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 95488.6 - Tier 1 Fuel Pathway Application Requirements and Certification Process

Universal Citation: 17 CA Code of Regs 95488.6

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

(a) Documentation Required for Tier 1 Pathways. A fuel pathway applicant may apply for a Tier 1 pathway using the provisions set forth in this section. After satisfying all requirements for pathway and facility registration in 95488.2, the applicant must submit the following information to the Executive Officer for consideration of a Tier 1 pathway CI.

(1) Simplified CI Calculator. A fuel-specific Simplified CI Calculator populated with all applicable site-specific operational data inputs is required. The period covered shall be the most recent 24 month period of operation. Fields that require site-specific inputs are marked in the Simplified CI Calculator. Site-specific inputs include, but are not limited to, the monthly quantity of all feedstocks consumed in the fuel production facility, the electricity generation mix of the subregion(s) where feedstock and fuel production occur, the types and monthly quantities of all energy used in the production of the fuel, and the monthly quantities of fuel produced.
(A) The Simplified CI Calculators include appropriate LUC or other indirect carbon intensity modifiers from Table 6 when applicable.

(B) Applicants must follow the instructions for completing site-specific inputs in the Simplified CI Calculators found in the Tier 1 Simplified CI Calculator Instruction Manual (August 13, 2018), incorporated herein by reference.

Industrial Strategies Division, California Air Resources Board. August 13, 2018. Tier 1 Simplified CI Calculator Instruction Manual.

(C) All applicants using grid electricity must choose electrical generation energy mixes from among the subregions in CA-GREET3.0 and the Simplified CI Calculators, if applicable. The options include the 26 subregions defined in the U.S. EPA's Emissions and Generation Resource Integrated Database with year 2014 data (eGRID2014v2, released on February 27, 2017), and a national grid mix for Brazil and Canada.
1. User-defined Process Energy Option. Applicants whose fuel production facilities or feedstock source regions are located in an area for which there is no corresponding subregion included in the Simplified CI Calculator may select the user-defined option, and shall consult with the Executive Officer for approval of the data prior to submitting an application.

(2) Supplemental Information. Supporting evidence for specified inputs to the CI calculator can be uploaded to the AFP as a supplemental information document, as needed. Supplemental information is required under the following circumstances:
(A) If an alternative form of process energy supplied directly to the production facility are used, evidence must be provided to identify the source, to demonstrate that it is delivered directly to the production facility, and to determine the carbon intensity of the process energy input.

(B) If the fuel pathway applicant selects user-defined emission factors for regions not currently included in the Simplified CI Calculator, to reflect the grid electricity resource mix, crude and natural gas for that region. Supporting evidence and data sources for these emission factors must be provided.

(C) If the fuel produced or any by-products or co-products receive additional processing after they leave site, such as additional distiller's grains drying or fuel distillation, supporting evidence of the energy consumed for those processes must also be submitted.

(D) If the fuel production facility is co-located with one or more unrelated facilities, and energy consumption data (or other data required in calculating CI) are not separately available for the fuel production facility, the applicant shall install automated metering equipment with electronic data archival to enable an Executive Officer accredited verification body to confirm energy consumption data for the 24 months of operation submitted in the application. The metering should be capable of recording daily total energy consumption data. The same requirements apply if a single facility includes multiple operations including fuel production.

(E) Other information to facilitate staff review may also be included as part of the supplemental information.

(b) Certification Process for Tier 1 Pathway Applications.

(1) Validation. The applicant must seek the services of an Executive Officer accredited verification body to complete a pathway validation as specified in section 95500. A positive or qualified positive validation statement must be received by the Executive Officer from the verification body in order for CARB's completeness review, evaluation, and certification of the pathway application to proceed. In cases where a single applicant or a joint applicant does not complete validation, the application will be denied without prejudice. In cases where an applicant cannot complete validation within six months of submitting an application or receives an adverse validation statement, the application will be denied without prejudice.

(2) Completeness Review. Upon receipt of a positive or qualified positive validation statement, the Executive Officer will conduct a completeness review of the Tier selection to ensure the pathway meets the requirements for Tier 1, and evaluate if the inputs to the Simplified CI Calculator are complete.
(A) Application Complete. If the Executive Officer deems complete the applicant's Simplified CI Calculator and supplemental information, the fuel pathway applicant shall be notified as such.

(B) Application Incomplete. If the Executive Officer deems the Simplified CI Calculator and supplemental information incomplete, the Executive Officer will reject the pathway application without prejudice and inform the fuel pathway applicant of the rationale for rejection. Applicants whose applications are rejected may submit a new application that addresses deficiencies highlighted during the earlier review.

(3) Certification. The Executive Officer may certify or reject a pathway application.
(A) The Executive Officer will evaluate the application to determine whether it has met all requirements necessary for certification. At any point during the evaluation process, the Executive Officer may request in writing additional information or clarification from the applicant.

(B) If the Executive Officer determines the application has met all requirements necessary for certification, the Executive Officer will complete a pathway summary of the inputs, the facility average fuel production yield, CI results, and any applicable limitations or conditions. Upon certification of a Tier 1 application, the pathway will be available for reporting for the quarter in which it was deemed complete.

(C) Upon certification, the fuel pathway applicant(s) becomes the fuel pathway holder(s) for the certified fuel pathway and is subject to the requirements of 95488.10, and any limitations or conditions identified by the Executive pursuant to (3)(B) above, in order for that pathway to remain eligible for reporting and credit generation purposes.

1. New section 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, 41510, 41511 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, 41510, 41511 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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