Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(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
;
2. Cement production;
3. Lime manufacturing;
4. Nitric acid production;
5. Petroleum refineries;
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 ;
2. Glass production;
3. Hydrogen production;
4. Iron and steel production;
5. Pulp and paper manufacturing;
6. Petroleum and natural gas
systems;
7. Geothermal electricity
generation.
8. Lead
production;
(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.
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.
