Maryland Department of the Environment established and maintains several general accounts for CO2 allowances under the Maryland CO2 Budget Trading Program. By January 31st of each calendar year, MDE allocates all CO2 allowances from the program to these accounts, which are thereafter handled based on the account-specific regulations. The accounts are summarized below, and additional details can be found under COMAR 26.09.02.
RGGI applies to coal-fired, oil-fired, and gas-fired electric generating units located within participating states that have a capacity of at least 25MW (“CO2 budget sources”). All CO2 budget sources are responsible for installing and maintaining continuous emissions monitoring system (CEMS) to monitor CO2 concentration, stack gas flow rate, oxygen concentration, heat input, and fuel flow rate; and for recording, reporting, and verifying the data from these systems. The CEMS should be certified and maintained, and the data recorded and reported, in accordance with federal law (40 CFR §75). More details on the Maryland specific requirements can be found in COMAR 26.09.10 and COMAR 26.26.09.11.
The entities who maintain these CO2 budget sources are required to turn in allowances equivalent to the amount of CO2 emitted over the three-year control period, with each allowance worth one short ton CO2. To ensure progress towards compliance, each CO2 budget source must also surrender allowances equal to 50% of their emissions for each interim control period (the first two years of the three-year period). For example, during the third control period (2015-2017), CO2 allowances were required to account for 50% of 2015 emissions by 03/01/2016, and by 03/01/2017, additional CO2 allowances were required to account for 50% of 2016 emissions. Allowances to account for the remaining 2015 and 2016 emissions, as well as 100% of 2017 emissions, are due at the end of the control period by 03/01/2018. If a regulated source has excess emissions for which they do not turn in the required allowances at the time they are due, they are then required to immediately obtain and surrender allowances for the excess at a ratio of 3:1. Sources may also have more allowances than needed to account for their emissions in a given period. In this case, they may “bank” these allowances for use in the future.
1800 Washington Boulevard, Baltimore, MD 21230