California Code of Regulations › Title 17 - Public Health › Division 3 - Air Resources › Chapter 1 - Air Resources Board › Subchapter 10 - Climate Change › Article 5 - California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms › Subarticle 11 - Trading and Banking › Section 95920 - Trading

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) The holding
						limit is the maximum number of California GHG allowances that may be held by an
						entity or jointly held by a group of entities with a direct corporate
						association, as defined in section
						95833, at any point in
						time.
(b) Application of the
						Holding Limit.
(1) The holding limit will
						apply to each entity registered as a covered, opt-in covered, or voluntarily
						associated entity pursuant to section
						95830.
(2) The holding limit calculation will not
						include allowances contained in limited use holding accounts or exchange
						clearing holding accounts created pursuant to section
						95831.
(3) The holding limit calculation will not
						include allowances contained in Annual Allocation Holding Accounts.
(4) If the Executive Officer determines that
						a reported transfer request not yet recorded into the tracking system would
						result in an entity's holdings exceeding the applicable holding limit, then the
						Executive Officer shall not approve the transfer request pursuant to section
						95921(a)(1).
(5) If an entity is in compliance with the
						current vintage holding limit on December 31 of any year and the
						reclassification of future vintage allowances as current vintage allowances
						pursuant to section
						95920(c)(1)(C)
						causes it to exceed the holding limit on January 1 of the next compliance year,
						then:
(A) The accounts administrator will
						inform the entity; and
(B) The
						entity will have five business days to bring its account balances within the
						holding limit. After that, the Executive Officer may transfer allowances in
						excess of the holding limit to the Auction Holding Account for consignment to
						auction pursuant to section
						95910(d)(2).
(C) Allowances transferred to the Auction
						Holding Account for consignment will be drawn first from the entity's Holding
						Account and, if necessary, from the entity's Compliance Account. The order for
						removing allowances for consignment will be the opposite of the retirement
						order in section
						95856(h)(1).
(6) Penalties for Holding Limit Violations.
(A) For an entity that is out of compliance
						with the holding limit only as a result of the circumstances described in
						section 95920(b)(5),
						penalties may be applied if the entity fails to bring its account balances
						under the holding limit within the five business day period allowed pursuant to
						section 95920(b)(5)(B).
						Otherwise, penalties may be applied whenever the holding limit is
						exceeded.
(B) Penalties may be
						applied if the violation of the holding limit is not discovered until after a
						transfer that would exceed the holding limit is registered into the tracking
						system.