Or. Admin. Code § 345-024-0710 - Monetary Path Payment Requirement
(1) If the applicant elects to meet the
applicable carbon dioxide emissions standard in whole or in part under OAR
345-024-0560(3),
OAR 345-024-0600(3)
or OAR 345-024-0630(2), (4) and
(5), the applicant shall provide a bond or
letter of credit in a form reasonably acceptable to the Council to ensure the
payment of the offset funds and the additional funds required under section (4)
of this rule. The applicant shall provide such security by the date specified
in the site certificate. In the site certificate, the Council shall specify a
date no later than the commencement of construction of the facility for base
load gas plants and non-base load power plants. For nongenerating facilities,
the Council shall specify a date no later than the commencement of construction
of the facility for providing the initial bond or letter of credit, and the
Council shall specify conditions for providing subsequent incremental payments
to meeting the monetary path payment requirement. The certificate holder for a
nongenerating facility must meet its incremental monetary path payment
requirements before exhausting its offset credit account, as described in OAR
345-024-0630(4).
In no case shall the applicant diminish the bond or letter of credit or receive
a refund from a qualified organization based on the calculations of the
facility's emissions on a new and clean basis for a fossil-fueled power plant
or any other measure for a nongenerating energy facility. A qualified
organization shall not refund any offset funds to a certificate holder based on
the operation or performance of a non-base load power plant during any
five-year period reported under OAR
345-024-0590(5)
or, for a nongenerating facility, on any offset credits the certificate holder
provided under OAR 345-024-0620(5).
(2) In the site certificate, the Council
shall require the certificate holder to disburse the offset funds and other
funds required as specified in sections (3) and (4), unless the Council finds
that no qualified organization exists, in which case the Council shall require
the certificate holder to disburse the offset funds as specified in OAR
345-024-0720(2).
(3) When the certificate holder receives
written notice from the qualified organization certifying that the qualified
organization is contractually obligated to pay any funds to implement offsets
using the offset funds, the certificate holder shall make the requested amount
available to the qualified organization unless the total of the amount
requested and any amounts previously requested exceeds the offset funds, in
which case the certificate holder shall make available only the remaining
amount of the offset funds. The qualified organization shall use at least 80
percent of the offset funds for contracts to implement offsets. The qualified
organization shall assess offsets for their potential to qualify in, generate
credits in or reduce obligations in other regulatory settings. The qualified
organization may use up to 20 percent of the offset funds for monitoring,
evaluation, administration and enforcement of contracts to implement
offsets.
(4) At the request of the
qualified organization and in addition to the offset funds, the certificate
holder shall pay the qualified organization an amount equal to 10 percent of
the first $500,000 of the offset funds and 4.286 percent of any offset funds in
excess of $500,000. The certificate holder for a base load gas plant shall pay
not less than $50,000, unless the Council specifies a lesser amount in the site
certificate. In the site certificate, the Council may specify a minimum amount
that other fossil-fueled power plants or nongenerating energy facilities must
pay. This payment compensates the qualified organization for its costs of
selecting offsets and contracting for the implementation of offsets.
(5) Notwithstanding any provision to the
contrary, a certificate holder subject to this rule has no obligation with
regard to offsets, the offset funds or the funds required by section (4) other
than to make available to the qualified organization the total amount required
under OAR 345-024-0560(3),
OAR 345-024-0600(3) and
(4), OAR
345-024-0630(2), (4) and
(5), and section (4) of this rule. The
Council shall not base a revocation of the site certificate or any other
enforcement action with respect to the certificate holder on any
nonperformance, negligence or misconduct by the qualified
organization.
(6) For monetary path
payments a certificate holder must make before beginning construction, the
certificate holder shall make all offset fund payments and all payments
required by section (4) to the qualifying organization in real dollars of the
year in which the Council issues a final order applying the carbon dioxide
emissions standard to the energy facility. In the site certificate, the Council
shall specify an appropriate inflation index for calculating real dollars. For
a non-base load power plant, if a certificate holder must make a payment as
described in OAR 345-024-0600(4),
the certificate holder shall make a payment that has the same present value per
ton of carbon dioxide as the monetary path offset rate of the year in which the
Council issued the final order applying the carbon dioxide standard. In the
site certificate, the Council shall specify the methodology for calculating
present value. If the certificate holder of a nongenerating facility must make
payments as described in OAR
345-024-0630(4) and
(5), the Council shall specify in the site
certificate the method for calculating the rate for the dollar value per ton of
carbon dioxide required according to subsection (a) or (b) below:
(a) Unless the applicant and the Council
agree to the methodology in subsection (b), the certificate holder shall make
payments that have the same present value per ton of carbon dioxide as the
monetary path offset rate of the year in which the Council issued the final
order applying the carbon dioxide standard. The Council shall set an
appropriate discount rate for calculating the present value, using the cost of
capital most recently approved by a state utility regulatory commission for
that utility or a similar utility as a guide; or
(b) If the applicant requests and the Council
agrees, the certificate holder shall make payments at the monetary path offset
rate in effect on the date the certificate holder makes the payment.
Notes
Stat. Auth.: ORS 469.470
Stats. Implemented: ORS 469.501 & 469.503
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