the allowance proceeds for those credits. Interest should be applied to the annual credit on a monthly basis beginning in April of the year the GHG allowance proceeds were received through four months prior to credit distribution to the facility (e.g., a credit distributed in October 2016 from 2013 GHG allowance proceeds should accrue interest from April 2013 through June 2016). The interest rate applied to the credit should be the financial, three-month, commercial paper rate published by the Federal Reserve on a monthly basis. Comments on Proposed Decision Consistent with Rule 14.6(b), comments on the proposed decision must be filed within 18 days of its mailing and reply comments must be filed within 25 days of its mailing. Comments were file on July 5, 2016, by Tesoro and jointly by the Energy Producers and Users Coalition (EPUC), the California Large Energy Consumers Association (CLECA), and the California Manufacturers & Technology Association (CMTA). In response to the comments received, revisions were made to the proposed decision to clarify that the Commission will accept data at the level only if (i) the data is verified according to a standard established by ARB and ARB provides the verified data to the Commission, and (ii) the were previously assigned distinct facility IDs for MRR reporting. Also, in response to comments regarding interest calculations on prior years’ credits, the proposed decision was revised to calculate interest from April of the year the GHG allowance proceeds were received through four months prior to the distribution of the credit. Assignment of Proceeding Carla J. Peterman is the assigned Commissioner and Darwin E. Farrar is the assigned Administrative Law Judge in this proceeding.
“Ot-2” is the output of primary refinery products, in barrels, from the refining sector in year t-2 discounted by the percentage of the refinery sector’s electricity purchases in year “t-2” that are from utilities. Like the product and allocations, the refinery allocation will be granted in advance of costs being incurred. Allocation to Facilities Without EII Values (Simple Refineries) Refineries without an EII value are granted allowance revenue based on the following simple barrel benchmark approach, which is equivalent to the product-based allocation methodology, limited to be no greater than a refinery’s historical emissions. Equation 13. Revenue Allocation to Individual Refineries without EII Values (Simple Refineries) Where: “ARX,t” is the allocation of revenue in dollars to an individual refinery “X” for budget year “t.” “AX,t” is the allocation of allowances to an individual refinery “X” for budget year “t” as calculated by either Equation 14 or Equation 15 below. “Dt” is the dollar conversion factor calculated based on the average of CAISO’s daily Greenhouse Gas Allowance Index Price for the year “t.” It is possible to use year “t” rather than year “t-1” since these refinery owned
“AFt” is the refinery assistance factor for year “t.” “Ft” is a fraction as calculated in Equation 18. “Dt” is the dollar conversion factor used to convert metric tons of emissions into dollars. “ARY,t” is the allocation of revenue in dollars that individual refinery “Y” received for GHG emissions from electricity purchases experienced in year “t”. (END OF ATTACHMENT 1)