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 9 - Direct Allocations of California GHG Allowances
Section 95890 - General Provisions for Direct Allocations

(a) Eligibility Requirements for Industrial Facilities. A covered entity or opt-in covered entity from the industrial sectors listed in Table 8-1 shall be eligible for direct allocations of California GHG allowances if it has complied with the requirements of MRR and has obtained a positive or qualified positive product data verification statement for the prior year pursuant to MRR.

(b) Eligibility Requirements for Electrical Distribution Utilities. An electrical distribution utility that is a covered entity shall be eligible for direct allocation of California GHG allowances if it has complied with the requirements of MRR and has obtained a positive or qualified positive emissions data verification statement for the prior year pursuant to MRR.

(c) Electrical Distribution Utilities that are not covered entities but are listed in Tables 9-3, 9-3A, and 9-4 must register pursuant to section 95830 to receive allowances.

(d) Eligibility Requirements for University Covered Entities and Public Service Facilities. A university covered entity or public service facility that is a covered entity that had a compliance obligation in 2013 and/or 2014, or a university or public service facility that is an opt-in covered entity that submitted its request to opt in pursuant to 95813 by July 31, 2014, shall be eligible for direct allocations of California GHG allowances if it has complied with the requirements of MRR and has obtained a positive or qualified positive emissions data verification statement for the prior year pursuant to MRR. A university or public service facility shall not be eligible for any direct allocation of allowances for any data year for which it is not a covered entity or an opt-in covered entity.

(e) Eligibility Requirements for Legacy Contract Generators. A legacy contract generator with an industrial counterparty or legacy contract generator without an industrial counterparty that has demonstrated its eligibility to the satisfaction of the Executive Officer pursuant to section 95894 shall be eligible for direct allocation of allowances if it has complied with the requirements of MRR and has obtained a positive or a qualified positive emissions data verification statement pursuant to MRR.

(f) Eligibility Requirements for Natural Gas Suppliers. A natural gas supplier that is a covered entity shall be eligible for direct allocation of California GHG allowances if it has complied with the requirements of MRR and has obtained a positive or qualified positive emissions data verification statement for the prior year pursuant to MRR.

(g) Eligibility Requirements for Public Wholesale Water Agencies. A public wholesale water agency shall be eligible for direct allocations of California GHG allowances if it has complied with the requirements of MRR and has obtained a positive or qualified positive emissions data verification statement for the prior year pursuant to MRR.

(h) No facility receiving allowances pursuant to section 95870(f) may also receive allowances pursuant to section 95870(g), and no facility receiving allowances pursuant to section 95871(e) may also receive allowances pursuant to section 95871(f).

(i) No facility that qualifies for a limited exemption pursuant to section 95852(j) may also receive allowances pursuant to sections 95870, 95871, 95890, 95891, or 95894 for the same budget year.

(j) Negative Allowance Allocation. If the calculation of a covered entity or opt-in covered entity's annual allowance allocation is negative pursuant to section 95891, 95892, or 95894 and the entity has a consolidated tracking system account with any other covered or opt-in covered entity that was eligible for allocation pursuant to sections 95891, 95892, or 95894, then the negative amount shall be applied to that covered entity or opt-in covered entity sharing the consolidated tracking system account. If negative allowance allocation remains, then that amount shall be applied to the allowance allocation that is distributed the following calendar year to the covered entity or opt-in covered entity or the covered entity or opt-in covered entity sharing a consolidated tracking system account.

(k) Return of Allocation. If a covered entity or opt-in covered entity received an allocation of allowances for a year in which it incurred no compliance obligation pursuant to section 95835, or if a covered entity or opt-in covered entity previously eligible for allocation pursuant to section 95870(e) ceased to operate under an activity listed in Table 8-1, the entity must fulfill the following requirements. The entity must return allowances by November 1 of the calendar year t + 1, where t is the year for which the entity received an allowance allocation but did not incur a compliance obligation or did not operate under an activity listed in Table 8-1.

(l) Eligibility Requirements for Waste-to-Energy Facilities. A waste-to-energy facility that is a covered entity shall be eligible for direct allocations of California GHG allowances if it has a compliance obligation for the year for which it is receiving allocation, has complied with the requirements of MRR, and has obtained a positive or qualified positive emissions data verification statement for the prior year pursuant to MRR. A waste-to-energy facility shall not be eligible for any direct allocation of allowances for any data year for which it is not a covered entity or an opt-in covered entity.