Section 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.Cal. Code Regs. Tit. 17, § 95814
1. New section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
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.
1. New section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
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).