Cal. Code Regs. Tit. 17, § 95890 - General Provisions for Direct Allocations
(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.
(l) Eligibility Requirements for
Waste-to-Energy Facilities. A waste-to-energy facility that is a covered entity
shall be eligible for direct allocations of California GHG allowances if it has
a compliance obligation for the year for which it is receiving allocation, 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 waste-to-energy 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.
Notes
2. Amendment of subsection (b) and new subsections (c)-(i) filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
3. Amendment of subsection (e) filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
4. Amendment of subsections (c)-(e) and (h)-(i) and new subsections (j)-(k)(4) filed 9-18-2017; operative 10-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).
5. Amendment of subsections (e) and (g) and new subsection (l) 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.
2. Amendment of subsection (b) and new subsections (c)-(i) filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
3. Amendment of subsection (e) filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
4. Amendment of subsections (c)-(e) and (h)-(i) and new subsections (j)-(k)(4) filed 9-18-2017; operative
5. Amendment of subsections (e) and (g) and new subsection (l) filed 3-29-2019; operative
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