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 7 - Compliance Requirements for Covered Entities › Section 95854 - Quantitative Usage Limit on Designated Compliance Instruments-Including Offset Credits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a)
						Compliance instruments identified in section
						95820(b) and
						sections 95821(b), (c), and
						(d) are subject to a quantitative usage limit
						when used to meet a compliance obligation.
(b) Except as otherwise specified in section
						95854(c), the
						total number of compliance instruments identified in section
						95854(a) that
						each covered entity may surrender to fulfill the entity's compliance obligation
						for a compliance period must conform to the following limit:
Oo/S must be less than or equal
						  to Lo
In which:
"Oo" is the total number of
						  compliance instruments identified in section
						  95854(a)
						  submitted to fulfill the entity's compliance obligation for the compliance
						  period.
"S" is the covered entity's compliance
						  obligation.
"Lo" is the quantitative usage
						  limit on compliance instruments identified in section
						  95854(a) set at
						  0.08 for the first, second, and the third compliance periods as defined in
						  section 95840(a)-(c);
						  0.04 for the fourth compliance period as defined in section
						  95840(e); and
						  0.06 for the sixth and subsequent compliance periods, as defined in section
						  95840(e).
(c) For the fifth compliance period as
						defined in section
						95840(e),
						covering data years 2024-2026, the total number of compliance instruments
						identified in section
						95854(a) that
						each covered entity may surrender to fulfill the entity's compliance obligation
						must not exceed the quantitative usage limit (Lo) of
						0.04 for data years 2024 and 2025 and 0.06 for data year 2026.
(d) The number of sector-based offset credits
						that each covered entity may surrender to meet the entity's compliance
						obligation for a compliance period must not be greater than 0.25 of the
						Lo for the first and second compliance periods and not
						more than 0.50 of the Lo for subsequent compliance
						periods.
(e) Direct Environmental
						Benefits in the State. Beginning with offsets surrendered to meet compliance
						obligations for emissions from data years 2021-2030, no more than one-half of
						the Lo may be sourced from projects that do not provide
						direct environmental benefits in the state, as defined in section
						95802. In order to demonstrate
						that an offset project provides these direct environmental benefits in the
						state, the Offset Project Operator or Authorized Project Designee, or the
						holder of offset credits, must comply with section
						95989.
1. New
						  section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code
						  section
						  11343.4
						  (Register 2011, No. 50).
2. Amendment of subsection (b), new
						  subsections (c) and (e) and subsection relettering filed 3-29-2019; operative
						  3-29-2019 pursuant to Government Code section
						  11343.4(b)(3)
						  (Register 2019, No. 13).
Note: Authority cited: Sections
							 38510,
							 38560,
							 38562,
							 38570,
							 38571,
							 38580,
							 39600
							 and
							 39601,
							 Health and Safety Code. Reference: Sections
							 38530,
							 38560.5,
							 38564,
							 38565,
							 38570
							 and
							 39600,
							 Health and Safety Code.