Cal. Code Regs. tit. 17 § 95203

Current through Register 2024 Notice Reg. No. 44, November 1, 2024

Section 95203 - Calculation of Fees

(a)Total Required Revenue (TRR).

(1) The Required Revenue (RR) shall be the total amount of funds necessary to recover the costs of implementation of AB 32 program expenditures for each fiscal year, based on the number of personnel positions, including salaries and benefits and all other costs, as approved in the California Budget Act for that fiscal year.

(2) The RR shall also include any amount required to be expended by ARB in defense of this subarticle in court.

(3) If there is any excess or shortfall in the actual revenue collected for any fiscal year, such excess or shortfall shall be carried over to the next year's calculation of the Total Revenue Requirement. If ARB does not expend or encumber the full amount authorized by the California Legislature for any fiscal year, the amount not expended or encumbered in that fiscal year shall be carried over and deducted from the next year's calculation of the Total Revenue Required.

(4) The annual Total Revenue Requirement is equal to the annual RR adjusted for the previous fiscal year's excess or shortfall amount, as provided in subsection (a)(4).

(b)Common Carbon Cost.

The Executive Officer shall calculate a Common Carbon Cost (CCC), which represents the annual cost per MTCO₂e emitted. The CCC shall be calculated in accordance with the following formula:

CCC	=	TRR
		(Q_c x EF_c) + Q_cc + Q_rga + (Q_ng x EF_ng) + (Q_ag) + (Q_ngw) + (Q_g x EF_g) + (Q_d x EF_d) + (Q_e x EF_e) + Q_pe

Where

	TRR =	Total Required Revenue, as specified in subsection 95203(a).
	(Q_c x EF_c) =	Statewide quantity of emissions (MTCO₂e) from coal, coal coke, or petroleum coke, except that used in an electricity generating facility subject to 95201(a)(4), calculated as the sum of:
		(Q_b x EF_b) = Quantity of bituminous coal (Q_b) x the emission factor of MTCO₂e for bituminous coal (EF_b);
		(Q_l x EF_l) = Quantity of lignite coal (Q_l) x the emission factor of MTCO₂e (EF_l) for lignite coal;
		(Q_a x EF_a) = Quantity of anthracite coal (Q_a) x the emission factor of MTCO₂e (EF_a) for anthracite coal;
		(Q_sb x EF_sb) Quantity of subbituminous coal (Q_sb) x the emission factor of MTCO₂e (EF_sb) for subbituminous coal;
		(Q_coc x EF_coc) = Quantity of coal coke (Q_coc) x the emission factor of MTCO₂e (EF_coc) for coal coke.
		(Q_pc x EF_pc) = Quantity of petroleum coke (Q_pc) x the emission factor of MTCO₂e (EF_pc) for petroleum coke.
	Q_cc =	Statewide quantity of emissions (MTCO₂e) from catalyst coke.
	Q_rga =	Statewide adjusted quantity of emissions (MTCO₂e) from refinery fuel gas, except that used in an electricity generating facility subject to 95201(a)(4).
	Q_ng =	Statewide quantity, in therms, of natural gas supplied for all uses except electricity generating facilities subject to 95201(a)(4).
	EF_ng =	Emission factor of MTCO₂e for natural gas.
	Q_ag =	Statewide quantity of emissions (MTCO₂e) from associated gas produced from on-site oil wells.
	Q_ngw =	Statewide quantity of emissions (MTCO₂e) from natural gas produced from on-site gas wells.
	Q_g =	Statewide quantity of gasoline supplied during the reporting period. This is the volumetric sum of California gasoline produced or imported into California and the amount of finished CARBOB product produced or imported into California. The finished CARBOB product is calculated as the volume sum of the CARBOB plus the reported amount of oxygenate designated for each volume of CARBOB.
	EF_g	Emission factor of MTCO₂e for each supplied gallon of California gasoline.
	Q_d	Quantity of California diesel fuel supplied during the reporting period.
	EF_d =	Emission factor of MTCO₂e for each supplied gallon of California diesel fuel.
	(Q_e x EF_e) =	Quantity of emissions from all electricity delivered in California as the sum of:
		(Q_ie x EF_ie) = Statewide quantity of MWh of in-state generated electricity (Q_ie) delivered multiplied by the facility emission factor (MTCO₂e per MWh).
		(Q_sp x EF_sp) = Quantity of MWh of electricity delivered from each specified source (Q_sp) multiplied by the emission factor (MTCO₂e per MWh) for that specified source;
		(Q_unsp x EF_unsp) = Statewide quantity of MWh of electricity delivered from unspecified sources (Q_unsp) multiplied by the default emission factor (MTCO₂e per MWh) for unspecified sources.
		Minus
		(Q_qe x EF_unsp) = Quantity of MWh of qualified exports (Q_ge) from each source multiplied by the emission factor (MTCO₂e per MWh) for unspecified sources.
		Minus
		(Q_RPS x EF_unsp) = Quantity of MWh generated by each California eligible renewable resource (Q_RPS) located outside the State of California, claimed by the reporting entity, included in the reporting entity's emission data report and meeting requirements pursuant to section 95852(b)(4) of the Cap-and-Trade Regulation multiplied by the default emission factor (MTCO₂e per MWh) for unspecified sources.
	Q_pe =	Quantity of process emissions from cement manufacturing.

(c)Fuel Fee Rate.

For entities reporting pursuant to section 95204(d)(1), (d)(2), (d)(3), (e), (f)(1), (f)(2), and (f)(3) the Executive Officer shall calculate a fuel fee rate for each fuel included in subsection 95203(b) using the following formula:

FR_i = CCC x EF_i

Where:

FR_i = Fuel fee rate for the fuel.

CCC = Common Carbon Cost.

EF_i = Emission factor of MTCO₂e for each unit of fuel supplied.

(d)Fuel Emission Factors.

For entities reporting pursuant to section 95204(d)(1), (d)(2), (d)(3), (f)(1), (f)(2), and (f)(3), the Executive Officer shall calculate the Common Carbon Cost and the Fuel fee rates using the emissions factors pursuant to the Mandatory Reporting Regulation. For entities reporting pursuant to 95204(e) the Executive Officer shall calculate the emission factors using an arithmetic average of fuel grades taken from column C of 40 CFR 98 Table MM-1. For entities reporting pursuant to 95204(h), the Executive Officer shall calculate the Common Carbon Cost and fuel fee rates using the default clinker emission factor provided in the latest ARB GHG inventory (http://www.arb.ca.gov/cc/inventory/inventory.htm), unless the entity reports a facility-specific clinker emission factor.

(e)Electricity Fee Rate for electricity delivered in California, and reported pursuant to section 95103 of the Mandatory Reporting Regulation.

(1) The Executive Officer shall calculate an Electricity Fee Rate for each MWh generated from a grid-dedicated, stand-alone electricity generating facility located in California that delivers electricity to the California transmission and distribution system using the following formula:

EFR = CCC x EF

Where:

EFR = The electricity fee rate for in-state generation.

EF = Emission factor in MTCO₂e per MWh.

(2) The Executive Officer shall calculate an Electricity Fee Rate for each source of electricity imported, into California, using the following formulas:

EFR_sp = CCC x TL x EF_sp

EFR_unsp = CCC x TL x EF_unsp

Where:

"sp" denotes a specified source that is an electricity generating facility or unit.

"unsp" denotes an unspecified source.

EFR_sp = The Electricity fee rate for the specified source.

EFR_unsp = The Electricity fee rate for unspecified sources.

EF_sp = Emission factor for specified source in MTCO₂e per MWh.

EF_unsp = 0.428 MTCO₂e per MWh, the default Emission Factor for unspecified sources.

TL = Transmission loss correction factor. This is the applicable TL as identified in Section 95111(b) of the Mandatory Reporting Regulation.

(f)Emission Factors for grid-dedicated, stand-alone Electricity Generating Facilities.

The Executive Officer shall calculate emission factors for electricity generating facilities located in California using the following methodology:

	EF	=	E
			EG

Where:

E = CO₂e emissions from an electricity generating facility for the report year (MTCO₂e)

EG = Net generation from an electricity generating facility for the report year (MWh)

For grid-dedicated, stand-alone electricity generating facilities located in California that are subject to reporting under the Mandatory Reporting Regulation, E shall be equal to the sum of CO₂e emissions from fossil fuel combustion, acid gas scrubbers, or acid gas reagents, as reported to ARB. Similarly, EG shall be the net generation reported to ARB.

(g)Emission Factors for Imported Electricity from Specified Sources that are Electricity Generating Facilities or Units, Calculation Methods for data reported pursuant to section 95111 of the Mandatory Reporting Regulation.

Emission factors for Imported Electricity from Specified Sources that are Electricity Generating Facilities or units shall be facility specific or unit specific emission factors for the specified source published on the ARB Mandatory Reporting website calculated by ARB according to the methods in section 95111(b) of the Mandatory Reporting Regulation.

(h)Emission Factors for Asset-Controlling Suppliers.

The Executive Officer shall calculate emissions factors for asset-controlling suppliers pursuant to the methodology in section 95111(b)(3) of the Mandatory Reporting Regulation.

(i)Fee Liability for Fuels.

The Executive Officer shall calculate the Fee Liability for each entity reporting pursuant to section 95204(d) (1-3), and (e), based on the quantity of each fuel supplied, consumed or produced, as follows:

FS = (FR x QF)

Where:

FS = The Fee for each entity ($).

FR = Fuel fee rate for the fuel.

QF = Quantity of fuel.

(j)Fee Liability for Facilities that Combust Coal, Coal Coke, Petroleum Coke, Catalyst Coke, or Refinery Fuel Gas.

(1) Coal, Coal Coke, and Petroleum Coke The Executive Officer shall calculate the Fee Liability for each entity reporting pursuant to sections 95204(f)(1), 95204(f)(2), and 95204(f)(3), based on the quantity of each fuel consumed as follows:

FS = (FR x QF).

Where:

FS = The Fee for each entity ($).

FR = Fuel fee rate for the fuel.

QF = Quantity of fuel.

(2) Catalyst Coke and Refinery Fuel Gas For entities reporting pursuant to sections 95204(f)(4) and 95204(f)(5), each entity shall be charged a Fee based on the total number of MTCO₂e emitted and reported annually. The fee shall be calculated as follows:

FS = CCC x QE_i

Where:

FS = The Fee for the entity ($).

CCC = Common Carbon Cost.

QE = the total amount of emissions associated with catalyst coke or refinery fuel gas, as applicable.

(k)Fee Liability for Electricity Delivered in California.

(1) The Executive Officer shall calculate the fee liability for grid-dedicated, stand-alone electricity generating facilities located in California reporting pursuant to section 95204(g) based on the quantity of MWh delivered to the California transmission and distribution grid, as follows:

FS = CCC x EFR

Where:

FS = Fee for each entity ($).

EFR = Electricity fee rate for electricity generated.

(2) The Executive Officer shall calculate the fee liability for each electricity importer reporting pursuant to section 95204(g) based on the quantity of electricity delivered less ARB's calculated fee liability for qualified exports and RPS MWh specified below as QM_RPS, as follows:

FS = Î£(EFR_d x QM_d) - Î£(EFR_unsp x QM_qe) - Î£(EFR_unsp x QM_RPS)

Where:

FS = Fee for each entity ($)

QM_d = Quantity of MWh of electricity delivered in California from each specified source or unspecified source, as appropriate.

EFR_d = Electricity fee rate for electricity from each specified source or unspecified source, as appropriate.

Î£(EFR_unsp x QM_qe) = Sum of products for each hour in which the entity exports electricity.

QM_qe = Quantity of MWh from qualified exports as the lower of either the quantity of exports or imports for the hour.

QM_RPS = Quantity of MWh generated by each California eligible renewable resource located outside the State of California, procured by the reporting entity, registered with ARB pursuant to section 95111(g)(1) of the Mandatory Reporting Regulation and meeting requirements pursuant to section 95852(b)(4) of the Cap-and-Trade Regulation.

(l)Fee Liability for Entities.

For entities reporting pursuant to section 95204(d)(4), and 95204(d)(5), each entity shall be charged a fee based on the total number of MTCO₂e emitted and reported annually. The fee shall be calculated as follows:

FS = CCC x QE_i

Where:

FS = Fee for the entity ($).

CCC = Common Carbon Cost

QE_i = Total amount of emissions associated with the entity.

(m)Fee Liability for Cement Manufacturers.

For cement manufacturers reporting pursuant to section 95204(h), a fee shall be charged based on the total amount of process emissions from the production of clinker reported annually. The fee shall be calculated as follows:

FS = CCC x QC x EF

Where:

FS = The Fee for the entity ($).

CCC = Common Carbon Cost.

QC = Total amount of clinker produced.

EF = Emission factor for clinker process emissions.

Cal. Code Regs. Tit. 17, § 95203

1. New section filed 6-17-2010; operative 7-17-2010 (Register 2010, No. 25).
2. Editorial correction of equation in subsection (g) (Register 2011, No. 37).
3. Amendment filed 10-3-2012; operative 10-3-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 40).
4. Amendment filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
5. Editorial correction of subsections (i)-(j)(2) and (k)(2)-(l) (Register 2015, No. 4).

Note: Authority cited: Sections 38510, 38597, 39600 and 39601, Health and Safety Code Reference: 38501, 38510, 38597, 39600 and 39601, Health and Safety Code.

1. New section filed 6-17-2010; operative 7-17-2010 (Register 2010, No. 25).
2. Editorial correction of equation in subsection (g) (Register 2011, No. 37).
3. Amendment filed 10-3-2012; operative 10-3-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 40).
4. Amendment filed 12-31-2014; operative 1/1/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).