12/15/2016
310 CMR 7.74: Reducing Greenhouse Gas Emissions From Electricity Generating Facilities
(1) Purpose and Scope. The purpose of 310 CMR 7.74 is to establish a declining annual aggregate emissions limitfor large electricity generating facilities in Massachusetts pursuant to M.G.L. c. 21N, Section 3(d).
(2) Definitions. The terms used in 310 CMR 7.74: Reducing GHG Emissions from Electricity Generating Facilities are defined in 310 CMR 7.74(2) and in 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.
Annual GHG Emissions means GHG emissions reported to the Federal GHG Reporting Program in accordance with the reporting requirements in 40 CFR 98,calculated as the sum of the products of the mass emissions per year of each particular GHG species multiplied by its Global Warming Potential listed in Table A-1 in Subpart A of 40 CFR 98, and expressed in terms of metric tons of carbon dioxide equivalent (CO2e).
Calendar Year means January 1 through December 31.
Designated Representative means the person who is authorized by the owner or operator of a new or existing electricity generating facility to represent and legally bind the owner or 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 reportannual GHG emissionspursuant to 40 CFR Part 98 Subpart D, the Federal GHG Reporting Program.A new electricity generating unit at an existing electricity generating facility that receives a GHG emissions limit pursuant to 310 CMR 7.74(5)(d) shall be considered a separate facility with respect to all requirements of 310 CMR 7.74.
Excess GHG Emissions means, with respect to a particular year, a new or existing electricity generating facility’s annual GHG emissions above the new or existing electricity generating facility’s GHG emissions limit.
Existing Electricity Generating Facility means, with respect to a particular calendar year, an electricity generating facility for which the owner or operator has been required to report annual GHG emissions to40 CFR Part 98 Subpart D of the Federal GHG Reporting Program for nine or more pastcalendar years, or a facility listed in 310 CMR 7.74(5)(b) Table A.
Existing Facility Aggregate GHG Emissions Limit means, with respect to a particular calendar year, the sum of all existing facilities’ GHG emissions limits. Existing facility aggregate GHG emissions limits for each year are listed in 310 CMR 7.74(5)(a) Table A.
Facility means,for purposes of 310 CMR 7.74, any physical property, plant, building, structure, source or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit anyGHG.
Federal GHG Gas Reporting Program means the program promulgated by the Administrator at 40 CFR Part 98 Subpart D requiring annual reporting of GHG emissions from electric generating sources in accordance with the reporting requirements in 40 CFR 98.
Greenhouse Gas or GHG means any chemical or physical substance that is emitted into the air and that the Department may reasonably anticipate will cause or contribute to climate change including, but not limited to, carbon dioxide, methane, nitrous oxide, hydrofluorocarbons, perfluorocarbons and sulfur hexafluoride.
GHG Emissions Limit means the maximum allowable amount of GHG emissions that a new or existing electricity generating facility may emit in a particular calendar year without using over-compliance credits.
New Facility Aggregate GHG Emissions Limit means, with respect to a particular calendar year, the sum of all new facility GHG emissions limits. New facility aggregate GHG emissions limits for each year are listed in 310 CMR 7.74(5)(a) Table A.
New Electricity Generating Facility means, with respect to a particular calendar year, an electricity generating facility that is not an existing electricity generating facility.
Net Electrical Output meansthe total electrical output of a facility used by the New England Independent System Operator to determine settlement resources of energy market participants, as reported to the Department pursuant to 310 CMR 7.70(8)(h).
Operator means any person who operates, controls, or supervises a new or existing electricity generating facility including, but not limited to, any holding company, utility system, plant manager, or operations manager of the new or existing electricity generating facility.
Over-Compliance Credit or OCC means a limited authorization to emit one metric ton of GHG.
OCC Registry means the database that tracks over-compliance credits created and retained by a facility, and are used for compliance. The Department may allow the use of the OCC Registry for other purposes, including but not limited to, identifying OCCs that may be available for use by other facilities or tracking OCC transfers.
Owner means any of the following persons:
(a) Any holder of any portion of the legal or equitable title in a new or existing electricity generating facility; or
(b) Any holder of a leasehold interest in a new or existing electricity generating facility.
Serial Number means, when referring to OCCs, the unique identification number assigned by the Department to each OCC.
Total Aggregate GHG Emissions Limit means, with respect to a particular year, the maximum allowable aggregate limit on GHG emissions from all facilities subject to 310 CMR 7.74, inclusive of new and existing electricity generating facilities, measured in metric tons of CO2e. Total aggregate GHG emissions limits for each year are listed in 310 CMR 7.74(5)(a) Table A.
(3) Applicability. 310 CMR 7.74 applies to an owner or operator of a new or existing electricity generating facility.
(4) Compliance with GHG Emissions Limits. The owner or operator of a new or existing electricity generating facility shall not emit on an annual basis GHG emissions in excess of the GHG emissions limit for said facility that is established pursuant to 310 CMR 7.74(5) for each year, unless the owner or operator of the facility offsets the excess GHG emissions with OCCs created pursuant to 310 CMR 7.74(6).
(5) GHG Emissions Limits.
(a) Total Aggregate GHG Emissions Limits. The total aggregate GHG emissions limitfor 2018 is 9,119,126 metric tons CO2e and that limit declines by 2.5% of the 2018 total aggregate GHG emissions limiteach year until 2050. For each calendar year, the existing facility aggregate GHG emissions limit and the new facility aggregate GHG emissions limit were calculated from thetotalaggregate GHG emissions limit, such that their sum equals the totalaggregate GHG emissions limit. The totalaggregate, existing facility aggregate, and new facility aggregate GHG emissions limits for calendar years 2018 - 2050 are shown in 310 CMR 7.74(5)(a) Table A.
310 CMR 7.74(5)(a) Table A
Total Aggregate,Existing Facility Aggregate and New Facility Aggregate
GHG Emissions Limits in Metric Tons
Year / Total Aggregate GHG Emissions Limit / Existing Facility Aggregate GHG Emissions Limit / New Facility Aggregate GHG Emissions Limit2018 / 9,119,126 / 7,619,126 / 1,500,000
2019 / 8,891,148 / 7,391,148 / 1,500,000
2020 / 8,663,170 / 7,163,170 / 1,500,000
2021 / 8,435,192 / 6,935,192 / 1,500,000
2022 / 8,207,213 / 6,707,213 / 1,500,000
2023 / 7,979,235 / 6,479,235 / 1,500,000
2024 / 7,751,257 / 6,251,257 / 1,500,000
2025 / 7,523,279 / 6,023,279 / 1,500,000
2026 / 7,295,301 / 6,095,301 / 1,200,000
2027 / 7,067,323 / 5,904,823 / 1,162,500
2028 / 6,839,345 / 5,714,345 / 1,125,000
2029 / 6,611,366 / 5,523,866 / 1,087,500
2030 / 6,383,388 / 5,333,388 / 1,050,000
2031 / 6,155,410 / 5,142,910 / 1,012,500
2032 / 5,927,432 / 4,952,432 / 975,000
2033 / 5,699,454 / 4,761,954 / 937,500
2034 / 5,471,476 / 4,571,476 / 900,000
2035 / 5,243,497 / 4,380,997 / 862,500
2036 / 5,015,519 / 4,190,519 / 825,000
2037 / 4,787,541 / 4,000,041 / 787,500
2038 / 4,559,563 / 3,809,563 / 750,000
2039 / 4,331,585 / 3,619,085 / 712,500
2040 / 4,103,607 / 3,428,607 / 675,000
2041 / 3,875,629 / 3,238,129 / 637,500
2042 / 3,647,650 / 3,047,650 / 600,000
2043 / 3,419,672 / 2,857,172 / 562,500
2044 / 3,191,694 / 2,666,694 / 525,000
2045 / 2,963,716 / 2,476,216 / 487,500
2046 / 2,735,738 / 2,285,738 / 450,000
2047 / 2,507,760 / 2,095,260 / 412,500
2048 / 2,279,781 / 1,904,781 / 375,000
2049 / 2,051,803 / 1,714,303 / 337,500
2050 / 1,823,825 / 1,523,825 / 300,000
(b) Existing Individual Electricity Generating Facility GHG Emissions Limits for 2018 – 2025. The GHG emissions limits for existing electricity generating facilities are shown in 310 CMR 7.74(5)(b) Table A.
310 CMR 7.74(5)(b) Table A
Existing Individual Electricity Generating Facility GHG Emissions Limits in Metric Tons
Facility / 2018 / 2019 / 2020 / 2021 / 2022 / 2023 / 2024 / 2025ANP Bellingham / 887,654 / 861,094 / 834,533 / 807,973 / 781,413 / 754,853 / 728,292 / 701,732
ANP Blackstone / 812,513 / 788,201 / 763,889 / 739,577 / 715,265 / 690,953 / 666,642 / 642,330
Bellingham / 201,248 / 195,227 / 189,205 / 183,183 / 177,162 / 171,140 / 165,118 / 159,096
Berkshire Power / 450,971 / 437,477 / 423,983 / 410,489 / 396,995 / 383,502 / 370,008 / 356,514
Brayton / 0 / 0 / 0 / 0 / 0 / 0 / 0 / 0
Canal Station / 105,168 / 102,022 / 98,875 / 95,728 / 92,581 / 89,434 / 86,287 / 83,141
Cleary Flood / 52,060 / 50,502 / 48,945 / 47,387 / 45,829 / 44,272 / 42,714 / 41,156
Dartmouth Power / 49,888 / 48,395 / 46,903 / 45,410 / 43,917 / 42,424 / 40,932 / 39,439
Deer Island Treatment / 1,024 / 994 / 963 / 932 / 902 / 871 / 840 / 810
Dighton / 340,921 / 330,720 / 320,519 / 310,318 / 300,117 / 289,916 / 279,715 / 269,514
Fore River Energy / 1,283,194 / 1,244,799 / 1,206,403 / 1,168,008 / 1,129,612 / 1,091,217 / 1,052,821 / 1,014,426
Kendall Square / 483,511 / 469,043 / 454,576 / 440,108 / 425,641 / 411,173 / 396,706 / 382,238
MASSPOWER / 313,795 / 304,406 / 295,016 / 285,627 / 276,238 / 266,848 / 257,459 / 248,070
Medway Station / 1,654 / 1,604 / 1,555 / 1,505 / 1,456 / 1,406 / 1,357 / 1,307
Milford Power, LLC / 153,655 / 149,058 / 144,460 / 139,862 / 135,265 / 130,667 / 126,069 / 121,472
Millennium Power / 683,222 / 662,778 / 642,335 / 621,892 / 601,449 / 581,005 / 560,562 / 540,119
Mystic / 1,564,609 / 1,517,793 / 1,470,977 / 1,424,161 / 1,377,345 / 1,330,529 / 1,283,713 / 1,236,897
Pittsfield Generating / 82,506 / 80,038 / 77,569 / 75,100 / 72,632 / 70,163 / 67,694 / 65,225
Potter (Braintree) / 25,203 / 24,449 / 23,695 / 22,940 / 22,186 / 21,432 / 20,678 / 19,924
Stony Brook / 71,037 / 68,911 / 66,786 / 64,660 / 62,534 / 60,409 / 58,283 / 56,158
Tanner Street / 37,823 / 36,691 / 35,559 / 34,427 / 33,296 / 32,164 / 31,032 / 29,901
Waters River / 1,638 / 1,589 / 1,540 / 1,491 / 1,442 / 1,393 / 1,344 / 1,295
West Springfield / 15,832 / 15,358 / 14,884 / 14,411 / 13,937 / 13,463 / 12,990 / 12,516
(c) Existing Facility GHG Emissions Limits for 2026 - 2050. Beginning in 2021, with the apportionment of the 2026 existing facility aggregate GHG emissions limit, and each year thereafter, the Department shall apportion the existing facility aggregate GHG emissions limit for the applicable calendar year five years in the advance. The apportionment shall occur pursuant to 310 CMR 7.74(5)(c)1. - 5., and shall include all facilities that will be existing electricity generating facilities in the calendar year for which the apportionment is being completed.
1. Using the most recent three-year period for which data is available, the Department shall calculate the three-year average net electrical outputfor each such facility as the arithmetic mean of the facility's net electrical outputs for the three years.
2. The Department shall calculate each suchfacility’s fraction of the existing facility aggregate GHG emissions limit for the year by dividing each such facility’s three-year average net electrical output by the sum of all such facilities’ three-year average net electrical outputs.
3. The Department shall calculate each such facility’s GHG emissions limit for the year, by multiplying each such facility’s fraction calculated pursuant to 310 CMR 7.74(5)(c)2. by the existing facility aggregate GHG emissions limit for the year for which the GHG emissions limits are being calculated.
4. The owner or operator of a facility that reports net steam output pursuant to 310 CMR 7.70(8)(h) may petition the Department to convert the facility's net steam output into an equivalent amount of net electrical output using an appropriate emission factor for the purpose of including net steam output in the calculation of the facility's GHG emissions limitpursuant to 310 CMR 7.74(5)(c)3. Such owner or operator shall submit a petition and shall have the burden of proof to establish the appropriateness of any proposed emissions factor.
5. The Department shall publish GHG emissions limits calculated pursuant to 310 CMR 7.74(5)(c) on the Department's website by December 31 of each year beginning in 2021.
(d) New Facility GHG Emission Limits. After April 15 of each calendar year, the Department shall apportion the new facility aggregate GHG emissions limit among new electricity generating facilities for the prior calendar year pursuant to 310 CMR 7.74(5)(d)1. and 2.
1. The Department shall determine whether the sum of GHG emissions from new electricity generating facilities reported pursuant to 310 CMR 7.74(7) is less than, equal to, or greater than the new facility aggregate GHG emissions limit for the year.
a. If the sum of new electric generating facility GHG emissions is less than or equal to the new facility aggregate GHG emissions limit for the year, the Department shall set each new electricity generating facility’s prior-year GHG limit equal to its emissions for that year.
b. If the sum of new electric generating facility GHG emissions is greater than the new facility aggregate GHG emissions limit for the year, the Department shall calculate a discount factor by dividing the new facility aggregate GHG emissions limitby the sum of newfacility emissions. The Department shall calculate a new facility’s prior-year GHG limit as the product of the new facility's GHG emissions and the discount factor, such that the sum of all new facility GHG emissions limits calculated pursuant to 310 CMR 7.74(5)(d)1.b equals the new facility aggregate GHG emissions limit for the year.
2. If the sum of GHG emissions from new electricity generating facilities is less than the new facility aggregate GHG emissions limit for the year, the Department shall calculate the difference between the newfacility aggregate GHG emissions limit and the sum of GHG emissions reported by new electricity generating facilities. The Department shall calculate the product of such difference and each existing electricity generating facility's fraction calculated in 310 CMR 7.74(5)(c)2. The Department shall create a quantity of OCCs for the existing electricity generating facility equal to this product, and deposit the OCCs in the OCC Registry account of the existing electricity generating facilities.
(e) New Units at Existing Electricity Generating Facilities. The Department shall address the addition of a new electricity generating unit at an existing electricity generating facility by establishing its limit in accordance with the process specified at 310 CMR 7.74(5)(d) instead of the process specified at 310 CMR 7.74(5)(c).
(f) Facilities No Longer Reporting Under the Federal GHG Reporting Program. The owner or operator of a facility that was a new or existing electricity generating facility, but is no longer reporting GHG emissions to the Federal GHG Reporting Program under 40 CFR Part 98 Subpart D, shall be exempt from the requirements of 310 CMR 7.74 and shall not be assigned a GHG emissions limit for any future year.The Department shall address any GHG emissions limits already calculated for the facility pursuant to 310 CMR7.74(6)(a)2.
(6) Over Compliance Credits (OCCs).
(a) Creating and Certifying Over Compliance Credits. OCCs may be created pursuant to 310 CMR 7.74(6)(a)1. or 2.
1. The owner or operator of a new or existing electricity generating facility may apply to create OCCs if thefacility’s annual GHG emissions for a particular calendar year are less than its GHG emission limit for that year. The maximum number of OCCs for a particular calendar year shall equal the difference between the facility’s annual GHG emissions and the facility’s GHG emissions limit. In order to create OCCs:
a. No later than May 1, 2019, and May 1 of each year thereafter, the facility owner or operator proposing to create OCCs shall submit a certification form, provided by the Department, to the Department certifying the number of OCCs the facility proposes to be created for the particular calendar year.
b. On the certification form, the owner or operator shall provide the facility’s GHG emission limit for the previous calendar year, the facility’s annual GHG emissions from the previous year as reported in EPA’s GHG reporting program, a request to establish an account in the OCC registry (if not already in existence from a previous year) and the certification statement in 310 CMR 7.74(7)(c) signed by the facility’s designated representative.
c. Upon receipt of the certification form, the Department shall create an account in the OCC registry for the facility (if necessary), verify the basis of the certification, and, if verified, deposit the number of OCCs certified for the previous year into the facility’s OCC account. The Department shall assign an individual serial number for each OCC.
2. Upon exemption of a new or existing electricity generating facility from the requirements of 310 CMR 7.74, as specified in 310 CMR 7.74(5)(f), the Department shall annually convert any GHG emissions limits established for the facility pursuant to 310 CMR 7.74 into OCCs, assign individual serial numbers, and deposit them, along with any OCCs remaining in the exempt facility’s OCC registry account, in the remaining facilities’ OCC registry accounts in the following order:
a. First, to new electricity generating facilities to increase any new facility GHG emissions limits that were discounted pursuant to 310 CMR 7.74(5)(d)1.b. to avoid exceeding the new facility aggregate GHG emissions limit.
b. Second, to existing electricity generating facilities in proportion to their existing facility GHG emissions limits.
3. The Department may create OCCs in accordance with 310 CMR 7.74(5)(d)2.The Department shall assign an individual serial number for each OCC.
(b) Use of Over-Compliance Credits.
1. The owner or operator of a new or existing electricity generating facility may use OCCs the owner or operator created at that facility or OCCs acquired from another facility to offset excess GHG emissions for a particular year,providedthatthe OCCs to be used for a facility are in the facility’s OCC Registry account prior to the compliance deadline.
2. OCCs may be used exclusively by the owners or operators of facilities to comply with 310 CMR 7.74 and are not property rights.
3. The owner or operator of a facility may retain OCCs in an OCC registry account for use or transfer in future years.
(c) Transfer of Over-Compliance Credits.
1. The owner or operator of a new or existing electricity generating facility who certifies OCCs in accordance with the 310 CMR 7.74(6)(a)1, may transfer OCCs to another facility by submitting a Notice of Transfer to the Department prior to the compliance reporting deadline in 310 CMR 7.74(7)(b).
2. The Notice of Transfer shall include the facility’s OCC registry account number, the amount of OCCs to be transferred, the serial number of the OCCs to be transferred, the name and account number of the facility to which the OCCs shall be transferred, and the certification statement at 310 CMR 7.74(7)(c) signed by the Designated Representative allowing the transfer of OCCs.
(7) Reporting Requirements
(a) Annual GHG Emissions Report. For the purpose of calculating new facility emission limits pursuant to 310 CMR 7.74(5)(d) and for calculating Over Compliance Credits under 310 CMR 7.74(6), by April 15, 2019, and each year thereafter, the owner or operator of a new or existing electricity generating facility shall submit a GHG emissions report The report shall includethe following:
1. The name, address, contact person, and phone number of the facility;
2. The facility’s annual GHG emissions for the previous calendar year as reported to EPA’s GHG Reporting Program in accordance with the reporting procedures at 40 CFR 98.4 and 98.5;and
3. The electronic signature of the designated representative submitting the form and certification by the designated representative in accordance with 310 CMR 7.74(7)(c).
(b) Compliance Certification Reporting. By August 15, 2019, and each year thereafter, the owner or operator of a facility subject to 310 CMR 7.74 shall demonstrate compliance with the facility’s GHG emission limit by submitting a compliance certification report covering the GHG emissions from the prior calendar year. The compliance certification report shall include, among other information as requested by the Department, the following:
1. The name, address, contact person, and phone number of the facility;
2. The facility’s assigned GHG emissions limit for the previous calendar year;
3. The facility’s annual GHG emissions for the previous calendar year as reported to EPA’s GHG Reporting Program, including a revised annual GHG report submitted to EPA under 40 CFR 98.5(h);