Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a)
Accounts Created for Registered Entities.
(1)
The Executive Officer shall not create more than one holding account, one
limited use holding account, one compliance account, one annual allocation
holding account, or one exchange clearing holding account for each entity
registered pursuant to 95830.
(2)
Holding Accounts. When the Executive Officer approves a registration for a
covered entity, an opt-in covered entity, or a voluntarily associated entity,
the accounts administrator will create a holding account for the
registrant.
(3) Limited Use Holding
Accounts. When an entity qualifies for a direct allocation under section
95890(b) or
95890(f), the
accounts administrator will create a limited use holding account for the entity
that shall be subject to the following restrictions:
(A) The entity may not transfer compliance
instruments from other accounts into the limited use holding account;
and
(B) The entity may not transfer
compliance instruments from the limited use holding account to any account
other than the Auction Holding Account.
(4) Compliance Accounts. When the Executive
Officer approves a registration for a covered entity or opt-in covered entity,
the accounts administrator will create a compliance account for the entity.
(A) A covered entity or opt-in covered entity
may transfer compliance instruments to its compliance account at any
time.
(B) A compliance instrument
transferred into a compliance account may not be removed by the
entity.
(C) The Executive Officer
may transfer compliance instruments into a compliance account. The Executive
Officer may remove compliance instruments to satisfy a compliance obligation or
when closing an account.
(5) Exchange Clearing Holding Accounts. When
the Executive Officer approves registration for an entity identified as a
voluntarily associated entity pursuant to section
95814(a)(3), then
the accounts administrator will create an exchange clearing holding account for
the entity.
(A) Entities may transfer
compliance instruments to exchange clearing holding accounts only for the
purpose of transferring control of the instruments to the entity performing the
clearing function.
(B) The clearing
entity may only transfer the compliance instruments in its exchange clearing
holding account to the account designated by the entity receiving the
allowances under the transaction being cleared.
(6) Annual Allocation Holding Account. When
an entity qualifies for a direct allocation under subarticle 9, the accounts
administrator will create an annual allocation holding account for the entity.
(A) Except for allowances to be placed in
limited use holding accounts, the Executive Officer will place allowances
allocated to an entity on a date prior to the vintage year of the allowances
into the entity's annual allocation holding account.
(B) Entities may only transfer allowances
from an annual allocation holding account to their compliance account. No other
transfer of allowances from an annual allocation holding account is
permitted.
(C) Allowances
transferred from an annual allocation holding account to an entity's compliance
account will be subject to the holding limit pursuant to section
95920(c).
(D) Allocation of allowances to publicly
owned electric utilities and electrical cooperatives pursuant to subarticles 8
and 9 will be transferred on January 1 of the vintage year of the allowances to
the compliance accounts designated in the determination made by the entity
pursuant to section
95892(b)(2)(A).
(E) Allocation of allowances to natural gas
suppliers pursuant to subarticles 8 and 9 will be transferred on January 1 of
the vintage year of the allowances to the entity's compliance account pursuant
to section
95893(b)(1)(B).
(F) Allocation of allowances to industrial
entities, universities, public service facilities, waste-to-energy facilities,
and legacy contract generators pursuant to subarticles 8 and 9 will be
transferred to the entity's holding account on January 1 of the vintage year of
the allowances.
(G) Allocation of
allowances to public wholesale water agencies pursuant to subarticles 8 and 9
will be transferred on January 1 of the vintage year of the allowances to the
entity's compliance account pursuant to section
95895(a).
(b) Accounts under the Control of the
Executive Officer. The accounts administrator will create and maintain the
following accounts under the control of the Executive Officer:
(1) A holding account to be known as the
Allocation Holding Account into which the serial numbers of compliance
instruments will be registered when the compliance instruments are
created.
(2) A holding account to
be known as the Auction Holding Account into which allowances are transferred
to be sold at auction from:
(A) The Allocation
Holding Account;
(B) The holding
accounts of those entities for which allowances are being auctioned on
consignment pursuant to section
95921(g)(3);
(C) The limited use holding accounts of those
entities consigning allowances to auction pursuant to section
95910; and
(D) The compliance accounts of entities
fulfilling an untimely surrender obligation pursuant to section
95857(d)(1)(A).
(3) A holding account to be known as the
Retirement Account to which the Executive Officer will transfer compliance
instruments from compliance accounts or from holding accounts under the control
of the Executive Officer for the purpose of permanently retiring them.
Alternatively, entities may voluntarily retire compliance instruments by
transferring the compliance instruments to the Retirement Account.
(A) When compliance instruments are
registered into the Retirement Account, these compliance instruments cannot be
returned to any other holding or compliance account.
(B) When compliance instruments are
registered into the Retirement Account, any External GHG ETS to which
California links pursuant to subarticle 12 will be informed of the
retirements.
(C) The Executive
Officer will record the retired instruments in a publicly available Permanent
Retirement Registry.
(4)
A holding account to be known as the Allowance Price Containment Reserve
Account:
(A) Into which the serial numbers of
allowances directly allocated to the Allowance Price Containment Reserve
pursuant to sections
95870(a) and
95871(a) will be
transferred; and
(B) From which the
Executive Officer will authorize the withdrawal of allowances for sale to
covered entities pursuant to section
95913.
(5) A holding account to be known as the
Forest Buffer Account:
(A) Into which ARB
will place ARB offset credits pursuant to section
95983(a);
and
(B) From which ARB may retire
ARB offset credits pursuant to sections
95983(b)(2), (c)(3), and
(c)(4) and place them into to the Retirement
Holding Account.
(6) A
holding account to be known as the Voluntary Renewable Electricity Reserve
Account, which will be closed when it is depleted of the following originally
allocated allowances:
(A) Into which the
Executive Officer will transfer allowances allocated pursuant to section
95870(c);
and
(B) From which the Executive
Officer may retire allowances pursuant to section
95841.1.
(7) A holding account to be known as the
External GHG Program Holding Account, which will process voluntary retirements
under the Retirement-Only Agreements listed in section
95943(d).
(A) Entities that are part of an external GHG
program with a Retirement-Only Agreement with California may contract with
registered entities to transfer compliance instruments to the External GHG
Program Holding Account for retirement for recognition in their external GHG
program. To be eligible for recognition, the transfer request must specify the
entity identification code assigned to the entity by the external GHG program
in which it is registered.
(B) ARB
will review each transfer into the External GHG Program Holding Account for
compliance with the requirements of this article.
(C) If the transfer conforms to the
requirements of this article, ARB will transfer the compliance instruments to
the Retirement Account.
(D) The
Executive Officer will transmit a summary of the retirements to the
jurisdiction named in the Retirement-Only Agreement based on the timing
specified in the Retirement-Only Agreement.
(8) A holding account to be known as the
Price Ceiling Account, which will contain allowances transferred pursuant to
section 95913(h)(1)(C)
and price ceiling units approved by the Executive Officer pursuant to section
95915.
(c) Additional accounts may be created by the
Executive Officer to implement the Cap-and-Trade Program.
1. New
section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code
section
11343.4
(Register 2011, No. 50).
2. Amendment of subsections (a)(5),
(b)(2)(B) and (b)(3)(B) and new subsection (d) filed 8-29-2012; operative
9-1-2012 pursuant to Government Code section
11343.4
(Register 2012, No. 35).
3. Amendment of subsections (a)(1) and
(a)(5), new subsections (a)(6)-(a)(6)(F), amendment of subsections (b)(3) and
(b)(3)(C), new subsection (c)(3) and subsection renumbering filed 6-26-2014;
operative 7-1-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 26).
4. Amendment of subsections (a)(3), (a)(5),
(a)(6) and (a)(6)(D)-(F), new subsections (a)(6)(G)-(I) and (b)(7)-(b)(7)(D),
repealer of subsections (c)-(c)(4) and subsection relettering filed 9-18-2017;
operative 10-1-2017 pursuant to Government Code section
11343.4(b)(3)
(Register 2017, No. 38).
5. Amendment of subsections (a)(1),
(a)(4)(C), (a)(5)(A) and (a)(6)(F), repealer of subsections (a)(6)(H)-(I),
amendment of subsection (b)(4)(A) and new subsection (b)(8) filed 3-29-2019;
operative 3-29-2019 pursuant to Government Code section
11343.4(b)(3)
(Register 2019, No. 13).
Note: Authority cited: Sections
38510,
38560,
38562,
38570,
38571,
38580,
39600
and
39601,
Health and Safety Code. Reference: Sections
38530,
38560.5,
38564,
38565,
38570
and
39600,
Health and Safety Code.
