On August 8, 2018, the Delaware Department of Natural Resource and Environmental Control (DNREC) proposed updates to their Carbon Dioxide (CO2) Budget Trading Program codified in Title 7 of the Delaware Administrative Code of Regulations (7 DE Admin. Code) 1147. DNREC is proposing to reduce Delaware's budget for 2021 to 2030; to add provisions regarding the emissions containment reserve (ECR); to revise the quantity of allowances in the cost containment reserve (CCR) and provisions regarding banked allowances; and to remove two offset categories, along with other minor program adjustments.

Since 2009, Delaware has been a part of the Regional Greenhouse Gas Initiative (RGGI), a program to reduce CO2 emissions across ten states in the northeast. To implement RGGI, each participating state has a CO2 Budget Trading Program based on a model rule from RGGI. The RGGI states have been conducting a Program Review that evaluates program success, program impacts, the potential for additional reductions, imports and emissions leakage, and offsets. In December 2017, the RGGI states announced revisions to the RGGI program and published an updated model rule. This proposed rulemaking from DNREC is to reflect the changes in the model rule, including decreasing the state budget to reflect Delaware's portion of the new regional cap for 2021 to 2030.

This regulation update will affect all facilities subject to the RGGI program (i.e., facilities with units that serve an electricity generator with a nameplate capacity equal to or greater than 25 megawatts (MW)).

The proposed regulation is currently out for public comment. The deadline to submit comments is September 14, 2018. In addition, DNREC will be holding a public hearing on the proposed regulation in the Richardson & Robbins Building located at 89 Kings Highway, Dover, DE on August 29, 2018 at 6:00 PM.

More information about RGGI and the proposed amendment of the regulation can be found here.

If you need assistance in determining how these changes would impact your site or with preparing comments on the draft regulations, please contact Trinity's office in Frederick, Maryland at (240) 379-7490.