Section 125-O:22 Compliance; Permit Required.
I. Each affected CO2 source shall obtain and retire a quantity of RGGI allowances equivalent to its CO2 emissions from fossil-fuel fired generation for each compliance period.
II. An affected CO2 source may use offset allowances for up to 3.3 percent of its compliance obligation, except that in a given compliance period:
(a) If a stage-one trigger event occurs, an affected CO2 source may use offset allowances for up to 5 percent of its compliance obligation; and
(b) If a stage-2 trigger event occurs, the compliance period shall be extended to 4 years and an affected CO2 source may use offset allowances for up to 10 percent of its compliance obligation, including offset allowances or credits permanently retired from eligible international trading programs, as approved by the department.
III. Purchasers or acquirers of RGGI allowances may retain unused RGGI allowances without limit. Affected CO2 sources may use retained RGGI allowances in future compliance periods.
IV. No person shall operate an affected CO2 source without a temporary or operating permit issued by the department in accordance with this chapter and RSA 125-C. An affected CO2 source that is in operation upon the effective date of this subdivision, shall submit a complete application for a permit modification to the department no later than January 1, 2009. Applications for permits shall be upon such forms, and shall include such information as the commissioner requires under rules adopted pursuant to RSA 541-A. The commissioner shall act upon a permit application within a reasonable period of time.
V. In addition to the provisions set forth in RSA 125-O:7, an affected CO2 source that fails to obtain and retire sufficient RGGI allowances during a compliance period, in accordance with RSA 125-O:22, I, shall obtain and surrender 3 RGGI budget or early reduction allowances in the next compliance period for each RGGI allowance that the affected CO2 source was short in obtaining compliance.
VI. Budget allowances shall be provided to affected CO2 sources as needed and upon request for CO2 emissions in periods of operation during which an Operating Procedure 4 capacity deficiency alert is in force as established by the ISO New England Inc. The department shall reserve from auction for such emergency conditions a quantity of allowances equal to one percent of the annual budget allowances which shall be the maximum made available in a given year under this paragraph. The department shall directly sell these allowances to the affected CO2 sources at the last regional auction clearing price. Those allowances reserved but not sold in a given year as provided in this paragraph shall be auctioned the following calendar year.
VII. Upon recommendation of the commission, the governor with consent of the executive council may declare an emergency supply crisis, and the governor and council may allow affected CO2 sources to forgo strict compliance with paragraph I for a given compliance period and be given reprieve from any associated penalties, provided that those affected CO2 sources obtain and retire an additional number of allowances during the next compliance period equivalent to any shortfall in allowances that may have occurred for the compliance period during which the declared emergency was made.
VIII. A distribution company may recover the actual, prudent and reasonable costs of investments in carbon emissions reduction or capture technologies through its default service charge pursuant to RSA 369-B:3, IV(b)(1)(A), provided that the commission first determines that the investment is in the public interest.
Source. 2008, 182:2, eff. June 11, 2008.