Statutes, codes, and regulations
California Code Of Regulations
Title 17 - Public HealthDivision 3 - Air ResourcesChapter 1 - Air Resources BoardSubchapter 10 - Climate ChangeArticle 5 - California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms
Subarticle 8 - Disposition of Allowances
Section 95870 - Disposition of Vintage 2013-2020 Allowances

Cal. Code Regs. tit. 17 § 95870

Download
PDF
Current through Register 2024 Notice Reg. No. 15, April 12, 2024
Section 95870 - Disposition of Vintage 2013-2020 Allowances
(a) Allowance Price Containment Reserve. Upon creation of the Allowance Price Containment Reserve Account, the Executive Officer shall transfer allowances to the Allowance Price Containment Reserve, as follows:
(1) One percent of the allowances from budget years 2013-2014;
(2) Four percent of the allowances from budget years 2015-2017; and
(3) Seven percent of the allowances from budget years 2018-2020.
(b) Advance Auction. Upon creation of the Auction Holding Account, the Executive Officer shall transfer 10 percent of the allowances from budget years 2015-2020 to the Auction Holding Account.
(1) These allowances will be eligible to be sold pursuant to section 95910(c)(2).
(2) All Advance Auction allowances not sold pursuant to section 95910(c)(2) will be auctioned pursuant to section 95910.
(3) The proceeds from the sale of these allowances will be deposited into the Greenhouse Gas Reduction Fund created pursuant to Government Code section 16428.8, and will be available for appropriation by the Legislature for the purposes designated in California Health and Safety Code sections 38500 et seq. and consistent with the requirements of Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the California Health and Safety Code and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(c) Upon creation of the Voluntary Renewable Electricity Reserve Account, the Executive Officer shall transfer allowances to the Voluntary Renewable Electricity Reserve Account, as follows:
(1) 0.5 percent of the allowances from budget years 2013-2014; and
(2) 0.25 percent of the allowances from budget years 2015-2020.
(d) Electricity Related Allocation.
(1) Electrical Distribution Utility Sector Allocation for Budget Years 2013-2020. Allowances available for allocation to electrical distribution utilities each budget year shall be 97.7 million metric tons multiplied by the cap adjustment factor in Table 9-2 for each budget year 2013-2020. The Executive Officer will allocate to the limited use holding account and allowance allocation holding account pursuant to sections 95892(b) and 95831(a)(6) for each electrical distribution utility by October 24 of each calendar year from 2013-2019 for allocations from 2014-2020 annual allowance budgets.
(2) Allocation to Public Wholesale Water Agencies. The Executive Officer will place an annual individual allocation in the annual allocation holding account, pursuant to sections 95895 and 95831(a)(6), of a public wholesale water agency by October 24 of each calendar year from 2014-2019 for allocations from 2015-2020 annual allowance budgets.
(e) Allocation to Industrial Covered Entities. Allowances allocated for the purposes of industry assistance shall be transferred to annual allocation holding accounts for industrial sectors listed in Table 8-1. Allowances in the annual allocation holding account are transferred to the Holding Account on January 1 of the vintage year of the allowances.
(1) The Executive Officer will allocate allowances to each eligible covered entity by October 24 of each calendar year 2014-2019 for allocations from 2015-2020 annual allowance budgets.
(2) Allocation to eligible covered entities shall be conducted using the assistance factors specified for each listed industrial activity found in Table 8-1 and the methodology set forth in section 95891.
(3) The total amount of allowances allocated for the purposes of industry assistance shall not exceed the available amount of allowances after accounting for allocations made pursuant to sections 95870(a) through (d) and sections 95870(f) and (h). If the amount calculated under the methodology set forth in section 95891 exceeds the amount of allowances available, the number of allowances available will be prorated equally across all eligible industrial covered entities. The proration will be calculated using the share of allowances available after accounting for all allocations made pursuant to sections 95870(a) through (d) and sections 95870(f) and (h) compared to total allowances that would be distributed according to the methodology set forth in section 95891.
(4) Industrial entities that purchase electricity or legacy contract qualified thermal output pursuant to a legacy contract and who receive allocation under this section shall have their allocation reduced as specified in section 95891(e).
(f) Allocation to University Covered Entities and Public Service Facilities. The Executive Officer will place an annual individual allocation in the annual allocation holding account of each eligible university covered entity and public service facility by October 24 of each calendar year from 2015-2019 for allocations from 2016-2020 annual allowance budgets. A public service facility providing steam to a publicly owned educational facility is not eligible for any allocation of allowances provided under other provisions of this regulation. In the event a publicly owned educational facility that receives qualified thermal output from a public service facility becomes an opt-in covered entity and receives allowances for the emissions from qualified thermal output sold to the university by the public service facility pursuant to section 95891(d), the publicly owned educational facility shall unconditionally transfer to the public service facility allowances relating to the qualified thermal output provided by such public service facility. So long as the publicly owned educational facility remains an opt-in covered entity and provides such allowances to the public service facility, such public service facility will not be eligible for any disposition of allowances provided under this section.
(g) Allocation to Legacy Contract Generators. Allowances will be allocated to legacy contract generators with an industrial counterparty pursuant to section 95894 for the term of the contract. The Executive Officer will transfer allowance allocations into each eligible generator's annual allocation holding account by October 24 of each calendar year for eligible legacy contract emissions pursuant to the methodology set forth in section 95894.
(h) Natural Gas Supplier Sector Allocation. Allowances available for allocation to natural gas suppliers each budget year shall be calculated as set forth in section 95893. The Executive Officer will transfer allowances into each eligible natural gas supplier's allowance allocation holding account and/or limited use holding account pursuant to sections 95893(b) and 95831(a)(6) by October 24 of each calendar year from 2014 through 2019 for allocations from 2015 through 2020 annual allowance budgets.
(i) Auction Proceeds for AB 32 Statutory Objectives. All remaining allowances not allocated for uses specified in sections 95870(a) through (h), section 95870(j), or section 95911(h) will be designated for sale at auction. The proceeds from the sale of these allowances will be deposited into the Greenhouse Gas Reduction Fund created pursuant to Government Code section 16428.8, and will be available for appropriation by the Legislature for the purposes designated in California Health and Safety Code sections 38500 et seq. and consistent with the requirements of Chapter 4.1 (commencing with Section 39710) of Part 2 of Division 26 of the California Health and Safety Code and Article 9.7 (commencing with Section 16428.8) of Chapter 2 of Part 2 of Division 4 of Title 2 of the Government Code.
(j) Allocation to Waste-to-Energy Facilities. Vintage 2020 allowances available for allocation to waste-to-energy facilities shall be calculated as set forth in section 95891(f)(1). The Executive Officer will place vintage 2020 allowances in the annual allocation holding account of each eligible waste-to-energy facility by October 24, 2019. An amount of vintage 2020 true-up allowances will be placed in the annual allocation holding account of each eligible waste-to-energy facility by October 24, 2019 to account for 2018 and 2019 emissions.

Table 8-1: Assistance Factors and Covered Industrial Sectors

Assistance Factor (AFa) by Budget Year
Leakage Risk ClassificationNAICS Sector DefinitionNAICS CodeActivity (a)2013-20142015-20172018-20202021-2030
Thermal EOR Crude Oil Extraction100%100%100%100%
Crude Petroleum and Natural Gas Extraction211111Non-Thermal Crude Oil Extraction100%100%100%100%
Natural Gas Processing >25 MMscf/day100%100%100%100%
Natural Gas Liquid Extraction211112Natural Gas Liquid Processing100%100%100%100%
All Other Metal Ore Mining212299Rare Earth Production100%100%100%100%
Potash, Soda, and Borate Mineral Mining212391Mining and Manufacturing of Soda Ash and Related Products100%100%100%100%
Mining and Manufacturing of Borates100%100%100%100%
HighAll Other Nonmetallic Mineral Mining212399Diatomaceous Earth Mining100%100%100%100%
Freshwater Diatomite Filter Aids Manufacturing100%100%100%100%
Wet Corn Milling311221Wet Corn Milling100%100%100%100%
Paper (except Newsprint) Mills322121Paper (except Newsprint) Mills100%100%100%100%
Recycled Boxboard Manufacturing100%100%100%100%
Paperboard Mills322130Recycled Linerboard (Testliner) Manufacturing100%100%100%100%
Recycled Medium (Fluting) Manufacturing100%100%100%100%
All Other Petroleum and Coal Products Manufacturing324199Coke Calcining100%100%100%100%
All Other Basic Inorganic Chemical Manufacturing325188Sulfuric Acid Regeneration100%100%100%100%
Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing325194Cyclic Crude, Intermediate, and Gum and Wood Chemical Manufacturing100%100%100%100%
All Other Basic Organic Chemical Manufacturing325199All Other Basic Organic Chemical Manufacturing100%100%100%100%
Nitrogenous Fertilizer Manufacturing100%100%100%100%
Nitrogenous Fertilizer Manufacturing325311Nitric Acid Production100%100%100%100%
HighCalcium Ammonium Nitrate Solution Production100%100%100%100%
Flat Glass Manufacturing327211Flat Glass Manufacturing100%100%100%100%
Glass Container Manufacturing327213Container Glass Manufacturing100%100%100%100%
Cement Manufacturing327310Cement Manufacturing100%100%100%100%
Lime Manufacturing327410Lime Manufacturing100%100%100%100%
Dolime Manufacturing100%100%100%100%
Mineral Wool Manufacturing327993Fiber Glass Manufacturing100%100%100%100%
Iron and Steel Mills331111Steel Production Using an Electric Arc Furnace100%100%100%100%
Rolled Steel Shape Manufacturing331221Hot Rolled Steel Sheet Production100%100%100%100%
Other Food Crops Grown Under Cover111419Other Food Crops Grown Under Cover100%100%100%100%
Food Manufacturing311Food Manufacturing100%100%100%100%
Aseptic Tomato Paste Processing100%100%100%100%
Aseptic Whole and Diced Tomato Processing100%100%100%100%
Fruit and vegetable canning311421Non-Aseptic Tomato Paste and Tomato Puree Processing100%100%100%100%
Non-Aseptic Whole and Diced Tomato Processing100%100%100%100%
Non-Aseptic Tomato Juice Processing100%100%100%100%
MediumWhole Chicken and Chicken Parts Processing100%100%100%100%
Poultry Processing311615Poultry Deli Product Processing100%100%100%100%
Protein Meal and Fat Processing100%100%100%100%
Dehydrated Garlic Processing100%100%100%100%
Dehydrated Onion Processing100%100%100%100%
Dried and Dehydrated Food Manufacturing311423Dehydrated Chili Pepper Processing100%100%100%100%
Dehydrated Spinach Processing100%100%100%100%
Dehydrated Parsley Processing100%100%100%100%
Fluid Milk Product Processing100%100%100%100%
Butter processing100%100%100%100%
Condensed Milk Processing100%100%100%100%
Milk Powder (Low Heat) Processing100%100%100%100%
Milk Powder (Medium Heat and High Heat) Processing100%100%100%100%
Dairy Product Manufacturing31151Buttermilk Powder Processing100%100%100%100%
MediumIntermediate Dairy Ingredients Processing100%100%100%100%
Cheese Processing100%100%100%100%
Lactose Processing100%100%100%100%
Whey Protein Concentrate Processing100%100%100%100%
Deproteinized Whey Processing100%100%100%100%
Almond Blanching100%100%100%100%
Almond Flavoring100%100%100%100%
Roasted Nuts and Peanut Butter Manufacturing311911Almond Pasteurizing100%100%100%100%
Pistachio Flavoring100%100%100%100%
Pistachio Hulling and Drying100%100%100%100%
Fried Potato Chips Processing100%100%100%100%
Baked Potato Chips Processing100%100%100%100%
Snack Food Manufacturing31191Corn Chips Processing100%100%100%100%
Corn Curls Processing100%100%100%100%
Pretzel Processing100%100%100%100%
Beet sugar manufacturing311313Beet sugar manufacturing100%100%100%100%
Breweries312120Brewing100%100%100%100%
Lager Beer Manufacturing100%100%100%100%
MediumDistilled Spirits Production100%100%100%100%
Dry Color Concentrate Production100%100%100%100%
Wineries312130Grape Juice Concentrate Production100%100%100%100%
Grape Seed Extract Production100%100%100%100%
Liquid Color Concentrate Production100%100%100%100%
Textile Mills313Textile Processing100%100%100%100%
Cut and Sew Apparel Manufacturing3152Cut and Sew Apparel Manufacturing100%100%100%100%
Petroleum Refineries324110Petroleum Refining100%100%100%100%
Asphalt Paving Mixture and Block Manufacturing324121Asphalt Paving Mixture and Block Manufacturing100%100%100%100%
Industrial Gas Manufacturing325120On-Purpose Hydrogen Gas Production100%100%100%100%
Liquid Hydrogen Production100%100%100%100%
Ethyl Alcohol Manufacturing325193Ethyl Alcohol Manufacturing100%100%100%100%
Biological Product (Except Diagnostic) Manufacturing325414Biological Product (Except Diagnostic) Manufacturing100%100%100%100%
Gypsum Product Manufacturing327420Plaster Manufacturing100%100%100%100%
Stucco Manufacturing100%100%100%100%
Ground or Treated Mineral and Earth Manufacturing327992Ground or Treated Mineral and Earth Manufacturing100%100%100%100%
Pickled Steel Sheet Production100%100%100%100%
Rolled Steel Shape Manufacturing331221Cold Rolled and Annealed Steel Sheet Production100%100%100%100%
Galvanized Steel Sheet Production100%100%100%100%
MediumTin Steel Plate Production100%100%100%100%
Secondary Smelting and Alloying of Aluminum331314Aluminum and Aluminum Alloy Billet Manufacturing100%100%100%100%
Secondary Smelting, Refining, and Alloying of Nonferrous Metal (Except Copper and Aluminum)331492Lead Acid Battery Recycling100%100%100%100%
Iron Foundries331511Iron Foundries100%100%100%100%
Ductile Iron Pipe Manufacturing100%100%100%100%
Hardware Manufacturing332510Hardware Manufacturing100%100%100%100%
Turbine and Turbine Generator Set Units Manufacturing333611Testing of Turbines and Turbine Generator Sets100%100%100%100%
Pharmaceutical and Medicine Manufacturing325412Pharmaceutical and Medicine Manufacturing100%100%100%100%
Nonferrous Forging332112Nonferrous Metal Forging100%100%100%100%
Seamless Rolled Ring100%100%100%100%
LowAutomobile Manufacturing336111Automobile Manufacturing100%100%100%100%
Aircraft Manufacturing336411Aircraft Manufacturing100%100%100%100%
Guided Missile and Space Vehicle Manufacturing336414Guided Missile and Space Vehicle Manufacturing100%100%100%100%
Support Activities for Air Transportation4881Support Activites for Air Transportation100%100%100%100%

Cal. Code Regs. Tit. 17, § 95870

1. New subarticle 8 (section 95870) and section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Change without regulatory effect amending subsection (e)(2)(A) filed 2-15-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 7).
3. Amendment of subsection (d) filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
4. Amendment filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
5. Amendment of section heading and section filed 9-18-2017; operative 10-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).
6. Amendment of subsections (b)(1)-(2) and (e)(3), amendment of subsection (i), repealer of subsection (i)(1), new subsection (j) and amendment of Table 8-1 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 and Section 16428.8, Government Code.

1. New subarticle 8 (section 95870) and section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Change without regulatory effect amending subsection (e)(2)(A) filed 2-15-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 7).
3. Amendment of subsection (d) filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
4. Amendment filed 6-26-2014; operative 7/1/2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
5. Amendment of section heading and section filed 9-18-2017; operative 10/1/2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).
6. Amendment of subsections (b)(1)-(2) and (e)(3), amendment of subsection (i), repealer of subsection (i)(1), new subsection (j) and amendment of Table 8-1 filed 3-29-2019; operative 3/29/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).