ Source ” means any governmental, institutional, commercial, or industrial structure, installation, plant, building, or facility that emits or has the potential to emit any air pollutant. A “source,” including a “source” with multiple units, shall be considered a single “facility.”

“ State ” means a State, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, and American Samoa and includes the Commonwealth of the Northern Mariana Islands.

“ State of Delaware’s CO 2 Budget Trading Program adjusted budget ” means The State of Delaware’s CO 2 Budget Trading Program adjusted budget is determined in accordance with section 5.3 and is the annual amount of CO 2 tons available in the State of Delaware for allocation in a given allocation year, in accordance with the CO 2 Budget Trading Program. CO 2 offset allowances allocated to project sponsors and CO 2 CCR allowances offered for sale at an auction are separate from and additional to CO 2 allowances allocated from the State of Delaware’s CO 2 Budget Trading Program adjusted budget.

“ State of Delaware CO2 Budget Trading Program Base Budget ” means the annual amount of CO 2 tons available in the State of Delaware for allocation in a given allocation year, in accordance with the CO 2 Budget Trading Program. CO 2 offset allowances allocated to project sponsors are separate from and additional to CO 2 allowances allocated from the State of Delaware CO 2 Budget Trading Program Base Budget.

“ Submit or serve ” means to send or transmit a document, information, or correspondence to the person specified in accordance with the applicable regulation:

“ SF6-containing operating equipment ” means any equipment used for the transmission and distribution of electricity that contains SF 6 .

“ System benefit fund ” means any fund collected directly from retail electricity or natural gas ratepayers.

“ Ton or tonnage ” means any “short ton”, or 2,000 pounds. For the purpose of determining compliance with the CO 2 requirements of 1.5.3 of this regulation, total tons for a control period and each interim control period shall be calculated as the sum of all recorded hourly emissions (or the tonnage equivalent of the recorded hourly emissions rates) in accordance with 8.0 of this regulation, with any remaining fraction of a ton equal to or greater than 0.50 ton deemed to equal one ton and any fraction of a ton less than 0.50 ton deemed to equal zero tons. A short ton is equal to 0.9072 metric tons.

“ Total solids ” means total solids are the total of all solids in a sample. They include the total suspended solids, total dissolved solids, and volatile suspended solids.

“ Transmission and/or distribution entity ” means the assets and equipment used to transmit and distribute electricity from an electric generator to the electrical load of a customer. Includes all related assets and equipment located within the service territory of the entity, defined as the service territory of a load-serving entity specified by the applicable state regulatory agency.

“ Twelve month period ” means a period of twelve consecutive months determined on a rolling basis where a new twelve month period begins on the first day of each calendar month.

“ Undistributed CO 2 allowances ” mean CO 2 allowances originally allocated to a set aside account as pursuant to 5.3 that were not distributed.

“Unit” means a fossil fuel-fired stationary boiler, combustion turbine, or combined cycle system.

“ Unit operating day ” means a calendar day in which a unit combusts any fuel.

“ Unsold CO 2 allowances ” mean CO 2 allowances that have been made available for sale in an auction conducted under the Department or its agent, but not sold.

“ Verification ” means the verification by an independent verifier that certain parts of a CO 2 emissions offset project consistency application and/or measurement, monitoring or verification report conforms to the requirements of this regulation.

“ Volatile solids ” means the fraction of total solids that is comprised primarily of organic matter.

“ Whole-building energy performance ” means the overall energy performance of a building, taking into account the integrated impact on energy usage of all building components and systems.

“ Whole-building retrofit ” means any building project that involves the replacement of more than one building system, or set of building components, and also requires a building permit.

“ Zero net energy building ” means a building designed to produce as much energy, using renewable energy sources, as the building is projected to use, as measured on an annual basis.

1.4.1 ANSI — American National Standards Institute.

1.4.3 CO 2 -carbon dioxide.

1.4.4 ”CO 2 e” — CO 2 e means carbon dioxide equivalent.

1.4.9 RESNET-Residential Energy Service Network.

1.5.1 Permit requirements .

1.5.1.1 The CO 2 authorized account representative of each CO 2 budget source required to have an operating permit pursuant to Regulation 1102, 1130 and 1147 of this Title and each CO 2 budget unit required to have an operating permit pursuant to Regulation 1102, 1130 and 1147 of this Title shall:

1.5.1.1.1 submit to the Department a complete CO 2 budget permit application under 3.3 of this regulation in accordance with the deadlines specified in 3.2 of this regulation; and

1.5.1.2 The owners and operators of each CO 2 budget source required to have an operating permit pursuant to DE Regulations 1102, 1130 and 1147 of this Title and each CO 2 budget unit required to have an operating permit pursuant DE Regulations 1102, 1130 and 1147 of this Title for the source shall have a CO 2 budget permit and operate the CO 2 budget source and the CO 2 budget unit at the source in compliance with such CO 2 budget permit.

1.5.2 Monitoring requirements .

1.5.2.1 The owners and operators and, to the extent applicable, the CO 2 authorized account representative of each CO 2 budget source and each CO 2 budget unit at the source shall comply with the monitoring requirements of 8.0 of this regulation.

1.5.3 CO 2 requirements .

1.5.3.1 The owners and operators of each CO 2 budget source and each CO 2 budget unit at the source shall hold CO 2 allowances available for compliance deductions under 6.5 of this regulation, as of the CO 2 allowance transfer deadline, in the source’s compliance account in an amount not less than the total CO 2 emissions for the control period from all CO 2 budget units at the source, less the CO 2 allowances deducted to meet the requirements of 1.5.3.2, with respect to the previous two interim control periods, as determined in accordance with 6.0 and 8.0 of this regulation.

1.5.3.2 The owners and operators of each CO 2 budget source and each CO 2 budget unit at the source shall hold CO 2 allowances available for compliance deductions under 6.5, as of the CO 2 allowance transfer deadline, in the source’s compliance account in an amount not less than the total CO 2 emissions for the interim control period from all CO 2 budget units at the source multiplied by 0.50, as determined in accordance with 6.0 and 8.0 of this regulation.

1.5.3.3 Each ton of CO 2 emitted in excess of the CO 2 budget emissions limitation for a control period shall constitute a separate violation of this Regulation and applicable state law.

1.5.3.5 A CO 2 budget unit shall be subject to the requirements under 1.5.3.1 of this regulation starting on the later, of January 1, 2009 or the date on which the unit commences operation.

1.5.3.6 CO 2 allowances shall be held in, deducted from, or transferred among CO 2 Allowance Tracking System accounts in accordance with 5.0, 6.0, and 7.0, and 10.7 of this regulation.

1.5.3.7 A CO 2 allowance shall not be deducted, in order to comply with the requirements under 1.5.3.1 or 1.5.3.2 of this regulation, for a control period or interim control period that ends prior to the year for which the CO 2 allowance was allocated. A CO 2 offset allowance shall not be deducted, in order to comply with the requirements under 1.5.3.1 or 1.5.3.2 of this regulation, beyond the applicable percent limitations set out in 6.5.1.3 of this regulation.

1.5.3.8 A CO 2 allowance under the CO 2 Budget Trading Program is a limited authorization by the Department or a participating state to emit one ton of CO 2 in accordance with the CO 2 Budget Trading Program. No provision of the CO 2 Budget Trading Program, the CO 2 budget permit application, or the CO 2 budget permit or any provision of law shall be construed to limit the authority of the Department or a participating state to terminate or limit such authorization.

1.5.3.9 A CO 2 allowance under the CO 2 Budget Trading Program does not constitute a property right.

1.5.4 Excess emissions requirements. The owners and operators of a CO 2 budget source that has excess emissions in any control period or excess interim emissions for any interim control period shall:

1.5.4.1 Forfeit the CO 2 allowances required for deduction under 6.5.4.1 of this regulation, provided CO 2 offset allowances may not be used to cover any part of such excess emissions; and

1.5.5 Recordkeeping and reporting requirements .

1.5.5.1 Unless otherwise provided, the owners and operators of the CO 2 budget source and each CO 2 budget unit at the source shall keep on site at the source each of the following documents for a period of 10 years from the date the document is created. This period may be extended for cause, at any time prior to the end of 10 years, in writing by the Department.

1.5.5.1.1 The account certificate of representation for the CO 2 authorized account representative for the source and each CO 2 budget unit at the source and all documents that demonstrate the truth of the statements in the account certificate of representation, in accordance with 2.4 of this regulation, provided that the certificate and documents shall be retained on site at the source beyond such 10-year period until such documents are superseded because of the submission of a new account certificate of representation changing the CO 2 authorized account representative.

1.5.5.1.4 Copies of all documents used to complete a CO 2 budget permit application and any other submission under the CO 2 Budget Trading Program or to demonstrate compliance with the requirements of the CO 2 Budget Trading Program.

1.5.5.2 The CO 2 authorized account representative of a CO 2 budget source and each CO 2 budget unit at the source shall submit the reports and compliance certifications required under the CO 2 Budget Trading Program, including those under 4.0 of this regulation.

1.5.6 Liability .

1.5.6.1 No permit revision shall excuse any violation of the requirements of the CO 2 Budget Trading Program that occurs prior to the date that the revision takes effect.

1.5.6.2 Any provision of the CO 2 Budget Trading Program that applies to a CO 2 budget source (including a provision applicable to the CO 2 authorized account representative of a CO 2 budget source) shall also apply to the owners and operators of such source and of the CO 2 budget units at the source.

1.5.6.3 Any provision of the CO 2 Budget Trading Program that applies to a CO 2 budget unit (including a provision applicable to the CO 2 authorized account representative of a CO 2 budget unit) shall also apply to the owners and operators of such unit.

1.5.7 Effect on other authorities

No provision of the CO 2 Budget Trading Program, a CO 2 budget permit application, or a CO 2 budget permit, shall be construed as exempting or excluding the owners and operators and, to the extent applicable, the CO 2 authorized account representative of a CO 2 budget source or CO 2 budget unit from compliance with any other provisions of applicable State and federal law and regulations.

1.6.1 Unless otherwise stated, any time period scheduled, under the CO 2 Budget Trading Program, to begin on the occurrence of an act or event shall begin on the day the act or event occurs.

1.6.2 Unless otherwise stated, any time period scheduled, under the CO 2 Budget Trading Program, to begin before the occurrence of an act or event shall be computed so that the period ends the day before the act or event occurs.

1.6.3 Unless otherwise stated, if the final day of any time period, under the CO 2 Budget Trading Program, falls on a weekend or a State of Delaware or Federal holiday, the time period shall be extended to the next business day.

2.0 CO 2 Authorized Account Representative for CO 2 Budget Sources

2.1.1 Except as provided under 2.2 of this regulation, each CO 2 budget source, including all CO 2 budget units at the source, shall have one and only one CO 2 authorized account representative, with regard to all matters under the CO 2 Budget Trading Program concerning the source or any CO 2 budget unit at the source.

2.1.2 The CO 2 authorized account representative of the CO 2 budget source shall be selected by an agreement binding on the owners and operators of the source and all CO 2 budget units at the source.

2.1.3 Upon receipt by the Department or its agent of a complete account certificate of representation under 2.4 of this regulation, the CO 2 authorized account representative of the source shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each owner and operator of the CO 2 budget source represented and each CO 2 budget unit at the source in all matters pertaining to the CO 2 Budget Trading Program, notwithstanding any agreement between the CO 2 authorized account representative and such owners and operators. The owners and operators shall be bound by any decision or order issued to the CO 2 authorized account representative by the Department or a court regarding the source or unit.

2.1.4 No CO 2 budget permit shall be issued, and no CO 2 Allowance Tracking System account shall be established for a CO 2 budget source, until the Department or its agent has received a complete account certificate of representation under 2.4 of this regulation for a CO 2 authorized account representative of the source and the CO 2 budget units at the source.

2.1.5 Each submission under the CO 2 Budget Trading Program shall be submitted, signed, and certified by the CO 2 authorized account representative for each CO 2 budget source on behalf of which the submission is made. Each such submission shall include the following certification statement by the CO 2 authorized account representative:

“ I am authorized to make this submission on behalf of the owners and operators of the CO 2 budget sources or CO 2 budget units for which the submission is made. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment.”

2.1.6 The Department or its agent will accept or act on a submission made on behalf of owners or operators of a CO 2 budget source or a CO 2 budget unit only if the submission has been made, signed, and certified in accordance with 2.1.5 of this regulation.

2.2 Alternate CO 2 authorized account representative.

2.2.1 An account certificate of representation may designate one and only one alternate CO 2 authorized account representative who may act on behalf of the CO 2 authorized account representative. The agreement by which the alternate CO 2 authorized account representative is selected shall include a procedure for authorizing the alternate CO 2 authorized account representative to act in lieu of the CO 2 authorized account representative.

2.2.3 Except in 2.1.1, 2.3, 2.4, and 6.2 of this regulation, whenever the term “CO 2 authorized account representative” is used in this regulation, the term shall be construed to include the alternate CO 2 authorized account representative.

2.3 Changing the CO 2 authorized account representative and the alternate CO 2 authorized account representative; changes in the owners and operators.

2.3.1 Changing the CO 2 authorized account representative. The CO 2 authorized account representative may be changed at any time upon receipt by the Department or its agent of a superseding complete account certificate of representation under 2.4 of this regulation. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO 2 authorized account representative or alternate CO 2 authorized account representative prior to the time and date when the Department or its agent receives the superseding account certificate of representation shall be binding on the new CO 2 authorized account representative and the owners and operators of the CO 2 budget source and the CO 2 budget units at the source.

2.3.2 Changing the alternate CO 2 authorized account representative. The alternate CO 2 authorized account representative may be changed at any time upon receipt by the Department or its agent of a superseding complete account certificate of representation under 2.4 of this regulation. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous or alternate CO 2 authorized account representative or alternate CO 2 authorized account representative prior to the time and date when the Department or its agent receives the superseding account certificate of representation shall be binding on the new alternate CO 2 authorized account representative and the owners and operators of the CO 2 budget source and the CO 2 budget units at the source.

2.3.3 Changes in the owners and operators .

2.3.3.1 In the event a new owner or operator of a CO 2 budget source or a CO 2 budget unit is not included in the list of owners and operators submitted in the account certificate of representation, such new owner or operator shall be deemed to be subject to and bound by the account certificate of representation, the representations, actions, inactions, and submissions of the CO 2 authorized account representative and any alternate CO 2 authorized account representative of the source or unit, and the decisions, orders, actions, and inactions of the Department, as if the new owner or operator were included in such list.

2.3.3.2 Within 30 days following any change in the owners and operators of a CO 2 budget source or a CO 2 budget unit, including the addition of a new owner or operator, the CO 2 authorized account representative or alternate CO 2 authorized account representative shall submit a revision to the account certificate of representation amending the list of owners and operators to include the change.

2.4.1 A complete account certificate of representation for a CO 2 authorized account representative or an alternate CO 2 authorized account representative shall include the following elements in a format prescribed by the Department or its agent:

2.4.1.1 Identification of the CO 2 budget source and each CO 2 budget unit at the source for which the account certificate of representation is submitted;

2.4.1.3 A list of the owners and operators of the CO 2 budget source and of each CO 2 budget unit at the source;

2.4.1.4 The following certification statement by the CO 2 authorized account representative and any alternate CO 2 authorized account representative:

“I certify that I was selected as the CO 2 authorized account representative or alternate CO 2 authorized account representative, as applicable, by an agreement binding on the owners and operators of the CO 2 budget source and each CO 2 budget unit at the source. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO 2 Budget Trading Program on behalf of the owners and operators of the CO 2 budget source and of each CO 2 budget unit at the source and that each such owner and operator shall be fully bound by my representations, actions, inactions, or submissions and by any decision or order issued to me by the Department or a court regarding the source or unit.” ; and

2.4.1.5 The signature of the CO 2 authorized account representative and any alternate CO 2 authorized account representative and the dates signed.

2.5 Objections concerning the CO 2 authorized account representative.

2.5.2 Except as provided in 2.3.1 or 2.3.2 of this regulation, no objection or other communication submitted to the Department or its agent concerning the authorization, or any representation, action, inaction, or submission of the CO 2 authorized account representative shall affect any representation, action, inaction, or submission of the CO 2 authorized account representative or the finality of any decision or order by the Department or its agent under the CO 2 Budget Trading Program.

2.6 Delegation by CO 2 authorized account representative and alternate CO 2 authorized account representative

2.6.1 A CO 2 authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Department or its agent under this regulation.

2.6.2 An alternate CO 2 authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the Department or its agent under this regulation.

2.6.3 In order to delegate authority to make an electronic submission to the Department or its agent in accordance with 2.6.1 and 2.6.2 of this regulation, the CO 2 authorized account representative or alternate CO 2 authorized account representative, as appropriate, must submit to the Department or its agent a notice of delegation, in a format prescribed by the Department that includes the following elements:

2.6.3.4 The following certification statements by such CO 2 authorized account representative or alternate CO 2 authorized account representative:

2.6.3.4.1 “I agree that any electronic submission to the Department or its agent that is by a natural person identified in this notice of delegation and of a type listed for such electronic submission agent in this notice of delegation and that is made when I am a CO 2 authorized account representative or alternate CO 2 authorized account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under CO 2 Budget Trading Program shall be deemed to be an electronic submission by me.”

2.6.3.4.2 “Until this notice of delegation is superseded by another notice of delegation under the CO 2 Budget Trading Program, I agree to maintain an e-mail account and to notify the Department or its agent immediately of any change in my e-mail address unless all delegation authority by me under the CO 2 Budget Trading Program is terminated.”

2.6.4 A notice of delegation submitted under 2.6.3 of this regulation shall be effective, with regard to the CO 2 authorized account representative or alternate CO 2 authorized account representative identified in such notice, upon receipt of such notice by the Department or its agent and until receipt by the Department or its agent of a superseding notice of delegation by such CO 2 authorized account representative or alternate CO 2 authorized account representative as appropriate. The superseding notice of delegation may replace any previously identified electronic submission agent, add a new electronic submission agent, or eliminate entirely any delegation of authority.

3.1 General CO 2 budget permit requirements.

3.1.1 Each CO 2 budget source must have a permit issued by the Department pursuant to Regulations 1102, 1130 and 1147.

3.1.2 Each CO 2 budget permit shall contain all applicable CO 2 Budget Trading Program requirements and shall be a complete and distinguishable portion of the permit under 3.1.1 of this regulation.

3.2 Submission of CO 2 budget permit applications.

For any CO 2 budget source, the CO 2 authorized account representative shall submit a complete CO 2 budget permit application under 3.3 of this regulation covering such CO 2 budget source to the Department by the later of January 1, 2009 or 12 months before the date on which the CO 2 budget source, or a new unit at the source, commences operation.

3.3.1 A complete CO 2 budget permit application shall include the following elements concerning the CO 2 budget source for which the application is submitted, in a format prescribed by the Department:

3.3.1.1 Identification of the CO 2 budget source, including plant name and the ORIS (Office of Regulatory Information Systems) or facility code assigned to the source by the Energy Information Administration of the United States Department of Energy, if applicable;

3.3.1.2 identification of each CO 2 budget unit at the CO 2 budget source; and

4.1.1 Applicability and deadline. For each control period in which a CO 2 budget source is subject to the CO 2 requirements of 1.5.3 of this regulation, the CO 2 authorized account representative of the source shall submit to the Department by the March 1 following the relevant control period, a compliance certification report. A compliance certification report is not required as part of the compliance obligation during an interim control period.

4.1.2 Contents of report. The CO 2 authorized account representative shall include in the compliance certification report under 4.1.1 of this regulation the following elements, in a format prescribed by the Department:

4.1.2.2 at the CO 2 authorized account representative’s option, the serial numbers of the CO 2 allowances that are to be deducted from the source’s compliance account under 6.5 of this regulation for the control period, including the serial numbers of any CO 2 offset allowances that are to be deducted subject to the limitations of 6.5.1.3 of this regulation; and

4.1.3 Compliance certification. In the compliance certification report under 4.1 of this regulation, the CO 2 authorized account representative shall certify, based on reasonable inquiry of those persons with primary responsibility for operating the source and the CO 2 budget units at the source in compliance with the CO 2 Budget Trading Program, whether the source and each CO 2 budget unit at the source for which the compliance certification is submitted was operated during the calendar years covered by the report in compliance with the requirements of the CO 2 Budget Trading Program, including:

4.1.3.3 whether all the CO 2 emissions from the units at the source were monitored or accounted for through the missing data procedures and reported in the quarterly monitoring reports, including whether conditional data were reported in the quarterly reports in accordance with 8.0 of this regulation. If conditional data were reported, the owner or operator shall indicate whether the status of all conditional data has been resolved and all necessary quarterly report resubmissions have been made;

4.2.2 The Department or its agent may deduct CO 2 allowances from or transfer CO 2 allowances to a source’s compliance account based on the information in the compliance certifications or other submissions, as adjusted under 4.2.1 of this regulation.