Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) Applicability.
(1) A covered entity or opt-in covered entity
that does not meet the compliance deadline for surrendering its annual or full
compliance period compliance obligation pursuant to section
95856 is subject to the compliance
obligation for untimely surrender as described in this section; and
(2) The compliance obligation for untimely
surrender ("excess emissions") will not apply to a covered entity or opt-in
covered entity which is determined to have transferred insufficient instruments
to meet the compliance obligations of section
95856 solely because of the
invalidation of an ARB offset credit by the Executive Officer pursuant to
section 95985 until six months after
notice of invalidation.
(b) Calculation of the Untimely Surrender
Obligation. The untimely surrender obligation is the number of compliance
instruments that an entity must surrender if it does not meet its original
annual or full compliance period compliance obligation. The untimely surrender
obligation replaces any unfulfilled portion of an entity's annual or full
compliance period compliance obligation.
(1)
The quantity of excess emissions is the difference between the compliance
obligation calculated pursuant to this section and any compliance instruments
timely surrendered by the entity;
(2) The entity's compliance obligation for
untimely surrender is calculated as four times the entity's excess
emissions;
(3) At least
three-fourths of an entity's compliance obligation for untimely surrender may
only be fulfilled with CA GHG allowances or allowances issued by a GHG ETS
pursuant to subarticle 12;
(4) Up
to one-fourth of an entity's compliance obligation for untimely surrender may
be fulfilled with ARB offset credits or compliance instruments listed in
sections 95821(b), (c), and
(d);
(5) The sum of the offset credits submitted
by the entity in a timely manner to fulfill its full compliance period
compliance obligation plus any offset credits submitted as part of the untimely
surrender obligation must be less than or equal to the number of offsets that
the entity is allowed to submit when the quantitative usage limit on offset
credits is applied to the entity's full compliance period obligation;
and
(6) The untimely surrender
obligation is due within five days of settlement of the first auction or
reserve sale conducted by ARB following the applicable surrender date,
whichever is the latter, and for which the registration deadline has not passed
when the untimely surrender obligation is assessed. Future vintage allowances
are eligible for complying with the untimely surrender
obligation.
(c) If an
entity with an untimely surrender obligation fails to satisfy this obligation
pursuant to section
95857(b)(6) then:
(1) ARB will determine the number of
violations pursuant to section
96014;
(2) If a portion of the untimely surrender
obligation is not surrendered as required, the entity will have a new untimely
surrender obligation equal to the amount of the previous untimely surrender
obligation which was not satisfied by the deadline stated in section
95857(b)(6) upon
which the number of violations will be calculated pursuant to section
96014. The new untimely surrender
obligation is due immediately; and
(3) There will be no additional untimely
surrender obligation amount assessed beyond the new untimely surrender
obligation determined pursuant to section
95857(c)(2).
(d) When the covered entity or opt-in covered
entity meets its untimely surrender obligations pursuant to sections
95857(a) through
(c), the Executive Officer shall:
(1) Transfer the compliance instruments used
to fulfill the untimely surrender obligation in the following manner:
(A) At least three fourths of the compliance
instruments to the Auction Holding Account. The three fourths of the compliance
instruments transferred to the Auction Holding Account shall only be comprised
of allowances; and
(B) The
remaining one fourth of compliance instruments to the Retirement
Account.
(2) Inform
programs to which California is linked or recognizes, pursuant to subarticles
12 and 14, of the retirements, including the serial numbers of the compliance
instruments retired.
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 subsection (b)(6) filed
6-26-2014; operative 7-1-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 26).
3. Amendment of subsections (a)(1), (b),
(b)(5) and (c)(3) filed 9-18-2017; operative 10-1-2017 pursuant to Government
Code section
11343.4(b)(3)
(Register 2017, No. 38).
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.
