California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 4 - Regulations to Achieve Greenhouse Gas Emission Reductions
Subarticle 7 - Low Carbon Fuel Standard
Section 95483 - Fuel Reporting Entities

Universal Citation: 17 CA Code of Regs 95483

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

The purpose of this section is to identify the first fuel reporting entities, subsequent fuel reporting entities, and the credit or deficit generator for each type of transportation fuel. The first fuel reporting entity is responsible for initiating reporting within the LRT-CBTS for a given amount of fuel and, by default, also holds the status as initial credit or deficit generator for the reported fuel quantity. The fuel reporting entities identified in this section are subject to the reporting requirements pursuant to section 95491 and to any other requirement applicable to a fuel reporting entity and credit or deficit generator under this subarticle.

(a) For Liquid Fuels. Liquid fuels refer to fossil fuels (including CARBOB, gasoline, diesel, and conventional jet fuel), liquid alternative fuels (including ethanol as an oxygenate, biomass-based diesel, and alternative jet fuels), and blend of liquid alternative and fossil fuels.

(1) Designation of First Fuel Reporting Entities for Liquid Fuels. The first fuel reporting entity for liquid fuels is the producer or importer of the liquid fuel. For liquid fuels that are a blend of liquid alternative fuel components (including ethanol as an oxygenate, biomass-based diesel, or alternative jet fuels) and a fossil fuel component (including CARBOB, gasoline, diesel, conventional jet, or other fossil fuels), the first fuel reporting entity is the following:
(A) With respect to the alternative fuel component, the producer or importer of the alternative fuel component.

(B) With respect to the fossil fuel component, the producer or importer of the fossil fuel component.

(C) Specifics for Alternative Jet Fuel. For an alternative jet fuel or the alternative fuel portion of a blend with conventional jet fuel, the first fuel reporting entity is the producer or importer of the alternative jet fuel, which is delivered to a storage facility where fuel is stored before it is uploaded to an aircraft in California. Conventional jet fuel, including the conventional jet fuel portion of a blend, is not subject to the LCFS and must not be reported.

(2) In the Case of Transfer of Fuel Ownership. An entity transferring ownership of fuel is the "transferor" and an entity acquiring ownership of fuel is the "recipient."
(A) Transferring Status as Credit or Deficit Generator. An entity can voluntarily transfer its status as a credit or deficit generator for a given amount of liquid fuel, with the ownership of the fuel, if the conditions set forth in subsections 1. through 4. below are met by the time ownership of fuel is transferred. If such a transfer occurs, the recipient also becomes the fuel reporting entity for the fuel while the transferor is still subject to reporting requirements pursuant to section 95491 and to any other requirement applicable to a fuel reporting entity under this subarticle.
1. The two entities agree by written contract that the recipient accepts all LCFS responsibilities of a fuel reporting entity and credit or deficit generator.

2. The transferor must provide the recipient a product transfer document that prominently states the information specified in section 95491.1(b)(1).

3. In the case of a deficit generating fuel, the transferor and recipient must meet the requirements specified in the subsection below:

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c. Paragraphs a. and b. above notwithstanding, the transferor and recipient of deficit generating fuels may, by the time the ownership is transferred, specify by written contract which party is responsible for accounting for the base deficit and incremental deficit in the annual credits and deficits balance calculation set forth in section 95485(b)(2).

4. The credit or deficit generator status cannot be passed to a downstream entity acquiring ownership of liquid fuel below the rack.

5. An entity acquiring ownership of fuel below the rack is not required to report the fuel transaction in the LRT-CBTS unless it is a fuel exporter pursuant to section 95483(a)(4)(C).

(B) Retaining Status as Credit or Deficit Generator. An entity can retain its status as a credit or deficit generator for a given amount of liquid fuel, while transferring the ownership of the fuel, if the conditions set forth in subsections 1. through 2. below are met by the time ownership of fuel is transferred. If such a transfer occurs, the recipient also becomes a fuel reporting entity for the fuel while the transferor is still subject to reporting requirements pursuant to section 95491 and to any other requirement applicable to a fuel reporting entity under this subarticle.
1. The two entities agree by written contract that the recipient accepts all LCFS responsibilities of a fuel reporting entity and the transferor retains the responsibilities as a fuel reporting entity and credit or deficit generator.

2. The transferor must provide the recipient a product transfer document that prominently states the information specified in section 95491.1(b)(2).

3. An entity acquiring ownership of fuel below the rack is not required to report the fuel transaction in the LRT-CBTS unless it is a fuel exporter pursuant to section 95483(a)(4)(C).

(3) Transfer Period. For all liquid fuels, the period in which credit or deficit generator status can be transferred to another entity, for a given amount of fuel, is limited to three calendar quarters. This means that, for example, if an entity receives title to a fuel along with credit or deficit generator status in the first calendar quarter, the status as credit or deficit generator for that amount of fuel can be transferred to another entity no later than the end of the third calendar quarter. After this period is over, the credit and deficit generator status for that amount of fuel cannot be transferred.

(4) Designation of Fuel Exporter. Entities responsible for reporting exports of fuel that has been previously reported in the LRT-CBTS are identified below:
(A) When the fuel is sold or delivered above the rack for export, the entity holding title to the fuel as it crosses the California border on its way toward the first point of sale/delivery is responsible for reporting the export in the LRT-CBTS.

(B) When the fuel is sold across the rack for export, the entity holding title to the fuel as the fuel crosses the rack is responsible for reporting the export in the LRT-CBTS.

(C) When the fuel is diverted out-of-state below the rack, the entity holding title to the fuel, as it crosses the California border, is responsible for reporting the export in the LRT-CBTS.

(b) For Gaseous Fuels. Gaseous fuels refer to natural gas fuels (including CNG, LNG and L-CNG), propane and hydrogen.

(1) Designation of First Fuel Reporting Entities For Gaseous Fuels. The first fuel reporting entity for different gaseous fuels is identified in subsections (A) through (E) below. For gaseous fuels, subsection (2) below provides entities the ability to contractually designate another entity as the first fuel reporting entity for a given amount of gaseous fuel.
(A) Bio-CNG. For bio-CNG, including the bio-CNG portion of a blend with fossil CNG, the first fuel reporting entity is the producer or importer of the biomethane.

(B) Bio-LNG and Bio-L-CNG. For bio-LNG and bio-L-CNG, including the biomethane portion of any blend with fossil LNG and L-CNG, the first fuel reporting entity is the producer or importer of the biomethane.

(C) Renewable Propane. For renewable propane, including the renewable propane portion of a blend with fossil propane, the first fuel reporting entity is the producer or importer of the renewable propane.

(D) Fossil CNG, LNG, and L-CNG and Propane. For fossil CNG, LNG, L-CNG, and propane, including the fossil portion of any blend with a renewable fuel component, the first fuel reporting entity is the entity that owns the fueling equipment through which the fossil fuel is dispensed to motor vehicles for transportation use.

(E) Hydrogen. The first fuel reporting entity for hydrogen is the entity that owns the fueling supply equipment ("hydrogen station owner") through which hydrogen fuel is dispensed to motor vehicles for transportation use. Notwithstanding the above, the first fuel reporting entity for hydrogen used in fuel cell forklifts is the forklift fleet owner.

(2) Subsections (1)(A) through (1)(E) above notwithstanding, an entity may elect not to be the first fuel reporting entity for a given gaseous fuel, provided another entity has contractually agreed to be the first fuel reporting entity for the fuel on its behalf. In such cases the two entities must agree by written contract that:
(A) The original first fuel reporting entity per subsections (1)(A) through (1)(E) above will not generate credits or deficits in the LCFS and will instead provide the amount of fuel dispensed, and other required information pursuant to sections 95483.2(b)(8), 95491 and 95491.1, to the contractually designated entity for the purpose of LCFS reporting and credit or deficit generation.

(B) The contractually designated entity accepts all LCFS responsibilities as the first fuel reporting entity and as a credit or deficit generator, as applicable.

(c) For Electricity Used as a Transportation Fuel.

(1) Residential EV Charging. For on-road transportation fuel supplied for electric vehicle (EV) charging in a single- or multi-family residence, the following entities are the credit generators:
(A) Base Credits. The EDU or its designee is the credit generator for base credits for the portion of residential EV charging assigned to that EDU by the Executive Officer. The EDU may authorize a third party to sell the EDU's credits. The EDU or its designee must meet the requirements set forth in paragraphs 1. through 6. below, and paragraphs 1. through 5. in section 95491(d)(3)(A).

Within 30 days of the effective date of this subarticle for large and medium IOUs and POUs, or by December 31, 2022 for small IOUs and POUs, or within 30 days of opting into the LCFS program, whichever is later, each EDU seeking eligibility to generate base credits must demonstrate, by attestation or entrance into any applicable Clean Fuel Reward program (as defined in section 95481(a)(29)) governance agreement, its ability to contribute allocated credits to the Clean Fuel Reward program consistent with CPUC approval of Pacific Gas and Electric's, Southern California Edison's, and San Diego Gas and Electric's filing(s). The Executive Officer may revoke the eligibility of an EDU to generate base credits if it fails to make this required demonstration or if the EDU withdraws or has been removed as a party to the governance agreement. All base credits for any EDU that is not eligible to receive base credits pursuant to this provision will be allocated to the Clean Fuel Reward program pursuant to section 95486.1(c)(1)(A) paragraph 2. An EDU must submit any request to change their base credit generation eligibility status for the Clean Fuel Reward program to the Executive Officer by the September 30th prior to the start of the effective credit generation year.

1. Upon California Public Utilities Commission (CPUC) approval of Pacific Gas and Electric's, Southern California Edison's, and San Diego Gas and Electric's filing(s) to initiate a Clean Fuel Reward program, all opt-in EDUs must contribute a minimum percent of base credits for residential EV charging (or net base credit proceeds) to provide a Clean Fuel Reward funded exclusively by LCFS credit proceeds, as per the contribution tabulated below:

EDU category% Contribution in years 2019 through 2022%contribution in years 2023 and subsequent years
Large Investor-owned Utilities67%67%
Large Publicly-owned Utilities35%45%
Medium Publicly-owned Utilities and Medium Investor-owned Utilities20%25%
Small Publicly-owned Utilities and Small Investor-owned Utilities0%2%

The Executive Officer will review the implementation of any Clean Fuel Reward program, including the actual credit value contribution of each utility to the program, and present a report to the Board by January 1, 2025 with recommendations for further increasing utility contributions to the Clean Fuel Reward program.

2. The reward amounts for any Clean Fuel Reward program must be calculated based on the vehicle's battery capacity as tabulated below:

Battery Capacity (kWh)

Reward %
C < 50%
C = 538.9%
5 < C < 16(38.9+ (C-5)/11 x 61.1)%
C >= 16100%

where:

Reward % means the percentage of maximum reward a vehicle would receive under the Clean Fuel Reward program funded by LCFS credit proceeds. The maximum reward is the amount a vehicle with a battery capacity of 16 kWh or greater can receive; and

C means the rated battery capacity of the electric vehicle in kWh.

3. All proceeds from base credits issued pursuant to section 95486.1(c)(1)(A) paragraph 2. must be contributed to any Clean Fuel Reward program.

4. Administrative costs, excluding start-up costs (those costs associated with setting up the program and incurred prior to issuing rewards), to support any Clean Fuel Reward program funded by LCFS credit proceeds may not exceed 10 percent of LCFS credit proceeds contributed to the Clean Fuel Reward program annually, unless approved in advance by the Executive Officer.
a. A request to exceed 10 percent administrative costs must be submitted by the administrator of the Clean Fuel Reward program to the Executive Officer on the following schedule:
i. For the first six calendar months of the program including the month in which the first issuance of reward takes place, a request must be submitted at least 30 days prior to the first reward issuance.

ii. For the period starting with the seventh calendar month of the program through December 31, 2021, the request must be submitted at least 30 days prior to the beginning of month seven.

iii. For calendar year 2022 and subsequent calendar years, the request must be submitted by September 30th of the prior year.

b. Request submitted to the Executive Officer must include, and will be evaluated for approval based on, a complete description for why higher administrative costs are necessary, a detailed list of expected administrative costs including a description of all efforts made to obtain competitive rates and minimize costs, and a detailed estimate of expected program proceeds. Within 30 days of receiving a request for higher administrative costs, the Executive Officer will inform the administrator of its decision in writing. If the request is rejected, the Executive Officer will provide a rationale for the decision. If the rejection is due to insufficient information, the administrator may resubmit the request after addressing the deficiencies identified in the Executive Officer decision.

5. Reporting on Clean Fuel Reward Program Implementation. By April 30th the administrator of the Clean Fuel Reward program funded by LCFS credit proceeds shall submit a report to the Executive Officer describing the disposition of LCFS Clean Fuel Reward program funds from the previous calendar year. The first such report covering a period from the start of the program until the end of 2020 must be submitted by April 30, 2021. This report must include:
a. The monetary value of LCFS credit proceeds received by the Clean Fuel Reward program; and

b. A summary, detailed list, and explanation of administrative costs, including start-up costs, utility overhead costs, and costs for program-related marketing, education, and outreach activities.

6. Restrictions on Use of Holdback Credits. Documentation of adherence to the following restrictions must be included in the annual report submitted pursuant to section 95491(d)(3)(A)5.
a. Holdback Credit Equity Projects. Effective January 1, 2022, at least 30 percent in year one, 40 percent in year two, and 50 percent in subsequent years of holdback credit proceeds must be used to support transportation electrification for the primary benefit of or primarily serving disadvantaged communities and/or low-income communities and/or rural areas or low-income individuals eligible under California Alternative Rates for Energy (CARE) or Family Electric Rate Assistance Program (FERA) or the definition of low-income in Health and Safety code section 50093 or the definition of low-income established by a POU's governing body. These projects may include:
i. Electrification and battery swap programs for school or transit buses.

ii. Electrification of drayage trucks.

iii. Investment in public EV charging infrastructure and EV charging infrastructure in multi-family residences.

iv. Investment in electric mobility solutions, such as EV sharing and ride hailing programs.

v. Multilingual marketing, education, and outreach designed to increase awareness and adoption of EVs and clean mobility options and including information about: the environmental, economic, and health benefits of EV transportation; basic maintenance and charging of EVs; electric rates designed to encourage EV use; and local, state, and federal incentives available for purchase of EVs.

vi. Additional rebates and incentives for low-income individuals beyond existing local, federal and State rebates and incentives including the Clean Fuel Reward for: purchasing or leasing new or previously owned EVs; installing EV charging infrastructure in residences; promoting use of public transit and other clean mobility solutions; and offsetting costs for residential or nonresidential EV charging.

vii. Alternatively, EDUs, in coordination with local environmental justice advocates, local community-based organizations, and local municipalities, may develop and implement other projects that promote transportation electrification in disadvantaged and/or low-income communities and/or rural areas or for low-income individuals. These alternative projects are subject to approval by the Executive Officer. Applications submitted to the Executive Officer must include, and will be evaluated for approval based on, a complete description of the project, demonstration that the project promotes transportation electrification in disadvantaged and/or low-income communities and/or rural areas or provides increased access to electric transportation for low-income individuals, and evidence that the project was developed in coordination with local environmental justice advocates, local community-based organizations, and local municipalities.

b. Additional Reporting Requirements for Holdback Credit Equity Projects. As part of annual reporting required pursuant to section 95491(d)(3)(A)5., EDUs must include a discussion on how their portfolio of holdback credit equity projects is consistent with the findings and recommendations of the SB 350 Low-Income Barriers Study, Part B report prepared by CARB (rev. Feb. 2018), incorporated herein. This discussion must include, as applicable, a description of how the projects: support increased access to clean transportation and mobility options; consider, and to the extent feasible, either complement or build upon existing CARB, other State, or local incentive projects to diversify and maximize benefits from statewide investments; demonstrate partnership and support from local community-based organizations; and meet community-identified clean transportation needs.

c. Administrative Costs of Holdback Credit Equity Projects. Administrative costs to support the development and implementation of holdback credit equity projects must not exceed 10 percent of total spending on holdback credit equity projects annually unless the EDU contracts with a community-based organization, and the exceedance is approved in advance by the Executive Officer. The request for administrative cost exceedance for a calendar year must be submitted by September 30th of the prior year. The request must include, and will be evaluated for approval based on, a complete description of the equity projects planned by the EDU, an estimate of total administrative costs relative to total spending on the projects, and evidence that the community-based organization is a non-profit organization focused on serving disadvantaged and/or low-income groups. Within 30 days of receiving a request for higher administrative costs, the Executive Officer will inform the EDU of its decision in writing. If the request is rejected the Executive Officer will provide a rationale for the decision. If the rejection is due to insufficient information, the EDU may resubmit the request after addressing the deficiencies identified in the Executive Officer decision.

d. Holdback credit proceeds must not be used for the following activities:
i. To meet compliance obligations under the market-based compliance mechanism set forth in title 17, California Code of Regulations Chapter 1, Subchapter 10, article 5 (commencing with section 95800), including the purchase of allowances, for electricity sold into the California Independent System Operator markets.

ii. To pay for the costs of MRR, the AB 32 Cost of Implementation Fee Regulation (California Code of Regulations, sections 95200-95207), or the market-based compliance mechanism set forth in title 17, California Code of Regulations Chapter 1, Subchapter 10, article 5 (commencing with section 95800), including the purchase of allowances.

iii. To pay for lobbying costs, employee bonuses, shareholder dividends, or costs, penalties, or activities mandated by any legal settlement, administrative enforcement action, or court order. This provision does not prohibit the use of holdback credits to pay costs, penalties, or liabilities associated with the Clean Fuel Reward program in the event that Clean Fuel Reward program funds are insufficient.

(B) Incremental Credits. Any entity, including an EDU, is eligible to generate incremental credits for improvements in carbon intensity of electricity used for residential EV charging. An entity that generates incremental credits must meet the requirements set forth in paragraphs 2. through 7. in section 95491(d)(3)(A), as applicable.
1. For metered residential EV charging, incremental credits for each FSE may be generated for one of the following:
a. Low-CI electricity; or

b. Smart charging. In the case of an entity claiming smart charging incremental credits, the credit generator must demonstrate the residence is enrolled in a Time-of-Use rate plan, if offered by the LSE serving the residence.

2. Multiple claims for incremental credits for metered residential EV charging associated with a single FSE ID will be resolved pursuant to the following order of preference:
a. The Load Serving Entity (LSE) supplying electricity to the EV associated with the FSE ID and metered data has first priority to claim credits;

b. The manufacturer of the EV associated with the FSE ID has second priority; and

c. Any other entity has third priority.

3. For non-metered residential EV charging, the EDU is eligible to generate incremental credits for supplying low-CI electricity to the EVs in its service territory.

(C) Advanced Credits. Large POUs and Large IOUs that opt-in to the LCFS and are eligible to receive base credits per section 95483(c)(1)(A) are the credit generators for advanced credits.

(2) Non-Residential EV Charging.
(A) For electricity supplied for non-residential EV charging, the owner of the FSE is eligible to generate the credits.

(B) Subsection (A) above notwithstanding, the owner of FSE may elect not to be the credit generator and instead designate another entity to be the credit generator if the two entities agree by written contract that:
1. The owner of FSE will not generate credits and will instead provide the electricity data to the designated entity for LCFS reporting pursuant to sections 95483.2(b)(8), 95491 and 95491.1.

2. The designated entity accepts all LCFS responsibilities as the fuel reporting entity and credit generator.

(C) An entity that generates credits for non-residential EV charging must meet the requirements set forth in paragraphs 2. through 7. in section 95491(d)(3)(A), as applicable.

(3) Fixed Guideway Systems. For electricity supplied as transportation fuel to a fixed guideway system, the transit agency operating the system is the fuel reporting entity and the credit generator for electricity used to propel the system. Upon submittal to the Executive Officer of the transit agency's written acknowledgment that it will not opt in and generate credits under this provision, the EDU becomes eligible to generate the credits for the electricity, and must meet the requirements set forth in sections 95491(d)(3)(A), paragraphs 3. through 5.

(4) Electric Forklifts.
(A) For transportation fuel supplied to electric forklifts, the fleet owner is the fuel reporting entity and the credit generator for electricity supplied to a specified fleet.

(B) Subsection (A) above notwithstanding, the electric forklift fleet owner may elect not to be the credit generator and instead designate another entity to be the credit generator, if the two entities agree by written contract that:
1. The electric forklift fleet owner will not generate credits and will instead provide the electricity data to the designated entity for LCFS reporting pursuant to sections 95483.2(b)(8), 95491 and 95491.1.

2. The designated entity accepts all LCFS responsibilities as the fuel reporting entity and credit generator.

3. The EDU can generate credits for electricity supplied to electric forklift fleet in its service territory during a reporting period if not claimed by any other entity under paragraphs 1. and 2., above. The EDU must meet the requirements in section 95491(d)(3)(A), paragraphs 3. through 5.

(5) Electric Transport Refrigeration Units (eTRU), Electric Cargo Handling Equipment (eCHE), Electric Power for Ocean-going Vessel (eOGV).
(A) For electricity supplied to eTRU, eCHE, or eOGV, the owner of the FSE is the fuel reporting entity and the credit generator.

(B) Subsection (A) above notwithstanding, the owner of the FSE may elect not to be the credit generator and instead designate another entity to be the credit generator if the two entities agree by written contract that:
1. The owner of the FSE will not generate credits and will instead provide the electricity data to the designated entity for LCFS reporting pursuant to sections 95483.2(b)(8), 95491 and 95491.1.

2. The designated entity accepts all LCFS responsibilities as the fuel reporting entity and credit generator.

(C) An entity that generates credits for eTRU, eCHE, or eOGV must meet the requirements set forth in paragraphs 2. through 7. in section 95491(d)(3)(A), as applicable.

(6) Other Electric Transportation Applications. For electricity supplied to a transportation application not covered in subsection (1) through (5) above, any entity can apply to the Executive Officer to be the fuel reporting entity and the credit generator for electricity supplied as long as it meets the requirements of section 95488.7(a)(3) and 95491.

1. New section filed 1-12-2010; operative 1-12-2010 pursuant to Government Code section 11343.4 (Register 2010, No. 3).
2. Repealer and new section filed 11-16-2015; operative 1-1-2016 (Register 2015, No. 47).
3. Amendment of section heading and repealer and new section filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).
4. Amendment of subsections (c)(1)(A)-(c)(1)(A)2. and new subsections (c)(1)(A)3.-(c)(1)(A)6.d.iii. and (c)(1)(C) filed 5-27-2020; operative 7-1-2020 (Register 2020, No. 22).

Note: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601 and 43018, Health and Safety Code; 42 U.S.C. section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

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