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Adopted Part 242 CO2 Budget Trading Program

The Department adopted revisions to Part 242, "CO2 Budget Trading Program" (Regional Greenhouse Gas Initiative (RGGI)) and Part 200, "General Provisions." The revisions to Part 242 will reflect the RGGI program changes set forth in the updated RGGI Model Rule. The revisions to Part 200 update incorporated references.

These revisions continue the decline in the cap of CO2 emissions and add a Third Adjustment for Banked Allowances to adjust the budget for 100 percent of the pre-2021 vintage allowances held by market participants as of the end of 2020. The revisions modify the Cost Containment Reserve (CCR) trigger price and the maximum amount of CCR allowances available at auction each year. The revisions also create an Emissions Containment Reserve (ECR), which will also help secure additional emissions reductions if prices fall below established ECR trigger prices. In the revisions to Part 242, New York is proposing to retain only the offset provisions for avoided methane emissions from agricultural manure management operations. Lastly, New York is also proposing to expand applicability under Part 242 to capture certain units that serve an electricity generator with a nameplate capacity equal to or greater than 15 MW.

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