This page last reviewed February, 9 2012

AB 32 Cost of Implementation Fee Regulation (HSC 38597)

Background Information

On September 27, 2006, Assembly Bill 32 (AB 32), the Global Warming Solutions Act of 2006 (Núñez, Chapter 488, Statutes of 2006) was signed into law.  AB 32 authorizes the Air Resources Board (ARB) to adopt a schedule of fees to be paid by sources of greenhouse gas (GHG) emissions to support the administration costs of implementing AB 32.  The AB 32 Cost of Implementation Fee Regulation (Regulation) was adopted pursuant to Health and Safety Code section 38597, which states:

“The State board may adopt by regulation, after a public workshop, a schedule of fees to be paid by the sources of GHG emissions regulated pursuant to this division, consistent with Section 57001.  The revenues collected pursuant to this section, shall be deposited into the Air Pollution Control Fund and are available upon appropriation, by the Legislature, for purposes of carrying out this division”.

This authorization is also described in ARB’s AB 32 Climate Change Scoping Plan.  ARB adopted the Regulation following a public hearing on September 25, 2009.   The original Regulation was approved by the Office of Administrative Law on June 17, 2010 and became effective on July 17, 2010.

Reporting Requirements

Businesses and facilities subject to the Regulation are required to report, as applicable: gallons of transportation fuels supplied or imported, therms of natural gas delivered to end users (excluding electricity generating facilities) from natural gas utilities and intrastate pipelines, therms received from interstate pipelines, megawatt hours delivered to the California transmission and distribution system, and emissions and fuels data.  All entities must report billing address and contact information.  All new and existing data and information reported must be certified to be true, accurate, and complete for the purpose of invoicing under the Regulation.

All required data and information must be reported using ARB’s online Mandatory Reporting Tool.

Reports for calendar year 2010 and subsequent calendar years must be submitted to ARB by June 30 of the following year, each year.

If you do not already have an account in the Reporting Tool and you are required to report, you will need to establish a new account.  For information on how to establish a new account, contact staff at ghgreport@arb.ca.gov and provide your name, the name of the facility or power entity required to report, and the type of emissions and fuels data you will be reporting.

Fee Requirements

ARB sent invoices for payment in April 2011 for fiscal year 2010-2011.  In subsequent fiscal years, ARB will send invoices approximately 30 days after the fiscal year’s Budget has been signed by the Governor.  Each fiscal year’s invoices are based on that year’s Common Carbon Cost (CCC) which is calculated as the total required revenue divided by the total applicable statewide emissions based on reported emissions and fuels data.  This fiscal year’s (2010-2011) invoices were calculated from emissions and fuels data reported to ARB for calendar year 2008.  Fiscal year 2011-2012 invoices will be based on calendar year 2009 data.

AB 32 Cost of Implementation Fee Frequently Asked Questions

• Frequently Asked Questions Document

AB 32 Cost of Implementation Fee Regulation Fact Sheet

• Fact Sheet

AB 32 Cost of Implementation Fee Regulation Total Required Revenue 

• Funding Approved in the California Budget Act for Fiscal Year 2010-11

Reporting Guidance

• Guidance Document