N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 242-6.2

Current through Register Vol. 46, No. 45, November 2, 2024

Section 242-6.2 - Establishment of accounts

(a) 'Compliance accounts'. Upon receipt of a complete account certificate of representation under section 242-2.4 of this Part, the department or its agent will establish a compliance account for each CO₂ budget source for which the account certificate of representation was submitted.

(b) 'General accounts'.

(1) 'Application for general account'. Any person may apply to open a general account for the purpose of holding and transferring CO₂ allowances. An application for a general account may designate one and only one CO₂ authorized account representative and one and only one CO₂ authorized alternate account representative who may act on behalf of the CO₂ authorized account representative. The agreement by which the CO₂ authorized alternate account representative is selected shall include a procedure for authorizing the CO₂ authorized alternate account representative to act in lieu of the CO₂ authorized account representative. A complete application for a general account shall be submitted to the department or its agent and shall include the following elements in a format prescribed by the department or its agent:

(i) name, address, e-mail address, and telephone number of the CO₂ authorized account representative and any CO₂ authorized alternate account representative;

(ii) at the option of the CO₂ authorized account representative, organization name and type of organization;

(iii) a list of all persons subject to a binding agreement for the CO₂ authorized account representative or any CO₂ authorized alternate account representative to represent their ownership interest with respect to the CO₂ allowances held in the general account;

(iv) the following certification statement by the CO₂ authorized account representative and any CO₂ authorized alternate account representative: "I certify that I was selected as the CO₂ authorized account representative or the CO₂ authorized alternate account representative, as applicable, by an agreement that is binding on all persons who have an ownership interest with respect to CO₂ allowances held in the general account. I certify that I have all the necessary authority to carry out my duties and responsibilities under the CO₂ Budget Trading Program on behalf of such persons and that each such person shall be fully bound by my representations, actions, inactions, or submissions and by any order or decision issued to me by the department or its agent or a court regarding the general account.";

(v) the signature of the CO₂ authorized account representative and any CO₂ authorized alternate account representative and the dates signed; and

(vi) unless otherwise required by the department or its agent, documents of agreement referred to in the application for a general account shall not be submitted to the department or its agent. Neither the department nor its agent shall be under any obligation to review or evaluate the sufficiency of such documents, if submitted.

(2) 'Authorization of CO₂ authorized account representative'.

(i) Upon receipt by the department or its agent of a complete application for a general account under paragraph (1) of this subdivision:

(a) The department or its agent will establish a general account for the person or persons for whom the application is submitted.

(b) The CO₂ authorized account representative and any CO₂ authorized alternate account representative for the general account shall represent and, by his or her representations, actions, inactions, or submissions, legally bind each person who has an ownership interest with respect to CO₂ allowances held in the general account in all matters pertaining to the CO₂ Budget Trading Program, notwithstanding any agreement between the CO₂ authorized account representative or any CO₂ authorized alternate account representative and such person. Any such person shall be bound by any order or decision issued to the CO₂ authorized account representative or any CO₂ authorized alternate account representative by the department or its agent or a court regarding the general account.

(c) Any representation, action, inaction, or submission by any CO₂ authorized alternate account representative shall be deemed to be a representation, action, inaction, or submission by the CO₂ authorized account representative.

(ii) Each submission concerning the general account shall be submitted, signed, and certified by the CO₂ authorized account representative or any CO₂ authorized alternate account representative for the persons having an ownership interest with respect to CO₂ allowances held in the general account. Each such submission shall include the following certification statement by the CO₂ authorized account representative or any CO₂ authorized alternate account representative: "I am authorized to make this submission on behalf of the persons having an ownership interest with respect to the CO2 allowances held in the general account. I certify under penalty of law that I have personally examined, and am familiar with, the statements and information submitted in this document and all its attachments. Based on my inquiry of those individuals with primary responsibility for obtaining the information, I certify that the statements and information are to the best of my knowledge and belief true, accurate, and complete. I am aware that there are significant penalties for submitting false statements and information or omitting required statements and information, including the possibility of fine or imprisonment."

(iii) The department or its agent will accept or act on a submission concerning the general account only if the submission has been made, signed, and certified in accordance with subparagraph (ii) of this paragraph.

(3) 'Changing CO₂ authorized account representative and CO₂ authorized alternate account representative; changes in persons with ownership interest'.

(i) The CO₂ authorized account representative for a general account may be changed at any time upon receipt by the department or its agent of a superseding complete application for a general account under paragraph (1) of this section. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO₂ authorized account representative, or the previous CO₂ authorized alternate account representative, prior to the time and date when the department or its agent receives the superseding application for a general account shall be binding on the new CO₂ authorized account representative and the persons with an ownership interest with respect to the CO₂ allowances in the general account.

(ii) The CO₂ authorized alternate account representative for a general account may be changed at any time upon receipt by the department or its agent of a superseding complete application for a general account under paragraph (1) of this subdivision. Notwithstanding any such change, all representations, actions, inactions, and submissions by the previous CO₂ authorized account representative, or the previous CO₂ authorized alternate account representative prior to the time and date when the department or its agent receives the superseding application for a general account shall be binding on the new CO₂ authorized alternate account representative and the persons with an ownership interest with respect to the CO₂ allowances in the general account.

(iii) In the event a new person having an ownership interest with respect to CO₂ allowances in the general account is not included in the list of such persons in the application for a general account, such new person shall be deemed to be subject to and bound by the application for a general account, the representations, actions, inactions, and submissions of the CO₂ authorized account representative and any CO₂ authorized alternate account representative, and the decisions, orders, actions, and inactions of the department or its agent, as if the new person were included in such list.

(iv) Within 30 days following any change in the persons having an ownership interest with respect to CO₂ allowances in the general account, including the addition or deletion of persons, the CO₂ authorized account representative or any CO₂ authorized alternate account representative shall submit a revision to the application for a general account amending the list of persons having an ownership interest with respect to the CO₂ allowances in the general account to include the change.

(4) 'Objections concerning CO₂ authorized account representative'.

(i) Once a complete application for a general account under paragraph (1) of this subdivision has been submitted and received, the department or its agent will rely on the application unless and until a superseding complete application for a general account under paragraph (1) of this subdivision is received by the department or its agent.

(ii) Except as provided in Subparagraphs (3)(i) and (ii) of this subdivision, no objection or other communication submitted to the department or its agent concerning the authorization, or any representation, action, inaction, or submission of the CO₂ authorized account representative or any CO₂ authorized alternate account representative for a general account shall affect any representation, action, inaction, or submission of the CO₂ authorized account representative or any CO₂ authorized alternate account representative or the finality of any decision or order by the department or its agent under the CO₂ Budget Trading Program.

(iii) Neither the department nor its agent will adjudicate any private legal dispute concerning the authorization or any representation, action, inaction, or submission of the CO₂ authorized account representative or any CO₂ authorized alternate account representative for a general account, including private legal disputes concerning the proceeds of CO₂ allowance transfers.

(5) 'Delegation by CO₂ authorized account representative and CO₂ authorized alternate account representative'.

(i) A CO₂ authorized account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the department or its agent provided for under this Subpart and Subpart242-7 of this Part.

(ii) A CO₂ authorized alternate account representative may delegate, to one or more natural persons, his or her authority to make an electronic submission to the department or its agent provided for under this Subpart and Subpart242-7 of this Part.

(iii) In order to delegate authority to make an electronic submission to the department or its agent in accordance with subparagraphs (i) and (ii) of this paragraph, the CO₂ authorized account representative or CO₂ authorized alternate account representative, as appropriate, must submit to the department or its agent a notice of delegation, in a format prescribed by the department that includes the following elements:

(a) The name, address, e-mail address, and telephone number of such CO₂ authorized account representative or CO₂ authorized alternate account representative;

(b) The name, address, e-mail address, and telephone number of each such natural person, herein referred to as "electronic submission agent";

(c) For each such natural person, a list of the type of electronic submissions under clause (a) or (b) of this subparagraph for which authority is delegated to him or her; and

(d) The following certification statements by such CO₂ authorized account representative or CO₂ authorized alternate account representative:

(1) "I agree that any electronic submission to the department or its agent that is by a natural person identified in this notice of delegation and of a type listed for such electronic submission agent in this notice of delegation and that is made when I am a CO₂ authorized account representative or CO₂ authorized alternate account representative, as appropriate, and before this notice of delegation is superseded by another notice of delegation under subparagraph 242-6.2(b)(5)(iv) shall be deemed to be an electronic submission by me."

(2) "Until this notice of delegation is superseded by another notice of delegation under subparagraph 242-6.2(b)(5)(iv), I agree to maintain an e-mail account and to notify the department or its agent immediately of any change in my e-mail address unless all delegation authority by me under paragraph 242-6.2(b)(5) is terminated."

(iv) A notice of delegation submitted under subparagraph (iii) of this paragraph shall be effective, with regard to the CO₂ authorized account representative or CO₂ authorized alternate account representative identified in such notice, upon receipt of such notice by the department or its agent and until receipt by the department or its agent of a superseding notice of delegation by such CO₂ authorized account representative or alternate CO₂ authorized account representative as appropriate. The superseding notice of delegation may replace any previously identified electronic submission agent, add a new electronic submission agent, or eliminate entirely any delegation of authority.

(v) Any electronic submission covered by the certification in subclause (iii)(d)(1) of this paragraph and made in accordance with a notice of delegation effective under subparagraph (iv) of this paragraph shall be deemed to be an electronic submission by the CO₂ authorized account representative or CO₂ authorized alternate account representative submitting such notice of delegation.

(c) 'Account identification'. The department or its agent will assign a unique identifying number to each account established under subdivision (a) or (b) of this section.

N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 242-6.2

Amended New York State Register December 16, 2020/Volume XLII, Issue 50, eff. 12/31/2020