(1) The Executive Officer shall serve as accounts administrator or may contract with an entity to serve as accounts administrator.
(2) An entity qualified to register with ARB cannot apply for more than one set of accounts in the tracking system, except as otherwise provided in section 95830(g)(4).
(3) An entity cannot hold a compliance instrument until the Executive Officer approves the entity's registration with ARB and the accounts administrator creates an account in the tracking system.
(b) Entities Eligible for Registration.
(1) An entity must qualify for registration in the tracking system as a covered entity (pursuant to section 95811), as an opt-in covered entity (pursuant to section 95813), or as a voluntarily associated entity (pursuant to section 95814).
(2) If an entity qualifies for registration pursuant to section 95811 or 95813, the facility operator, fuel or CO2 supplier, electric power entity, or operator of petroleum and natural gas systems, as applicable and as identified in section 95101(a)(1) of MRR, must register pursuant to this section and meet all other applicable requirements of this article.
(3) Entities Eligible for Initial Registration in a Consolidated Account.
(A) If a group of unregistered entities that qualify for registration and, as identified in section 95101(a)(1) of MRR, are members of a direct corporate association, then they may choose to register for a consolidated account on behalf of some or all of the group members.
(B) If one entity has control over any of the entities in a group of entities applying for a consolidated account as measured by the indicia of control in section 95833(a), then the registration process must be initiated and completed by that entity.
(4) An entity seeking to list an offset project situated on the categories of land in section 95973(d) must demonstrate the existence of a limited waiver of sovereign immunity entered into pursuant to section 95975(l) prior to registering pursuant to this section.
(c) Requirements for Registration. Registration is complete when the Executive Officer approves the registration and the accounts administrator informs the entity of the approval.
(1) An entity must complete an application to register with ARB for an account in the tracking system. Applicants must provide the following information:
(A) Name, physical and mailing addresses, contact information, entity type, date and place of incorporation, and ID number assigned by the incorporating agency;
(B) Names and addresses of the entity's directors and officers with authority to make legally binding decisions on behalf of the entity, and partners with over 10 percent of control over the partnership, including any individual or entity doing business as the limited partner or general partner;
(C) Names and contact information for persons controlling over 10 percent of the voting rights attached to all the outstanding voting securities of the entity;
(D) A business number, if one has been assigned to the entity by a California state agency;
(E) A Government issued taxpayer or Employer Identification Number, or for entities located in the United States, a U.S. Federal Tax Employer Identification Number, if assigned;
(F) Identification of the qualifications for registration pursuant to sections 95811, 95813, or 95814;
(G) Disclosure of all other entities with whom the entity has a direct corporate association or indirect corporate association that must be reported pursuant to section 95833(d), and a brief description of the association. Entities qualifying as voluntarily associated entities under section 95814(a)(1)(B) must complete this disclosure before they may hold allowances;
(H) An applicant that is a member of a direct corporate association may apply for a consolidated entity account to include other associated registered entities from within the direct corporate association. To do so, the applicant must identify each associated registered entity that will be assigned to its account, and each associated registered entity must provide an attestation signed by its officer or director to confirm that it seeks to be added to the consolidated entity account. The applicant must be able to demonstrate that it has the controlling ownership or authority to act on behalf of all members of the direct corporate association. The applicant cannot be an entity that is a subsidiary to or controlled by another associated entity within the direct corporate association;
(I) An applicant that is a member of a direct corporate association and seeks to apply for its own separate entity account, rather than apply for a consolidated entity account, must provide an allocation of the holding and purchase limits among the separate accounts established for any of its corporate associates per the requirements of section 95833(d)(1)(E). All members of a direct corporate association must separately confirm the allocation of holding and purchase limits;
(J) Names and contact information for all employees of the entity with knowledge of the entity's market position (current and/or expected holdings of compliance instruments and current and/or expected covered emissions);
(K) An entity registering as an opt-in covered entity must identify the first year it intends to be subject to a compliance obligation, and the year must match the year for which the Executive Officer approved the entity as an opt-in covered entity pursuant to section 95813(b); and
(L) Information required pursuant to section 95923 for individuals serving as Cap-and-Trade Consultants and Advisors for entities participating in the Cap-and-Trade Program.
(2) An entity that is applying for registration in the California Cap-and-Trade Program, and that has a direct corporate association with an entity registered in an external GHG emissions trading system to which the California Cap-and-Trade Program has linked pursuant to section 95943, may not include that associated registered entity in a consolidated entity account.
(3) To create a consolidated account for entities that are members of a direct corporate association that accept assignment to a consolidated entity account, the Executive Officer shall instruct the accounts administrator to create a single consolidated entity account in the tracking system that includes the following:
(A) A holding account as described in section 95831;
(B) A compliance account only for a consolidated entity account with at least one member entity that is eligible for a compliance account as described in section 95831;
(C) A limited use holding account only for a consolidated entity account with at least one member entity that is eligible for a limited use holding account as described in section 95831; and
(D) An annual allocation holding account only for a consolidated entity account with at least one member entity that is eligible for an annual allocation holding account as described in section 95831.
(4) An entity must designate a primary account representative and at least one, and up to four, alternate account representatives pursuant to section 95832. An individual registering as a voluntarily associated entity may elect to have a combined role to serve as both primary and alternate account representatives or designate additional account representatives or account viewing agents as desired.
(5) An individual registering as a voluntarily associated entity and having a primary residence in the United States, but not located in California, must designate an agent for service of process in California. The agent may be an individual who resides in California or a corporation that has previously filed a certificate pursuant to California Corporations Code section 1505.
(6) An entity applying for registration that is not an individual or an entity supplying exchange clearing services pursuant to section 95814(a)(1)(C) must designate, pursuant to section 95832, either:
(A) A primary account representative or at least one alternate account representative with a primary residence in California; or
(B) An agent for service of process in California. For entities registering into California, the agent may be an individual who resides in California or a corporation that has previously filed a certificate pursuant to California Corporations Code section 1505.
(7) Any individual who requires access to the tracking system, including a prospective primary account representative, alternate account representative, or account viewing agent for a registered entity, must first register as a user in the tracking system.
(A) An individual qualified to register as a user in the tracking system, whether through the California Cap-and-Trade Program or an External GHG ETS, cannot apply for more than one user registration.
(B) An individual cannot be designated in a capacity requiring access to the tracking system until the Executive Officer approves the user's registration in the tracking system. This prohibition includes all primary account representatives, alternate account representatives, and account viewing agents.
(C) An individual registering in the tracking system must provide all applicable information required by sections 95832, 95833, and 95834.
(D) An individual registering in the tracking system must agree to the terms and conditions contained in Appendix B of this article.
(8) An entity or individual applicant may be denied registration:
(A) Based on the information provided;
(B) If the Executive Officer determines the applicant has provided false or misleading information;
(C) If the Executive Officer determines the applicant has withheld information material to the registration;
(D) If an individual fails to comply with section 95834 Know-Your-Customer Requirements or does not provide the documentation required pursuant to section 95834 within 30 days of submitting a user registration request in the tracking system;
(E) If an individual is already registered and has a user account under the same or a different name. This provision applies to individuals registered in an external GHG emissions trading system that uses the tracking system.
(d) Registration Deadlines.
(1) An entity that meets or exceeds the inclusion thresholds in section 95812 must complete registration within 30 calendar days of the reporting deadline contained in MRR when it first reports to ARB emissions that exceed the inclusion threshold.
(2) An opt-in covered entity that is approved for opt-in covered status pursuant to section 95813(b) must complete registration by October 1 of the year before the entity is approved to have a compliance obligation.
(3) An entity qualifying as a voluntarily associated entity pursuant to section 95814 may register at any time.
(e) Updating Registration Information.
(1) When there is a change to the information registrants have submitted pursuant to section 95830(c)(1)(A)-(E) and (I), (c)(4), (c)(5), or (c)(6)(B), registrants must update the registration information within 30 calendar days of the change. When there is a change to the information registrants have submitted pursuant to section 95830(c)(1)(J), registrants must update the registration information within one year of the change.
(2) Updates of information on corporate associations provided pursuant to section 95830(c)(1)(G) must be updated on the schedule contained in section 95833(e). An entity qualifying as a voluntarily associated entity under section 95814(a)(1)(B) that did not complete the disclosure required by section 95830(c)(1)(G) at the time of registration may choose to complete that disclosure at any time; such an entity will only be allowed to hold allowances upon approval of the disclosure by the Executive Officer.
(3) Updates of information on Cap-and-Trade Consultants or Advisors provided pursuant to section 95830(c)(1)(L) must be updated per the schedule contained in section 95923(c).
(4) An entity that fails to update registration information by the applicable deadline may be subject to the restriction or revocation of its tracking system accounts pursuant to section 95921(g)(3).
(f) Information Confidentiality. The following information collected about individuals during the registration process will be treated as confidential by the Executive Officer and the accounts administrator to the extent possible, except as needed in the course of oversight, investigation, enforcement and prosecution:
(1) Information collected pursuant to section 95830(c)(1)(B), (C), (J) and (L);
(2) Information collected about individuals pursuant to section 95834; and
(3) Information collected about individuals pursuant to section 95832.
(g) Linking.
(1) An entity located in California based on the physical location information the entity must provide pursuant to section 95830(c)(1)(A) must register with California.
(2) An entity located outside of California, but in the United States based on the physical location information the entity must provide pursuant to section 95830(c)(1)(A) may only register with California to participate in the California Cap-and-Trade Program unless that entity:
(A) Does not qualify as a covered or opt-in covered entity in California, and
(B) Qualifies as a covered or opt-in covered entity in an external GHG ETS to which California has linked pursuant to subarticle 12.
(3) An entity not located within California, the United States, or a jurisdiction operating an external GHG ETS to which California has linked pursuant to subarticle 12, may register with a jurisdiction in which it qualifies as a covered or opt-in covered entity.
(4) Entities With a Compliance Obligation in More than One Jurisdiction.
(A) If an entity registered with California has a compliance obligation in an external GHG ETS to which California has linked pursuant to subarticle 12, then that entity may also register directly with that jurisdiction pursuant to that jurisdiction's registration requirements or the entity may request that the accounts administrator provide the entity's California registration application to the jurisdiction operating the linked GHG ETS to facilitate registration in the linked jurisdiction. The entity may still need to submit additional registration attestations or other materials specific to the linked jurisdiction's registration requirements.
(B) If an entity registered with an external GHG ETS to which California has linked pursuant to subarticle 12 has a compliance obligation with California, then the entity must register with California and provide the following information:
1. Name, physical and mailing addresses, contact information, entity type, date and place of incorporation, and ID number assigned by the incorporating agency;
2. A Government issued taxpayer or Employer Identification Number, or for entities located in the United States, a U.S. Federal Tax Employer Identification Number, if assigned;
3. Identification of the qualifications for registration pursuant to sections 95811, 95813, or 95814.
4. For all registration information required pursuant to sections 95830 and 95833 not listed in paragraphs 1. through 3. above, the entity may submit registration information to the California accounts administrator or may request that the accounts administrator of the external GHG ETS provide the entity's registration information submitted to the external GHG ETS to the California accounts administrator to facilitate registration in California.
5. Regardless of whether the entity registers with California by completing the process contained in sections 95830 and 95833 or by requesting the external GHG ETS to submit the registration application materials to the California accounts administrator to facilitate registration in California, the entity must submit all California-specific registration attestations required by this article.
6. An individual who is approved by an external GHG ETS with a user account and who intends to be designated as a primary account representative, alternate account representative, or account viewing agent for an entity registering or registered in California must submit all California-specific registration attestations and other applicable information required by sections 95832, 95833, and 95834.
(5) California will recognize the registration of an entity that registers into an External GHG ETS to which California has linked pursuant to subarticle 12 and allow that entity to participate in the California Cap-and-Trade Program.
Credits
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.
History
1. New subarticle 5 (sections 95830-95834) and section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Amendment filed 8-29-2012; operative 9-1-2012 pursuant to Government Code section 11343.4 (Register 2012, No. 35).
4. Amendment filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).
5. Amendment of subsection (c)(1)(H), new subsection (c)(1)(H)1. and amendment of subsection (f)(1) filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
6. Amendment filed 9-18-2017; operative 10-1-2017 pursuant to Government Code section 11343.4(b)(3) (Register 2017, No. 38).
7. Amendment of subsections (c)(5), (c)(6)(B)-(c)(7)(A), (c)(8)(D)-(E), (f), (g)(4)(B) and (g)(4)(B)6. filed 3-29-2019; operative 3-29-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).
This database is current through 6/14/24 Register 2024, No. 24.
