This page last reviewed November 14, 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 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 the California Electronic Greenhouse Gas Reporting Tool (Cal e-GGRT).

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 sends invoices for payment approximately 30 days after the fiscal year’s budget has been signed by the Governor.  Each fiscal year’s invoice is based on that year’s Common Carbon Cost (CCC) which is calculated as the total required revenue (implementation expenses plus loan repayment) divided by the total statewide emissions covered by the Regulation, plus or minus any shortfall or surplus from the previous year.  Fiscal year 2010-11 invoices were calculated from emissions and fuels data reported to ARB for calendar year 2008.  Fiscal year 2011-12 invoices were based on 2009 data, and fiscal year 2012-13 on 2010 data.

AB 32 Cost of Implementation Fee Regulation Fact Sheet

• Fact Sheet

AB 32 Cost of Implementation Fee Regulation Total Required Revenue 

• Funding and Common Carbon Cost

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