Chapters 156, 158, CO2 Budget Trading

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Chapters 156, 158, CO2 Budget Trading
04/29/2020 10:00 AM EDT

Chapter 156: CO2 Budget Trading Program
Chapter 158: CO2 Budget Trading Program Auction Provisions

This proposal updates the rules governing the Regional Greenhouse Gas Initiative to conform with the updated Model Rule published by RGGI, Inc. on December 19, 2017 and revised on December 14, 2018. The changes maintain Maine’s participation in the program through 2030 and beyond by defining Maines emissions cap and rate of cap reduction in alignment with the other participating states. The proposed amendments to Chapters 156 and 158 include updates to the CO2 allowance allocation provisions, changes to definitions supporting the updates, and the deletion of the SF6 (sulfur hexafluoride) and energy efficiency offset categories.

The proposed CO2 allowance allocation amendments include:

• CO2 budget trading program base budget (in tons) for 2021 through 2030.
• The creation of an emissions containment reserve (ECR) allowing greater emissions reductions in the event that reductions prove less expensive than anticipated. States implementing the ECR will withhold allowances from an auction if the ECR trigger price is not met.
• The CCR trigger price is established at $13 in 2021. Each year after 2021, the CCR trigger price is 1.07 multiplied by the CCR trigger price from the previous calendar year.
• The number of CCR allowances available for each year from 2021 onward is established.
• The CO2 budget trading program adjusted budget is established for 2021 through 2025 (formula)