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 9 - Direct Allocations of California GHG Allowances › Section 95890 - General Provisions for Direct Allocations

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) Eligibility Requirements for Industrial
						Facilities. A covered entity or opt-in covered entity from the industrial
						sectors listed in Table 8-1 shall be eligible for direct allocations of
						California GHG allowances if it has complied with the requirements of MRR and
						has obtained a positive or qualified positive product data verification
						statement for the prior year pursuant to MRR.
(b) Eligibility Requirements for Electrical
						Distribution Utilities. An electrical distribution utility that is a covered
						entity shall be eligible for direct allocation of California GHG allowances if
						it has complied with the requirements of MRR and has obtained a positive or
						qualified positive emissions data verification statement for the prior year
						pursuant to MRR.
(c) Electrical
						Distribution Utilities that are not covered entities but are listed in Tables
						9-3, 9-3A, and 9-4 must register pursuant to section
						95830 to receive
						allowances.
(d) Eligibility
						Requirements for University Covered Entities and Public Service Facilities. A
						university covered entity or public service facility that is a covered entity
						that had a compliance obligation in 2013 and/or 2014, or a university or public
						service facility that is an opt-in covered entity that submitted its request to
						opt in pursuant to 95813 by July 31, 2014, shall be eligible for direct
						allocations of California GHG allowances if it has complied with the
						requirements of MRR and has obtained a positive or qualified positive emissions
						data verification statement for the prior year pursuant to MRR. A university or
						public service facility shall not be eligible for any direct allocation of
						allowances for any data year for which it is not a covered entity or an opt-in
						covered entity.
(e) Eligibility
						Requirements for Legacy Contract Generators. A legacy contract generator with
						an industrial counterparty or legacy contract generator without an industrial
						counterparty that has demonstrated its eligibility to the satisfaction of the
						Executive Officer pursuant to section
						95894 shall be eligible for direct
						allocation of allowances if it has complied with the requirements of MRR and
						has obtained a positive or a qualified positive emissions data verification
						statement pursuant to MRR.
(f)
						Eligibility Requirements for Natural Gas Suppliers. A natural gas supplier that
						is a covered entity shall be eligible for direct allocation of California GHG
						allowances if it has complied with the requirements of MRR and has obtained a
						positive or qualified positive emissions data verification statement for the
						prior year pursuant to MRR.
(g)
						Eligibility Requirements for Public Wholesale Water Agencies. A public
						wholesale water agency shall be eligible for direct allocations of California
						GHG allowances if it has complied with the requirements of MRR and has obtained
						a positive or qualified positive emissions data verification statement for the
						prior year pursuant to MRR.
(h) No
						facility receiving allowances pursuant to section
						95870(f) may also
						receive allowances pursuant to section
						95870(g), and no
						facility receiving allowances pursuant to section
						95871(e) may also
						receive allowances pursuant to section
						95871(f).
(i) No facility that qualifies for a limited
						exemption pursuant to section
						95852(j) may also
						receive allowances pursuant to sections
						95870,
						95871,
						95890,
						95891, or
						95894 for the same budget
						year.
(j) Negative Allowance
						Allocation. If the calculation of a covered entity or opt-in covered entity's
						annual allowance allocation is negative pursuant to section
						95891,
						95892, or
						95894 and the entity has a
						consolidated tracking system account with any other covered or opt-in covered
						entity that was eligible for allocation pursuant to sections
						95891,
						95892, or
						95894, then the negative amount
						shall be applied to that covered entity or opt-in covered entity sharing the
						consolidated tracking system account. If negative allowance allocation remains,
						then that amount shall be applied to the allowance allocation that is
						distributed the following calendar year to the covered entity or opt-in covered
						entity or the covered entity or opt-in covered entity sharing a consolidated
						tracking system account.
(k) Return
						of Allocation. If a covered entity or opt-in covered entity received an
						allocation of allowances for a year in which it incurred no compliance
						obligation pursuant to section
						95835, or if a covered entity or
						opt-in covered entity previously eligible for allocation pursuant to section
						95870(e) ceased
						to operate under an activity listed in Table 8-1, the entity must fulfill the
						following requirements. The entity must return allowances by November 1 of the
						calendar year t + 1, where t is the year for which the entity received an
						allowance allocation but did not incur a compliance obligation or did not
						operate under an activity listed in Table 8-1.
(1) The entity must return to the Executive
						Officer a number of allowances equal to the initial allowance allocation for
						every budget year for which the entity incurred no compliance obligation or did
						not operate under an activity listed in Table 8-1.
(2) If eligible for true-up allowance
						allocation for any data year, the entity shall receive the true-up allowance
						allocation by the allocation date for that year. If the true-up allocation
						value is positive, then the Executive Officer will allocate true-up allowances
						to the entity. If the true-up allocation value is negative, then the entity
						must return to the Executive Officer a number of allowances that is equal to
						the absolute value of the negative true-up allowance allocation according to
						the schedule in section
						95890(k).
(3) If the entity has a negative allowance
						allocation balance pursuant to section
						95890(j) or any
						other section of this article, then the entity must return a number of
						allowances to the Executive Officer that is equal to the absolute value of the
						negative balance according to the schedule in section
						95890(k).
(4) To return allowances to the Executive
						Officer, an entity must place the appropriate number of allowances into its
						compliance account and notify the Executive Officer. The allowances are
						considered to be returned only after they have been removed from the compliance
						account by the Executive Officer. If an entity fails to return allowances, then
						ARB will determine the number of violations pursuant to section
						96014.