225 CMR, § 13.03
225 CMR 13.00 incorporates by reference the definitions established in 310 CMR 7.70: Massachusetts CO2 Budget Trading Program. In addition, the following definitions shall apply:
Bidder. A party qualified, pursuant to 225 CMR 13.09, to participate in a CO2 Allowance Auction.
Clearing Price. The specified monetary value assigned to a CO2 allowance as determined by the bids of buyers, given the rules and specific format of the auction.
CQ2Allowance Auction Website. The website containing information regarding the auctions to be conducted pursuant to 225 CMR 13.00. The website shall be available through a link from DOER's main web page at: http://www.mass.gov/doer/.
Cost Containment Reserve (CCR). An allocation of CO2 allowances, separate from and additional to the base annual budget, for the purpose of containing the cost of CO2 allowances.
Cost Containment Reserve Trigger Price. The minimum price at which CCR allowances are offered for sale in an auction. The CCR trigger price shall be $10.00 per CCR Allowance beginning January 1, 2017. For each calendar year thereafter, through 2020, 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. The CCR trigger price in calendar year 2021 shall be $13.00. For each calendar year thereafter, through 2030, the CCR trigger price shall be 1.07 multiplied by the CCR trigger price from the previous calendar year, rounded to the nearest whole cent. 225 CMR 13.03: Table 1 shows the CCR Trigger Price for each calendar year through 2030.
Table 1. CCR Trigger Price | |||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
$10.51 | $10.77 | $13.00 | $13.91 | $14.88 | $15.92 | $17.03 | $18.22 | $19.50 | $20.87 | $22.33 | $23.89 |
Emissions Containment Reserve (ECR). CO2 allowances that are withheld from sale at an auction for the purpose of additional emission reduction in the event of lower than anticipated emission reduction costs.
Emissions Containment Reserve Trigger Price. The ECR trigger price is the price below which CO2 allowances will be withheld from sale at an auction. The ECR trigger price in calendar year 2021 shall be $6.00. For each calendar year thereafter, the ECR trigger price shall be 1.07 multiplied by the ECR trigger price from the previous calendar year, rounded to the nearest whole cent. 225 CMR 13.03: Table 2 shows the ECR Trigger Price for each calendar year through 2030.
Table 2. ECR Trigger Price | |||||||||
2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
$6.00 | $6.42 | $6.87 | $7.35 | $7.86 | $8.41 | $9.00 | $10.30 | $11.02 | $9.63 |
Department. The Department of Environmental Protection, established pursuant to M.G.L. c. 21A, § 7.
DOER. Department of Energy Resources, established pursuant to M.G.L. c. 25A, § 1, or its designated agent, pursuant to 225 CMR 13.06(1).
DOER Contact Person. An employee of DOER designated to communicate with the public regarding CO2 Allowance Auctions as identified in the Guidelines to 225 CMR 13.00.
Guidelines. A set of procedures, including forms, as developed by the DOER to assist in compliance with the requirements of 225 CMR 13.00. The Guidelines may take the form of the Auction Notice, as set forth in 225 CMR 13.07.
Participating State. A state that has established a regulation corresponding to 225 CMR 13.00, or is authorized by law to participate in the CO2 Budget Trading Program.
Reserve Price. The minimum acceptable price for each CO2 allowance in a specific auction. 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. 225 CMR 13.03: Table 3 shows the Reserve Price for each calendar year through 2030.
Table 3. Reserve Price | |||||||||||
2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | 2027 | 2028 | 2029 | 2030 |
$2.26 | $2.32 | $2.38 | $2.44 | $2.50 | $2.56 | $2.62 | $2.69 | $2.76 | $2.83 | $2.90 | $2.97 |
RGGI The Regional Greenhouse Gas Initiative which is a cooperative effort to reduce carbon dioxide emissions by Northeastern and Mid-Atlantic states, as well as other states and jurisdictions should such parties elect to participate. RGGI is supported by the Regional Greenhouse Gas Initiative, Inc., a not for profit corporation formed to provide technical and scientific advisory services to participating states in the development and implementation of the CO2 Budget Trading Program.
Sealed Bid, Uniform Price Auction. A single or multiple round sealed-bid auction in which bidders may submit multiple bids at different prices; the price paid by all awarded bidders will be uniform.
225 CMR, § 13.03