Section 95854 - Quantitative Usage Limit on Designated Compliance Instruments-Including Offset Credits(a) Compliance instruments identified in section 95820(b) and sections 95821(b), (c), and (d) are subject to a quantitative usage limit when used to meet a compliance obligation.(b) Except as otherwise specified in section 95854(c), the total number of compliance instruments identified in section 95854(a) that each covered entity may surrender to fulfill the entity's compliance obligation for a compliance period must conform to the following limit: Oo/S must be less than or equal to Lo
In which:
"Oo" is the total number of compliance instruments identified in section 95854(a) submitted to fulfill the entity's compliance obligation for the compliance period.
"S" is the covered entity's compliance obligation.
"Lo" is the quantitative usage limit on compliance instruments identified in section 95854(a) set at 0.08 for the first, second, and the third compliance periods as defined in section 95840(a)-(c); 0.04 for the fourth compliance period as defined in section 95840(e); and 0.06 for the sixth and subsequent compliance periods, as defined in section 95840(e).
(c) For the fifth compliance period as defined in section 95840(e), covering data years 2024-2026, the total number of compliance instruments identified in section 95854(a) that each covered entity may surrender to fulfill the entity's compliance obligation must not exceed the quantitative usage limit (Lo) of 0.04 for data years 2024 and 2025 and 0.06 for data year 2026.(d) The number of sector-based offset credits that each covered entity may surrender to meet the entity's compliance obligation for a compliance period must not be greater than 0.25 of the Lo for the first and second compliance periods and not more than 0.50 of the Lo for subsequent compliance periods.(e) Direct Environmental Benefits in the State. Beginning with offsets surrendered to meet compliance obligations for emissions from data years 2021-2030, no more than one-half of the Lo may be sourced from projects that do not provide direct environmental benefits in the state, as defined in section 95802. In order to demonstrate that an offset project provides these direct environmental benefits in the state, the Offset Project Operator or Authorized Project Designee, or the holder of offset credits, must comply with section 95989.Cal. Code Regs. Tit. 17, § 95854
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 subsection (b), new subsections (c) and (e) and subsection relettering filed 3-29-2019; operative 3-29-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13). 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.
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 subsection (b), new subsections (c) and (e) and subsection relettering filed 3-29-2019; operative 3/29/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 13).