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 3 - Applicability › Section 95813 - Opt-in Covered Entities

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An
						entity that meets the requirements of section
						95811, but does not exceed the
						inclusion thresholds set forth in section
						95812 may elect to voluntarily
						opt-in to the Cap-and-Trade Program.
(b) An entity that does not qualify to opt in
						to the Program pursuant to section
						95813(h) and that
						voluntarily elects to participate in this Program under this section must
						submit its request to the Executive Officer for approval by March 1 of the
						calendar year immediately preceding the first year in which it voluntarily
						elects to be subject to a compliance obligation pursuant to this section. The
						request for approval to be an opt-in covered entity shall specify the first
						year in which the entity elects to be subject to a compliance obligation. The
						Executive Officer shall evaluate such applications, designate approved
						applicants as opt-in covered entities, and, for approved applicants, specify
						the first year in which the opt-in covered entity will be subject to a
						compliance obligation.
(c) An
						entity that voluntarily elects to participate in this Program under section
						95813(b) may
						rescind its request to opt in to the Program by October 1 of the calendar year
						prior to the first year in which it voluntarily elects to be subject to a
						compliance obligation pursuant to section
						95813(b). An
						entity that voluntarily elects to participate in the Cap-and-Trade Program
						under section
						95813(h) may
						rescind its request to opt in to the Program by October 1 of the calendar year
						in which it requests approval to be an opt-in covered entity.
(d) An opt-in covered entity is subject to
						all reporting, verification, enforcement, registration, and compliance
						obligations that apply to covered entities. An opt-in covered entity's first
						reporting and verification year shall be the calendar year immediately
						preceding the first year in which it voluntarily elects to be subject to a
						compliance obligation pursuant to this section, unless the entity opts in
						pursuant to section
						95813(h), in
						which case the entity must continue to report and verify emissions, product
						data (if applicable), and all other data required by MRR.
(e) An opt-in covered entity may be eligible
						to receive freely allocated allowances subject to subarticles 8 and
						9.
(f) Opt-in participation shall
						not affect the allowance budgets set forth in subarticle 6.
(g) Opting out. At the end of any given
						compliance period, an opt-in covered entity may choose to opt out of the
						Program provided its annual emission levels for any data year remain below the
						inclusion thresholds set forth in section
						95812. An entity choosing to opt
						out of the Program must either fulfill its compliance obligations as required
						pursuant to subarticle 7 or surrender allowances equivalent to all the directly
						allocated allowances it has received from the budget years for the compliance
						period in question. An opt-in covered entity that wishes to opt-out of this
						Program must apply to the Executive Officer by September 1 of the last year of
						a compliance period.
(h) An entity
						that was previously a covered entity, meets the requirements of section
						95811, and drops below the
						inclusion thresholds set forth in section
						95812 for an entire compliance
						period, may request approval from the Executive Officer to voluntarily opt in
						to the Cap-and-Trade Program. This request to the Executive Officer must be
						submitted by June 1 of the first year of the new compliance period immediately
						after a compliance period during which the entity's emissions were below the
						inclusion thresholds. To qualify for opt-in covered entity status under this
						section (95813(h)), the entity can only request to be an opt-in covered entity
						starting in the year the request is submitted. The Executive Officer shall
						evaluate such applications and designate approved applicants as opt-in covered
						entities.
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
						  subsection (c), subsection relettering and amendment of newly designated
						  subsections (d) and (g) filed 6-26-2014; operative 7-1-2014 pursuant to
						  Government Code section
						  11343.4(b)(3)
						  (Register 2014, No. 26).
3. Amendment of subsections (b), (c) and
						  (d) and new subsection (h) filed 9-18-2017; operative 10-1-2017 pursuant to
						  Government Code section
						  11343.4(b)(3)
						  (Register 2017, No. 38).
4. Amendment of subsections (b), (c) and
						  (g) 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.