Cal. Code Regs. Tit. 17, § 95814 - Voluntarily Associated Entities and Other Registered Participants
(a) Voluntarily
Associated Entities (VAE). An entity not identified as a covered entity or
opt-in covered entity that intends to hold California compliance instruments
may apply to the Executive Officer pursuant to section
95830(c) for
approval as a voluntarily associated entity.
(1) The following list defines the entities
that may qualify as voluntarily associated entities:
(A) An individual, or an entity that does not
meet the requirements of sections
95811 and
95813, that intends to purchase,
hold, sell, or voluntarily retire compliance instruments;
(B) An entity operating an offset project or
early action offset project that is registered with ARB pursuant to subarticles
13 or 14. Entities qualifying as voluntarily associated entities under this
subparagraph may hold offsets without needing to fulfill the requirements of
section 95830(c)(1)(G).
Entities qualifying as voluntarily associated entities under this subparagraph
may also hold allowances, but only after fulfilling the requirements of section
95830(c)(1)(G);
or
(C) An entity providing clearing
services in which it takes only temporary possession of compliance instruments
for the purpose of clearing transactions between two entities registered with
the Cap-and-Trade Program. A qualified entity must be a derivatives clearing
organization as defined in the Commodities Exchange Act (7 U.S.C. §
1a(9)) that is registered
with the U.S. Commodity Futures Trading Commission pursuant to the Commodities
Exchange Act (7 U.S.C. §
7a-1(a)).
(2) An individual registering as a
voluntarily associated entity must have a primary residence in the United
States.
(3) Registration and
Consulting Activities. An individual who provides cap-and-trade consulting
services as described in section
95923 and also registers as a
voluntarily associated entity in the tracking system must disclose to the
Executive Officer the entities for which the individual is providing consulting
services.
(A) The disclosure must be made
when the individual registers as a voluntarily associated entity, or within 30
days of initiating the consulting activity if the individual is already
registered.
(B) If the individual
is associated with an entity providing cap-and-trade consulting services so
that in the course of the individual's duties the individual gains access to
the market position of another registered entity, then the individual must
provide a notarized letter from the entity providing the cap-and-trade
consulting services stating that it is aware of the individual's plans to apply
as a voluntarily associated entity in the Cap-and-Trade Program and that it has
conflict of interest policies and procedures in place which prevent the
individual from using information gained from the relationship with the entity
for personal gain in the Cap-and-Trade Program. Failure to provide such a
letter by the applicable deadline in section
95814(a)(3)(A)
will result in suspension, modification, or revocation of the individual's
tracking system account.
(4) An individual who is already registered
in the tracking system and intends to provide cap-and-trade program advisory
services to other registrant(s) must disclose the proposed relationship with
the other registrant(s) to the Executive Officer and comply with the
requirements of section
95814(a)(3)(B)
prior to providing the advisory services. Failure to provide such a letter by
the deadline will result in suspension, modification, or revocation of the
individual's tracking system account.
(5) An entity registering as a voluntarily
associated entity must be located in the United States, according to the
registration information reported pursuant to section
95830(c).
(6) Individuals identified by registered
entities pursuant to sections
95830(c)(1)(B), (C), (J), and
(L) and section
95832, unless disclosed pursuant
to section
95814(a)(3), are
not eligible to register as voluntarily associated entities.
(7) An individual who is an employee of an
entity subject to the requirements of MRR or the Cap-and-Trade Program is not
eligible to register as a voluntarily associated entity.
(b) Restrictions on Other Registered
Participants. The following entities do not qualify to hold compliance
instruments and do not qualify as a Registered Participant:
(1) An offset verifier accredited pursuant to
section 95978;
(2) A verification body accredited pursuant
to section
95978;
(3) Offset Project Registries;
(4) Early Action Offset Programs approved
pursuant to subarticle 14; or
(5) A
MRR verifier accredited pursuant to the MRR.
Notes
2. Amendment of subsection (a), repealer and new subsections (a)(1)-(3) and amendment of subsection (c) filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
3. Amendment filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
4. Amendment of subsections (a)(1), (a)(1)(B) and (a)(3), new subsections (a)(3)(A)-(B), amendment of subsections (a)(4) and (a)(6)-(7) and repealer of subsection (c) filed 9-18-2017; operative 10-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).
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.
2. Amendment of subsection (a), repealer and new subsections (a)(1)-(3) and amendment of subsection (c) filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
3. Amendment filed 6-26-2014; operative
4. Amendment of subsections (a)(1), (a)(1)(B) and (a)(3), new subsections (a)(3)(A)-(B), amendment of subsections (a)(4) and (a)(6)-(7) and repealer of subsection (c) filed 9-18-2017; operative
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