Section 95101 - Applicability(a)General Applicability. (1) This article applies to the following entities:(A) Operators of facilities located in California with source categories listed below are subject to this article regardless of emissions level: 1. Electricity generation units that report CO2 mass emissions year round through 40 CFR Part 75 ;4. Nitric acid production;6. Geologic sequestration of carbon dioxide;7. Injection of carbon dioxide.(B) Operators of facilities located in California with source categories listed below, are subject to this article when stationary combustion and process emissions of CO2, CH4, and N2O equal or exceed 10,000 metric tons CO2e for a calendar year: 1. Stationary fuel combustion, which includes electricity generating units not subject to 40 CFR Part 75 ;4. Iron and steel production;5. Pulp and paper manufacturing;6. Petroleum and natural gas systems;7. Geothermal electricity generation.(C) Suppliers of fuels provided for consumption within California that are specified below in paragraph (c);(D) Carbon dioxide suppliers as specified below in paragraph (c), including CO2 producers regardless of quantity produced, and CO2 importers and exporters when annual bulk imports or exports equal or exceed 10,000 metric tons;(E) Electric power entities as specified below in paragraph (d); and,(F) Operators of petroleum and natural gas systems as specified below in paragraph (e).(G) Any California reporting entity subject to subparts E, F, G, I, K, L, O, R, T, U, X, Z, BB, CC, EE, FF, GG, II, LL, OO, QQ, SS, or TT of 40 CFR Part 98 that emits over 10,000 metric tons of CO2e resulting from CO2, N2O, or CH4 emissions. If a reporting entity utilizes the above industrial processes and emits over 10,000 metric tons of CO2e resulting from CO2, N2O, or CH4 emissions, they must notify the Executive Officer within 90 days of the effective date of this regulation or within 90 days of commencing the industrial process. This notification requirement also applies to facility operators subject to section 95103(a), for abbreviated reporting.(2) Any reporting entity in one or more of the categories in subsection (a)(1) above must submit an annual emissions data report, except as provided in the cessation provisions of subsections (h) and (i) of this section. The emissions data report must cover all source categories and GHGs for which calculation methods are provided or referenced in this article, for the reporting entity. Except as otherwise specified in this article, the report must be compiled using the methods specified by source category in 40 CFR Part 98.(3) If a facility operator determines their reporting applicability and responsibility on the basis of common ownership, the basis of reporting applicability and responsibility can only be changed to common control at the beginning of a compliance period. If a facility operator determines their reporting applicability and responsibility on the basis of common control, the basis of reporting applicability and responsibility can only be changed to common ownership at the beginning of a compliance period. These provisions do not apply if there is a legal change in facility ownership. If there is a change in facility ownership, the provisions of section 95103(n) apply.(4)Verifiers and Verification Bodies. In addition to the reporting entities specified in subsection (a)(1) above, this article contains requirements for entities acting as verification bodies and individuals acting as third party verifiers of emissions data reports and offset project data reports. These requirements are specified in sections 95130 through 95133 of this article.(b)Calculating Facility GHG Emissions Relative to Thresholds. For facilities for which an emissions-based applicability threshold is specified in section 95101(a)(1), the operator must calculate emissions for comparison to applicable thresholds as specified below:(1) For the purpose of computing emissions relative to the 25,000 metric ton CO2e threshold specified in section 95812 of the cap-and-trade regulation, operators must include all covered emissions of CO2, CH4, and N2O.(2) For the purpose of computing emissions relative to the 10,000 metric ton CO2e threshold for reporting applicability specified in section 95101(a), operators must include emissions of CO2, CH4 and N2O from stationary combustion sources and process emissions, but may exclude any vented and fugitive emissions from the estimate. Petroleum and natural gas system facilities identified under section 95101(e) must include all flaring emissions in the 10,000 metric ton CO2e threshold determination. If all the CO2, CH4, and N2O emissions emitted within the reporting entity's facility boundary, including vented and fugitive emissions, exceed the 25,000 metric ton CO2e threshold specified in sections 95103(a) and 95103(f), the reporting entity is not eligible for the abbreviated reporting option provided in section 95103(a) and must submit an emissions data report pursuant to the full requirements of this Article, including obtaining verification services pursuant to section 95103(f).(3) When determining applicability relative to the thresholds for emissions reporting in sections 95101(b)(1) and (2) above, facility operators must include any supplier emissions from source categories in sections 95101(c)(5), (7), (8) and (10). If the threshold for reporting is exceeded, the facility and supplier emissions must be reported. If emissions are reported under multiple ARB facility IDs, the operator must report the other ARB facility ID's associated with the facility.(4) Operators of facilities and suppliers must include emissions of CO2 from the combustion of biomass and other biofuels when determining applicability relative to thresholds for emissions reporting and cessation of reporting.(5) Operators of geothermal generating units must report when total facility emissions of CO2 and CH4 equal or exceed 10,000 metric tons of CO2e.(6) Operators of a hydrogen fuel cell unit must include emissions from the hydrogen fuel cell unit in calculating emissions for comparison to applicability thresholds.(c)Fuel and Carbon Dioxide Suppliers. The suppliers listed below, as defined in section 95102(a), are required to report under this article when they produce, import and/or deliver an annual quantity of fuel that, if completely combusted, oxidized, or used in other processes, would result in the release of greater than or equal to 10,000 metric tons of CO2e in California, unless otherwise specified in this article:(1) Position holders at terminals and refiners delivering petroleum fuels and/or biomass-derived fuels, as described in section 95121;(2) Enterers that import transportation fuels outside the bulk transfer/terminal system, as described in section 95121, and biofuel production facilities that produce and deliver transportation fuels outside the bulk/terminal system, as described in section 95121;(3) All refiners that produce liquefied petroleum gas, without regard to quantities, as described in section 95121;(4) Operators of interstate pipelines delivering natural gas, as described in section 95122;(5) Importers of liquefied petroleum gas, compressed natural gas, or liquefied natural gas into California, as described in section 95122;(6) Local distribution companies who are public utility gas corporations or publicly-owned natural gas utilities delivering natural gas, as described in section 95122;(7) Operators of intrastate pipelines delivering natural gas as described in section 95122;(8) All natural gas liquid fractionators, without regard to quantities produced, as described in section 95122;(9) All producers of carbon dioxide without regard to quantity produced, and importers and exporters of carbon dioxide with annual bulk imports into or exports from California of 10,000 metric tons or more, as described in section 95123.(10) Facilities that make liquefied natural gas products or compressed natural gas products by liquefying or compressing natural gas received from interstate pipelines, as described in section 95122;(d)Electric Power Entities. The entities listed below are required to report under this article: (1) Electricity importers and exporters, as defined in section 95102(a);(2) Retail providers, including multi-jurisdictional retail providers, as defined in section 95102(a);(3) California Department of Water Resources (DWR);(4) Western Area Power Administration (WAPA);(5) Bonneville Power Administration (BPA).(e)Petroleum and Natural Gas Systems. The facility types listed below, as further specified in section 95150, are required to report under this article when their stationary combustion emissions (including flaring) and process emissions equal or exceed 10,000 metric tons of CO2e, or their stationary combustion, process, fugitive, and vented emissions equal or exceed 25,000 metric tons of CO2e.(1) Offshore petroleum and natural gas production facilities;(2) Onshore petroleum and natural gas production facilities;(3) Onshore natural gas processing plants;(4) Onshore natural gas transmission compression facilities;(5) Underground natural gas storage facilities;(6) Liquefied natural gas storage facilities;(7) Liquefied natural gas import and export facilities;(8) Natural gas distribution facilities.(f)Exclusions. This article does not apply to, and greenhouse gas emissions reporting is not required for:(1) Electricity generating facilities that are solely powered by nuclear, hydroelectric, wind, or solar energy, unless on-site stationary combustion emissions equal or exceed 10,000 metric tons of CO2e;(2) Generating units designated as backup or emergency generators in a permit issued by an air pollution control district or air quality management district;(3) Fire suppression systems and equipment;(4) Portable equipment, except where specifically required to report under 40 CFR Part 98 or this article;(5) Primary and secondary schools with a NAICS code of 611110;(6) Fugitive methane emissions from municipal solid waste landfills described in 40 CFR Part 98 , Subpart HH;(7) Fugitive methane and fugitive nitrous oxide emissions from livestock manure management systems described in 40 CFR Part 98 , Subpart JJ, regardless of the magnitude of emissions produced;(8) Agricultural irrigation pumps.(g)Demonstration of Nonapplicability. The Executive Officer may request a demonstration from any operator, supplier, or entity that the operator, supplier, or entity does not meet one or more of the applicability criteria specified in this article. Such demonstration must be provided to the Executive Officer within 20 days of receipt of a written request.(h)Cessation of Reporting and Verification for Reduced Emissions. The requirements for facility operators, suppliers, and electric power entities whose emissions are reduced below applicable reporting and verification thresholds are as follows for ceasing reporting and verification. Cessation requirements for facility operators that permanently "shut down" are in section 95101(i). (1) Reporting Entities Subject to a Compliance Obligation.(A) Facility operators and suppliers. Facility operators and suppliers that are subject to a compliance obligation under the Cap-and-Trade Regulation must report and verify until covered emissions are less than 25,000 MTCO2e for an entire subsequent compliance period, or until the reporting entity is no longer a covered entity, except as specified in section 95101(h)(1)(A). If annual covered emissions for a facility operator or supplier exceed 25,000 MTCO2e in any year after cessation requirements have been met, the operator or supplier must resume verification as required under this article, and the operator or supplier would again have a compliance obligation under the Cap-and-Trade Regulation, and must meet all applicable requirements.1. If a facility operator or supplier's emissions drop below 25,000 MTCO2e, in meeting the requirements for cessation in section 95101(h)(1)(A), but a facility operator or supplier's total reported emissions remain above 10,000 MTCO2e, the facility operator must continue to report under MRR until emissions drop below 10,000 MTCO2e for a consecutive three-year period and in this case the facility operator or supplier must meet the requirements in section 95101(h)(2) before exiting MRR.2. Notwithstanding section 95101(h)(1)(A), facilities with source categories in section 95101(a)(1)(A) that are subject to a compliance obligation under the Cap-and-Trade Regulation, are subject to reporting and verification regardless of emission level, and so must follow the cessation of reporting and verification provisions in section 95101(i).3. Once an opt-in covered entity begins reporting, it must continue to report and verify for each data year in which it incurs a compliance obligation under the Cap-and-Trade Regulation.4. Fuel suppliers that cease to supply fuel in California and whose emissions drop to zero during a Cap-and-Trade compliance period must continue to report until emissions are zero for an entire subsequent compliance period as defined in the Cap-and-Trade Regulation. Pursuant to section 95103(n)(2)(D), entities that cease to have a compliance and/or reporting obligation as a fuel supplier due to a change in ownership or sale or relinquishment of an inventory position at a terminal must continue to report and verify emissions from the reportable fuel transactions that occurred prior to the change. Fuel suppliers that cease to supply fuel in California and no longer have any reportable emissions must verify their emissions data report in the first year in which they report zero emissions. Any reporting year thereafter with zero reportable emissions is not subject to verification.(B) Electric power entities. Electric power entities that import electricity to California, and therefore are subject to a compliance obligation under the Cap-and-Trade Regulation, must report until the entity has no reportable imported electricity to California, and until the entity is no longer subject to a compliance obligation under the Cap-and-Trade Regulation for an entire subsequent compliance period. Electric power entities that no longer import or export electricity must verify their emissions data report in the first year in which they report zero imports or exports. Any reporting year thereafter with zero imports or exports is not subject to verification.(C) An entity that meets the cessation requirements pursuant to sections 95101(h)(1)(A) and (B) must notify the Executive Officer, in writing, that it is ceasing to report and verify pursuant to this article and provide the reason(s) for the reduction of emissions. The notification must be submitted no later than the applicable reporting deadline for the year following the last data year that the entity is required to submit an emissions data report. Entities must provide the cessation notification to the address indicated in section 95103(o) of this article.(D) Operators, suppliers, and electric power entities that are subject to a compliance obligation and fully exit reporting pursuant to section 95101(h)(1) must maintain the corresponding records required under section 95105 and retain such records for 10 years following the submission of the final emissions data report to ARB.(2) Reporting Entities Not Subject to a Compliance Obligation. (A) Facility operators and suppliers. Facility operators and suppliers whose total reported emissions are below 25,000 MTCO2e in each reporting year, or have total reported emissions but not covered emissions that exceed 25,000 MTCO2e a year, and therefore are not subject to a compliance obligation under the Cap-and-Trade Regulation, must report under this article until total reported emissions are less than 10,000 MTsO2e for a consecutive three-year period. If total reported emissions for a facility operator or supplier exceeds 10,000 MTCO2e in any year after cessation requirements have been met, the operator or supplier must resume reporting as required under this article.1. Facility operators and suppliers that have total reported emissions, but not covered emissions, including CO2 from biomass-derived fuels and geothermal sources, that exceed 25,000 MTCO2e a year, and therefore are not subject to a compliance obligation under the Cap-and-Trade Regulation, and total reported emissions fall below 25,000 MTCO2e in a reporting year, must have their emissions data report verified for the first year that total reported emissions are reduced below the 25,000 MTCO2e threshold. Any reporting year thereafter with total reported emissions that are below 25,000 MTCO2e is not subject to verification.a. If in any subsequent year after meeting the verification cessation requirements in section 95101(h)(2)(A)1., total reported emissions exceed 25,000 MTCO2e, the operator or supplier must have its emissions data report verified, and verification must continue until cessation is met again.b. Facility operators and suppliers that meet the verification cessation requirements in section 95101(h)(2)(A)1. must notify ARB pursuant to the requirements in section 95101(h)(2)(E), if they choose to cease verification.2. If in meeting the cessation requirements in section 95101(h)(2)(A) a fuel supplier ceases to supply fuel in California and emissions drop to zero, the entity must continue to report until emissions are zero for a consecutive three-year period. Pursuant to section 95103(n)(2)(D), entities that cease to have a reporting obligation as a fuel supplier due to a change in ownership or sale or relinquishment of an inventory position at a terminal must continue to report and verify emissions from the reportable fuel transactions that occurred prior to the change.(B) For facilities and suppliers with source categories in section 95101(a)(1)(A) whose total reported emissions are below 25,000 MTCO2e, and therefore are not subject to a compliance obligation under the Cap-and-Trade Regulation, cessation of reporting and verification provisions in section 95101(i) apply.(C) Electric power entities that only report exports of electricity from California, and therefore are not subject to a compliance obligation under the Cap-and-Trade Regulation, must report until there are zero exports to report for a consecutive three-year period. Verification is not required for the report of the first full year where there are zero exports reported.(D) Electric power entities who meet the definition of "retail provider" must always report retail sales for each calendar year, even if they have zero retail sales to report. Entities that are registered as ESPs but have never provided retail electricity to California customers are not required to report under MRR until they meet the definition of "retail provider." WAPA and DWR must always report pump loads for each calendar year.(E) An entity that meets the cessation requirements for reporting, and verification if applicable, pursuant to sections 95101(h)(2)(A) through (D) must notify the Executive Officer, in writing, that it is ceasing to report, or verify if applicable, pursuant to this article and provide the reason(s) for cessation of reporting, or verification if applicable. The notification must be submitted no later than the applicable reporting deadline for the year following the last data year that the entity is required to submit an emissions data report. Entities must provide the cessation notification to the address indicated in section 95103(o) of this article.(F) Operators, suppliers, and electric power entities that fully exit reporting pursuant to section 95101(h)(2) must maintain the corresponding records required under section 95105 and retain such records for five years following the submission of the final emissions data report to ARB.(i)Cessation of Reporting and Verification for Shutdown Facilities. The requirements for facility operators that cease to operate or permanently shut down as defined in this section are as follows for ceasing reporting and verification. (1) If the operations of a facility are changed such that all applicable GHG-emitting processes and operations cease to operate or are permanently shut down, the owner or operator must submit an emissions data report for the year in which the facility's GHG-emitting processes and operations ceased to operate, and for the first full year of non-operation that follows. The owner or operator must submit a notification to ARB that announces the cessation of reporting and certifies to the cessation of all GHG-emitting processes and operations no later than the reporting deadline of the year following the cessation of operations or permanent shutdown. For the purposes of this provision, "cease to operate" means the facility did not operate any GHG-emitting processes for an entire calendar year. Continued operation of space heaters and water heaters as necessary until operations are restarted in a subsequent year does not preclude a facility from meeting the definition of "cease to operate." The owner or operator must resume reporting for any future calendar year during which any of the GHG-emitting processes or operations resume operation and are subject to reporting.
For the purposes of this provision, permanently "shut down" means the reporting entity has objective evidence that the industrial operations are permanently shut down, including but not limited to, decommissioning and cancelling air permits. For this provision, permanent shutdown may include continued operation of space heaters and water heaters as necessary to support decommissioning activities.
(2) Section 95101(i)(1) does not apply to seasonal or other temporary cessation of operations.(3) The owner, operator, or supplier must resume reporting for any future calendar year during which any of the GHG-emitting processes or operations resume operation and are subject to reporting.(4) If a facility owner or operator meets the requirements for cessation of reporting pursuant to section 95101(i), the owner or operator must continue to obtain the services of an accredited verification body for purposes of verifying the emissions data report for the year in which the facility's GHG-emitting processes and operations ceased to operate. Verification is not required for the emissions data report of the first full year of non-operation that follows. If the reporting entity was not subject to verification before meeting the cessation of reporting requirements pursuant to 95101(i), verification is not required under this section for the year in which the facility's GHG-emitting processes and operations ceased to operate.(5) Facilities and suppliers with source categories in section 95101(a)(1)(A) that met the cessation requirements under a previous version of MRR must reenter the reporting program and are subject to this subarticle only if their emissions exceed 10,000 MTCO2e in a calendar year.(j) If an entity has met the cessation requirements pursuant to MRR section 95101(h) or (i) and remains in the Cap-and-Trade Program solely to meet the requirements of section 95835(f), then the entity need not report and verify data pursuant to MRR for any time period after which the MRR cessation requirements have been met.Cal. Code Regs. Tit. 17, § 95101
1. New section filed 12-2-2008; operative 1-1-2009 (Register 2008, No. 49).
2. Amendment of section and NOTE filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
3. Amendment filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
4. Amendment filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
5. Amendment of subsection (c)(2) filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
6. Amendment filed 9-1-2017; operative 1-1-2018 (Register 2017, No. 35).
7. Amendment of subsections (h)(1)(A)4., (h)(1)(B) and (i)(4) and new subsection (i)(5) filed 3-29-2019; operative 4-1-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13). Note: Authority cited: Sections 38510, 38530, 39600, 39601, 39607, 39607.4 and 41511, Health and Safety Code. Reference: Sections 38530, 39600 and 41511, Health and Safety Code.
1. New section filed 12-2-2008; operative 1-1-2009 (Register 2008, No. 49).
2. Amendment of section and Note filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
3. Amendment filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
4. Amendment filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
5. Amendment of subsection (c)(2) filed 12-31-2014; operative 1/1/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
6. Amendment filed 9-1-2017; operative 1/1/2018 (Register 2017, No. 35).
7. Amendment of subsections (h)(1)(A)4., (h)(1)(B) and (i)(4) and new subsection (i)(5) filed 3-29-2019; operative 4/1/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).