§ 3212.23 - How will the production incentive apply to a qualified expansion project?

§ 3212.23 How will the production incentive apply to a qualified expansion project?

(a) The production incentive will begin on the first day of the month following the commencement of commercial operation of the qualified expansion project. The incentive will be in effect for up to 48 consecutive months, applicable only to those months in which the actual generation from the facility or facilities affected by the project exceeds the target generation established by BLM. The amount of the production incentive is established in MMS regulations at 30 CFR 218.307.

(b) The production incentive will apply only to the increase in net generation. The increase in generation for any month in which the production incentive is in effect will be determined as follows:

where:

i is a month for which a production incentive is in effect;

ΔGi is the increase in generation for month i to which the production incentive applies;

G_a,i is the actual generation in month i;

1_t,i is the target generation in month i, as provided in § 3212.19(b).