Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
Generation and Acquisition of
Transferrable Credits.
(1)
Credit and Deficit Issuance. Upon submission and acceptance of
timely reports as required by this subarticle, the total number of credits and
deficits generated will be issued in the LRT-CBTS account of the applicable
credit or deficit generator. Once issued, credits may be retained indefinitely,
retired to meet a compliance obligation, or transferred to other entities
through the LRT-CBTS. The Executive Officer will issue the credits and deficits
in the LRT-CBTS if:
(A) The credit or deficit
generator met all the reporting requirements pursuant to this
subarticle;
(B) The credit or
deficit generator successfully reconciled the fuel quantity reported per FPC
using transaction types Sold with Obligation and Purchased with Obligation with
business partners by the quarterly reporting deadline, if required;
(C) The activity is not prohibited pursuant
to section
95486(a)(2) or
any other provision of this subarticle.
(2)
No Retroactive Credit
Claim. Unless expressly provided elsewhere in this subarticle, no
credit generator may generate or claim credits retroactively for a period for
which the reporting deadline has passed. Similarly, no deficit generator may
eliminate deficits retroactively for a period for which the reporting deadline
has passed.
(3)
Buffer
Account. The Executive Officer may create an LRT-CBTS account under
the control of the Executive Officer. In this account, the Executive Officer
may place:
(A) An equivalent number of credits
for any LCFS credits that could have been claimed (or deficits that could have
been eliminated) if reported timely, if not for the prohibition on retroactive
credit claims in section
95486(a)(2).
(B) An equivalent number of credits
representing the difference between the reported CI and the verified
operational CI from annual Fuel Pathway Reports for each fuel pathway code
reported with transaction types "Production in California", "Production for
Import", and "Import" during a compliance year. These credits will be placed in
the buffer account after August 31st for the prior compliance year and will be
calculated according to the following equation:
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(C) Contribution from CCS projects pursuant
to the CCS Protocol.
(D) All net
credits remaining in any deactivated LRT-CBTS accounts.
(E) The Executive Officer may retire credits
in the Buffer Account to address the invalidation of credits, pursuant to
section 95495, if the person responsible
for the invalidated credits no longer exists or is otherwise unavailable to
reimburse the program.
(4) The Executive Officer may, at the time of
credit generation or credit transfer, assign a unique identification number to
each credit. Credits are subject to review and audit by the Executive Officer
or his designee, and credits may be invalidated or adjusted as necessary
pursuant to section
95495.
(5)
Acquisition of "Carryback"
Credits to Meet Obligation.(A)
Carryback Credit Acquisition Period. A fuel reporting entity
may acquire, via purchase or transfer, additional credits between January 1st
and April 30th ("carryback period") to be used for meeting the compliance
obligation of the year immediately prior to the carryback period. Credits
acquired for this purpose are defined as "carryback" credits. All carryback
credit transfers must be completed in the LRT-CBTS pursuant to section
95487(b) by April
30th. In order to be valid for meeting the compliance obligation of the year
immediately prior.
(B)
Use
of Carryback Credits. A carryback credit may be used for the purpose
of meeting the compliance of an immediate prior year if all of the conditions
below are met:
1. The credit was acquired
during the carryback period;
2. The
credit was generated in a compliance year prior to the carryback
period;
3. A fuel reporting entity
electing to use carryback credits must identify the number of credits it
desires to use as carryback credits in its annual compliance report submitted
to the Executive Officer no later than April 30th of the year in which the
carryback credits were obtained; and
4. A fuel reporting entity electing to use
carryback credits must:
a. Acquire and retire
a sufficient amount of carryback and other credits to meet 100 percent of its
compliance obligation in the prior compliance year, or
b. Minimize its compliance shortfall by
retiring all credits in its possession at the end of the previous compliance
year, as well as all credits purchased during the carryback period that are
eligible to be used as carryback
credits.
(b)
Calculation of Credits and
Deficits Generated. The Executive Officer will calculate the number of
credits and deficits generated within the LRT-CBTS using the methods specified
in section
95486.1 and section
95489. The total credits and
deficits generated are used in determining the overall credit balance for a
compliance period, pursuant to section
95485. All credits and deficits
are denominated in units of metric tons (MT) of carbon dioxide equivalent.
(1) All LCFS fuel quantities used for credit
calculation using fuel pathways are in energy units of megajoules (MJ).
Fuel quantities denominated in other units, such as
those shown in Table 4, are converted to MJ in the LRT-CBTS by multiplying by
the corresponding energy density1:
Table 4. Energy Densities and Conversion Factors
for LCFS Fuels and Blendstocks.
|
Fuel (units)
|
Energy Density
|
| CARBOB (gal) | 119.53 (MJ/gal) |
| CaRFG (gal) | 115.83 (MJ/gal) |
| Diesel fuel (gal) | 134.47 (MJ/gal) |
| LNG (gal) | 78.83 (MJ/gal) |
| CNG (Therms) | 105.5 (MJ/Therm) |
| Electricity (KWh) | 3.60 (MJ/KWh) |
| Hydrogen (kg) | 120.00 (MJ/kg) |
| Undenatured Anhydrous Ethanol | 80.53
(MJ/gal) |
| Denatured Ethanol (gal) | 81.51 (MJ/gal) |
| FAME Biodiesel (gal) | 126.13 (MJ/gal) |
| Renewable Diesel (gal) | 129.65 (MJ/gal) |
| Alternative Jet Fuel (gal) | 126.37
(MJ/gal) |
| Propane (LPG) (gal) | 89.63 (MJ/gal) |
(2) The total credits and deficits generated
by a credit or deficit generator in a compliance period will be calculated as
follows:
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where:
CreditsGen
represents the total credits (a zero or positive value), in units of metric
tons (MT), for all fuels and blendstocks determined from the credits generated
under the gasoline, diesel, and jet fuel annual carbon intensity benchmarks,
and from opt-in projects, if applicable;
DeficitsGen
represents the total deficits (a negative value), in MT, for all fuels and
blendstocks determined from the deficits generated under either or both of the
gasoline and diesel fuel annual carbon intensity benchmarks;
i is the finished fuel or blendstock
index; and
n is the total number of finished
fuels and blendstocks provided by a credit or deficit generator in a compliance
period.
1 Energy density factors are
based on the lower heating values of fuels in CA-GREET3.0 using BTU to MJ
conversion of 1055.06 J/Btu.
1. New
section filed 1-12-2010; operative 1-12-2010 pursuant to Government Code
section
11343.4
(Register 2010, No. 3).
2. Amendment of subsections (b)(1) and
(b)(1)(O)-(P), new subsections (b)(1)(Q)-(R) and amendment of Table 7 filed
4-15-2010; operative 4-15-2010 pursuant to Government Code section
11343.4
(Register 2010, No. 16).
3. Amendment of subsections (b)(1)(A)-(R),
new subsections (b)(1)(S)-(Z) and amendment of Table 6 and Table 7 filed
2-21-2012; operative 2-21-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 8).
4. Amendment filed 11-26-2012; operative
11-26-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 48).
5. Repealer and new section filed
11-16-2015; operative 1-1-2016 (Register 2015, No. 47).
6. Amendment
of section, including redesignation of former subsections (b)(3)-(c) as new
section 95486.1, filed 1-4-2019; operative
1-4-2019 pursuant to Government Code section
11343.4(b)(3)
(Register 2019, No. 1).
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).
