(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.
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 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).
This database is current through 6/14/24 Register 2024, No. 24.
