California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 5 - California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms
Subarticle 2 - Purpose and Definitions
Section 95802 - Definitions

1) a public utility as defined in the Public Utilities Code section 216 (referred to as an Investor Owned Utility or IOU); or

2) a local publicly owned electric utility (POU) as defined in Public Utilities Code section 224.3 or

3) an Electrical Cooperative (COOP) as defined in Public Utilities Code section 2776, that provides electricity to retail end users in California.

"Electricity Generating Facility" means a facility that generates electricity and includes one or more generating units at the same location.

"Electricity Importers" deliver imported electricity. For electricity that is scheduled with a NERC e-Tag to a final point of delivery inside the state of California, the electricity importer is identified on the NERC e-Tag as the purchasing-selling entity (PSE) on the last segment of the tag's physical path with the point of receipt located outside the state of California and the point of delivery located inside the state of California. For facilities physically located outside the state of California with the first point of interconnection to a California balancing authority's transmission and distribution system when the electricity is not scheduled on a NERC e-Tag, the importer is the facility operator or scheduling coordinator. Federal and state agencies are subject to the regulatory authority of ARB under this article, and include Western Area Power Administration (WAPA), Bonneville Power Administration (BPA) and California Department of Water Resources (DWR). For electricity that is imported into California through the CAISO Energy Imbalance Market, the electricity importer is identified as the EIM Participating Resource Scheduling Coordinator serving the EIM market whose transactions result in electricity imports into California.

"Electric Power Entity" shall have the same meaning ascribed in section 95102(a) of MRR.

"Eligible Renewable Energy Resource" has the same meaning as defined in Section 399.12 of the Public Utilities Code.

"Emissions" means the release of greenhouse gases into the atmosphere from sources and processes in a facility, including from the combustion of transportation fuels such as natural gas, petroleum products, and natural gas liquids. In the context of offsets, "emissions" means the release of greenhouse gases into the atmosphere from sources and processes within an offset project boundary.

"Emissions Data Report" or "greenhouse gas emissions data report" or "report" means the report prepared by an operator or supplier each year and submitted by electronic means to ARB that provides the information required by MRR. The emissions data report is for the submission of required data for the calendar year prior to the year in which the report is due. For example, a 2013 emissions data report would cover emissions and product data for the 2013 calendar year and would be reported in 2014.

"Emissions Efficiency Benchmark" or "GHG emissions efficiency benchmark" means a performance standard used to evaluate GHG emissions efficiency between and amongst similar facilities or operations in the same industrial sector.

"Emulsion" means a mixture of water, crude oil, associated gas, and other components from the oil extraction process that is transferred from an existing platform that is permanently affixed to the ocean floor and that is located outside the distance specified in the "offshore" definition in section 95102 of MRR, to an onshore petroleum and natural gas production facility.

"End User" means a final purchaser of an energy product, such as electricity, thermal energy, or natural gas not for the purposes of retransmission or resale. In the context of natural gas consumption, an "end user" is the point to which natural gas is delivered for consumption.

"Energy Imbalance Market" or "EIM" means the operation of the CAISO's real time market to manage transmission congestion and optimize procurement of energy to balance supply and demand for the combined CAISO and EIM footprint.

"Energy Imbalance Market Outstanding Emissions" or "EIM Outstanding Emissions" shall have the same meaning as MRR section 95111(h)(1).

"Energy Imbalance Market Participating Resource Scheduling Coordinator" or "EIM Participating Resource Scheduling Coordinator" means the participating resource owner or operator, or a third-party designated by the resource owner or operator, that is certified by the CAISO and enters into the pro forma EIM Participating Resource Scheduling Coordinator Agreement, under which it is responsible for meeting the requirements specified in the CAISO Tariff on behalf of the resource owner or operator.

"Energy Imbalance Market Purchaser" or "EIM Purchaser" means, for a given data year, an electrical distribution utility that directly or indirectly purchases any electricity through the EIM to serve California load in the data year and receives allowance allocation in the subsequent year pursuant to section 95892. An electrical distribution utility is considered to have purchased electricity through the EIM in a given data year if, during any 5-minute interval in the data year, the electrical distribution utility serves California load through imbalance energy purchased directly from the CAISO market. An electrical distribution utility is considered to have purchased electricity through the EIM in a given data year if, during any 5-minute interval in the data year, the electrical distribution utility participates in CAISO markets indirectly through a CAISO scheduling coordinator that meets any part of the electrical distribution utility's California load with imbalance energy.

"Energy Imbalance Market Purchaser Emissions" or "EIM Purchaser Emissions" shall have the same meaning as MRR section 95111(h)(2).

"Enforceable" means the authority for ARB to hold a particular party liable and to take appropriate action if any of the provisions of this article are violated.

"Enhanced Oil Recovery" or "EOR" means the use of certain methods such as steam (thermal EOR), water flooding or gas injection into existing wells to increase the recovery of crude oil from a reservoir. In the context of this rule, EOR also applies to injection of critical phase carbon dioxide into a crude oil reservoir to enhance the recovery of oil.

"Enterer" means an entity that imports, into California, motor vehicle fuel, diesel fuel, fuel ethanol, biodiesel, or non-exempt biomass-derived fuel or renewable fuel and who is the importer of record under federal customs law or the owner of fuel upon import into California, if the fuel is not subject to federal customs law. Only enterers that import the fuels specified in this definition outside the bulk transfer/terminal system are subject to reporting under the regulation.

"Entity" means a person, firm, association, organization, partnership, business trust, corporation, limited liability company, company, or government agency.

"Entity type" means the type of entity based on the qualification to register in the tracking system as a covered entity (pursuant to section 95811), an opt-in covered entity (pursuant to section 95813), or a voluntarily associated entity (pursuant to section 95814).

"Environmental Impact Assessment" means a detailed public disclosure statement of potential environmental and socioeconomic impacts associated with a proposed project. Such disclosure is a matter of public record and provides detailed information to public agencies and the general public about the effect that a proposed project is likely to have on the environment and ways in which the significant effects of such a project might be minimized, and to indicate alternatives to such a project.

"Environmental Stringency" means, for purposes of this article, the ability of the California Cap-and-Trade Program to deliver the GHG emission reductions contemplated by this article, including the allowance budgets established in this article.

"Exchange" means a central marketplace with established rules and regulations where buyers and sellers meet to conduct trades.

"Executive Officer" means the Executive Officer of the California Air Resources Board, or his or her delegate.

"Expected Settlement Date" is a date specified in a transaction agreement on which all requirements in the transaction agreement are expected to be settled, exclusive of any contingencies specified in the agreement.

"Expected Termination Date" is a date specified in a transaction agreement on which all requirements in the transaction agreement are expected to be completed, exclusive of any contingencies specified in the agreement.

"Exported Electricity" shall have the same meaning ascribed in section 95102(a) of MRR.

"External Greenhouse Gas Emissions Trading System" or "External GHG ETS" means an administrative system, other than the California Cap-and-Trade Program, that controls greenhouse gas emissions from sources in its program.

"Facility," unless otherwise specified in relation to natural gas distribution facilities and onshore petroleum and natural gas production facilities as defined in section 95802(a), means:

Any physical property, plant, building, structure, source, or stationary equipment located on one or more contiguous or adjacent properties in actual physical contact or separated solely by a public roadway or other public right-of-way and under common ownership or common control, that emits or may emit any greenhouse gas. Operators of military installations may classify such installations as more than a single facility based on distinct and independent functional groupings within contiguous military properties.

With respect to natural gas distribution for the purposes of sections 95150 through 95158 of MRR, "Facility" means the collection of all distribution pipelines and metering-regulating stations that are operated by a Local Distribution Company (LDC) within the State of California that is regulated as a separate operating company by a public utility commission or that are operated as an independent municipally-owned distribution system.

With respect to onshore petroleum and natural gas production for the purposes of sections 95150 through 95158 of MRR, "Facility" means all petroleum and natural gas equipment on a well-pad, or associated with a well pad or to which emulsion is transferred and CO2 EOR operations that are under common ownership or common control including leased, rented, or contracted activities by an onshore petroleum and natural gas production owner or operator and that are located in a single hydrocarbon basin as defined in section 95102(a) of MRR. When a commonly owned cogeneration plant is within the basin, the cogeneration plant is only considered part of the onshore petroleum and natural gas production facility if the onshore petroleum and natural gas production facility operator or owner has a greater than fifty percent ownership share in the cogeneration plant. Where a person or entity owns or operates more than one well in a basin, then all onshore petroleum and natural gas production equipment associated with all wells that the person or entity owns or operates in the basin would be considered one facility. Onshore natural gas processing equipment that is owned and/or operated by the facility owner/operator and located within the same basin, is considered "associated with a well pad" and is included with the onshore petroleum and natural gas production facility, unless such equipment is required to be reported as part of a separate onshore petroleum and natural gas processing facility.

With respect to onshore natural gas processing, "Facility" means equipment associated with the separation of natural gas liquids (NGLs) or non-methane gases from produced natural gas, including separation of sulfur and carbon dioxide, that processes an annual average throughput of 25 MMscf per day or greater, or whose owner/operator does not also own/operate a production facility in the same basin.

"Fiberglass Pulled" means the quantity of glass removed from the melting furnace in the fiberglass manufacturing process where "Fiberglass" is defined as insulation products for thermal, acoustic, and fire applications manufactured using glass.

"Final Point of Delivery" means the sink specified on the NERC e-Tag, where defined points have been established through the NERC Registry. When NERC e-Tags are not used to document electricity deliveries, as may be the case within a balancing authority, the final point of delivery is the location of the load. Exported electricity is disaggregated by the final point of delivery on the NERC e-Tag.

"First Deliverer of Electricity" or "First Deliverer" means the owner or operator of an electricity generating facility in California, or an electricity importer.

"First Point of Receipt" means the generation source specified on the NERC e-Tag, where defined points have been established through the NERC Registry. When NERC e-Tags are not used to document electricity deliveries, as may be the case within a balancing authority, the first point of receipt is the location of the individual generating facility or unit, or group of generating facilities or units. Imported electricity and wheeled electricity are disaggregated by the first point of receipt on the NERC e-Tag.

"Flash Point" of a volatile liquid is the lowest temperature at which it can vaporize to form an ignitable mixture in air.

"Flat Glass Pulled" means the quantity of glass removed from the melting furnace in the flat glass manufacturing process where "flat glass" is defined as glass initially manufactured in a sheet form.

"Flavored Almonds" means pasteurized almond meats that are introduced to the flavoring process. Flavoring occurs when almonds are passed through a seasoning mixture to add various snack food flavors and then dehydrated to a desired moisture level for packaging.

"Flavored Pistachios" means hulled and dried pistachios that are introduced to the flavoring process. Flavoring occurs when pistachios are passed through a seasoning mixture to add various snack food flavors and then dehydrated to a desired moisture level for packaging. Flavored pistachios may include pistachios hulled and dried internally, or pistachios hulled and dried by other facilities.

"Fluid Milk Product" means a product that meets the definition of milk, skim milk, buttermilk, ultrafiltered milk, or cream.

"Fluorinated Greenhouse Gas" means sulfur hexafluoride (SF6), nitrogen trifluoride (NF3), and any fluorocarbon except for controlled substances as defined at 40 CFR Part 82 (May 10, 1995), subpart A and substances with vapor pressures of less than 1 mm of Hg absolute at 25 C. With these exceptions, "fluorinated GHG" includes any hydrofluorocarbon; any perfluorocarbon; any fully fluorinated linear, branched, or cyclic alkane, ether, tertiary amine, or aminoether; any perfluoropolyether; and any hydrofluoropolyether.

"Fluting" means the center segment of corrugated shipping containers, being faced with linerboard (testliner/kraftliner) on both sides. Fluting covers mainly papers made from recycled fiber but this group also holds paperboard that is made from chemical and semichemical pulp.

"Forest Buffer Account" means a holding account for ARB offset credits issued to forest offset projects. It is used as a general insurance mechanism against unintentional reversals, for all forest offset projects listed under a Compliance Offset Protocol.

"Forest Offset Project" means an offset project that uses or has used either the offset protocols identified in section 97973(a)(2)(C)4. or one of the Climate Action Reserve Forest Project Protocols identified as offset quantification methodologies in the definition of the Program for Recognition of Early Action Offset Credits in section 95802(a).

"Forest Owner" means the owner of any interest in the real (as opposed to personal) property involved in a forest offset project, excluding government agency third party beneficiaries of conservation easements. Generally, a Forest Owner is the owner in fee of the real property involved in a forest offset project. In some cases, one entity may be the owner in fee while another entity may have an interest in the trees or the timber on the property, in which case all entities or individuals with interest in the real property are collectively considered the Forest Owners, however, a single Forest Owner must be identified as the Offset Project Operator.

"Fossil Fuel" means natural gas, petroleum, coal, or any form of solid, liquid, or gaseous fuel derived from such material for the purpose of creating useful heat.

"Fractionates" means the process of separating natural gas liquids into their constituent liquid products.

"Freshwater diatomite filter aids" means inorganic mineral powders derived by processing freshwater diatomite which is fossilized single-celled algae found in lake beds. Filter aids are used in combination with filtration hardware to enhance filtration performance to separate unwanted solids from fluids.

"Fried potato chip" means a thin slice of potato that is deep fried until crunchy.

"Fuel" means solid, liquid, or gaseous combustible material. Volatile organic compounds burned in destruction devices are not fuels unless they can sustain combustion without use of a pilot fuel, and such destruction does not result in a commercially useful end product.

"Fuel Analytical Data" means data collected about fuel usage (including mass, volume, and flow rate) and fuel characteristics (including heating value, carbon content, and molecular weight) to support emissions calculation.

"Fuel Cell" means a device that converts the chemical energy of a fuel and an oxidant directly into electrical energy without using combustion. Fuel cells require a continuous source of fuel and oxidant to operate.

"Fuel supplier" means a supplier of petroleum products, a supplier of biomass-derived transportation fuels, a supplier of natural gas including operators of interstate and intrastate pipelines, a supplier of liquefied natural gas, or a supplier of liquefied petroleum gas as specified in MRR.

"Fugitive Emissions" means those emissions which are unintentional and could not reasonably pass through a stack, chimney, vent, or other functionally-equivalent opening.

"Full Offset Verification" means, for the purposes of this article, offset verification services that meet all the requirements of sections 95977.1 and 95977.2, including a site visit.

"Galvanized Steel Sheet" means steel coated with a thin layer of zinc to provide corrosion resistance for such products as garbage cans, storage tanks, or framing for buildings. Sheet steel normally must be cold-rolled prior to the galvanizing stage.

"Gas" means the state of matter distinguished from the solid and liquid states by: relatively low density and viscosity; relatively great expansion and contraction with changes in pressure and temperature; the ability to diffuse readily; and the spontaneous tendency to become distributed uniformly throughout any container.

"Gaseous Hydrogen" means hydrogen in a gaseous state.

"Geologic Sequestration" means the process of injecting CO2 captured from an emissions source into deep subsurface rock formations for permanent storage.

"Global Warming Potential" or "GWP" means the ratio of the time-integrated radiative forcing from the instantaneous release of one kilogram of a trace substance relative to that of one kilogram of a reference gas, i.e., CO2.

"Granulated refined sugar" means white refined sugar (99.9% sucrose), made by dissolving and purifying raw sugar then drying it to prevent clumping.

"Grape Juice concentrate" means the liquid from crushed grapes, from the botanical genus Vitas, processed to remove water.

"Grape seed extract" means the extract from grape seeds containing concentrations of proanthocyanidin.

"Greenhouse Gas" or "GHG" means carbon dioxide (CO2), methane (CH4), nitrogen trifluoride (NF3), nitrous oxide (N2O), sulfur hexafluoride (SF6), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), and other fluorinated greenhouse gases as defined in this section.

"Greenhouse Gas Emission Reduction" or "GHG Emission Reduction" or "Greenhouse Gas Reduction" or "GHG Reduction" means a calculated decrease in GHG emissions relative to a project baseline over a specified period of time.

"Greenhouse Gas Emissions Source" or "GHG Emissions Source" means, in the context of offset credits, any type of emitting activity that releases greenhouse gases into the atmosphere.

"Greenhouse Gas Removal" or "GHG Removal" means the calculated total mass of a GHG removed from the atmosphere over a specified period of time.

"Greenhouse Gas Removal Enhancement" or "GHG Removal Enhancement" means a calculated increase in GHG removals relative to a project baseline.

"Greenhouse Gas Reservoir" or "GHG Reservoir" means a physical unit or component of the biosphere, geosphere, or hydrosphere with the capability to store, accumulate, or release a GHG removed from the atmosphere by a GHG sink or a GHG captured from a GHG emission source.

"Greenhouse Gas Sink" or "GHG Sink" means a physical unit or process that removes a GHG from the atmosphere.

"Gypsum" means a mineral with the chemical formula CaSO4·2H2O.

"HD-5" or "Special Duty Propane" has the same meaning as contained in MRR.

"HD-10" has the same meaning as contained in MRR.

"Hold" in the context of a compliance instrument, is to have the serial number assigned to that instrument registered into an account assigned to an entity that is registered into the California Cap-and-Trade Program or an External Greenhouse Gas Emissions Trading System to which California has linked its Cap-and-Trade Program pursuant to subarticle 12, or an account under the control of the Executive Officer.

"Holding Account" or "General Holding Account" means an account created for each covered entity, opt-in covered entity, or voluntarily associated entity to hold compliance instruments.

"Horsepower Tested" means the total horsepower of all turbine and generator set units tested prior to sale.

"Hot Rolled Steel Sheet" means steel produced from the rolling mill that reduces a hot slab into a coil of specified thickness at a relatively high temperature.

"Hydrocarbon" means a chemical compound containing predominantly carbon and hydrogen.

"Hydrofluorocarbon" or "HFC" means a class of GHGs consisting of hydrogen, fluorine, and carbon.

"Hydrogen" means diatomic molecular hydrogen, the lightest of all gases.

"Imported Electricity" means electricity generated outside the state of California and delivered to serve load located inside the state of California. Imported electricity includes electricity delivered across balancing authority areas from a first point of receipt located outside the state of California, to the first point of delivery located inside the state of California, having a final point of delivery in California. Imported electricity includes electricity imported into California over a multi-jurisdictional retail provider's transmission and distribution system, or electricity imported into the state of California from a facility or unit physically located outside the state of California with the first point of interconnection into a California balancing authority's transmission and distribution system. Imported electricity includes electricity that is a result of cogeneration located outside the state of California. Imported electricity does not include electricity wheeled through California, defined pursuant to MRR section 95102(a). Imported electricity does not include electricity imported into the CAISO balancing authority area to serve retail customers that are located within the CAISO balancing authority area, but outside the state of California. Imported Electricity does not include electricity imported into California by an Independent System Operator to obtain or provide emergency assistance under applicable emergency preparedness and operations reliability standards of the North American Electric Reliability Corporation or Western Electricity Coordinating Council. Imported electricity shall include Energy Imbalance Market (EIM) dispatches designated by the CAISO's optimization model and reported by the CAISO to EIM Participating Resource Scheduling Coordinators as electricity imported to serve retail customers load that is located within the state of California.

"Importer of fuel" means an entity that imports fuel into California and who is the importer of record under federal customs law. For imported fuel not subject to federal customs law, the "importer of fuel" is the owner of the fuel upon its entering into California if the eventual transfer of ownership of the product to an end user or marketer located in California occurs at a location inside California. However, where the transfer of ownership of the product fuel to a California end user or marketer occurs at a location outside of California, the "importer of fuel" is the producer, marketer, or distributor that is the seller of the fuel to the end user or marketer located inside California. Pursuant to section 95122, only importers of liquefied petroleum gas, compressed natural gas, and liquefied natural gas are subject to reporting as an importer of fuel.

"Initial Crediting Period" means the crediting period that begins with the first day of the first reporting period which receives a Positive Offset or Qualified Positive Offset Verification Statement and has that Offset Verification Statement approved by ARB.

"Intentional Reversal" means any reversal, except as provided below, which is caused by a forest owner's negligence, gross negligence, or willful intent, including harvesting, development, and harm to the area within the offset project boundary, or caused by approved growth models overestimating carbon stocks. A reversal caused by an intentional back burn set by, or at the request of, a local, state, or federal fire protection agency for the purpose of protecting forestlands from an advancing wildfire that began on another property through no negligence, gross negligence, or willful misconduct of the forest owner is not considered an intentional reversal but, rather, an unintentional reversal. Receiving Adverse Offset Verification Statements on two consecutive offset verifications after the end of the final crediting period will be considered an intentional reversal.

"Intermediate dairy ingredients" means intermediate (non-final) dairy products imported from other dairy facilities that enter the rehydrating process, which uses water and heat to manufacture powdered milk products.

"Intermittent bleed pneumatic devices" means automated flow control devices powered by pressurized natural gas and used for automatically maintaining a process condition such as liquid level, pressure, delta-pressure and temperature. These are snap-acting or throttling devices that discharge all or a portion of the full volume of the actuator intermittently when control action is necessary, but do not bleed continuously. Intermittent bleed devices which bleed at a cumulative rate of 6 standard cubic feet per hour or greater are considered high bleed devices for the purposes of this Regulation.

"Interstate Pipeline" means any entity that owns or operates a natural gas pipeline delivering natural gas to consumers in the state and is subject to rate regulation by the Federal Energy Regulatory Commission.

"Intrastate Pipeline" means any pipeline or piping system wholly within the State of California that is delivering natural gas to end-users and is not regulated as a public utility gas corporation by the California Public Utility Commission (CPUC), is not a publicly owned natural gas utility, and is not regulated as an interstate pipeline by the Federal Energy Regulatory Commission. This definition includes onshore petroleum and natural gas production facilities and natural gas processing facilities, as defined by sections 95150(a)(2)-(3) of MRR, that deliver pipeline and/or non-pipeline quality natural gas to one or more end users. Facility operators that operate an interconnection pipeline that connects their facility to an interstate pipeline, or that share an interconnection pipeline to an interstate pipeline with other nearby facilities, are not considered intrastate pipeline operators. Facilities that receive gas from an upstream LDC and redeliver a portion of the gas to one or more adjacent facilities are not considered intrastate pipelines.

"Inventory Position" means a contractual agreement with the terminal operator for the use of the storage facilities and terminaling services for the fuel.

"Issue" or "Issuance" means, in the context of offset credits, the creation of ARB offset credits or registry offset credits equivalent to the number of verified GHG reductions or GHG removal enhancements for an offset project over a specified period of time. In the context of allowances, issue means the placement of an allowance into an account under the control of the Executive Officer.

"Joint Powers Authority" or "JPA" means an public agency that is formed and created pursuant to the provisions of Government Code sections 6500. et seq.

"Kerosene" is a light petroleum distillate with a maximum distillation temperature of 400 °F at the 10-percent recovery point, a final maximum boiling point of 572 °F, a minimum flash point of 100 °F, and a maximum freezing point of -22 °F. Included are No. 1-K and No. 2-K, distinguished by maximum sulfur content (0.04 and 0.30 percent of total mass, respectively), as well as all other grades of kerosene called range or stove oil. Kerosene does not include kerosene-type jet fuel.

"Kerosene-Type Jet Fuel" means a kerosene-based product used in commercial and military turbojet and turboprop aircraft. The product has a maximum distillation temperature of 400 °F at the 10 percent recovery point and a final maximum boiling point of 572 °F. Included are Jet A, Jet A-1, JP-5, and JP-8.

"Lactose" means a white to creamy white crystalline product, possessing a mildly sweet taste. It may be anhydrous, contain one molecule of water of hydration, or be a mixture of both forms.

"Lager beer" means beer produced with bottom fermenting yeast strains, Saccharomyces uvarum (or carlsbergensis) at colder fermentation temperatures than ales.

"Lead and lead alloys" means lead or the metal alloy that combines lead and other elements such as antimony, selenium, arsenic, copper, tin, or calcium.

"Lead Verifier" means, for purposes of this article, a person that has met all of the requirements in section 95132(b)(2) of MRR and who may act as the lead verifier of an offset verification team providing offset verification services or as a lead verifier providing an independent review of offset verification services rendered.

"Lead Verifier Independent Reviewer" or "Independent Reviewer" means, for purposes of this article, a lead verifier within a verification body who has not participated in conducting offset verification services for an Offset Project Developer or Authorized Project Designee for the current Offset Project Data Report and who provides an independent review of offset verification services rendered for an Offset Project Developer or Authorized Project Designee as required in section 95977.1(b)(3)(R). The independent reviewer is not required to also meet the requirements for a sector specific or offset project specific verifier.

"Legacy Contract" means a written contract or tolling agreement, originally executed prior to September 1, 2006, governing the sale of electricity and/or legacy contract qualified thermal output at a price, determined by either a fixed price or price formula, that does not provide for recovery of the costs associated with compliance with this regulation; the originally executed contract or agreement must have remained in effect and must not have been amended since September 1, 2006 to change or affect the terms governing the California greenhouse gas emissions responsibility, price, or amount of electricity or legacy contract qualified thermal output sold, or the expiration date. For purposes of this regulation, legacy contracts exclude contracts that have been amended to include a Legacy PPA Amendment, as defined in the Combined Heat and Power Program Settlement Agreement Term Sheet pursuant to CPUC Decision 10-12-035, with a privately owned utility as defined in the Public Utilities Code section 216 (referred to as an Investor Owned Utility or IOU). This definition of a "Legacy Contract" does not apply to opt-in covered entities.

"Legacy Contract Counterparty" means an entity that has been identified, pursuant to section 95894, and may also be identified under industrial allocation pursuant to Table 8-1 to receive an allowance allocation, and has a contract to purchase legacy contract qualified thermal output and/or electricity from a legacy contract generator with an industrial counterparty, or from a legacy contract generator without an industrial counterparty, determined by the Executive Officer pursuant to section 95894(b) to be eligible for transition assistance under section 95894.

"Legacy Contract Emissions" means the covered emissions calculated, based on a positive or qualified positive emissions data verification statement issued pursuant to MRR, by the legacy contract generator with an industrial counterparty or legacy contract generator without an industrial counterparty, that are a result of either electricity and/or legacy contract qualified thermal output sold to a legacy contract counterparty, and calculated pursuant to section 95894 of this regulation.

"Legacy Contract Generator with an Industrial Counterparty" means a covered entity that generates and sells electricity, thermal energy, or both, subject to a legacy contract with a legacy contract counterparty that is identified as eligible for allowance allocation pursuant to section 95891.

"Legacy Contract Generator without an Industrial Counterparty" means a covered entity that generates and sells electricity, thermal energy, or both, subject to a legacy contract, and does not also sell electricity or thermal energy under the legacy contract to a covered entity eligible for allowance allocation pursuant to section 95891.

"Legacy Contract Qualified Thermal Output" means thermal energy that is sold to a legacy contract counterparty, and reported pursuant to MRR.

"Less Intensive Verification" means, for the purposes of this article, the offset verification services provided in interim years between full offset verifications of an Offset Project Data Report; less intensive verification of an Offset Project Data Report only requires data checks and document reviews of an Offset Project Data Report based on the analysis and risk assessment in the most current sampling plan developed as part of the most recent full offset verification services. This level of verification may only be used if the offset verifier can provide findings with a reasonable level of assurance.

"Limited Use Holding Account" means an account in which allowances are placed after an entity qualifies for a direct allocation under section 95890(b) or 95890(f). Allowances placed in this account can only be removed for consignment to the auction pursuant to section 95831(a)(3).

"Linkage" means the approval of compliance instruments from an external greenhouse gas emission trading system (GHG ETS) to meet compliance obligations under this article, and the reciprocal approval of compliance instruments issued by California to meet compliance obligation in an external GHG ETS.

"Liquefied natural gas" or "LNG" means natural gas (primarily methane) that has been liquefied by reducing its temperature to -260 degrees Fahrenheit at atmospheric pressure.

"Liquefied Petroleum Gas" or "LPG" means a flammable mixture of hydrocarbon gases used as a fuel. LPG is primarily mixtures of propane, butane, propene (propylene) and ethane. The most common specification categories are propane grades, HD-5, HD-10, and commercial grade propane. LPG also includes both odorized and non-odorized liquid petroleum gas, and is also referred to as propane.

"Liquid Color Concentrate" means a fluid extract from fruits and/or vegetables reduced by driving off water that has the purpose of altering the color of materials and/or food.

"Liquid Hydrogen" means hydrogen in a liquid state.

"Lobbying" for the purposes of sections 95892(d)(7) and 95893(d)(7) means communicating directly or through an agent with any federal or State elected official, agency official, or legislative official for the purpose of influencing legislative or administrative action.

"Long-Term Contract" means a contract for the delivery of electricity entered into before January 1, 2006, for the term of five years or more.

"Low-bleed pneumatic devices" means automated flow control devices powered by pressurized natural gas and used for maintaining a process condition such as liquid level, pressure, delta-pressure and temperature. Part of the gas power stream that is regulated by the process condition flows to a valve actuator controller where it vents continuously or intermittently bleeds to the atmosphere at a rate equal to or less than six standard cubic feet per hour.

"Mandatory Reporting Regulation" or "MRR" means ARB's Regulation for the Mandatory Reporting of Greenhouse Gas Emissions as set forth in title 17, California Code of Regulations, chapter 1, subchapter 10, article 2 (commencing with section 95100).

"Market Index" means any published index of quantities or prices based on results of market transactions.

"Market-Shifting Leakage," in the context of an offset project, means increased GHG emissions or decreased GHG removals outside an offset project's boundary due to the effects of an offset project on an established market for goods or services.

"Marketer" means a purchasing-selling entity that delivers electricity and is not a retail provider.

"Methane" or "CH4" means a GHG consisting on the molecular level of a single carbon atom and four hydrogen atoms.

"Metric Ton" or "MT" means a common international measurement for mass, equivalent to 2,204.6 pounds or 1.1 short tons.

"Milk" means the lacteal secretion, practically free from colostrum, obtained by the complete milking of one or more healthy cows. Milk that is in final package form for beverage use shall have been pasteurized or ultrapasteurized, and shall contain not less than 8 1/4 percent milk solids not fat and not less than 3 1/4 percent milkfat. Milk may have been adjusted by separating part of the milkfat from, or by adding cream to, concentrated milk, dry whole milk, skim milk, concentrated skim milk, or nonfat dry milk. Milk may be homogenized.

"Milk Powder (high heat)" means milk powder obtained by removing water from pasteurized milk. It contains no more than 5% moisture (by weight) and includes undenatured whey protein nitrogen content less than 1.5 mg/g powder. This definition is in effect as of January 1, 2018.

"Milk Powder (low heat)" means milk powder obtained by removing water from pasteurized milk. It contains no more than 5% moisture (by weight) and includes undenatured whey protein nitrogen content greater than or equal to 6 mg/g powder. This definition is in effect as of January 1, 2018.

"Milk Powder (medium heat)" means milk powder obtained by removing water from pasteurized milk. It contains no more than 5% moisture (by weight) and includes undenatured whey protein nitrogen content greater than or equal to 1.5 mg/g powder and less than 6 mg/g powder. This definition is in effect as of January 1, 2018.

"Monitoring" means, in the context of offset projects, the ongoing collection and archiving of all relevant and required data for determining the project baseline, project emissions, and quantifying GHG reductions or GHG removal enhancements that are attributable to the offset project.

"Multi-Jurisdictional Retail Provider" means a retail provider that provides electricity to consumers in California and in one or more other states in a contiguous service territory or from a common power system.

"Municipal Solid Waste" or "MSW" means solid-phase household, commercial/retail, and/or institutional waste. Household waste includes material discarded by single and multiple residential dwellings, hotels, motels, and other similar permanent or temporary housing establishments or facilities. Commercial/retail waste includes material discarded by stores, offices, restaurants, warehouses, non-manufacturing activities at industrial facilities, and other similar establishments or facilities. Institutional waste includes material discarded by schools, nonmedical waste discarded by hospitals, material discarded by non-manufacturing activities at prisons and government facilities, and material discarded by other similar establishments or facilities. Household, commercial/retail, and institutional wastes include yard waste, refuse-derived fuel, and motor vehicle maintenance materials. Insofar as there is separate collection, processing, and disposal of industrial source waste streams consisting of used oil, wood pallets, construction, renovation, and demolition wastes (which includes, but is not limited to, railroad ties and telephone poles), paper, clean wood, plastics, industrial process or manufacturing wastes, medical waste, motor vehicle parts or vehicle fluff, or used tires that do not contain hazardous waste identified or listed under 42 U.S.C. § 6921, such wastes are not municipal solid waste. However, such wastes qualify as municipal solid waste where they are collected with other municipal solid waste or are otherwise combined with other municipal solid waste for processing and/or disposal.

"Natural Gas" means a naturally occurring mixture or process derivative of hydrocarbon and non-hydrocarbon gases found in geologic formations beneath the earth's surface, of which its constituents include methane, heavier hydrocarbons, and carbon dioxide. Natural gas may be field quality (which varies widely) or pipeline quality. For the purposes of this rule, the definition of natural gas includes similarly constituted fuels such as field production gas, process gas, and fuel gas.

"Natural Gas Liquids" or "NGLs", means those hydrocarbons in natural gas that are separated from the gas as liquids through the process of absorption, condensation, adsorption, or other methods. Natural gas liquids can be classified according to their vapor pressures as low (condensate), intermediate (natural gasoline), and high (liquefied petroleum gas) vapor pressure. Generally, such liquids consist of ethane, propane, butanes, pentanes and higher molecular weight hydrocarbons. Bulk NGLs refers to mixtures of NGLs that are sold or delivered as undifferentiated product from natural gas processing plants.

"Natural gas supplier" or "supplier of natural gas" means any entity that distributes or uses natural gas in California and is described below:

1) Offset projects that submitted a first reporting period in the initial crediting period that was less than 24 consecutive months may include any months not included in the first reporting period in the final reporting period of the initial crediting period, such that the combined duration of the initial and final reporting periods in the initial crediting period do not exceed 36 months total; and

2) Offset projects using a Compliance Offset Protocol in section 95973(a)(2)(C)2 may have one reporting period less than 12 consecutive months to allow the project to transition to a Low Carbon Fuel Standard pathway. For offset projects developed using the Compliance Offset Protocol in section 95973(a)(2)(C)1., there may only be one Reporting Period per offset project. The Reporting Period may not be longer than 12 months and there is no minimum timeframe imposed for the Reporting Period. For offset projects developed using the compliance offset protocol in section 95973(a)(2)(C)6., the Reporting Period is approximately 12 months; it may be less than or exceed 12 months.

"Reporting Year" means data year.

"Request for Issuance" refers to a request submitted by an Offset Project Operator or Authorized Project Designee to ARB seeking issuance of ARB offset credits based on an Offset Project Data Report, pursuant to the requirements of sections 95981 and 95981.1. A Request for Issuance must include the attestations required pursuant to this article.

"Reserve Allowance" means the allowances directly allocated to the Allowance Price Containment Reserve pursuant to sections 95870(a) and 95871(a), or non-vintaged allowances issued by an External Greenhouse Gas Emissions Trading System to which California has linked its Cap-and-Trade Program pursuant to subarticle 12, allocated to a reserve account.

"Reserve Price" see "Auction Reserve Price." "Reserve Sale Administrator" means the operator of sales from the Allowance Price Containment Reserve account, which may be the Executive Officer or an entity designated by the Executive Officer.

"Resource Shuffling" means any plan, scheme, or artifice undertaken by a First Deliverer of Electricity to substitute electricity deliveries from sources with relatively lower emissions for electricity deliveries from sources with relatively higher emissions to reduce its emissions compliance obligation. Resource shuffling does not include substitution of electricity deliveries from sources with relatively lower emissions for electricity deliveries from sources with relatively higher emissions resources when the substitution occurs pursuant to the conditions listed in section 95852(b)(2)(A).

"Retail Provider" means an entity that provides electricity to retail end users in California and is an electrical corporation as defined in Public Utilities Code section 218, electric service provider as defined in Public Utilities Code section 218.3, local publicly owned electric utility as defined in Public Utilities Code section 224.3, a community choice aggregator as defined in Public Utilities Code section 331.1, or the Western Area Power Administration. For purposes of this article, electrical cooperatives, as defined by Public Utilities Code section 2776, are excluded.

"Retire" or "Retired" or "Retirement" means that the serial number for a compliance instrument is registered into the Retirement Account under the control of the Executive Officer. Compliance instruments registered into this account cannot be removed.

"Reversal" means a GHG emission reduction or GHG removal enhancement for which an ARB offset credit or registry offset credit has been issued that is subsequently released or emitted back into the atmosphere, or that is later determined to have never occurred. A reversal is either intentional or unintentional.

"Salt" means sodium chloride, determined as chloride and calculated as percent sodium chloride, by the method prescribed in "Official Methods of Analysis of the Association of Official Analytical Chemists," 13th Ed., 1980, sections 32.025 to 32.030, under the heading "Method III (Potentiometric Method)."

"Seamless rolled ring" means a metal product manufactured by punching a hole in a thick, round piece of metal, and then rolling and squeezing (or in some cases, pounding) it into a thin ring. Ring diameters can be anywhere from a few inches to 30 feet.

"Sector" or "Sectoral," when used in conjunction with sector-based crediting programs, means a group or subgroup of an economic activity, or a group or cross-section of a group of economic activities, within a jurisdiction.

"Sector-Based Crediting Program" is a GHG emissions-reduction crediting mechanism established by a country, region, or subnational jurisdiction in a developing country and covering a particular economic sector within that jurisdiction. A program's performance is based on achievement toward an emissions reduction target for the particular sector within the boundary of the jurisdiction.

"Sector-Based Offset Credit" means a credit issued from a sector-based crediting program once the crediting baseline for a sector has been reached.

"Self-Generation of Electricity" means electricity dedicated to serving an electricity user on the same location as the generator. The system may be operated directly by the electricity user or by an entity with a contractual arrangement.

"Serial Number" means a unique number assigned to each compliance instrument for identification.

"Sequestration" means the removal and storage of carbon from the atmosphere in GHG sinks or GHG reservoirs through physical or biological processes.

"Sink" or "sink to load" or "load sink" means the sink identified on the physical path of NERC e-Tags, where defined point have been established through the NERC Registry. Exported electricity is disaggregated by the sink on the NREC e-Tag, also referred to as the final point of delivery on the NERC e-Tag.

"Skim milk" means the product that results from the complete or partial removal of milk fat from milk.

"Soda Ash Equivalent" means the total mass of all soda ash, biocarb, Sodium Sulfate, Potassium Sulfate, Potassium Chloride, and Sodium Chloride produced. Through December 31, 2017, this definition also includes borax, V-Bor, DECA, PYROBOR, and boric acid.

"Source" means greenhouse gas source; or any physical unit, process, or other use or activity that releases a greenhouse gas into the atmosphere.

"Source of generation" or "generation source" means the generation source identified on the physical path of NERC e-Tags, where defined points have been established through the NERC Registry. Imported electricity and wheels are disaggregated by the source on the NERC e-Tag, also referred to as the first point of receipt.

"Specified Source of Electricity" or "Specified Source" means a facility or unit which is permitted to be claimed as the source of electricity delivered. The reporting entity must have either full or partial ownership in the facility/unit or a written power contract as defined in MRR section 95102(a) to procure electricity generated by that facility/unit. Specified facilities/units include cogeneration systems. Specified source also means electricity procured from an asset-controlling supplier recognized by ARB.

"Stand-Alone-Electricity Generating Facility" has the same meaning in this regulation as in section 95102(a) of MRR.

"Stationary" means neither portable nor self-propelled, and operated at a single facility.

"Steel Produced Using an Electric Arc Furnace" means steel produced by electric arc furnace or "EAF." EAF means a furnace that produces molten steel and heats the charge materials with electric arcs from carbon electrodes.

"Stucco" means hemihydrate plaster (CaSO4·1/2H2O) produced by heating ("calcining") raw gypsum, thereby removing three-quarters of its chemically combined water.

"Sulfuric acid regeneration" means a catalytic process in which spent acid is regenerated to concentrated sulfuric acid. The equipment for this process may include the combustor, waste heat boiler, converter, absorber, SO3 recycle, and gas cleaning including electrostatic precipitator and amine regenerator.

"Supplier" means a producer, importer, exporter, position holder, interstate pipeline operator, or local distribution company of a fossil fuel or an industrial greenhouse gas.

"Terminal" means a motor vehicle fuel or diesel fuel storage and distribution facility that is supplied by pipeline or vessel, and from which fuel may be removed at a rack. "Terminal" includes a fuel production facility where motor vehicle or diesel fuel is produced and stored and from which fuel may be removed at a rack.

"Testliner" means types of paperboard that meet specific tests adopted by the packaging industry to qualify for use as the outer facing layer for corrugated board, from which shipping containers are made. Testliner is made primarily from fibers obtained from recycled fibers.

"Thermal enhanced oil recovery" or "thermal EOR" means the process of using injected steam to increase the recovery of crude oil from a reservoir.

"Tin Plate" means thin sheet steel with a very thin coating of metallic tin. Tin plate also includes Tin Free Steel or TFS which has an extremely thin coating of metallic chromium and chromium oxide. Tin plate is used primarily in can making.

"Tomato Juice" is the liquid obtained from mature tomatoes conforming to the characteristics of the fruit Lycopersicum esculentum P. Mill, of red or reddish varieties. Tomato juice may contain salt, lemon juice, sodium bicarbonate, water, spices and/or flavoring. This food shall contain not less than 4.0 percent by weight tomato soluble solids.

"Tomato Paste" is the food prepared from mature tomatoes conforming to the characteristics of the fruit Lycopersicum esculentum P. Mill, of red or reddish varieties. Tomato paste is prepared by concentrating tomato ingredients until the food contains not less than 24.0 percent tomato soluble solids.

"Tomato puree" is the semisolid food prepared from mature tomatoes conforming to the characteristics of the fruit Lycopersicum esculentum P. Mill, of red or reddish varieties. Tomato puree is prepared by concentrating tomato ingredients until the food contains not less than 8.0 percent but less than 24.0 percent tomato soluble solids.

"Tomato soluble solids" (TSS or NTSS) means the sucrose value of raw tomatoes or tomato product. For raw tomatoes, this value shall be determined by the methods prescribed in "Inspection Procedures" (2014) for Soluble Solids Testing -- Digital Refractometer, as published by the Processing Tomato Advisory Board (PTAB), which is hereby incorporated by reference. For the tomato products tomato juice, tomato paste, tomato puree, and whole and diced tomatoes, this value shall be determined by the method prescribed in "Inspection Procedures" (2014) for Soluble Solids Testing -- Digital Refractometer, as published by PTAB, or the "Official Methods of Analysis of the Association of Official Analytical Chemists," 13th Ed., 1980, sections 32.014 to 32.016 and 52.012 (AOAC, 1980), depending on availability. For instances in which no salt has been added, the sucrose value obtained from the referenced tables shall be considered the percent of tomato soluble solids. If salt has been added either intentionally or through the application of the acidified break, determine the percent of such added sodium chloride as specified in the regulation's definition of salt. Subtract the percentage sodium chloride from the percentage of total soluble solids found (sucrose value from the refractive index tables) and multiply the difference by 1.016. The resultant value is considered the percent of "tomato soluble solids." The centrifuges, centrifuge spin rate, centrifuge spin time, and other lab measurement equipment specified in AOAC (1980) may be exchanged with more modern equipment and measurement procedures where the operator deems necessary. Tomato soluble solids must be rounded to the nearest tenth of a percent of solids.

"Tracking System" means the Compliance Instrument Tracking System Service where ARB compliance instruments are issued, traded, and retired.

"Transaction," when referring to an arrangement between registered entities regarding compliance instruments, means an understanding among registered entities to transfer the control of a compliance instrument from one entity to another, either immediately or at a later date.

"Transfer" of a compliance instrument means the removal of a compliance instrument from one account and placement into another account.

"Transfer Request" means the communication by an authorized account representative or an alternate authorized account representative to the accounts administrator to register into the tracking system the transfer of allowances between accounts.

"Transferred ARB Project" means an offset project which has been transferred from ARB or one Offset Project Registry, where it was previously listed, to ARB or another Offset Project Registry. The entity to which the offset project is transferred will indicate the applicable offset project status from the following list: "Proposed Project," "Active ARB Project," "Active Registry Project," "Proposed Renewal," "Active ARB Renewal," and "Active Registry Renewal."

"Tribe" means a federally-recognized Indian tribe and any entity created by a federally-recognized Indian Tribe.

"True-up allowance amount" is a quantity of California GHG allowances allocated for changes in production or allocation not properly accounted for in prior allocations pursuant to 95891(b), 95891(c), 95891(c)(2)(B), 95891(f)(1), or 95894(c)-(e).

"Ultrafiltered milk" means raw or pasteurized milk or nonfat milk that is passed over one or more semipermeable membranes to partially remove water, lactose, minerals, and water-soluble vitamins without altering the casein-to-whey protein ratio of the milk or nonfat milk and resulting in a liquid product.

"Unintentional Reversal" means any reversal, including wildfires or disease that is not the result of the forest owner's negligence, gross negligence, or willful intent. Only trees identified as dead or dying, in the post-event inventory, as a result of the wildfire or disease will be removed from the project's inventory and compensated from the Forest Buffer Account minus any salvage harvest accounted for under long-term storage.

"University Covered Entity" means a facility that meets the definition of an educational facility pursuant to Education Code section 94110(e) and is either a covered entity, or opt-in covered entity as of January 1, 2015.

"Unspecified Source of Electricity" or "Unspecified Source" means a source of electricity that is not a specified source at the time of entry into the transaction to procure the electricity.

"Urban Forest Offset Project" means an offset project that uses or has used either the offset protocols identified in section 97973(a)(2)(C)3. or one of the Climate Action Reserve Urban Forest Project Protocols identified as offset quantification methodologies in the definition of the Program for Recognition of Early Action Offset Credits in section 95802(a).

"Vented Emissions" means intentional or designed releases of CH4 or CO2 containing natural gas or hydrocarbon gas (not including stationary combustion flue gas), including process designed flow to the atmosphere through seals or vent pipes, equipment blowdown for maintenance, and direct venting of gas used to power equipment (such as pneumatic devices).

"Verifiable" means that an Offset Project Data Report assertion is well documented and transparent such that it lends itself to an objective review by an accredited verification body.

"Verification Body" means a firm accredited by ARB, which is able to render an offset verification statement and provide offset verification services for Offset Project Operators or Authorized Project Designees subject to providing an Offset Project Data Report under this article.

"Verifier" or "offset verifier" means an individual accredited by ARB to carry out offset verification services as specified in sections 95977.1 and 95977.2.

"Vintage Year" means the budget year to which an individual Californian GHG allowance is assigned pursuant to subarticle 6.

"Volumetric," with respect to sections 95892 and 95893, describes an electrical distribution utility's or natural gas supplier's direct distribution of allocated allowance auction proceeds to one or more of its ratepayers based on the current or recent amount of electricity, natural gas, or other relevant utility service delivered to those ratepayers, such that higher usage results in ratepayers' receipt of more funds.

"Voluntarily Associated Entity" or "General Market Participant" means any entity which does not meet the requirements of section 95811 or 95813 in this article and that intends to purchase, hold, sell, or voluntarily retire compliance instruments or an entity operating an offset project or early action offset project that is registered with ARB pursuant to subarticle 13 or 14 in this article.

"Voluntary Renewable Electricity" or "VRE" means electricity produced or RECs associated with electricity, produced by a voluntary renewable electricity generator, and which has not and will not be sold or used to meet any other mandatory requirements in California or any other jurisdiction.

"Voluntary Renewable Electricity Participant" or "VRE Participant" means a voluntary renewable electricity generator, a REC marketer, or entity that purchases voluntary renewable electricity or RECs as an end-user or on behalf of an end-user and is seeking allowance retirement pursuant to section 95841.1.

"Waste gas" means a natural gas that contains a greater percentage of gaseous chemical impurities than the percentage of methane. For purposes of this definition, gaseous chemical impurities may include carbon dioxide, nitrogen, helium, or hydrogen sulfide.

"Waste-to-Energy Facility" means a facility located in California that combusts eligible municipal solid waste. The facility must operate in accordance with a current permit issued by the local Air Pollution Control District or Air Quality Management District to generate and distribute electricity over the electric power grid for wholesale or retail customers of the grid located in California.

"Whey protein concentrate" means the substance obtained by the removal of sufficient nonprotein constituents from pasteurized whey so that the finished dry product contains greater than 25% protein. Whey protein concentrate is produced by physical separation techniques such as precipitation, filtration, or dialysis. The acidity of whey protein concentrate may be adjusted by the addition of safe and suitable pH-adjusting ingredients.

"Whole chicken and chicken parts" means whole chicken or edible chicken parts (including breasts, thighs, wings, and drums) that are packaged for wholesale or retail sale; transferred to other facilities; or binned, sent to an on-site rendering plant, and rendered into protein meal and fat.

"Whole Tomatoes" is the food prepared from mature tomatoes conforming to the characteristics of the fruit Lycopersicum esculentum P. Mill, of red or reddish varieties. The tomatoes are kept whole, and shall have had the stems and calyces removed.