California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 3 - Fees
Subarticle 1 - AB 32 Cost of Implementation Fee Regulation
Section 95201 - Applicability

Universal Citation: 17 CA Code of Regs 95201

Current through Register 2024 Notice Reg. No. 38, September 20, 2024

(a) This subarticle applies to the following entities. The terms used below are defined in section 95202.

(1) Natural Gas Utilities, Users, and Pipeline Owners and Operators that deliver or use natural gas in California.
(A) All public utility gas corporations and publicly owned natural gas utilities operating in California and that are subject to the verification requirements of the Regulation for the Mandatory Reporting of Greenhouse Gas Emissions (title 17, California Code of Regulations, sections 95100-95157) (Mandatory Reporting Regulation). Fees shall be paid for each therm of natural gas delivered to any end user in California, excluding natural gas delivered to electricity generating facilities that are subject to section 95201(a)(4).

(B) All owners and operators that are end users of natural gas received directly from interstate pipelines and that are subject to the verification requirements of the Regulation for the Mandatory Reporting of Greenhouse Gas Emissions, except for electricity generating facilities that are subject to section 95201(a)(4). Fees shall be paid for each therm of natural gas directly delivered by interstate pipelines.

(C) All owners or operators of intrastate pipelines that are not included in subsection 95201(a)(1)(A) and that are subject to the verification requirements of the Mandatory Reporting Regulation, that deliver natural gas directly to end users. Fees shall be paid for each therm of natural gas delivered directly to end users, except for natural gas delivered to electricity generating facilities that are subject to section 95201(a)(4).

(D) All California owners or operators that consume natural gas produced from on-site gas wells and that are subject to the verification requirements of the Mandatory Reporting Regulation. Fees shall be paid on the emissions resulting from the combustion of these fuels, unless these fuels are consumed by an electricity generating facility subject to section 95201(a)(4).

(E) All California owners or operators that consume associated gas that is produced from on-site oil wells and that are subject to the verification requirements of the Mandatory Reporting Regulation. Fees shall be paid on the emissions resulting from the combustion of these fuels, unless these fuels are consumed by an electricity generating facility subject to section 95201(a)(4).

(2) Producers and Importers of California Gasoline and California Diesel Fuels.
(A) All producers and importers of California gasoline or California diesel for use in California subject to the verification requirements of the Mandatory Reporting Regulation. Fees shall be paid for each gallon of gasoline or diesel fuel distributed.

(B) All producers and importers of CARBOB subject to the verification requirements of the Mandatory Reporting Regulation. Fees shall be paid for each gallon of CARBOB plus the designated amount of oxygenate.

(3) Cement Manufacturers.

All owners or operators of cement manufacturing facilities that emit greenhouse gases through the clinker manufacturing process. Fees shall be paid on the amount of process-related emissions from clinker production.

(4) First Deliverers of Electricity.

For electricity delivered in California, and reported pursuant to section 95103 of the Mandatory Reporting Regulation, any owner or operator of a grid-dedicated, stand-alone electricity generating facility in California that delivers electricity to the California transmission and distribution system, and any electricity importer that delivers electricity to a first point of delivery located in California. Fees shall be paid for each megawatt-hour of net power generated by combustion of natural gas, coal or other fossil fuels (except California diesel) at a grid-dedicated, stand-alone electricity generating facility in California, and reported pursuant to section 95112 of the Mandatory Reporting Regulation. Fees shall also be paid for each megawatt-hour of imported electricity reported pursuant to section 95111 of the Mandatory Reporting Regulation if the electricity is from either unspecified sources or specified sources that combust natural gas, coal, or other fossil fuels. For multi-jurisdictional retail providers, fees shall be paid only for each megawatt-hour of wholesale sales delivered to a first point of delivery in California.

(A) No fee shall be paid for any megawatt-hour generated at any electricity generating facility in California that emits less than 10,000 metric tons of CO2e from electricity generating activities during the report year.

(5) Facilities that Combust or Consume Coal, Coal Coke, Petroleum Coke, Catalyst Coke or Refinery Fuel Gas.

Any owner or operator of a facility in California, except for electricity generating facilities subject to section 95201(a)(4), that is subject to verification requirements of the Mandatory Reporting Regulation, and combusts as fuel or consumes as feedstock any of the following substances:

(A) Coal;

(B) Petroleum coke;

(C) Coal Coke.

For coal, coal coke, and petroleum coke, fees shall be paid on the annual quantity of emissions as calculated pursuant to 95203(k).

(D) Catalyst coke; or

(E) Refinery fuel gas.

For catalyst coke or refinery fuel gas, fees shall be paid on the reported emissions.

(b) This subarticle does not apply to any of the following fuels, or to emissions resulting from combustion of any of the following fuels, unless said fuels are used at electricity generating facilities:

(1) aviation gasoline;

(2) kerosene type jet fuel;

(3) kerosene;

(4) liquefied petroleum gas;

(5) residual fuel oil;

(6) propane; or

(7) any fuel exported for use outside of California.

(c) This subarticle does not apply to any of the following fuels, or to emissions resulting from combustion of any of the following fuels.

(1) biodiesel (B>=99%);

(2) renewable diesel (R>=99%);

(3) biomass;

(4) biogas; or

(5) biogenic emissions from municipal solid waste.

(d) The fees associated with this subarticle shall be based upon the reported data from the most recent calendar year for which the mandatory reporting data verification process is completed. Regulated entities must comply with this subarticle as amended in 2014, beginning with fees calculated in 2015.

1. New section filed 6-17-2010; operative 7-17-2010 (Register 2010, No. 25).
2. Amendment of section and NOTE filed 10-3-2012; operative 10-3-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 40).
3. Amendment filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).

Note: Authority cited: Sections 38510, 38597, 39600 and 39601, Health and Safety Code. Reference: Sections 38501, 38505 and 39600, Health and Safety Code.

Disclaimer: These regulations may not be the most recent version. California may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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