Last Reviewed January 20, 2015
AB 32 Cost of Implementation Fee Regulation (HSC 38597)
On September 27, 2006, Assembly Bill 32 (AB 32), the Global Warming Solutions Act of 2006 was signed into law. AB 32 established a first-in-the-world comprehensive program of regulatory and market mechanisms to achieve real, quantifiable, and cost-effective reductions of greenhouse gas (GHG) emissions needed to reach 1990 levels by 2020. AB 32 also authorized the Air Resources Board (Board) to adopt a schedule of fees to be paid by sources of GHG emissions. These fees are used to fund costs directly related to state agencies' development, administration, and implementation of AB 32 programs that reduce GHG emissions.
ARB adopted the AB 32 Cost of Implementation Fee Regulation (Fee Regulation) following a public hearing on September 25, 2009. The Fee Regulation became effective on July 17, 2010 and was subsequently amended in 2011, 2012, and 2014 to better align it with the Mandatory Reporting Regulation and the Cap-and-Trade Regulation. Fee invoices were generated beginning with fiscal year 2010-11.
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 Fee Regulation.
All required data must be reported using the California Electronic Greenhouse Gas Reporting Tool (Cal e-GGRT).
For information on how to establish a new Cal e-GGRT account, contact staff at email@example.com 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.
|April 10 each year||
Reporting deadline applies to electricity generation facilities, natural gas utilities and intrastate pipelines, end users of natural gas received by interstate pipelines, oil and gas producers that combust or consume natural gas or associated gas produced on-site, transportation fuel producers and importers, cement plants, facilities that combust or consume coal, petroleum coke, catalyst coke, and refinery fuel gas.
|June 1 each year||
Reporting deadline for submitting Electric Power Entity reports. Electricity generating facilities must report by April 10th, even if operated by an Electric Power Entity. (Note, if the reporting deadline falls on a Saturday/Sunday/Holiday, then the reporting deadline is the first business day after those days).
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. Invoices are determined for each fiscal year based on data reported into Cal e-GGRT during a calendar year. The invoices are calculated based on the most recently validated emissions and fuels data. Fiscal year 2014-15 invoices were calculated from emissions and fuels data reported to ARB for calendar year 2012.