RESO 18-34 LCFS Attachment A Final Reg Order

LEGAL DISCLAIMER & USER’S NOTICE

Unofficial electronic version of the Low Carbon Fuel Standard Regulation

Unofficial Electronic Version

This unofficial electronic version of the Low Carbon Fuel Standard Regulation following

this Disclaimer was produced by California Air Resources Board (CARB) staff for the

reader’s convenience. CARB staff has removed the underline-strikeout formatting

which exists in the Final Regulation Order approved by the Office of Administrative Law

(OAL) on May 27, 2020 and included the full regulatory text for the Regulation; however,

the following version is not an official legal edition of title 17, California Code of

Regulations (CCR), sections 95480-95503. The effective date of this regulation is July

1, 2020. While reasonable steps have been taken to make this unofficial version

accurate, the officially published CCR takes precedence if there are any discrepancies.

Official Legal Edition

The official legal edition of title 17, CCR, sections 95480-95503 is available at the OAL

website: http://oal.ca.gov/publications/ccr/

Online California Code of Regulations:

http://ccr.oal.ca.gov/linkedslice/default.asp?SP=CCR-1000&Action=Welcome

 “Title 17. Public Health”

 “Division 3. Air Resources”

 “Chapter 1. Air Resources Board”

 “Subchapter 10. Climate Change”

 “Article 4. Regulations to Achieve Greenhouse

Gas Emission Reductions”

 Subarticle 7. Low Carbon Fuel Standard

LOW CARBON FUEL STANDARD

TABLE OF CONTENTS

95480. Purpose........................................................................................................ 1

95481. Definitions and Acronyms. ........................................................................... 1

95482. Fuels Subject to Regulation. ...................................................................... 25

95483. Fuel Reporting Entities. .............................................................................. 27

95483.1. Opt-In Entities. ........................................................................................... 40

95483.2. LCFS Data Management System. ............................................................. 43

95483.3. Change of Ownership or Operational Control. ........................................... 52

95484. Annual Carbon Intensity Benchmarks. ....................................................... 54

95485. Demonstrating Compliance. ....................................................................... 57

95486. Generating and Calculating Credits and Deficits. ....................................... 66

95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. .... 71

95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure

Pathways. .................................................................................................. 77

95487. Credit Transactions. ................................................................................... 94

95488. Entities Eligible to Apply for Fuel Pathways. ............................................ 100

95488.1. Fuel Pathway Classifications. .................................................................. 101

95488.2. Relationship Between Pathway Registration and Facility Registration. ... 104

95488.3. Calculation of Fuel Pathway Carbon Intensities. ...................................... 106

95488.4. Relationship of Pathway Carbon Intensities to Units of Fuel Sold in

California. ................................................................................................. 108

95488.5. Lookup Table Fuel Pathway Application Requirements and Certification

Process. ................................................................................................... 110

95488.6. Tier 1 Fuel Pathway Application Requirements and Certification Process.

................................................................................................................. 116

95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process.

................................................................................................................. 119

95488.8. Fuel Pathway Application Requirements Applying to All Classifications. . 128

95488.9. Special Circumstances for Fuel Pathway Applications. ........................... 137

95488.10. Maintaining Fuel Pathways. ..................................................................... 145

iii

95489. Provisions for Petroleum-Based Fuels. .................................................... 146

95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration.

................................................................................................................. 186

95491. Fuel Transactions and Compliance Reporting. ........................................ 191

95491.1. Recordkeeping and Auditing. ................................................................... 206

95492. Enforcement Protocols. ............................................................................ 213

95493. Jurisdiction. .............................................................................................. 214

95494. Violations. ................................................................................................ 215

95495. Authority to Suspend, Revoke, Modify, or Invalidate. ............................... 215

95496. [Reserved]. ............................................................................................... 218

95497. Severability. ............................................................................................. 218

95498. [Reserved]. ............................................................................................... 218

95499. [Reserved]. ............................................................................................... 218

95500. Requirements for Validation of Fuel Pathway Applications; and Verification

of Annual Fuel Pathway Reports, Quarterly Fuel Transactions Reports,

Crude Oil Quarterly and Annual Volumes Reports, Project Reports, and

Low-Complexity/Low-Energy-Use Refinery Reports. ............................... 218

95501. Requirements for Validation and Verification Services. ........................... 224

95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and

Verifiers. ................................................................................................... 231

95503. Conflict of Interest Requirements for Verification Bodies and Verifiers .... 246

LIST OF TABLES

Table 1: LCFS Carbon Intensity Benchmarks for 2011 to 2030 for Gasoline and

Fuels Used as a Substitute for Gasoline. ................................................... 54

Table 2: LCFS Carbon Intensity Benchmarks for 2011 to 2030 for Diesel Fuel and

Fuels Used as a Substitute for Diesel Fuel. ............................................... 55

Table 3: LCFS Carbon Intensity Benchmarks for 2019 to 2030 for Fuels Used as a

Substitute for Conventional Jet Fuel. ......................................................... 56

Table 4: Energy Densities and Conversion Factors for LCFS Fuels and Blendstocks.

................................................................................................................... 70

Table 5: EER Values for Fuels Used in Light- and Medium-Duty, and Heavy-Duty

Applications. ............................................................................................... 73

Table 6: Land Use Change Values for Use in CI Determination ............................ 108

Table 7-1: Lookup Table for Gasoline and Diesel and Fuels that Substitute for

Gasoline and Diesel ................................................................................. 113

Table 7-2: Calculated Smart Charging or Smart Electrolysis Carbon Intensity Values

for 2019 ........................................................ Error! Bookmark not defined.

Table 8: Temporary Pathways for Fuels with Indeterminate CIs ............................ 140

Table 9: Carbon Intensity Lookup Table for Crude Oil Production and Transport. . 150

Table 10: Nelson Complexity Indices. ...................................................................... 171

Table 11: Summary Checklist of Quarterly and Annual Reporting Requirements. ... 203

Table 12: Annual Compliance Calendar. ................................................................. 205

FINAL REGULATION ORDER

Amend sections 95481, 95482, 95483, 95483.1, 95484, 95485, 95486, 95487, 95489,

95491, 95492, 95493, 95494, and 95495;

Adopt sections 95483.2, 95483.3, 95486.1, 95486.2, 95488, 95488.1, 95488.2,

95488.3, 95488.4, 95488.5, 95488.6, 95488.7, 95488.8, 95488.9, 95488.10, 95490,

95491.1, 95500, 95501, 95502, and 95503; and

Repeal sections 95483.2, 95488, and 95496 title 17, California Code of Regulations, to

read as follows:

Subchapter 10. Climate Change

Article 4. Regulations to Achieve Greenhouse Gas Emission Reductions

Subarticle 7. Low Carbon Fuel Standard

§ 95480. Purpose.

The purpose of this regulation is to implement a low carbon fuel standard, which will

reduce the full fuel-cycle, carbon intensity of the transportation fuel pool used in

California, pursuant to the California Global Warming Solutions Act of 2006 (Health &

Safety Code [H&S], section 38500 et seq.).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95481. Definitions and Acronyms.

(a) Definitions. For the purposes of sections 95480 through 95503, the definitions

in Health and Safety Code sections 39010 through 39060 shall apply, except as

otherwise specified in this section or sections 95482 through 95503:

(1) “Account Administrator” means the person who can establish and activate

user accounts for the reporting party organization as well as upload data

(but not necessarily “submit” reports) into the LRT-CBTS. Account

administrators with “signatory authority” may submit Quarterly and Annual

Reports; initiate and view all credit transfers and credit transfer activity;

access the Credit Balance ledger for the organization; and

select/authorize broker(s) to represent them.

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§ 95481. Definitions. 2

(2) “Advanced Credits” means LCFS base electricity credits that are issued

prior to the quarter in which credit-generating transactions have occurred.

Advanced credits can only be sold via the Credit Clearance Market, and

only retired for the purpose of meeting compliance obligation.

(3) “Advanced Credit Window” is the six-year period during which advanced

credits can be issued and after which base credit issuances will be

adjusted to account for advanced credits.

(4) “Adverse Validation Statement” and “Adverse Verification Statement”

means a statement rendered by a verification body attesting that: (1) the

verification body cannot say, with reasonable assurance, that the reported

value is free of a material misstatement, or (2) the data submitted contain

one or more correctable errors, or (3) both, and thus is not in conformance

with the requirement to fix such errors pursuant to section 95501(b)(6).

This definition applies to Adverse Validation Statements for fuel pathway

applications and Adverse Verification Statements for Annual Fuel Pathway

Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and

Annual Volumes Reports, Low-Complexity/Low-Energy-Use Refinery

Reports, and Project Reports. “Material misstatement” for each type of

report is assessed pursuant to sections 95501(b)(9) through (11).

(5) “AEZ-EF Model” means the Agro-Ecological Zone Emissions Factor model

(December 31, 2014), posted at

http://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/lcfs_meetings.htm and

available for download

at http://www.arb.ca.gov/fuels/lcfs/lcfs_meetings/aez-ef_model_v52.xlsm,

which is incorporated herein by reference.

(6) “Aggregated Transaction Indicator” means an identifier for reported

transactions that are a result of an aggregation or summing of more than

one transaction in the LRT-CBTS. An entry of ‘True’ indicates that

multiple transactions have been aggregated and are reported with a single

Transaction Number. An entry of ‘False’ means that the transaction

record results from one fuel transaction reported as a single Transaction

Number.

(7) “Alternative Fuel” means any transportation fuel that is not CaRFG or a

diesel fuel, including those fuels specified in section 95482(a)(3) through

(a)(13).

(8) “Alternative Jet Fuel” means a drop-in fuel, made from petroleum or

non-petroleum sources, which can be blended and used with conventional

petroleum jet fuels without the need to modify aircraft engines and existing

fuel distribution infrastructure.

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§ 95481. Definitions. 3

(9) “Animal Fat” means the inedible fat that originates from a rendering facility

as a product of rendering the by-products from meat processing facilities

including animal parts, fat and bone. “Yellow grease” must be reported

under an applicable animal fat pathway if evidence is not provided to the

verifier or CARB to confirm the quantity that is animal fat and the quantity

that is used cooking oil.

(10) “Application” means the type of vehicle where the fuel is consumed in

terms of LDV/MDV for light-duty vehicle/medium-duty vehicle or HDV for

heavy-duty vehicle.

(11) “Aviation Gasoline” means a complex mixture of volatile hydrocarbons,

with or without additives, suitably blended to be used in aviation engines.

(12) “Avoided Cost Calculator” means the Excel-based spreadsheet model

(May 2018) produced by Energy and Environmental Economics, Inc. (E3)

for use in demand-side cost-effectiveness proceedings at the California

Public Utilities Commission (CPUC), which is incorporated herein by

reference, and is available for download at

http://www.cpuc.ca.gov/General.aspx?id=5267.

(13) “Battery Electric Vehicle (BEV)” means any vehicle that operates solely by

use of a battery or battery pack, or that is powered primarily through the

use of an electric battery or battery pack but uses a flywheel or capacitor

that stores energy produced by the electric motor or through regenerative

braking to assist in vehicle operation.

(14) “Biodiesel” means a fuel as defined in California Code of Regulations,

title 4, section 4140(a).

(15) “Biodiesel Blend” means biodiesel blended with CARB diesel.

(16) “Biogas” means the raw gaseous mixture comprised primarily of methane

and carbon dioxide and derived from sources, including but not limited to,

the anaerobic decomposition of organic matter in a landfill, lagoon, or

constructed reactor (digester). Biogas often contains a number of other

impurities, such as hydrogen sulfide, and it cannot be directly injected into

natural gas pipelines or combusted in most natural-gas-fueled vehicles.

It can be used as a fuel in boilers and engines to produce electrical power.

The biogas can be refined to produce near-pure methane, which is sold as

biomethane.

(17) “Bio-CNG” means biomethane which has been compressed to CNG.

Bio-CNG has equivalent performance characteristics when compared to

fossil CNG.

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§ 95481. Definitions. 4

(18) “Bio-LNG” means biomethane which has been compressed and liquefied

into LNG. Bio-LNG has equivalent performance characteristics when

compared to fossil LNG.

(19) “Bio-L-CNG” means biomethane which has been compressed, liquefied,

re-gasified, and re-compressed into L-CNG, and has performance

characteristics at least equivalent to fossil L-CNG.

(20) “Biomass” means non-fossilized and biodegradable organic material

originating from plants, animals, or micro-organisms, including: products,

by-products, residues and waste from agriculture, forestry, and related

industries; the non-fossilized and biodegradable organic fractions of

industrial and municipal wastes; and gases and liquids recovered from the

decomposition of non-fossilized and biodegradable organic material.

(21) “Biomass-based Diesel” means a biodiesel or a renewable diesel.

(22) “Biomethane” means methane derived from biogas, or synthetic natural

gas derived from renewable resources, including the organic portion of

municipal solid waste, which has been upgraded to meet standards for

injection to a natural gas common carrier pipeline, or for use in natural

gas vehicles, natural gas equipment, or production of renewable

hydrogen. Biomethane contains all of the environmental attributes

associated with biogas and can also be referred to as renewable natural

gas.

(23) “Blendstock” means a component that is either used alone or is blended

with another component(s) to produce a finished fuel used in a motor

vehicle. Each blendstock corresponds to a fuel pathway in the

California-modified Greenhouse Gases, Regulated Emissions, and Energy

use in Transportation version 3.0 (CA-GREET3.0) model, (August 13,

2018), which is incorporated herein by reference. A blendstock that is

used directly as a transportation fuel in a vehicle is considered a finished

fuel.

(24) “Brown Grease” means an emulsion of fat, oil, grease, solids, and water

separated from wastewater in a grease interceptor (grease trap) and

collected for use as a fuel feedstock. Brown grease must be reported

under an applicable used cooking oil (UCO) pathway, i.e., reported as

“unprocessed UCO“ only if evidence is provided to the verifier or CARB to

confirm that it has not been processed prior to receipt by the fuel

production facility.

(25) “Business Partner” refers to the counterparty in a specific transaction

involving the fuel reporting entity. This can be either the buyer or the

seller of fuel.

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§ 95481. Definitions. 5

(26) “Carbon Intensity (CI)” means the quantity of life cycle greenhouse gas

emissions, per unit of fuel energy, expressed in grams of carbon dioxide

equivalent per megajoule (gCO

e/MJ).

(27) “Cargo Handling Equipment” means any off-road, self-propelled vehicle or

equipment, other than yard trucks, used at a port or intermodal rail yard to

lift or move container, bulk, or liquid cargo carried by ship, train, or another

vehicle, or used to perform maintenance and repair activities that are

routinely scheduled or that are due to predictable process upsets.

Equipment includes, but is not limited to, rubber-tired gantry cranes, top

handlers, side handlers, reach stackers, loaders, aerial lifts, excavators,

tractors, and dozers.

(28) “CHAdeMO Connector” means a connector and communication protocol

for vehicle DC charging initially developed in Japan during 2005-2009. It

was first adopted into international standards IEC 61851-23/24 and IEC

62196-3 in 2014 and then into USA standard IEEE 2030.1.1 in 2015.

Further updates to the protocol are managed by the CHAdeMO

Association.

(29) “Clean Fuel Reward” is a statewide program established by EDUs to

provide a reduction in price on new light duty EV purchases or leases in

California. The Clean Fuel Reward is funded exclusively through LCFS

proceeds generated by EDUs from electricity fuel.

(30) “Compressed Natural Gas (CNG)” means natural gas that has been

compressed to a pressure greater than ambient pressure.

(31) “Conflict of Interest” means a situation in which, because of financial or

other activities or relationships with other persons or organizations, a

person or body is unable, or potentially unable, to render an impartial

validation or verification statement on a potential client’s LCFS data report,

or the person or body’s objectivity in performing validation or verification

services is, or might be, otherwise compromised.

(32) “Contract Description Code” means the alphanumeric code assigned by

an exchange to a particular exchange product that differentiates the

product from others traded on the exchange.

(33) “Conventional Jet Fuel” means aviation turbine fuel including Commercial

and Military Jet Fuel. Commercial Jet Fuel includes products known as

Jet A, Jet A-1, and Jet B. Military Jet Fuel includes products known as

JP-5 and JP-8.

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§ 95481. Definitions. 6

(34) “Correctable Errors” means one or more errors that result from a

nonconformance with this subarticle and are identified by the verification

team as errors that affect data subject to validation or verification as

specified in section 95500. Differences that, in the professional judgment

of the verification team, are the result of differing but reasonable methods

of truncation or rounding or averaging, where a specific procedure is not

prescribed by this subarticle, are not considered errors.

(35) “Credit Generator” means a fuel reporting entity or a project operator that

generates LCFS credit in the LCFS program.

(36) “Credits” and “Deficits” mean the units of measure used for determining a

regulated entity’s compliance with the average carbon intensity

requirements in section 95484. Credits and deficits are denominated in

units of metric tons of carbon dioxide equivalent (CO

e), and are

calculated pursuant to sections 95486.1(a), (c), 95486.2(a)(5) and (b)(5),

95489 and 95490.

(37) “Day” means a calendar day unless otherwise specified as a business

day.

(38) “Deficit Generator” means a fuel reporting entity who generates deficits in

the LCFS program.

(39) “Diesel Fuel” (also called conventional diesel fuel) has the same meaning

as specified in California Code of Regulations, title 13, section 2281(b).

(40) “Direct Current Fast Charging” means charging an electric vehicle at 50

kW and higher using direct current.

(41) “Disadvantaged Communities” means communities that are defined by

California Health and Safety Code section 39711(a) that are identified

based on geographic, socioeconomic, public health, and environmental

hazard criteria, and may include, but are not limited to, either of the

following: (1) areas disproportionately affected by environmental

pollution and other hazards that can lead to negative public health effects,

exposure, or environmental degradation or (2) areas with concentrations

of people that are of low-income, high unemployment, low levels of

homeownership, high rent burden, sensitive populations, or low levels of

educational attainment.

(42) “Distiller’s Corn Oil” has the same meaning as “Technical Corn Oil.”

(43) “Distiller’s Sorghum Oil” has the same meaning as “Technical Sorghum

Oil.”

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§ 95481. Definitions. 7

(44) “Drayage Trucks” means vehicles as defined in California Code of

Regulations, title 13, section 2027(c).

(45) “E100,” also known as “Denatured Fuel Ethanol,” means nominally

anhydrous ethyl alcohol.

(46) “Electrical Distribution Utility” means an entity that owns or operates an

electrical distribution system, including:

(A) a public utility as defined in the Public Utilities Code section 216

(referred to as an Investor Owned Utility, or IOU);

1. “Large Investor-owned Utility” means an IOU with annual

load served equal to or more than 10,000 Gigawatt- hours

(GWh) in 2017;

2. “Medium Investor-owned Utility” means an IOU with annual

load served of less than 10,000 GWh and equal to or more

than 700 GWh in 2017;

3. “Small Investor-owned Utility” means an IOU with annual

load served equal to or less than 700 GWh in 2017.

(B) a local publicly-owned electric utility (POU) as defined in Public

Utilities Code section 224.3;

1. “Large Publicly-owned Utility” means a California POU with

annual load served equal to or more than 10,000 Gigawatt-

hours (GWh) in 2017;

2. “Medium Publicly-owned Utility” means a California POU

with annual load served of less than 10,000 GWh and equal

to or more than 700 GWh in 2017;

3. “Small Publicly-owned Utility” means a California POU with

annual load served of less than 700 GWh in 2017.

Code section 2776.

(47) “Electric Cargo Handling Equipment (eCHE)” means cargo handling

equipment using electricity as the fuel.

(48) “Electric Power for Ocean-going Vessel (eOGV)” means shore power

provided to an ocean going vessel at-berth.

(49) “Electric Transport Refrigeration Units (eTRU)” means refrigeration

systems powered by electricity designed to refrigerate or heat perishable

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§ 95481. Definitions. 8

products that are transported in various containers, including semi-trailers,

truck vans, shipping containers, and rail cars.

(50) “Electric Vehicle (EV),” for purposes of this regulation, refers to Battery

Electric Vehicles (BEVs) and Plug-In Hybrid Electric Vehicles (PHEVs).

(51) “Energy Economy Ratio (EER)” means the dimensionless value that

represents the efficiency of a fuel as used in a powertrain as compared to

a reference fuel used in the same powertrain. EERs are often a

comparison of miles per gasoline gallon equivalent (mpge) between two

fuels. EERs for fixed guideway systems are based on MJ/number of

passenger-miles.

(52) “Environmental Attribute” means greenhouse gas emission reduction

recognition in any form, including verified emission reductions, voluntary

emission reductions, offsets, allowances, credits, avoided compliance

costs, emission rights and authorizations under any law or regulation, or

any emission reduction registry, trading system, or reporting or reduction

program for greenhouse gas emissions that is established, certified,

maintained, or recognized by any international, governmental, or non-

governmental agency.

(53) “Executive Officer” means the Executive Officer of the California Air

Resources Board, or his or her delegate.

(54) “Exchange” means a central marketplace with established rules and

regulations where buyers and sellers meet to conduct trades.

(55) “Export” means transportation fuel reported in the LRT-CBTS program that

is subsequently delivered outside of California and not used for

transportation in California.

(56) “Feedstock First Collection Point” means the facility that aggregates and

stores or treats feedstock materials collected from a point of origin. The

first collection point may be upstream of the fuel production facility, or, if

feedstocks are transported to the fuel production facility directly from the

point of origin, the first collection point is the fuel production facility.

(57) “Feedstock Transport Mode” means the applicable combination of actual

delivery methods and the distance through which the feedstock was

transported to any intermediate entities and ending at a fuel production

facility. The fuel pathway holder and any entity reporting the fuel must

demonstrate that the actual feedstock transport mode and distance

conforms to the stated mode and distance in the certified pathway.

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§ 95481. Definitions. 9

(58) “Final Distribution Facility” means the stationary finished fuel transfer point

from which the finished fuel is transferred into the cargo tank truck,

pipeline, or other delivery vessel for delivery to the facility at which the

finished fuel will be dispensed into motor vehicles.

(59) “Finished Fuel” means a fuel that is used directly in a vehicle for

transportation purposes without requiring additional chemical or physical

processing.

(60) “First Fuel Reporting Entity” means the first entity responsible for reporting

in the LRT-CBTS for a given amount of fuel. This entity initially holds the

status as the fuel reporting entity and the credit or deficit generator for this

fuel amount, but may transfer either status pursuant to sections 95483 or

95483.1.

(61) “Fish Oil” means the fat that originates from fish processing operations as

a product of rendering fat from residual fish parts.

(62) “Fixed Guideway System” means a system of public transit electric

vehicles that can operate only on its own guideway (directly operated, or

DO), or through overhead or underground electricity supply constructed

specifically for that purpose, such as light rail, heavy rail, cable car, street

car, and trolley bus.

(63) “Fossil CNG” means CNG that is derived solely from petroleum or fossil

sources, such as oil fields and coal beds.

(64) “Fossil LNG” means LNG that is derived solely from petroleum or fossil

sources, such as oil fields and coal beds.

(65) “Fossil L-CNG” means L-CNG that is derived solely from petroleum or

fossil sources, such as oil fields and coal beds.

(66) “Fuel Pathway” means, for a particular finished fuel, the collective set of

processes, operations, parameters, conditions, locations, and

technologies throughout all stages that CARB considers appropriate to

account for in the system boundary of a complete well-to-wheel analysis of

that fuel’s life cycle greenhouse gas emissions.

(67) “Fuel Pathway Applicant” refers to an entity that has registered in the

Alternative Fuel Portal pursuant to section 95483.2 and has submitted an

application including all required documents and attestations in support of

the application requesting a certified fuel pathway.

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§ 95481. Definitions. 10

(68) “Fuel Pathway Code” means the identifier in the LRT-CBTS that applies to

a specific fuel pathway certified pursuant to sections 95488 through

95488.10.

(69) “Fuel Pathway Holder” means a fuel pathway applicant that has received a

certified fuel pathway carbon intensity based on site-specific data,

including a Provisional fuel pathway.

(70) “Fuel Production Facility” means the facility at which the fuel is produced.

“Fuel Production facility” means, with respect to biomethane to vehicle fuel

pathways, a facility at which fuel is upgraded, purified, or processed to

meet standards for injection to a natural gas common carrier pipeline or

for use in natural gas vehicles.

(71) “Fuel Reporting Entity” means an entity that is required to report fuel

transactions in the LRT-CBTS pursuant to section 95483 or 95483.1.

Fuel reporting entity refers to the first fuel reporting entity and to any entity

to whom the reporting entity status is passed for a given quantity of fuel.

(72) “Fuel Transport Mode” means the applicable combination of actual fuel

delivery methods, such as truck routes, rail lines, pipelines, and any other

fuel distribution methods, and the distance through which the fuel was

transported under contract from the entity that generated or produced the

fuel, to any intermediate entities, and ending at the fuel blender, producer,

importer, or provider in California. The fuel pathway holder and any

entity reporting the fuel must demonstrate that the actual fuel transport

mode and distance conforms to the stated mode and distance in the

certified pathway.

(73) “Green Tariff” means a program in which a retail seller of electricity offers

its customers an opportunity to purchase electricity sourced from low-

carbon intensity energy resources. This includes the Green Tariff Shared

Renewables program established pursuant to California Senate Bill 43

(2013) and defined under the California Public Utilities Code sections

2831-2833.

(74) “GTAP” or “GTAP Model” means the Global Trade Analysis Project Model

(December 2014), which is incorporated herein by reference, and is a

software available for download at

https://www.gtap.agecon.purdue.edu/resources/res_display.asp?RecordID

=4577.

(75) “Heavy-Duty Vehicle” means a vehicle that is rated at or greater than

14,001 pounds gross vehicle weight rating (GVWR).

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§ 95481. Definitions. 11

(76) “Holdback Credits” means the portion of base residential EV charging

credits issued to an EDU that are not contributed by the EDU to the Clean

Fuel Reward program.

(77) “Home Fueling” means the dispensing of fuel by use of a fueling appliance

that is located on or within a residential property with access limited to a

single household.

(78) “Hybrid Electric Vehicle (HEV)” means any vehicle that can draw

propulsion energy from both of the following on-vehicle sources of stored

energy: 1) a consumable fuel, and 2) an energy storage device, such as

a battery, capacitor, or flywheel.

(79) “Hydrogen Station Capacity Evaluator” or “HySCapE” means a tool

developed by the National Renewable Energy Laboratory to determine the

dispensing capacity of a hydrogen station, HySCapE Version 1.0 (August

13, 2018), which is incorporated herein by reference and available at

http://www.arb.ca.gov/fuels/lcfs/lcfs.htm.

(80) “Import” means to bring a product from outside California into California.

(81) “Importer” means the person who owns the transportation fuel or

blendstock, in the transportation equipment that held or carried the

product, at the point the fuel entered California. For purposes of this

definition, “transportation equipment” includes, but is not limited to, rail

cars, cargo tanker trucks, and pipelines.

(82) “Independent Reviewer” means an accredited lead verifier, within a

verification body, who (A) has not participated in conducting the LCFS

validation or verification services for the client for the current application

period or reporting period, and (B) provides an independent review of

findings and services rendered to the client as required in section 95501.

The independent reviewer is not required to meet the additional specified

competency requirements in sections 95502(c)(4) and 95502(c)(5) that the

verification team leader must meet.

(83) “Ineligible Specified Source Feedstock” means a feedstock specified in

section 95488.8(g)(1)(A) that does not meet the chain-of-custody

documentation requirements specified in section 95488.8(g)(1)(B).

(84) “Intermediate Calculated Value” means a value that is used in the

calculation of a reported value but does not by itself meet the reporting

requirement under section 95491.

(85) “Intermediate Facility” means a facility in a fuel supply chain, which is not

the fuel production facility, that contributes site-specific data for

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§ 95481. Definitions. 12

determination of a fuel pathway carbon intensity. Intermediate facilities

produce components of a fuel or intermediate chemical that may be

further processed into a fuel. This term includes feedstock-processing

facilities.

(86) “LCFS Credit Broker” is a person registered in the LRT-CBTS specifically

to facilitate the transfer of LCFS credits between LRT-CBTS accounts.

(87) “Lead Verifier” means a person who has met all the requirements in

section 95502 and who may act as either (A) the lead verifier of a

verification team providing validation or verification services, or (B) as a

lead verifier providing an independent review of validation or verification

services rendered.

(88) “Life Cycle Greenhouse Gas Emissions” means the aggregate quantity of

greenhouse gas emissions (including direct emissions and significant

indirect emissions, such as significant emissions from land use changes),

as determined by the Executive Officer, related to the full fuel life cycle,

including all stages of fuel and feedstock production and distribution, from

feedstock generation or extraction through the distribution and delivery

and use of the finished fuel to the ultimate consumer, where the mass

values for all greenhouse gases are adjusted to account for their relative

global warming potential.

(89) “Light-Duty Vehicle” and “Medium-Duty Vehicle” mean a vehicle category

that includes both light-duty (LDV) and medium-duty vehicles (MDV).

(A) “LDV” means a vehicle that is rated at 8,500 pounds or less GVWR.

(B) “MDV” means a vehicle that is rated between 8,501 and

14,000 pounds GVWR.

(90) “Liquefied Compressed Natural Gas (L-CNG)” means LNG that has been

liquefied and transported to a dispensing station where it was then

re-gasified and compressed to a pressure greater than ambient pressure.

(91) “Liquefied Natural Gas (LNG)” means natural gas that has been liquefied.

(92) “Liquefied petroleum gas (LPG or propane)” has the same meaning as

defined in Vehicle Code section 380.

(93) “Load-Serving Entity” means any entity that (A) sells or provides electricity

to end users located in California, or (B) generates electricity at one site

and consumes electricity at another site that is in California and that is

owned or controlled by the company. A load-serving entity does not

include the owner or operator of a co-generator.

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§ 95481. Definitions. 13

(94) “Low-Carbon Intensity (Low-CI) Electricity” means any electricity that is

determined to have a carbon intensity that is less than the average grid

electricity for the region, including but not limited to an “eligible renewable

energy resource” as defined in Public Utilities Code sections 399.11-

399.36 under the California Renewables Portfolio Standard Program.

(95) “Low-Complexity/Low-Energy-Use Refinery” means a refinery that meets

both of the following criteria:

(A) A Modified Nelson Complexity Score equal to or less than 5 as

calculated in section 95489(d)(1)(A).

(B) Total annual energy use equal to or less than 5 million MMBtu as

calculated in section 95489(d)(1)(B).

(96) “Low-Income Communities” means census tracts with median household

incomes at or below 80 percent of the statewide median income or with

median household incomes at or below the threshold designated as low

income by the Department of Housing and Community Development’s list

of state income limits adopted pursuant to Health and Safety Code section

50093.

(97) “Mandatory Reporting Regulation” or “MRR” means CARB’s Regulation

for the Mandatory Reporting of Greenhouse Gas Emissions as set forth in

title 17, California Code of Regulations, chapter 1, subchapter 10, article 2

(commencing with section 95100).

(98) “Material Misstatement of Operational Carbon Intensity” means any

discrepancy, omission, or misreporting, or aggregation of the three,

identified in the course of verification services that leads a verification

team to believe that the reported operational CI (gCO

e/MJ) contains one

or more errors that, individually or collectively, result in an overstatement

or understatement more than 5 percent of the reported operational CI, or 2

gCO

e/MJ, whichever absolute value expressed in gCO

e/MJ is greater.

Material misstatement is calculated separately for each operational CI.

All correctable errors identified must be fixed prior to the completion of the

verification services to receive a positive or qualified positive verification

statement.

(99) “Material Misstatement of Low-Complexity/Low-Energy-Use (LC/LEU)

Refinery Data” means any discrepancy, omission, or misreporting, or

aggregation of the three, identified in the course of LC/LEU refinery report

verification services that leads a verification team to believe that a LC/LEU

Refinery Report contains one or more errors that, individually or

collectively, result in an overstatement greater than 5 percent of the

regulated entity’s annual sum of quarterly reported volumes of CARBOB

or diesel produced from crude oil. Discrepancies, omissions, or

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§ 95481. Definitions. 14

misreporting, or an aggregation of the three, that result in an

understatement of the annual sum of quarterly reported volumes of

CARBOB or diesel produced from crude oil submitted in the LC/LEU

Refinery Report is not a LC/LEU refinery data material misstatement.

Material misstatement is calculated separately, pursuant to section

95501(b)(11), for the annual volume of CARBOB production from crude oil

and for the annual volume of diesel production from crude oil. All

correctable errors identified must be fixed prior to the completion of the

verification services to receive a positive or qualified positive verification

statement.

(100) “Material Misstatement of Project Data” means a discrepancy, omission,

misreporting, or aggregation of the three, identified in the course of project

verification services that leads a verification team to believe that a Project

Report contains one or more errors that, individually or collectively, result

in an overstatement greater than 5 percent of the regulated entity’s

reported total greenhouse gas emission reductions. Discrepancies,

omissions, or misreporting, or an aggregation of the three, which result in

an understatement of total reported greenhouse gas emission reductions

in the Project Report, is not a project material misstatement. Material

misstatement is calculated separately, pursuant to section 95501(b)(10),

for each Project Report. All correctable errors identified must be fixed

prior to the completion of the verification services to receive a positive or

qualified positive verification statement.

(101) “Material Misstatement of Quarterly Fuel Quantity” means any

discrepancy, omission, or misreporting, or aggregation of the three,

identified in the course of validation or verification services that leads a

verification team to believe that the regulated entity’s reported fuel quantity

per fuel pathway code per quarter contains one or more errors that,

individually or collectively, result in an overstatement or understatement

greater than 5 percent. Material misstatement is calculated separately,

pursuant to section 95501(b)(9), for each quarterly fuel quantity per fuel

pathway code. All correctable errors identified must be fixed prior to the

completion of the verification services to receive a positive or qualified

positive verification statement.

(102) “Modified Nelson Complexity Score” means a Nelson Complexity Score

that is calculated without including lube oil and asphalt capacity, as set

forth in section 95489(d)(1)(A).

(103) “Motor Vehicle” has the same meaning as defined in section 415 of the

Vehicle Code.

(104) “Multi-fuel Vehicle” means a vehicle that uses two or more distinct fuels for

its operation. A multi-fuel vehicle (also called a vehicle operating in

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§ 95481. Definitions. 15

blended-mode) includes a bi-fuel vehicle and can have two or more fueling

ports onboard the vehicle. A fueling port can be an electrical plug or a

receptacle for liquid or gaseous fuel. For example, most plug-in hybrid

electric vehicles use both electricity and gasoline as the fuel source and

can be “refueled” using two separately distinct fueling ports.

(105) “Multi-family Residence” means a dwelling unit in a building that consists

of at least four condominium dwelling units or at least three apartment

dwelling units in which each unit shares a floor or ceiling on at least one

side.

(106) “Natural Gas” means a mixture of gaseous hydrocarbons and other

compounds, with at least 80 percent methane (by volume), and typically

sold or distributed by utilities, such as any utility company regulated by the

California Public Utilities Commission.

(107) “Nelson Complexity Score” means the commonly used industry measure

of a refinery’s ability to convert crude oils to finished fuels, taking into

consideration the complexity of the technologies incorporated within the

process and related capacities as compared to crude distillation.

(108) “Nonconformance” means the failure to use any method or meet any other

requirement specified in this subarticle.

(109) “Ocean-Going Vessel” means a commercial, government, or military

vessel meeting any one of the following criteria:

(A) A vessel greater than or equal to 400 feet in length overall (LOA) as

defined in 50 Code of Federal Regulations (CFR) § 679.2, as

adopted June 19, 1996;

(B) A vessel greater than or equal to 10,000 gross tons (GT ITC)

pursuant to the convention measurement (international system) as

defined in 46 CFR § 69.51-.61, as adopted September 12, 1989;

per-cylinder displacement of greater than or equal to 30 liters.

(110) “On-road” means a vehicle that is designed to be driven on public

highways and roadways and that is registered or is capable of being

registered by the California Department of Motor Vehicles (DMV) under

Vehicle Code sections 4000 et seq. – or DMV's equivalent in another

state, province, or country; or the International Registration Plan. A

vehicle covered under CARB's In-Use Off-Road Regulation, Code of

Regulations, title 13, section 2449, is not covered under this definition.

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§ 95481. Definitions. 16

(111) “OPGEE” or “OPGEE Model” means the Oil Production Greenhouse gas

Emissions Estimator Version 2.0 (June 20, 2018) posted at

http://www.arb.ca.gov/fuels/lcfs/lcfs.htm, which is incorporated herein by

reference.

(112) “Opt-in Fuel Reporting Entity” means an entity that meets the

requirements of section 95483.1 and voluntarily opts in to be a fuel

reporting entity and is therefore subject to the requirements set forth in this

subarticle.

(113) “Opt-in Project” means a project approved for generating LCFS credits by

the Executive Officer pursuant to sections 95489 or 95490.

(114) “Over-the-Counter” means the trading of LCFS credits or contracts not

executed or entered for clearing on any exchange.

(115) “Performance Review” means an assessment conducted by CARB of an

applicant seeking to become accredited or reaccredited as a verification

body or lead verifier pursuant to section 95502 of this subarticle. Such

an assessment may include a review of applicable past sampling plans,

validation and verification reports, validation and verification statements,

conflict of interest submittals, and additional information or documentation

regarding the applicant’s fitness for qualification.

(116) “Petroleum Intermediate” means a petroleum product that can be further

processed to produce CARBOB, diesel, or other petroleum blendstocks.

(117) “Petroleum Product” means all refined and semi-refined products that are

produced at a refinery by processing crude oil and other petroleum-based

feedstocks, including petroleum products derived from co-processing

biomass and petroleum feedstock together. “Petroleum product” does

not include plastics or plastic products.

(118) “Plug-In Hybrid Electric Vehicle (PHEV)” means a hybrid electric vehicle

with the capability to charge a battery from an off-vehicle electric energy

source that cannot be connected or coupled to the vehicle in any manner

while the vehicle is being driven.

(119) “Positive Validation Statement” and “Positive Verification Statement”

means a statement rendered by a verification body attesting that the

verification body can say, with reasonable assurance, that the reported

value is free of material misstatement, when applicable, and conforms to

the requirements of this subarticle. This definition applies to Positive

Validation Statements for fuel pathway applications and Positive

Verification Statements for Annual Fuel Pathway Reports, Quarterly Fuel

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§ 95481. Definitions. 17

Transactions Reports, Crude Oil Quarterly and Annual Volumes Reports,

Low-Complexity/Low-Energy-Use Refinery Reports, and Project Reports.

(120) “Private Access Fueling Facility” means a fueling facility with access

restricted to privately-distributed electronic cards (“cardlock”) or is located

in a secure area not accessible to the public.

(121) “Producer” means, with respect to any fuel, the entity that made or

prepared the fuel.

(122) “Product Transfer Document (PTD)” means a document that authenticates

the transfer of ownership of fuel from a fuel reporting entity to the recipient

of the fuel. A PTD is created by a fuel reporting entity to contain

information collectively supplied by other fuel transaction documents,

including bills of lading, invoices, contracts, meter tickets, rail inventory

sheets, Renewable Fuels Standard (RFS) product transfer documents,

etc.

(123) “Project Operator” means an entity that registers an opt-in project in the

Alternative Fuel Portal and has it approved for generating LCFS credits.

A project operator must meet the requirements of sections 95483.1 and

95489 or 95490.

(124) “Public Access Fueling Facility” means a fueling facility that is not a

private-access fueling dispenser.

(125) “Qualified Positive Validation Statement” and “Qualified Positive

Verification Statement” means a statement rendered by a verification body

attesting that the verification body can say, with reasonable assurance,

that the reported value is free of material misstatement, when applicable,

and is in conformance with the requirement to fix correctable errors

pursuant to section 95501(b)(6), but the data may include one or more

other nonconformance(s) with the requirements of this subarticle, which

do not result in a material misstatement. This definition applies to

Qualified Positive Validation Statements for fuel pathway applications and

Qualified Positive Verification Statements for Annual Fuel Pathway

Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and

Annual Volumes Reports, Low-Complexity/Low-Energy-Use Refinery

Reports, and Project Reports.

(126) “Rack” means a mechanism for delivering motor vehicle fuel or diesel from

a refinery or terminal into a truck, trailer, railroad car, or other means of

non-bulk transfer.

(127) “Reasonable Assurance” means a high degree of confidence that

submitted data and statements are valid.

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§ 95481. Definitions. 18

(128) “Regulated Entity” means an entity subject to any requirement pursuant to

this subarticle.

(129) “Renewable Fuel Standard” means the program administered by the

United States Environmental Protection Agency, under 40 CFR Part 80:

Regulation of Fuels and Fuel Additives, Subparts K and M.

(130) “Renewable Hydrocarbon Diesel” means a diesel fuel that is produced

from non-petroleum renewable resources but is not a mono-alkyl ester

and which is registered as a motor vehicle fuel or fuel additive under 40

Code of Federal Regulations part 79. This includes the renewable

portion of a diesel fuel derived from co-processing biomass with a

petroleum feedstock.

(131) “Renewable Hydrogen” means hydrogen derived from (1) electrolysis of

water or aqueous solutions using renewable electricity; (2) catalytic

cracking or steam methane reforming of biomethane; or (3)

thermochemical conversion of biomass, including the organic portion of

municipal solid waste (MSW). Renewable electricity, for the purpose of

renewable hydrogen production by electrolysis, means electricity derived

from sources that qualify as eligible renewable energy resources as

defined in California Public Utilities Code sections 399.11-399.36.

(132) “Renewable Propane” means liquefied petroleum gas (LPG or propane)

that is produced from non-petroleum renewable resources.

(133) “Rural Area” means a census tract with at least 75 percent of its

population identified as rural by the latest US Census data.

(134) “SAE CCS Connector” means a connector that supports both AC J1772

and DC Charging and created by the Society of Automobile Engineers,

which is a standards development organization for vehicle technology.

(135) “Shore Power” means electrical power being provided either by the local

utility or by distributed generation to ocean-going vessels at-berth.

(136) “Single-family Residence” means a building designed to house a family in

a single residential unit. A single-family residence is either detached or

attached including duplex or townhouse units.

(137) “Site-specific Data” and “Site-specific Input” means an input value used in

determination of fuel pathway carbon intensity value, or the raw

operational data used to calculate an input value, which is required to be

unique to the facility, pathway, and feedstock. All site-specific inputs

must be measured, metered or otherwise documented, and verifiable,

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§ 95481. Definitions. 19

e.g., consumption of natural gas or grid electricity at a fuel production

facility must be documented by invoices from the utility.

(138) “Specified Source Feedstocks” means feedstocks that require the chain of

custody evidence specified in 95488.8(g)(1)(B) to be eligible for a reduced

CI associated with the use of a waste, residue, by-product or similar

material. Specified source feedstocks are identified in section

95488.8(g)(1)(A).

(139) “Staff” means CARB personnel unless otherwise specified or dictated by

context.

(140) “Station Operational Status System (SOSS)” means a software database

tool developed and maintained by California Fuel Cell Partnership to

publicly monitor the operational status of hydrogen stations.

(141) “Steam Quality” means the ratio of the mass of vapor to the total mass of

a vapor-liquid mixture of water at its saturation temperature.

(142) “Technical Corn Oil” means inedible oil recovered from thin stillage or the

distiller’s grains and solubles produced by a dry mill corn ethanol plant,

termed distiller’s corn oil (DCO), or other non-food grade corn oil from food

processing operations.

(143) “Technical Sorghum Oil” means inedible oil recovered from thin stillage or

the distiller’s grains and solubles produced by a dry mill sorghum ethanol

plant, termed distiller’s sorghum oil (DSO), or other non-food grade

sorghum oil from food processing operations.

(144) “Total Obligated Amount (TOA)” means the quantity of fuel for which the

fuel reporting entity is the eligible credit or deficit generator. The LRT-

CBTS calculates the TOA for each fuel pathway code. TOA is calculated

as the difference between the fuel reported using transaction types that

increase the net quantity of fuel that generates credits or deficits in the

LRT-CBTS and the fuel reported using transaction types that decrease the

net quantity of fuel that generates credits or deficits in the LRT-CBTS.

Transaction types that increase the TOA include: Production in

California, Production for Import, Import, Purchased with Obligation, Gain

of Inventory. Transaction types that decrease the TOA include: Sold

with Obligation, Loss of Inventory, Export, Not Used for Transportation.

(145) “Total Amount (TA)” means the total quantity of fuel reported by a fuel

reporting entity irrespective of whether the entity retained status as the

credit or deficit generator for that specific fuel volume. TA is calculated

as the difference between the fuel reported using transaction types that

increase the net fuel quantity reported in the LRT-CBTS and fuel reported

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§ 95481. Definitions. 20

using transaction type that decrease the net fuel quantity reported in the

LRT-CBTS. Transaction types that increase the TA include: Production

in California, Production for Import, Import, Purchased with Obligation,

Purchased without Obligation, Gain of Inventory. Transaction types that

decrease the TA include: Sold with Obligation, Sold without Obligation,

Loss of Inventory, Export, Not Used for Transportation.

(146) “Transaction Date” means the title transfer date as shown on the Product

Transfer Document.

(147) “Transaction Quantity” means the amount of fuel reported in a transaction.

A Transaction Quantity must be reported in units, provided in Table 4 and

in the LRT-CBTS.

(148) “Transaction Type” means the nature of a fuel-based transaction as

defined below:

(A) “Production in California” means the transportation fuel was

produced at a facility in California for use in California;

(B) “Production for Import” means the transportation fuel was produced

outside of California and imported into California for use in

transportation.

California and later brought by any party other than its producer into

California for use in transportation.

(D) “Purchased with Obligation” means the transportation fuel was

purchased with the obligation to claim credits or deficits in the

LRT-CBTS from a separate fuel reporting entity;

(E) “Purchased without Obligation” means the transportation fuel was

purchased without obligation to claim credits or deficits in the

LRT-CBTS from a separate fuel reporting entity;

(F) “Sold with Obligation” means the transportation fuel was sold with

the obligation to claim credits or deficits in the LRT-CBTS by a fuel

reporting entity;

(G) “Sold without Obligation” means the transportation fuel was sold

without obligation to claim credits or deficits in the LRT-CBTS by a

fuel reporting entity;

(H) “Export” means any fuel reported in the LRT-CBTS that is

subsequently delivered outside of California and is not used for

transportation in California;

(I) “Loss of Inventory” means the fuel entered the California fuel pool

but was not used due to volume loss;

(J) “Gain of Inventory” means the fuel entered the California fuel pool

due to a volume gain;

(K) “Not Used for Transportation” means a transportation fuel was

reported with compliance obligation under the LCFS but was later

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§ 95481. Definitions. 21

not used for transportation purposes in California or otherwise

determined to be exempt under section 95482(d);

(L) “eTRU Fueling” means providing fuel to electric transport

refrigeration units.

(M) “eCHE Fueling” means providing fuel to electric cargo handling

equipment.

(N) “eOGV Fueling” means providing shore power to an ocean-going

vessel at-berth.

(O) “EV Charging – Grid” means providing electricity to recharge EVs

using the California Average Grid Electricity Lookup Table pathway

for a given year as specified in section 95488.5;

(P) “EV Charging – Non-Grid” means providing electricity that has a

carbon intensity lower than the average grid electricity and is

obtained through an approved arrangement as specified in section

95488.8(h) or section 95488.8(i) to recharge EVs;

(Q) “EV Charging – Smart Charging” means providing electricity that is

eligible to generate credits under the smart charging provisions in

section 95488.5 to recharge EVs;

(R) “Fixed Guideway Electricity Fueling” means fueling light rail, heavy

rail, cable car, street car, and trolley bus, or exclusive right-of-way

bus operations with electricity;

(S) “Forklift Electricity Fueling” means providing fuel to electric forklifts;

(T) “Forklift Hydrogen Fueling” means providing fuel to hydrogen

forklifts;

(U) “Fuel Cell Vehicle (FCV) Fueling” means the dispensing of

hydrogen at a fueling station designed for fueling hydrogen fuel cell

electric vehicles;

(V) “Fuel Cell Vehicle (FCV) Fueling – Smart Electrolysis” means the

dispensing of hydrogen that is eligible to generate credits under the

smart charging or electrolysis provisions in section 95488.5;

(W) “NGV Fueling” means the dispensing of natural gas at a fueling

station designed for fueling natural gas vehicles;

(X) “Propane Fueling” means the dispensing of propane at a fueling

station designed for fueling propane vehicles.

(149) “Transmix” means a mixture of refined products that forms when these

products are transported through a pipeline. This mixture is typically a

combination of two of the following: gasoline, diesel, or jet fuel.

(150) “Transportation Fuel” means any fuel used or intended for use as a motor

vehicle fuel or for transportation purposes in a non-vehicular source.

(151) “Uncertainty” means the degree to which data or a data system is deemed

to be indefinite or unreliable.

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§ 95481. Definitions. 22

(152) “Used Cooking Oil” (or UCO) means fats and oils originating from

commercial or industrial food processing operations, including restaurants,

that have been used for cooking or frying. Feedstock characterized as

UCO must contain only fats, oils, or greases that were previously used for

cooking or frying operations. UCO must be characterized as “processed

UCO” if it is known that processing has occurred prior to receipt by the fuel

production facility or if evidence is not provided to the verifier or CARB to

confirm that it is “unprocessed UCO.”

(153) “Validation” means verification of a fuel pathway application.

(154) “Validation Statement” means the final statement rendered by a

verification body attesting whether the fuel pathway application is free of

material misstatement, and whether it conforms to the requirements of this

subarticle.

(155) “Verification” means a systematic, independent and documented process

for evaluation of reported data against the requirements specified in this

subarticle.

(156) “Verification Body” means an entity accredited by the Executive Officer

that is able to render a validation or verification statement and provide

validation or verification services to entities required to contract for

validation or verification.

(157) “Verification Services” means services provided during validation or

verification as specified in section 95501 beginning with the development

of the validation or verification plan to submitting a validation or verification

statement to CARB.

(158) “Verification Statement” means the final statement rendered by a

verification body attesting whether the responsible entity’s report is free of

material misstatement, when applicable, and whether the report conforms

to the requirements of this subarticle.

(159) “Verification Team” means all persons working for a verification body,

including all subcontractors, to provide validation or verification services to

an entity required to contract for validation or verification.

(160) “Verifier Review” means all reviews and services specified in section

95501 that a verifier conducts, except the material misstatement

assessment under section 95501(b)(9) through (11). If some data

sources are selected for data checks based on the sampling plan, the

verifier will check for conformance with the requirements of this subarticle.

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§ 95481. Definitions. 23

(161) “Yard Truck” An off-road mobile utility vehicle used to carry cargo

containers with or without chassis; also known as utility tractor rig (UTR),

yard tractor, yard goat, yard hostler, yard hustler, or prime mover. For

the purpose of LCFS crediting an electric yard truck is considered a

heavy-duty truck.

(162) “Yellow Grease” means a commodity produced from a mixture of:

(A) used cooking oil, and (B) rendered animal fats that were not used for

cooking. This mixture often is combined from multiple points of origin.

Yellow grease must be characterized as “animal fat” if evidence is not

provided to the verifier or CARB to confirm the quantity that is animal fat

and the quantity that is used cooking oil.

(b) Acronyms. For the purposes of sections 95480 through 95503, the following

acronyms apply.

“AEZ-EF” means Agro-Ecological Zone Emissions Factor model.

“AJF” means Alternative Jet Fuel.

“ASTM” means ASTM International (formerly American Society for Testing and

Materials).

“AFP” means Alternative Fuel Portal.

“BEV” means battery electric vehicles.

“CA-GREET” means California-modified Greenhouse Gases, Regulated

Emissions, and Energy use in Transportation model.

“CARB” means the California Air Resources Board (“Board”).

“CARBOB” means California reformulated gasoline blendstock for oxygenate

blending.

“CaRFG” means California reformulated gasoline.

“CCM” means Credit Clearance Market.

“CEC” means California Energy Commission.

“CFR” means Code of Federal Regulations.

“CHAdeMO” means Charge de Move, a DC fast charging protocol.

“CI” means carbon intensity.

“CNG” means compressed natural gas.

“DC” means Direct Current.

“DCO” means Distiller’s Corn Oil or Technical Corn Oil.

“DSO” means Distiller’s Sorghum Oil or Technical Sorghum Oil.

“eCHE” means Electric Cargo Handling Equipment.

“EDU” means Electrical Distribution Utility.

“EER” means energy economy ratio.

“eTRU” means electric transport refrigeration unit.

“eOGV” means Electric Power for Ocean-going Vessel.

“EV” means electric vehicle.

“FCV” means fuel cell vehicle.

“FPC” means fuel pathway code.

“FSE” means fueling supply equipment.

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§ 95481. Definitions. 24

“gCO

e/MJ” means grams of carbon dioxide equivalent per megajoule.

“GTAP” means the Global Trade Analysis Project model.

“GTSR” means the Green Tariff Shared Renewables program.

“GVWR” means gross vehicle weight rating.

“HySCapE” means Hydrogen Station Capacity Evaluator.

“H

” means hydrogen.

“HDV” means heavy-duty vehicles.

“HDV-CIE” means a heavy-duty vehicle compression-ignition engine.

“HDV-SIE” means a heavy-duty vehicle spark-ignition engine.

“HEV” means hybrid electric vehicle.

“ICEV” means internal combustion engine vehicle.

“LUC” means land use change.

“LCA” means life cycle analysis.

“LCFS” means Low Carbon Fuel Standard.

“LDV” means light-duty vehicles.

“L-CNG” means liquefied compressed natural gas.

“LNG” means liquefied natural gas.

“LPG” means liquefied petroleum gas.

“LRT-CBTS” means LCFS Reporting Tool and Credit Bank & Transfer System.

“LSE” means Load-Serving Entity.

“LVP” means LCFS Verification Portal.

“MCON” means marketable crude oil name.

“MDV” means medium-duty vehicles.

“MMBtu” means million British Thermal Units.

“MRR” means Mandatory Greenhouse Gas Reporting Regulation.

“MT” means metric tons of carbon dioxide equivalent.

“NG” means natural gas.

“NGV” means a natural gas vehicle.

“OPGEE” means Oil Production Greenhouse gas Emissions Estimator Model.

“PHEV” means plug-in hybrid vehicles.

“RFS” means the Renewable Fuel Standard.

“RNG” means renewable natural gas or biomethane.

“SAE CCS” means Society of Automotive Engineers Combined Charging

System, a DC fast charging protocol.

“SMR” means steam methane reformation.

“SOSS” means Station Operational Status System.

“UCO” means used cooking oil.

“TEOR” means thermally enhanced oil recovery.

“ULSD” means California ultra-low sulfur diesel.

“U.S. EPA” means the United States Environmental Protection Agency.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

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§ 95482. Fuels Subject to Regulation. 25

§ 95482. Fuels Subject to Regulation.

(a) Applicability of the Low Carbon Fuel Standard. Except as provided in this

section, the California Low Carbon Fuel Standard regulation, California Code of

Regulations (CCR), title 17, sections 95480 through 95503 (collectively referred

to as the “LCFS”) applies to any transportation fuel, as defined in section 95481,

that is sold, supplied, or offered for sale in California, and to any person who, as

a fuel reporting entity defined in section 95481 and specified in section 95483, is

responsible for reporting a transportation fuel in a calendar year. The types of

transportation fuels to which the LCFS applies include:

(1) California reformulated gasoline (“gasoline” or “CaRFG”);

(2) California diesel fuel (“diesel fuel” or “ULSD”);

(3) Fossil compressed natural gas (“Fossil CNG”), fossil liquefied natural gas

(“Fossil LNG”), or fossil liquefied compressed natural gas (“Fossil L-CNG);

(4) Bio-CNG, bio-LNG, or bio-L-CNG;

(5) Electricity;

(6) Compressed or liquefied hydrogen (“hydrogen”);

(7) A fuel blend containing greater than 10 percent ethanol by volume;

(8) A fuel blend containing biomass-based diesel;

(9) Denatured fuel ethanol (“E100”);

(10) Neat biomass-based diesel (“B100” or “R100”);

(11) Alternative Jet Fuel;

(12) Propane; and

(13) Any other liquid or non-liquid fuel.

(b) Opt-In Fuels. Each of the following alternative fuels (“opt-in fuels”) is presumed

to have a full fuel cycle, carbon intensity that meets the compliance schedules

set forth in sections 95484(b) through (d) through December 31, 2030. A fuel

provider for an alternative fuel listed below may generate LCFS credits for that

fuel only by electing to opt into the LCFS as an opt-in fuel reporting entity

pursuant to section 95483.1 and meeting the requirements of this regulation:

(1) Electricity;

(2) Bio-CNG;

(3) Bio-LNG;

(4) Bio-L-CNG;

(5) Alternative Jet Fuel; and

(6) Renewable Propane.

(1) An alternative fuel that:

(A) is not a biomass-based fuel; and

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§ 95482. Fuels Subject to Regulation. 26

(B) is supplied in California by all providers of that particular fuel for

transportation use at an aggregated quantity of less than

420 million MJ (3.6 million gasoline gallon equivalent) per year;

A fuel reporting entity that believes it is subject to this exemption has the

sole burden of proving to the Executive Officer’s satisfaction that the

exemption applies to the entity.

(2) Conventional jet fuel or aviation gasoline.

(3) Any deficit-generating fuel used in military tactical vehicles and tactical

support equipment as defined in title 13, CCR, section 1905(a) and CCR,

title 17, section 93116.2(a)(38), respectively.

(4) Any credit-generating fossil CNG or fossil propane dispensed at a fueling

station with total throughput of 150,000 gasoline-gallons equivalent or less

per year. The exemption for fossil propane dispensing stations expires

January 1, 2021, when the use of that fuel in heavy-duty or off-road

applications becomes deficit generating. The exemption for fossil CNG

dispensing stations expires January 1, 2024, when the use of that fuel in

heavy-duty or off-road applications becomes deficit generating.

(d) Exemption for Specific Applications. The LCFS regulation does not apply to any

transportation fuel used in the following applications:

(1) Locomotives not subject to the requirements specified in CCR, title 17,

section 93117; and

(2) Ocean-going vessels, as defined in CCR, title 17, section 93118.5(d).

This exemption does not apply to shore power provided to ocean-going

vessels at-berth, nor to recreational and commercial harbor craft, as

defined in CCR, title 17, section 93118.5(d); and

(3) Any deficit-generating fossil propane and CNG used in school buses

purchased prior to January 1, 2020.

(e) Nothing in this LCFS regulation (Cal. Code Regs., tit. 17, §§ 95480 et seq.) may

be construed to amend, repeal, modify, or change in any way the California

reformulated gasoline regulations (CaRFG, Cal.Code Regs., tit. 13, §§ 2260 et

seq.), the California diesel fuel regulations (Cal.Code Regs., tit. 13, §§ 2281-

2285 and Cal. Code Regs., tit. 17, § 93114), or any other applicable State or

federal requirements. A person, including the regulated entity as that term is

defined in the LCFS regulation, who is subject to the LCFS regulation or other

State and federal regulations, shall be solely responsible for ensuring compliance

with all applicable LCFS requirements and other State and federal requirements,

including the CaRFG requirements and obtaining any necessary approvals,

exemptions, or orders from either the State or federal government.

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§ 95483. Fuel Reporting Entities. 27

NOTE: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018, Health

and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515,

39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, and 43000, Health and Safety Code;

Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95483. Fuel Reporting Entities.

The purpose of this section is to identify the first fuel reporting entities, subsequent fuel

reporting entities, and the credit or deficit generator for each type of transportation fuel.

The first fuel reporting entity is responsible for initiating reporting within the LRT-CBTS

for a given amount of fuel and, by default, also holds the status as initial credit or deficit

generator for the reported fuel quantity. The fuel reporting entities identified in this

section are subject to the reporting requirements pursuant to section 95491 and to any

other requirement applicable to a fuel reporting entity and credit or deficit generator

under this subarticle.

(a) For Liquid Fuels. Liquid fuels refer to fossil fuels (including CARBOB, gasoline,

diesel, and conventional jet fuel), liquid alternative fuels (including ethanol as an

oxygenate, biomass-based diesel, and alternative jet fuels), and blend of liquid

alternative and fossil fuels.

(1) Designation of First Fuel Reporting Entities for Liquid Fuels. The first fuel

reporting entity for liquid fuels is the producer or importer of the liquid fuel.

For liquid fuels that are a blend of liquid alternative fuel components

(including ethanol as an oxygenate, biomass-based diesel, or alternative

jet fuels) and a fossil fuel component (including CARBOB, gasoline,

diesel, conventional jet, or other fossil fuels), the first fuel reporting entity

is the following:

(A) With respect to the alternative fuel component, the producer or

importer of the alternative fuel component.

(B) With respect to the fossil fuel component, the producer or importer

of the fossil fuel component.

alternative fuel portion of a blend with conventional jet fuel, the first

fuel reporting entity is the producer or importer of the alternative jet

fuel, which is delivered to a storage facility where fuel is stored

before it is uploaded to an aircraft in California. Conventional jet

fuel, including the conventional jet fuel portion of a blend, is not

subject to the LCFS and must not be reported.

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§ 95483. Fuel Reporting Entities. 28

(2) In the Case of Transfer of Fuel Ownership. An entity transferring

ownership of fuel is the “transferor” and an entity acquiring ownership of

fuel is the “recipient.”

(A) Transferring Status as Credit or Deficit Generator. An entity can

voluntarily transfer its status as a credit or deficit generator for a

given amount of liquid fuel, with the ownership of the fuel, if the

conditions set forth in subsections 1. through 4. below are met by

the time ownership of fuel is transferred. If such a transfer occurs,

the recipient also becomes the fuel reporting entity for the fuel while

the transferor is still subject to reporting requirements pursuant to

section 95491 and to any other requirement applicable to a fuel

reporting entity under this subarticle.

1. The two entities agree by written contract that the recipient

accepts all LCFS responsibilities of a fuel reporting entity

and credit or deficit generator.

2. The transferor must provide the recipient a product transfer

document that prominently states the information specified in

section 95491.1(b)(1).

3. In the case of a deficit generating fuel, the transferor and

recipient must meet the requirements specified in the

subsection below:

a. By default, the transferor’s annual credit and deficit

balance, as set forth in section 95485(b)(2), will be

updated to include the 





defined and set forth in section 95489(b).

b. By default, the recipient’s annual credit and deficit

balance, as set forth in section 95485(b)(2), will be

updated to include 





, as defined and set

forth in section 95489(b).

c. Paragraphs a. and b. above notwithstanding, the

transferor and recipient of deficit generating fuels

may, by the time the ownership is transferred, specify

by written contract which party is responsible for

accounting for the base deficit and incremental deficit

in the annual credits and deficits balance calculation

set forth in section 95485(b)(2).

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§ 95483. Fuel Reporting Entities. 29

4. The credit or deficit generator status cannot be passed to a

downstream entity acquiring ownership of liquid fuel below

the rack.

5. An entity acquiring ownership of fuel below the rack is not

required to report the fuel transaction in the LRT-CBTS

unless it is a fuel exporter pursuant to section

95483(a)(4)(C).

(B) Retaining Status as Credit or Deficit Generator. An entity can

retain its status as a credit or deficit generator for a given amount of

liquid fuel, while transferring the ownership of the fuel, if the

conditions set forth in subsections 1. through 2. below are met by

the time ownership of fuel is transferred. If such a transfer occurs,

the recipient also becomes a fuel reporting entity for the fuel while

the transferor is still subject to reporting requirements pursuant to

section 95491 and to any other requirement applicable to a fuel

reporting entity under this subarticle.

1. The two entities agree by written contract that the recipient

accepts all LCFS responsibilities of a fuel reporting entity

and the transferor retains the responsibilities as a fuel

reporting entity and credit or deficit generator.

2. The transferor must provide the recipient a product transfer

document that prominently states the information specified in

section 95491.1(b)(2).

3. An entity acquiring ownership of fuel below the rack is not

required to report the fuel transaction in the LRT-CBTS

unless it is a fuel exporter pursuant to section

95483(a)(4)(C).

(3) Transfer Period. For all liquid fuels, the period in which credit or deficit

generator status can be transferred to another entity, for a given amount

of fuel, is limited to three calendar quarters. This means that, for

example, if an entity receives title to a fuel along with credit or deficit

generator status in the first calendar quarter, the status as credit or deficit

generator for that amount of fuel can be transferred to another entity no

later than the end of the third calendar quarter. After this period is over,

the credit and deficit generator status for that amount of fuel cannot be

transferred.

(4) Designation of Fuel Exporter. Entities responsible for reporting exports of

fuel that has been previously reported in the LRT-CBTS are identified

below:

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§ 95483. Fuel Reporting Entities. 30

(A) When the fuel is sold or delivered above the rack for export, the

entity holding title to the fuel as it crosses the California border on

its way toward the first point of sale/delivery is responsible for

reporting the export in the LRT-CBTS.

(B) When the fuel is sold across the rack for export, the entity holding

title to the fuel as the fuel crosses the rack is responsible for

reporting the export in the LRT-CBTS.

holding title to the fuel, as it crosses the California border, is

responsible for reporting the export in the LRT-CBTS.

(b) For Gaseous Fuels. Gaseous fuels refer to natural gas fuels (including CNG,

LNG and L-CNG), propane and hydrogen.

(1) Designation of First Fuel Reporting Entities For Gaseous Fuels. The first

fuel reporting entity for different gaseous fuels is identified in subsections

(A) through (E) below. For gaseous fuels, subsection (2) below provides

entities the ability to contractually designate another entity as the first fuel

reporting entity for a given amount of gaseous fuel.

(A) Bio-CNG. For bio-CNG, including the bio-CNG portion of a blend

with fossil CNG, the first fuel reporting entity is the producer or

importer of the biomethane.

(B) Bio-LNG and Bio-L-CNG. For bio-LNG and bio-L-CNG, including

the biomethane portion of any blend with fossil LNG and L-CNG,

the first fuel reporting entity is the producer or importer of the

biomethane.

renewable propane portion of a blend with fossil propane, the first

fuel reporting entity is the producer or importer of the renewable

propane.

(D) Fossil CNG, LNG, and L-CNG and Propane. For fossil CNG,

LNG, L-CNG, and propane, including the fossil portion of any blend

with a renewable fuel component, the first fuel reporting entity is the

entity that owns the fueling equipment through which the fossil fuel

is dispensed to motor vehicles for transportation use.

(E) Hydrogen. The first fuel reporting entity for hydrogen is the entity

that owns the fueling supply equipment (“hydrogen station owner”)

through which hydrogen fuel is dispensed to motor vehicles for

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§ 95483. Fuel Reporting Entities. 31

transportation use. Notwithstanding the above, the first fuel

reporting entity for hydrogen used in fuel cell forklifts is the forklift

fleet owner.

(2) Subsections (1)(A) through (1)(E) above notwithstanding, an entity may

elect not to be the first fuel reporting entity for a given gaseous fuel,

provided another entity has contractually agreed to be the first fuel

reporting entity for the fuel on its behalf. In such cases the two entities

must agree by written contract that:

(A) The original first fuel reporting entity per subsections (1)(A) through

(1)(E) above will not generate credits or deficits in the LCFS and

will instead provide the amount of fuel dispensed, and other

required information pursuant to sections 95483.2(b)(8), 95491 and

95491.1, to the contractually designated entity for the purpose of

LCFS reporting and credit or deficit generation.

(B) The contractually designated entity accepts all LCFS

responsibilities as the first fuel reporting entity and as a credit or

deficit generator, as applicable.

(1) Residential EV Charging. For on-road transportation fuel supplied for

electric vehicle (EV) charging in a single- or multi-family residence, the

following entities are the credit generators:

(A) Base Credits. The EDU or its designee is the credit generator for

base credits for the portion of residential EV charging assigned to

that EDU by the Executive Officer. The EDU may authorize a third

party to sell the EDU’s credits. The EDU or its designee must

meet the requirements set forth in paragraphs 1. through 6. below,

and paragraphs 1. through 5. in section 95491(d)(3)(A).

Within 30 days of the effective date of this subarticle for large and

medium IOUs and POUs, or by December 31, 2022 for small IOUs

and POUs, or within 30 days of opting into the LCFS program,

whichever is later, each EDU seeking eligibility to generate base

credits must demonstrate, by attestation or entrance into any

applicable Clean Fuel Reward program (as defined in section

95481(a)(29)) governance agreement, its ability to contribute

allocated credits to the Clean Fuel Reward program consistent with

CPUC approval of Pacific Gas and Electric’s, Southern California

Edison’s, and San Diego Gas and Electric’s filing(s). The

Executive Officer may revoke the eligibility of an EDU to generate

base credits if it fails to make this required demonstration or if the

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§ 95483. Fuel Reporting Entities. 32

EDU withdraws or has been removed as a party to the governance

agreement. All base credits for any EDU that is not eligible to

receive base credits pursuant to this provision will be allocated to

the Clean Fuel Reward program pursuant to section

95486.1(c)(1)(A) paragraph 2. An EDU must submit any request

to change their base credit generation eligibility status for the Clean

Fuel Reward program to the Executive Officer by the September

30th prior to the start of the effective credit generation year.

1. Upon California Public Utilities Commission (CPUC)

approval of Pacific Gas and Electric’s, Southern California

Edison’s, and San Diego Gas and Electric’s filing(s) to

initiate a Clean Fuel Reward program, all opt-in EDUs must

contribute a minimum percent of base credits for residential

EV charging (or net base credit proceeds) to provide a Clean

Fuel Reward funded exclusively by LCFS credit proceeds,

as per the contribution tabulated below:

EDU category

% Contribution in

years 2019

through 2022

% Contribution in

years 2023 and

subsequent years

Large Investor-owned

Utilities

67% 67%

Large Publicly-owned

Utilities

35% 45%

Medium Publicly-owned

Utilities and Medium

Investor-owned Utilities

20% 25%

Small Publicly-owned

Utilities and Small

Investor-owned Utilities

0% 2%

The Executive Officer will review the implementation of any

Clean Fuel Reward program, including the actual credit

value contribution of each utility to the program, and present

a report to the Board by January 1, 2025 with

recommendations for further increasing utility contributions

to the Clean Fuel Reward program.

2. The reward amounts for any Clean Fuel Reward program

must be calculated based on the vehicle’s battery capacity

as tabulated below:

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§ 95483. Fuel Reporting Entities. 33

Battery Capacity

(kWh)

Reward %

 < 5

 = 5

38.9%

5 <  < 16

 ≥ 16

100%

where:

 % means the percentage of maximum reward a

vehicle would receive under the Clean Fuel Reward program

funded by LCFS credit proceeds. The maximum reward is

the amount a vehicle with a battery capacity of 16 kWh or

greater can receive; and

 means the rated battery capacity of the electric vehicle in

kWh.

3. All proceeds from base credits issued pursuant to section

95486.1(c)(1)(A) paragraph 2. must be contributed to any

Clean Fuel Reward program.

4. Administrative costs, excluding start-up costs (those costs

associated with setting up the program and incurred prior to

issuing rewards), to support any Clean Fuel Reward

program funded by LCFS credit proceeds may not exceed

10 percent of LCFS credit proceeds contributed to the Clean

Fuel Reward program annually, unless approved in advance

by the Executive Officer.

a. A request to exceed 10 percent administrative costs

must be submitted by the administrator of the Clean

Fuel Reward program to the Executive Officer on the

following schedule:

i. For the first six calendar months of the program

including the month in which the first issuance

of reward takes place, a request must be

submitted at least 30 days prior to the first

reward issuance.

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§ 95483. Fuel Reporting Entities. 34

ii. For the period starting with the seventh

calendar month of the program through

December 31, 2021, the request must be

submitted at least 30 days prior to the

beginning of month seven.

iii. For calendar year 2022 and subsequent

calendar years, the request must be submitted

by September 30th of the prior year.

b. Request submitted to the Executive Officer must

include, and will be evaluated for approval based on, a

complete description for why higher administrative

costs are necessary, a detailed list of expected

administrative costs including a description of all

efforts made to obtain competitive rates and minimize

costs, and a detailed estimate of expected program

proceeds. Within 30 days of receiving a request for

higher administrative costs, the Executive Officer will

inform the administrator of its decision in writing. If

the request is rejected, the Executive Officer will

provide a rationale for the decision. If the rejection is

due to insufficient information, the administrator may

resubmit the request after addressing the deficiencies

identified in the Executive Officer decision.

5. Reporting on Clean Fuel Reward Program Implementation.

By April 30th the administrator of the Clean Fuel Reward

program funded by LCFS credit proceeds shall submit a

report to the Executive Officer describing the disposition of

LCFS Clean Fuel Reward program funds from the previous

calendar year. The first such report covering a period from

the start of the program until the end of 2020 must be

submitted by April 30, 2021. This report must include:

a. The monetary value of LCFS credit proceeds received

by the Clean Fuel Reward program; and

b. A summary, detailed list, and explanation of

administrative costs, including start-up costs, utility

overhead costs, and costs for program-related

marketing, education, and outreach activities.

6. Restrictions on Use of Holdback Credits. Documentation of

adherence to the following restrictions must be included in

the annual report submitted pursuant to section

95491(d)(3)(A)5.

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§ 95483. Fuel Reporting Entities. 35

a. Holdback Credit Equity Projects. Effective January 1,

2022, at least 30 percent in year one, 40 percent in

year two, and 50 percent in subsequent years of

holdback credit proceeds must be used to support

transportation electrification for the primary benefit of

or primarily serving disadvantaged communities

and/or low-income communities and/or rural areas or

low-income individuals eligible under California

Alternative Rates for Energy (CARE) or Family Electric

Rate Assistance Program (FERA) or the definition of

low-income in Health and Safety code section 50093

or the definition of low-income established by a POU’s

governing body. These projects may include:

i. Electrification and battery swap programs for

school or transit buses.

ii. Electrification of drayage trucks.

iii. Investment in public EV charging infrastructure

and EV charging infrastructure in multi-family

residences.

iv. Investment in electric mobility solutions, such

as EV sharing and ride hailing programs.

v. Multilingual marketing, education, and outreach

designed to increase awareness and adoption

of EVs and clean mobility options and including

information about: the environmental,

economic, and health benefits of EV

transportation; basic maintenance and charging

of EVs; electric rates designed to encourage

EV use; and local, state, and federal incentives

available for purchase of EVs.

vi. Additional rebates and incentives for low-

income individuals beyond existing local,

federal and State rebates and incentives

including the Clean Fuel Reward for:

purchasing or leasing new or previously owned

EVs; installing EV charging infrastructure in

residences; promoting use of public transit and

other clean mobility solutions; and offsetting

costs for residential or nonresidential EV

charging.

vii. Alternatively, EDUs, in coordination with local

environmental justice advocates, local

community-based organizations, and local

municipalities, may develop and implement

other projects that promote transportation

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§ 95483. Fuel Reporting Entities. 36

electrification in disadvantaged and/or low-

income communities and/or rural areas or for

low-income individuals. These alternative

projects are subject to approval by the

Executive Officer. Applications submitted to

the Executive Officer must include, and will be

evaluated for approval based on, a complete

description of the project, demonstration that

the project promotes transportation

electrification in disadvantaged and/or low-

income communities and/or rural areas or

provides increased access to electric

transportation for low-income individuals, and

evidence that the project was developed in

coordination with local environmental justice

advocates, local community-based

organizations, and local municipalities.

b. Additional Reporting Requirements for Holdback

Credit Equity Projects. As part of annual reporting

required pursuant to section 95491(d)(3)(A)5., EDUs

must include a discussion on how their portfolio of

holdback credit equity projects is consistent with the

findings and recommendations of the SB 350 Low-

Income Barriers Study, Part B report prepared by

CARB (rev. Feb. 2018), incorporated herein. This

discussion must include, as applicable, a description

of how the projects: support increased access to clean

transportation and mobility options; consider, and to

the extent feasible, either complement or build upon

existing CARB, other State, or local incentive projects

to diversify and maximize benefits from statewide

investments; demonstrate partnership and support

from local community-based organizations; and meet

community-identified clean transportation needs.

c. Administrative Costs of Holdback Credit Equity

Projects. Administrative costs to support the

development and implementation of holdback credit

equity projects must not exceed 10 percent of total

spending on holdback credit equity projects annually

unless the EDU contracts with a community-based

organization, and the exceedance is approved in

advance by the Executive Officer. The request for

administrative cost exceedance for a calendar year

must be submitted by September 30th of the prior

year. The request must include, and will be

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§ 95483. Fuel Reporting Entities. 37

evaluated for approval based on, a complete

description of the equity projects planned by the EDU,

an estimate of total administrative costs relative to

total spending on the projects, and evidence that the

community-based organization is a non-profit

organization focused on serving disadvantaged and/or

low-income groups. Within 30 days of receiving a

request for higher administrative costs, the Executive

Officer will inform the EDU of its decision in writing. If

the request is rejected the Executive Officer will

provide a rationale for the decision. If the rejection is

due to insufficient information, the EDU may resubmit

the request after addressing the deficiencies identified

in the Executive Officer decision.

d. Holdback credit proceeds must not be used for the

following activities:

i. To meet compliance obligations under the

market-based compliance mechanism set forth

in title 17, California Code of Regulations

Chapter 1, Subchapter 10, article 5

(commencing with section 95800), including the

purchase of allowances, for electricity sold into

the California Independent System Operator

markets.

ii. To pay for the costs of MRR, the AB 32 Cost of

Implementation Fee Regulation (California

Code of Regulations, sections 95200-95207),

or the market-based compliance mechanism

set forth in title 17, California Code of

Regulations Chapter 1, Subchapter 10, article 5

(commencing with section 95800), including the

purchase of allowances.

iii. To pay for lobbying costs, employee bonuses,

shareholder dividends, or costs, penalties, or

activities mandated by any legal settlement,

administrative enforcement action, or court

order. This provision does not prohibit the use

of holdback credits to pay costs, penalties, or

liabilities associated with the Clean Fuel

Reward program in the event that Clean Fuel

Reward program funds are insufficient.

(B) Incremental Credits. Any entity, including an EDU, is eligible to

generate incremental credits for improvements in carbon intensity

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§ 95483. Fuel Reporting Entities. 38

of electricity used for residential EV charging. An entity that

generates incremental credits must meet the requirements set forth

in paragraphs 2. through 7. in section 95491(d)(3)(A), as

applicable.

1. For metered residential EV charging, incremental credits for

each FSE may be generated for one of the following:

a. Low-CI electricity; or

b. Smart charging. In the case of an entity claiming

smart charging incremental credits, the credit

generator must demonstrate the residence is enrolled

in a Time-of-Use rate plan, if offered by the LSE

serving the residence.

2. Multiple claims for incremental credits for metered residential

EV charging associated with a single FSE ID will be resolved

pursuant to the following order of preference:

a. The Load Serving Entity (LSE) supplying electricity to

the EV associated with the FSE ID and metered data

has first priority to claim credits;

b. The manufacturer of the EV associated with the FSE

ID has second priority; and

c. Any other entity has third priority.

3. For non-metered residential EV charging, the EDU is eligible

to generate incremental credits for supplying low-CI

electricity to the EVs in its service territory.

LCFS and are eligible to receive base credits per section

95483(c)(1)(A) are the credit generators for advanced credits.

(2) Non-Residential EV Charging.

(A) For electricity supplied for non-residential EV charging, the owner

of the FSE is eligible to generate the credits.

(B) Subsection (A) above notwithstanding, the owner of FSE may elect

not to be the credit generator and instead designate another entity

to be the credit generator if the two entities agree by written

contract that:

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§ 95483. Fuel Reporting Entities. 39

1. The owner of FSE will not generate credits and will instead

provide the electricity data to the designated entity for LCFS

reporting pursuant to sections 95483.2(b)(8), 95491 and

95491.1.

2. The designated entity accepts all LCFS responsibilities as

the fuel reporting entity and credit generator.

must meet the requirements set forth in paragraphs 2. through 7. in

section 95491(d)(3)(A), as applicable.

(3) Fixed Guideway Systems. For electricity supplied as transportation fuel

to a fixed guideway system, the transit agency operating the system is the

fuel reporting entity and the credit generator for electricity used to propel

the system. Upon submittal to the Executive Officer of the transit

agency’s written acknowledgment that it will not opt in and generate

credits under this provision, the EDU becomes eligible to generate the

credits for the electricity, and must meet the requirements set forth in

sections 95491(d)(3)(A), paragraphs 3. through 5.

(4) Electric Forklifts.

(A) For transportation fuel supplied to electric forklifts, the fleet owner is

the fuel reporting entity and the credit generator for electricity

supplied to a specified fleet.

(B) Subsection (A) above notwithstanding, the electric forklift fleet

owner may elect not to be the credit generator and instead

designate another entity to be the credit generator, if the two

entities agree by written contract that:

1. The electric forklift fleet owner will not generate credits and

will instead provide the electricity data to the designated

entity for LCFS reporting pursuant to sections 95483.2(b)(8),

95491 and 95491.1.

2. The designated entity accepts all LCFS responsibilities as

the fuel reporting entity and credit generator.

3. The EDU can generate credits for electricity supplied to

electric forklift fleet in its service territory during a reporting

period if not claimed by any other entity under paragraphs 1.

and 2., above. The EDU must meet the requirements in

section 95491(d)(3)(A), paragraphs 3. through 5.

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§ 95483. Fuel Reporting Entities. 40

(5) Electric Transport Refrigeration Units (eTRU), Electric Cargo Handling

Equipment (eCHE), Electric Power for Ocean-going Vessel (eOGV).

(A) For electricity supplied to eTRU, eCHE, or eOGV, the owner of the

FSE is the fuel reporting entity and the credit generator.

(B) Subsection (A) above notwithstanding, the owner of the FSE may

elect not to be the credit generator and instead designate another

entity to be the credit generator if the two entities agree by written

contract that:

1. The owner of the FSE will not generate credits and will

instead provide the electricity data to the designated entity

for LCFS reporting pursuant to sections 95483.2(b)(8),

95491 and 95491.1.

2. The designated entity accepts all LCFS responsibilities as

the fuel reporting entity and credit generator.

meet the requirements set forth in paragraphs 2. through 7. in

section 95491(d)(3)(A), as applicable.

(6) Other Electric Transportation Applications. For electricity supplied to a

transportation application not covered in subsection (1) through (5) above,

any entity can apply to the Executive Officer to be the fuel reporting entity

and the credit generator for electricity supplied as long as it meets the

requirements of section 95488.7(a)(3) and 95491.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95483.1. Opt-In Entities.

(a) Eligibility. An entity that meets one or more of the following criteria may opt into

the LCFS program, thereby becoming a credit generator.

(1) Opt-in Fuel Reporting Entity. An entity meeting any of the following

criteria can opt into the LCFS program in a capacity of fuel reporting entity.

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§ 95483.1. Opt-In Entities. 41

(A) A qualified fuel reporting entity who provides a fuel specified in

section 95482(b) that meets the requirements of section 95483,

wherever applicable;

(B) An out-of-state producer of oxygenate for blending with CARBOB

or gasoline, or biomass-based diesel for blending with CARB

diesel, who is not otherwise already subject to the LCFS regulation

as an importer. An out-of-sate producer under this subsection

may retain the ability to generate credits or deficits, for a specific

quantity of fuel or blendstock, only if it opts in as a first fuel

reporting entity and meets the requirements of section 95483,

wherever applicable.

and is positioned on that chain between the producer in subsection

(B) above and the importer (“intermediate entity”). The

intermediate entity is subject to the following requirements.

The intermediate entity must provide written documentation

demonstrating all the following requirements to the Executive

Officer’s written satisfaction before opting into the LCFS:

1. The entity received ownership of the fuel for which the entity

is claiming to generate LCFS credits;

2. Either:

a. The entity received the fuel reporting entity status

from a producer that opted in under section 95483.1;

b. The producer did not opt in under section

95483.1(a)(1).

3. The entity actually delivered the fuel or caused the fuel to be

delivered to California for use in California;

4. The fuel delivered under subsection 3. is shown to have

been sold for use in California or was otherwise actually

used in California; and

4. The entity is not otherwise already subject to the LCFS

regulation as a fuel reporting entity.

5. The demonstrations in paragraphs 1. through 4. above must

be made for the specific quantity of fuel upon which the

entity first elects to opt into the LCFS. For subsequent

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§ 95483.1. Opt-In Entities. 42

quantities of fuel for which the entity is claiming to be the fuel

reporting entity pursuant to this subsection, the entity must

retain documentation to support the demonstrations required

in paragraphs 1. through 4., above, and must submit such

documentation to the Executive Officer within 30 calendar

days upon request.

(2) Project Operators. An entity that has a project approved for crediting or

is applying for approval by the Executive Officer under section 95489 must

apply to opt into the LCFS program as a credit generator.

(3) Clearing Service Provider.

(A) An entity providing clearing services in which it takes only a

temporary possession of LCFS credits for the purpose of clearing

transactions between two entities with registered accounts in

LRT-CBTS, may apply to opt in as a clearing service provider if the

following conditions are met:

1. The eligible entity must be a derivatives clearing

organization as defined in the Commodities Exchange Act

(7 U.S.C § 1a(9)) that is registered with the U.S. Commodity

Futures Trading Commission pursuant to the Commodities

Exchange Act (7 U.S.C. § 7a-1(a)).

2. The entity must register in the LRT-CBTS pursuant to

section 95483.2(b).

3. The entity must be located in the United States, according to

the registration information reported pursuant to section

95483.2(b).

(B) A clearing service provider cannot own credits but can hold LCFS

credits up to five days for clearing purposes only.

(b) Opting in Procedure. The procedure for opting into and opting out of the LCFS

for such a person is set forth as follows.

(1) Opting into the LCFS program becomes effective when the opt-in entity

establishes an account in the LRT-CBTS, pursuant to section 95483.2.

The opt-in entity may not report and generate credits and deficits based

on transactions that precede the quarter in which the entity opted in.

(2) Establishing an account in the LRT-CBTS under subsection (b)(1) above

means that the entity understands the requirements of the LCFS

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§ 95483.1. Opt-In Entities. 43

regulation and has agreed to be subject to all the requirements and

provisions of the LCFS regulation.

program by following the following procedure:

(1) For opt-out to be effective, the opt-in entity must complete all actions

specified below:

(A) Provide to the Executive Officer a 90-day notice of intent to opt out

and a proposed effective opt-out date;

(B) Submit in the LRT-CBTS any outstanding quarterly fuel

transactions or project reports up to the quarter in which the

effective opt-out date falls and a final annual compliance report

(covering the year through the opt-out date); and

any remaining deficits by the effective opt-out date.

(2) Opt-Out Approval. The Executive Officer shall notify the opt-in entity of

the final “approval” status of the opt-out request. Any credits that remain

in the opt-in entity’s account at the time of the effective opt-out date shall

be forfeited and the opt-in entity’s account in the LRT-CBTS shall be

closed.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95483.2. LCFS Data Management System.

The LCFS Data Management System refers to all the online systems responsible for

LCFS data management and program implementation.

The LCFS Data Management System comprises three interactive and secured

web-based systems: Alternative Fuel Portal, LCFS Reporting Tool and Credit Bank

and Transfer System, and LCFS Verification Portal.

(a) Alternative Fuel Portal (AFP). The AFP supports fuel pathway applications,

certifications, and verifications. It also handles the registration of fuel production

facilities and opt-in projects.

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§ 95483.1. Opt-In Entities. 44

(1) Eligibility. Any person who intends to be a fuel pathway applicant or an

opt-in project operator can request to establish an account in the AFP.

(2) Requirements to Establish an Account in AFP. To establish an account

in the AFP, an entity must complete and submit the online AFP account

registration form and provide the following:

(A) Organization name, address, state and country, Organization

Federal Employer Identification Number (FEIN), company EPA ID,

if available, facility location(s).

(B) A letter on company letterhead stating the basis for qualifying for an

account pursuant to subsection (1) above. This letter must be

signed by the company owner, a president, a managing partner, or

a corporate officer. An electronic copy of the signed letter must be

uploaded in the AFP.

and at least one alternate account representative. The primary

account representative and the alternate account representative(s)

must attest, as follows:

“I certify under penalty of perjury under the laws of the State of

California as follows: I was selected as the primary account

representative or the secondary account representative, as

applicable, by an agreement that is binding on all persons who

have the legal right to access the AFP account. I have all the

necessary authority to carry out the duties and responsibilities

contained in California Code of Regulations, title 17, sections

95480 et seq. on behalf of such persons and that each such person

shall be fully bound by my representations, actions, inactions, or

submissions and by any order or decision issued to me by the

Executive Officer or a court regarding the account.”

(D) For each representative, name, title, relationship to the

organization, business phone, e-mail address, username, and

password.

(E) The account representatives can be changed by following steps set

forth in subsection (B), (C), and (D) above. Notwithstanding any

such change, all representations, actions, inactions, and

submissions by the previous account representatives prior to the

time and date when the Executive Officer receives the superseding

information shall be binding on the entity.

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§ 95483.2. LCFS Data Management System. 45

(3) Account Approval.

(A) The account is established when the Executive Officer approves

the application.

(B) Account registration application may be denied based on false,

misleading, or missing information.

(4) Account Management Roles and Duties.

(A) The account representative is responsible for making any changes

to the company profile within AFP.

(B) The account representative may designate users within the

company who can access and manage the account.

entity holding the account must update the account to reflect the

changes within 30 calendar days.

(b) LCFS Reporting Tool and Credit Bank & Transfer System (LRT-CBTS). The

LRT-CBTS is designed to support fuel transaction reporting, compliance

demonstration, credit generation, banking, and transfers.

(1) Eligibility. The following entities can request to establish an account in

the LRT-CBTS:

(A) A fuel reporting entity;

(B) An entity opting into LCFS, pursuant to section 95483 or 95483.1;

(2) Deadline to Establish LRT-CBTS Account.

(A) An entity responsible for reporting any transportation fuels pursuant

to section 95483 must complete registration at least 30 days prior

to the date for filing any required report.

(B) An opt-in entity can register anytime during a calendar year. All

quarterly and annual reporting is then required, beginning with the

quarter in which registration was approved, and continuing until any

opt-out is completed.

credit trades.

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§ 95483.2. LCFS Data Management System. 46

(3) Requirements to Establish an Account in LRT-CBTS. A company owner,

a president, a managing partner, or a corporate officer with legal binding

authority must complete and submit the online LRT-CBTS account

registration form and provide the following:

(A) Organization name, address, state and country, Organization

Federal Employer Identification Number (FEIN), date and place of

incorporation.

(B) A letter on company letterhead stating the basis for qualifying for an

account pursuant to subsection (1) above. This letter must be

signed by the company owner, a president, a managing partner, or

a corporate officer. A signed pdf copy must be uploaded in the

LRT-CBTS to complete the application process.

account representative and at least one alternate account

representative. The primary account representative and the

alternate account representative(s) must attest in writing, as

follows:

“I certify under penalty of perjury under the laws of the State of

California as follows: I was selected as the primary account

representative or the secondary account representative, as

applicable, by an agreement that is binding on all persons who

have the legal right to control LCFS credits held in the account. I

have all the necessary authority to carry out the duties and

responsibilities contained in California Code of Regulations, title 17,

sections 95480 et seq. on behalf of such persons and that each

such person shall be fully bound by my representations, actions,

inactions, or submissions and by any order or decision issued to

me by the Executive Officer or a court regarding the account.”

(D) For each representative, name, title, relationship to the

organization, business and mobile phone, e-mail address,

username, and password.

(E) The account representatives can be changed by following steps set

forth in subsections (B) through (D) above. Notwithstanding any

such change, all representations, actions, inactions, and

submissions by the previous account representatives prior to the

time and date when the Executive Officer receives the superseding

information shall be binding on the entity.

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§ 95483.2. LCFS Data Management System. 47

(F) A designated fuel reporting entity pursuant to section 95483(b) and

demonstrating it acquired the first fuel reporting entity status from

another entity for each such entity.

(G) Clearing Service Providers. In addition to requirements specified

in 95483.2(b)(3)(A) through (E), a clearing service provider

requesting to establish an LRT-CBTS account must provide

documents demonstrating their eligibility pursuant to section

95483.1(a)(3).

(4) LCFS Credit Broker. A broker may represent other LRT-CBTS account

holders in LCFS credit transfers. To register a broker account, the broker

must provide the following:

(A) Broker’s organization name, address, state and country,

Organization Federal Employer Identification Number (FEIN), date,

and place of incorporation, if applicable.

(B) Broker’s name, business and mobile phone, e-mail address,

username, and password.

registration application to the LCFS program for a broker account in

the LRT-CBTS, I am submitting to the jurisdiction of the California

courts. I certify under penalty of perjury that I have not been

convicted of a felony in the last five years.”

(5) Account Approval.

(A) The account is established when the Executive Officer approves

the application.

(B) Account registration application may be denied based on false,

misleading or missing information.

(6) Account Management Roles and Duties.

(A) The account representative is responsible for making any changes

to the company profile within LRT-CBTS.

(B) The account representative may designate users within the

company who can access and manage the account.

requirements as set forth in section 95491.

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§ 95483.2. LCFS Data Management System. 48

(D) If any information required by section 95483.2(b)(3) changes, the

entity holding the account must update the account to reflect the

changes within 30 calendar days.

(7) Account Closure.

(A) An LRT-CBTS account is subject to suspension or closure based

on any of the following:

1. The account holder is no longer eligible to establish an

LRT-CBTS account pursuant to section 95483.2(b)(1);

2. The account holder fails to comply with requirements of

section 95483.2(b); and

3. The account holder intends to opt out pursuant to section

95483.1(c).

(B) The account holder must provide a notice of intent to the

LRT-CBTS Administrator to close the account within 90 days after

any condition in subsection (A) above. The entity must submit a

final quarterly report for the quarter in which the notice was

provided, submit a final annual report, and submit verification that

any remaining deficits have been eliminated. The Executive

Officer shall notify the entity of the final account closure. Any

credits that remain in the entity’s account at the time of the closure

will be placed in the Buffer Account.

result in account closure and forfeit of any credits that remain in the

entities account at the time of the closure.

(D) When an entity requests to reopen the LRT-CBTS account that was

previously closed, the entity must follow the requirements as set

forth in section 95483.2(b) to reopen the account.

(8) Registration of Fueling Supply Equipment (FSE). After establishing the

LRT-CBTS account, fuel reporting entities for natural gas, electricity,

propane, and hydrogen must register all fueling supply equipment in the

LRT-CBTS using the FSE registration template available on the

LRT-CBTS home page. The completed FSE registration template with

supporting documents must be uploaded into the LRT-CBTS. Upon FSE

registration, the applicant will receive a unique LCFS FSE ID that must be

used for reporting fuel transactions in the LRT-CBTS pursuant to 95491.

The following must be provided:

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§ 95483.2. LCFS Data Management System. 49

(A) General Requirements. All FSE registrations must include:

1. Federal Employer Identification Number (FEIN) for the entity

registering, name of the facility at which FSE is situated,

street address, latitude, and longitude of the FSE location.

2. Name and address of the entity that owns the

FSE, if different from the entity registering the FSE.

(B) Specific Requirements by Fuel Type.

1. For CNG, FSE refers to a fueling station associated with a

utility meter. A CNG station with multiple dispensers is

considered a single FSE. Fuel reporting entities for CNG

must provide the natural gas utility meter number at the FSE

location, name of the utility company, and a copy of the most

recent utility bill.

2. For LNG and propane, FSE refers to a fueling station. An

LNG or propane station with multiple dispensers is

considered a single FSE. Fuel reporting entities for LNG

and propane must provide a unique identifier associated with

the FSE used for their own fuel accounting or financial

accounting or other purposes and copy of invoice or bill of

lading for the most recent fuel delivery.

3. For non-residential EV charging, FSE refers to each piece of

equipment capable of measuring the electricity dispensed for

EV charging. Fuel reporting entities for non-residential EV

charging for on-road applications must provide the serial

number assigned to the FSE by the original equipment

manufacturer (OEM) and the name of OEM. If there are

multiple FSEs at the same location, each unique piece of

equipment must be registered separately.

4. For residential metered EV charging, FSE refers to a piece

of equipment or on-vehicle telematics capable of measuring

the electricity dispensed for EV charging.

a. Fuel reporting entities for metered residential EV

charging using off-vehicle meters must provide the

serial number assigned to the FSE by the OEM, the

name of the equipment OEM, and the Vehicle

Identification Number (VIN) for the vehicle expected

to be charged at the location.

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§ 95483.2. LCFS Data Management System. 50

b. Fuel reporting entities using vehicle telematics must

provide the VIN.

c. FSE registration is optional when reporting metered

electricity to generate base credits.

d. Notwithstanding subsection (8)(A) above, location

information and address is not required for residential

charging.

5. Fuel reporting entities for fixed guideway systems are

exempt from subsection (A)1. above. The LRT-CBTS will

assign FSE IDs for reporting purposes based on the

information provided in the LRT-CBTS account registration

form.

6. For electric forklifts, eCHE, or eOGV, FSE refers to the

facility or location where electricity is dispensed for fueling.

If there are multiple FSEs capable of measuring the

electricity dispensed at the facility or location, then it is

optional to provide serial number assigned to each

equipment by the OEM and the name of OEM.

7. For eTRU, FSE refers to each eTRU. Fuel reporting

entities for eTRU fueling must provide the serial number

assigned to the unit by the OEM and the name of the OEM.

8. For hydrogen, FSE refers to a fueling station. A hydrogen

station with multiple dispensers is considered a single FSE.

Fuel reporting entities for hydrogen must provide the station

ID assigned by SOSS.

9. For transportation applications not covered in paragraphs 1.

through 8. above, FSE refers to a fuel dispenser or a

transportation equipment with the capability to measure the

dispensed fuel in that equipment.

verification processes.

(1) Eligibility. Any entity providing verification services pursuant to section

95500 (Executive Officer accredited verification body) can request an

account in LVP.

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§ 95483.2. LCFS Data Management System. 51

(2) Requirements to Establish an Account in LVP. A company owner, a

president, a managing partner, a corporate officer, or any other person

with binding legal authority must complete and submit the online LVP

account registration form and provide the following:

(A) Organization name, address, state and country, Organization

Federal Employer Identification Number (FEIN), date and place of

incorporation.

(B) The online LVP registration form must designate a primary account

representative and at least one alternate account representative.

The primary account representative and the alternate account

representative(s) must attest in writing, as follows:

“I certify under penalty of perjury under the laws of the State of

California as follows: I was selected as the primary account

representative or the secondary account representative, as

applicable, by an agreement that is binding on all persons who

have the legal right to submit information on behalf of the

verification body. I have all the necessary authority to carry out

the duties and responsibilities contained in California Code of

Regulations, title 17, sections 95480 et seq. on behalf of such

persons and that each such person shall be fully bound by my

representations, actions, inactions, or submissions and by any

order or decision issued to me by the Executive Officer or a court

regarding the account.”

organization, business and mobile phone, e-mail address,

username, and password.

(D) The account representatives can be changed by following steps set

forth in subsection (B) and (C) above. Notwithstanding any such

change, all representations, actions, inactions, and submissions by

the previous account representatives prior to the time and date

when the Executive Officer receives the superseding information

shall be binding on the entity.

(3) Account Approval.

(A) The account is established when the Executive Officer approves

the application.

(B) Account registration application may be denied based on false,

misleading or missing information.

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§ 95483.2. LCFS Data Management System. 52

(4) Account Management Roles and Duties.

(A) The account representative is responsible for making any changes

to the company profile within LVP.

(B) The account representative may designate users within the

company who can access and manage the account.

requirements as set forth in section 95500 through 95502.

(D) If any information required by section 95483.2(c)(2) changes, the

entity holding the account must update the account to reflect the

changes within 30 calendar days.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95483.3. Change of Ownership or Operational Control.

If an entity or a facility registered in the LRT-CBTS, the AFP, or the LVP undergoes a

change of ownership or operational control, the following requirements apply.

(a) CARB Notifications. Within 30 days of the change of ownership or operational

control, the previous owner or operator of the regulated entity or facility and the

new owner or operator of the entity or facility must provide the following

information to CARB:

(1) The previous owner or operator must notify CARB in writing of the

ownership or operational control change, including the name of the new

owner or operator and the date of the ownership or operational control

change.

(2) The new owner or operator must notify CARB in writing of the ownership

or operational control change, including the following information:

(A) Previous owner or operator;

(B) New owner or operator;

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§ 95483.3. Change of Ownership or Operational Control. 53

(D) Name of new account representatives pursuant to section 95483.2

for the affected entity’s account in the LRT-CBTS, AFP or LVP.

(3) The first owner must give the Executive Officer direction regarding the

disposition of net credits in the first owner’s LRT-CBTS account and the

certified fuel pathways associated with the first owner’s AFP account.

(b) Reporting Responsibilities. The owner or operator of record at the time of a

reporting or verification deadline specified in this subarticle has the responsibility

for complying with the requirements of this subarticle, including submitting

quarterly and annual reports, certifying that the reports are accurate and

complete, obtaining verification services, and completing verification.

(1) Reported data must not be split or subdivided for a reporting period, based

on ownership. A single reporting period data report must be submitted

for the entity by the current owner or operator. This report must

represent required data for the entire reporting period.

(2) Previous owners or operators are required to provide data and records to

new owners or operators that is necessary and required for preparing

quarterly and annual reports required by this article.

annual report, is responsible for demonstrating compliance pursuant to section

95485.

(d) Bankruptcy. Deficits constitute regulatory obligations under California law.

(e) Fate of Credits After an Entity Dissolves. The Executive Officer will place into

the Buffer Account any net credits in the account of a party that dissolves or

otherwise ceases to exist without notifying the Executive Officer pursuant to

paragraph (3) of subdivision (a) of this section.

(f) Fate of Deficits After an Entity Dissolves. Prior to dissolution, a fuel reporting

entity is responsible for retiring credits equal to any net deficits in its LRT-CBTS

account and fulfill account closure requirements as set forth in section

95483.2(b)(7).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

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§ 95484. Annual Carbon Intensity Benchmarks. 54

§ 95484. Annual Carbon Intensity Benchmarks.

(a) The Executive Officer’s credit and deficit calculations, as described in Sections

95486 and 95486.1, will use the appropriate annual carbon intensity benchmarks

set forth in Tables 1, 2, and 3 of this section.

(b) Benchmarks for Gasoline and Fuels used as a Substitute for Gasoline.

Table 1. LCFS Carbon Intensity Benchmarks for 2011 to 2030 for Gasoline and

Fuels Used as a Substitute for Gasoline.

Year

Average C

arbon Intensity

(gCO

e/MJ)

Year

Average Carbon

Intensity

(gCO

e/MJ)

2010 Reporting Only

2011* 95.61 2021

90.74

2012 95.37 2022

89.50

2013** 97.96 2023

88.25

2014 97.96 2024

87.01

2015 97.96 2025

85.77

2016*** 96.50 2026

84.52

2017 95.02 2027

83.28

2018 93.55 2028

82.04

2019**** 93.23 2029

80.80

2020 91.98

2030 and

subsequent years

79.55

* The benchmarks for years 2011 and 2012 reflect reductions from base year (2010) CI values for CaRFG (95.85)

calculated using the CI for crude oil supplied to California refineries in 2006.

** The benchmarks for years 2013 to 2015 reflect reductions from revised base year (2010) CI values for CaRFG

(98.95) calculated using the CI for crude oil supplied to California refineries in 2010.

*** The benchmarks for years 2016 to 2018 reflect reductions from revised base year (2010) CI values for CaRFG

(98.47).

**** The benchmarks for years 2019 to 2030 reflect reductions from revised base year (2010) CI values for CaRFG

(99.44).

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§ 95484. Annual Carbon Intensity Benchmarks. 55

Table 2. LCFS Carbon Intensity Benchmarks for 2011 to 2030 for Diesel Fuel and

Fuels Used as a Substitute for Diesel Fuel.

Year

Average Carbon Intensity

(gCO

e/MJ)

Year

Average Carbon

Intensity

(gCO

e/MJ)

2010

Reporting Only

2011* 94.47 2021

91.66

2012 94.24 2022

90.41

2013**

97.05

2023

89.15

2014 97.05 2024

87.89

2015 97.05 2025

86.64

2016*** 99.97 2026

85.38

2017 98.44 2027

84.13

2018 96.91 2028

82.87

2019****

94.17

2029

81.62

2020 92.92

2030 and

subsequent years

80.36

* The benchmarks for years 2011 and 2012 reflect reductions from base year (2010) CI values for ULSD (94.71)

calculated using the CI for crude oil supplied to California refineries in 2006.

** The benchmarks for years 2013 to 2015 reflect reductions from revised base year (2010) CI values for ULSD

(98.03) calculated using the CI for crude oil supplied to California refineries in 2010.

*** The benchmarks for years 2016 to 2018 reflect reductions from revised base year (2010) CI values for ULSD

(102.01).

**** The benchmarks for years 2019 to 2030 reflect reductions from revised base year (2010) CI values for ULSD

(100.45).

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§ 95484. Annual Carbon Intensity Benchmarks. 56

(d) Benchmarks for Fuels used as a Substitute for Conventional Jet Fuel.

Table 3. LCFS Carbon Intensity Benchmarks for 2019 to 2030 for Fuels Used as

a Substitute for Conventional Jet Fuel.

Year

Average Carbon

Intensity

(gCO

e/MJ)

2019

89.37

2020

89.37

2021

89.37

2022

89.37

2023

89.15

2024

87.89

2025

86.64

2026

85.38

2027

84.13

2028

82.87

2029

81.62

2030 and subsequent

years

80.36

* The benchmarks reflect reductions from base year (2010) CI values for conventional jet fuel (89.37).

(e) Carbon Intensity Benchmarks for an Alternative Fuel Other Than a

Biomass-Based Diesel Fuel Intended for Use in a Vehicle.

(1) The Executive Officer will use the benchmarks for gasoline set forth in

section 95484(b) for credit and deficit calculations for any alternative fuel,

other than biomass-based diesel fuel, if the alternative fuel is used or

intended to be used in any single-fuel light- or medium-duty vehicle.

(2) The Executive Officer will use the benchmarks for diesel fuel set forth in

section 95484(c) for credit and deficit calculations for any alternative fuel,

other than biomass-based diesel fuel, that is used or intended to be used

in any single-fuel application not identified in section 95484(e)(1).

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§ 95484. Annual Carbon Intensity Benchmarks. 57

(f) Carbon Intensity Benchmarks for Biomass-Based Diesel Fuel. The benchmark

for diesel fuel, set forth in section 95484(c), applies to biomass-based diesel fuel

is used or intended to be used in any:

(1) light-, medium-, or heavy-duty vehicle;

(2) off-road transportation application;

(3) off-road equipment application;

(4) locomotive or commercial harbor craft application; or

(5) non-stationary source application not otherwise specified in subsections

(1) through (4) above.

(g) Carbon Intensity Benchmarks for Transportation Fuels Intended for Use in Multi-

Fuel Vehicles.

(1) The Executive Officer’s credit and deficit calculations involving alternative

fuel provided for use in a multi-fueled vehicle use:

(A) the benchmarks for gasoline set forth in section 95484(b) if one of

the fuels used in the multi-fuel vehicle is gasoline; or

(B) the benchmarks for diesel fuel set forth in section 95484(c) if one of

the fuels used in the multi-fuel vehicle is diesel fuel.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95485. Demonstrating Compliance.

(a) Compliance Demonstration.

(1) A fuel reporting entity must demonstrate that it met its annual compliance

obligation by submitting an annual compliance report, showing that it

possessed and has retired a number of credits from its credit account that

is equal to its compliance obligation.

(2) Mandatory Retirement of Credits for the Purpose of Compliance. At the

time of annual compliance report submission, for a fuel reporting entity

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§ 95485. Demonstrating Compliance. 58

that possesses credits and has also incurred deficits, the LRT-CBTS will

retire a sufficient number of credits so that:

(A) Enough credits are retired to completely meet the fuel reporting

entity’s compliance obligation for that compliance period, or

(B) If the total number of credits available in entity’s account is less

than the total number of deficits incurred, all the credits within

entity’s possession will be retired.

(b) Calculation of Credit Balance and Annual Compliance Obligation.

(1) Compliance Period. Beginning in 2011 and every year thereafter, the

annual compliance period is January 1

through December 31

of each

year.

(2) Calculation of Compliance Obligation and Credit Balance at the End of a

Compliance Period. The Executive Officer will calculate each LRT-CBTS

account holder’s compliance obligation and credit balance at the end of a

compliance period as follows:

= 



+ 



where:





are the deficits generated pursuant to sections 95486

and 95489 in the current compliance period;





are the deficits carried over from the previous

compliance period and not deferred pursuant to section 95485(c);





are the credits generated pursuant to sections 95486 and

95489 in the current compliance period;





are the credits purchased or otherwise acquired in the

current compliance period, including carryback credits acquired pursuant

to section 95486;





are the credits released from the hold due to enforcement

or administrative action;

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§ 95485. Demonstrating Compliance. 59





are the credits carried over from the previous

compliance period;





are the credits retired within the LCFS in the current

compliance period;





are the credits sold or otherwise transferred in the current

compliance period;





are the credits placed on hold due to enforcement or

administrative action. While on hold these credits cannot be used for

meeting an annual compliance obligation;





are the credits pledged for the Credit Clearance Market

and withheld from the ongoing LCFS market; and





are the credits adjusted or invalidated due to

administrative or enforcement action.

(1) If a fuel reporting entity does not retire sufficient credits to meet its

year-end compliance obligation under section 95485(a), that party must

purchase its pro-rata share of credits in the Credit Clearance Market, if

one occurs.

(A) If the Credit Clearance Market occurs, a fuel reporting entity that

fails to comply with section 95485(a) is nevertheless in compliance

if the party:

1. Retires all credits in its LRT-CBTS account;

2. Acquires its Pro-Rata Obligation in the Credit Clearance

Market and retires that number of credits by August 31

the year subsequent to the compliance year in question; and

3. Retires the remaining balance of its annual obligation, with

interest, within five years.

(B) If no Credit Clearance Market occurs, the Executive Officer will

record any entity’s unmet compliance obligation, and the fuel

reporting entity will be deemed in compliance for that year, provided

that it has retired all credits in its account, and retires credits

equivalent to the Accumulated Deficits, with interest as explained in

section 95485(c)(5) below, within five years.

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§ 95485. Demonstrating Compliance. 60

(2) Acquisition of “Clearance Market” Credits to Meet an Annual Compliance

Obligation.

(A) Clearance Market Period. The Clearance Market, if one occurs,

will operate from June 1

to August 30

. A fuel reporting entity

subject to section 95485(c)(1) must acquire credits pledged into the

Credit Clearance Market to be retired toward compliance in the

previous compliance year. Credits acquired for this purpose are

defined as “Clearance Market” credits.

(B) Use of Clearance Market Credits. A Clearance Market credit can

only be used for the purpose of meeting the fuel reporting entity’s

compliance obligation from an immediate prior year.

for two consecutive years must submit a Compliance Plan to

CARB, by August 31

of that second consecutive year, detailing its

plan to obtain sufficient credits to meet future annual compliance

obligations within a five-year period.

1. Compliance Plan Requirements. Submitted Compliance

Plans must include the following:

a. A detailed list of specific business initiatives,

strategies, and actions that, if implemented, will

achieve a positive credit balance within a five-year

timeframe;

b. Quantification of anticipated LCFS credit generation

and acquisition, and discussion of uncertainties and

contingencies associated with each listed initiative,

strategy, or action;

c. Quantification of anticipated annual credit shortage

and uncertainties over the following five compliance

years;

d. A target timeline for implementing all outlined

provisions in the plan;

e. Data and underlying calculations used to arrive at

emission reduction quantification and timelines;

f. Reference to management policies or practices

applicable to implementing listed plan initiatives,

strategies, and actions;

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§ 95485. Demonstrating Compliance. 61

g. List of key roles or positions within the company

involved in executing and completing implementation

of provisions of the plan;

h. Data records, including written contracts and

associated verbal or electronic records, and invoices

used to demonstrate actions underway consistent with

the submitted plan;

i. Any other information related to or supporting

demonstration of plan requirements necessary to

allow CARB to develop a general understanding of the

approaches being taken to implement the plan.

2. Compliance Plan Approval. The Executive Officer shall

approve each submitted compliance plan if it meets the

requirements of section 95485(c)(2)(C) paragraph 1. If the

Executive Officer determines that the requirements for

approval have not been met, the Executive Officer will notify

the regulated entity of which specific requirements of section

95485(c)(2)(C) paragraph 1 have not been met. The

regulated entity must then submit additional information to

correct deficiencies identified by the Executive Officer. If

the regulated entity is unable to correct any deficiencies

found with their plan within 45 days of the Executive Officer’s

receipt of the original plan, the plan will be denied on that

basis, and the regulated entity will be informed in writing.

At any point during the evaluation process, the Executive

Officer may request in writing additional information or

clarification from the regulated entity.

3. Compliance Plan Implementation Reporting. In addition to

other reports required to be submitted by this subarticle,

entities required to submit compliance plans must submit

annual compliance plan implementation reports that clearly

demonstrate actions taken and progress made to comply

with the approved plan. The regulated entity must disclose

and explain any deviations from the submitted plan in their

compliance plan implementation report and identify the

actions that will be taken to correct these deviations.

a. Annual compliance plan implementation reports must

be submitted by April 30

each year for a five-year

period starting the calendar year after the plan was

approved.

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§ 95485. Demonstrating Compliance. 62

b. If a regulated entity’s annual credit shortage in any

given year is greater than the annual credit shortage

that was approved in the original compliance plan,

implementation reports that identify deviations from the

approved compliance plan will be made public on the

CARB website.

(D) Entities required to acquire credits in the Credit Clearance Market

must complete payment to the seller before the credit transfer is

initiated, unless the buyer and seller agree on other payment terms.

All credit transfers must be completed on or before the final date of

the Clearance Market Period.

(3) Procedure for Selling in the Clearance Market.

(A) Call for Credits. On the first Monday in April, the Executive Officer

shall issue to all fuel reporting entities and credit generators a call

for credits to be pledged for sale in the Clearance Market. When

calling for credits, the Executive Officer will inform fuel reporting

entities of that year’s Maximum Price for Credits as determined in

section 95487(a)(2)(D).

(B) Pledging Credits for Sale into the Clearance Market. Fuel

reporting entities and credit generators pledging credits for sale into

the Clearance Market must report to the Executive Officer in the

Annual Compliance Report (on or before April 30

) the number of

credits they are pledging for sale.

are pledged for sale into the Credit Clearance Market to fully clear

outstanding deficits, the Executive Officer shall issue credits equal

to the difference between the number of outstanding deficits and

the number of credits pledged for sale in the Credit Clearance

Market subject to the following:

1. Advanced credits will be issued to eligible Large IOUs and

Large POUs that opt into the LCFS and are eligible to

receive base credits per section 95483(c)(1)(A). Advanced

credits will be allocated to eligible utilities based on their pro-

rata share of base credits received in the most recent

issuance. Advanced credits must be pledged for sale in the

current Credit Clearance Market and may only be sold at the

maximum LCFS price per section 95487(a)(2)(D). A

minimum portion of proceeds generated from the sale of

advanced credits must be allocated using the 2023 and

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§ 95485. Demonstrating Compliance. 63

onward contribution percentages found in section

95483(c)(1)(A) paragraph 1. to the Clean Fuel Reward

program.

2. The first such issuance of advanced credits will mark the

start of the six-year “advanced credit window,” during which

advanced credits can be issued and after which base credit

issuances will be adjusted to account for advanced credits.

3. Cumulative Advanced Credits. The cumulative number of

advanced credits issued during the advanced credit window

shall not exceed 10 million.

4. Adjusting Future Issuance of Base Credits. After the six-

year advanced credit window is closed, total base credits

issued every year will be adjusted downwards to account for

advanced credits as per the following schedule. Base

credit adjustment for each EDU will be pro-rated based on

their share of total advanced credits received. Annual

adjustments will be spread equally across each quarter.

Year

Percent of total advanced

credits

Year 7

Year 8

10%

Year 9

20%

Year 10

30%

Year 11

35%

where:

Year n refers to the n

year from the first year the advanced

credits were issued. For example, if the first advanced

credits are issued in 2021, marking year 1, then the first year

that base credit issuance will be adjusted would be 2027.

(D) Calculation of the Maximum Price for Credits in the Clearance

Market. The maximum price for credits acquired, purchased or

transferred via the Credit Clearance Market shall be set pursuant to

section 95487(a)(2)(D).

(E) Eligibility to Sell. Only fuel reporting entities that demonstrated

compliance pursuant to section 95485(a) for the prior year can

pledge credits for sale into the Clearance Market. Fuel reporting

entities that have an Accumulated Deficit obligation cannot pledge

credits for sale into the Clearance Market.

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§ 95485. Demonstrating Compliance. 64

(F) Selling in the Clearance Market. By pledging credits for sale in the

Clearance Market, parties agree to the following provisions:

1. Parties pledging credits agree to withhold those credits from

sale in the ongoing LCFS credit market until the Executive

Officer determines whether a Clearance Market will occur

and, if a Clearance Market will occur, until August 31

2. The Executive Officer will announce whether a Clearance

Market will occur by May 15

of each year.

3. If the Executive Officer announces that a Clearance Market

will not be held that year, parties who have pledged credits

to the Clearance Market shall be released from their

agreement to withhold those credits from sale in the ongoing

LCFS credit market.

4. If a Clearance Market does occur, parties agree to sell or

transfer credits at or below the Maximum Price for the

pertinent year, until the Clearance Market closes on

August 30

5. Parties that have voluntarily pledged credits to sell into the

Clearance Market cannot reject, based on credit pricing

terms, an offer to purchase those pledged credits at the

Maximum Price, provided they have not sold or contractually

agreed to sell those pledged credits.

(4) Clearance Market Operation. The Executive Officer will inform each fuel

reporting entity that failed to meet the Annual Compliance obligation under

section 95485(a) of its pro-rata share of credits available into the

Clearance Market by June 1

(A) Calculation of Pro-Rata Shares. Each fuel reporting entity’s

pro-rata share of credits available in the Clearance Market will be

calculated by the following formula:

Fuel reporting entity A’s pro-rata share =

where:

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§ 95485. Demonstrating Compliance. 65

 refers to one fuel reporting entity’s obligation for the

compliance year that has not been met pursuant to section

95485(a);

  refers to the sum of all fuel reporting entities’

obligations for the compliance year that have not been met

pursuant to section 95485(a); and

  means the sum of all credits pledged pursuant to

section 95485(c)(3).

(B) Publishing a List of Entities Participating in the Clearance Market.

On or before June 1

, the Executive Officer will post the following

information on the LCFS web site:

1. The name of each entity that did not meet the requirement of

section 95485(a);

2. The name of each entity that has pledged to provide credits

for sale in the credit clearance market and the number of

credits that each party has agreed to provide; and

3. The name of each entity that received advanced credits and

the total number of advanced credits pledged for sale in the

credit clearance market.

reporting entities that purchased credits in the Clearance Market

must submit to the Executive Officer an Amended Annual

Compliance Report by August 31

that accounts for the acquisition

and retirement of their pro-rata share of Clearance Market credits,

and for all deficits carried over as Accumulated Deficits.

(D) Accumulated Deficits. If, after purchasing its pro-rata share of

credits and retiring those credits, a fuel reporting entity retains an

unmet compliance obligation, the Executive Officer shall record

remaining deficits from that compliance year in the entity’s account.

(5) Rules Governing Accumulated Deficits.

(A) Compound Interest on Accumulated Deficits. Fuel reporting

entities with an Accumulated Deficit will be charged interest to be

applied annually to all deficits in a fuel reporting entity’s account.

Interest will be applied on Accumulated Deficit from previous

compliance years in terms of additional deficits that must be retired

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§ 95485. Demonstrating Compliance. 66

pursuant to section 95485(c)(1)(A) at a rate of 5 percent annually,

applied on each September 1

(B) Repayment of Accumulated Deficits. Fuel reporting entities that

participate in the Clearance Market in order to meet their

compliance obligations must repay all deficits, plus interest no later

than five years from the end of the compliance period in which any

such deficit was incurred.

reporting entities may repay Accumulated Deficits as part of a

subsequent annual report. However, no repayment of any

Accumulated Deficits is allowed unless the fuel reporting entity

meets 100 percent of its current compliance obligation.

(D) Prohibitions on Credit Transfers. Fuel reporting entities that have

an Accumulated Deficit obligation cannot transfer or sell credits to

another fuel reporting entity.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95486. Generating and Calculating Credits and Deficits.

(a) Generation and Acquisition of Transferrable Credits.

(1) Credit and Deficit Issuance. Upon submission and acceptance of timely

reports as required by this subarticle, the total number of credits and

deficits generated will be issued in the LRT-CBTS account of the

applicable credit or deficit generator. Once issued, credits may be

retained indefinitely, retired to meet a compliance obligation, or transferred

to other entities through the LRT-CBTS. The Executive Officer will issue

the credits and deficits in the LRT-CBTS if:

(A) The credit or deficit generator met all the reporting requirements

pursuant to this subarticle;

(B) The credit or deficit generator successfully reconciled the fuel

quantity reported per FPC using transaction types Sold with

Obligation and Purchased with Obligation with business partners by

the quarterly reporting deadline, if required;

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§ 95486. Generating and Calculating Credits and Deficits. 67

other provision of this subarticle.

(2) No Retroactive Credit Claim. Unless expressly provided elsewhere in

this subarticle, no credit generator may generate or claim credits

retroactively for a period for which the reporting deadline has passed.

Similarly, no deficit generator may eliminate deficits retroactively for a

period for which the reporting deadline has passed.

(3) Buffer Account. The Executive Officer may create an LRT-CBTS account

under the control of the Executive Officer. In this account, the Executive

Officer may place:

(A) An equivalent number of credits for any LCFS credits that could

have been claimed (or deficits that could have been eliminated) if

reported timely, if not for the prohibition on retroactive credit claims

in section 95486(a)(2).

(B) An equivalent number of credits representing the difference

between the reported CI and the verified operational CI from annual

Fuel Pathway Reports for each fuel pathway code reported with

transaction types “Production in California”, “Production for Import”,

and “Import” during a compliance year. These credits will be

placed in the buffer account after August 31

for the prior

compliance year and will be calculated according to the following

equation:









(



)



 





where:



 



is the number of credits representing the

difference between the reported CI and verified operational CI for

each fuel pathway code;



  



is the number of credits calculated using



 



instead of 





in the equation in section

95486.1(a)(1). 

 



is determined by the Executive

Officer on the basis of the annual Fuel Pathway Reports pursuant

to section 95488.10 for each fuel pathway code; and

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§ 95486. Generating and Calculating Credits and Deficits. 68



 



is the number of credits calculated using equation

in section 95486.1(a)(1) for each fuel pathway code;

(D) All net credits remaining in any deactivated LRT-CBTS accounts.

(E) The Executive Officer may retire credits in the Buffer Account to

address the invalidation of credits, pursuant to section 95495, if the

person responsible for the invalidated credits no longer exists or is

otherwise unavailable to reimburse the program.

(4) The Executive Officer may, at the time of credit generation or credit

transfer, assign a unique identification number to each credit. Credits are

subject to review and audit by the Executive Officer or his designee, and

credits may be invalidated or adjusted as necessary pursuant to section

95495.

(5) Acquisition of “Carryback” Credits to Meet Obligation.

(A) Carryback Credit Acquisition Period. A fuel reporting entity may

acquire, via purchase or transfer, additional credits between

January 1

and April 30

(“carryback period”) to be used for

meeting the compliance obligation of the year immediately prior to

the carryback period. Credits acquired for this purpose are

defined as “carryback” credits. All carryback credit transfers must

be completed in the LRT-CBTS pursuant to section 95487(b) by

April 30

in order to be valid for meeting the compliance obligation

of the year immediately prior.

(B) Use of Carryback Credits. A carryback credit may be used for the

purpose of meeting the compliance of an immediate prior year if all

of the conditions below are met:

1. The credit was acquired during the carryback period;

2. The credit was generated in a compliance year prior to the

carryback period;

3. A fuel reporting entity electing to use carryback credits must

identify the number of credits it desires to use as carryback

credits in its annual compliance report submitted to the

Executive Officer no later than April 30

of the year in which

the carryback credits were obtained; and

4. A fuel reporting entity electing to use carryback credits must:

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§ 95486. Generating and Calculating Credits and Deficits. 69

a. Acquire and retire a sufficient amount of carryback

and other credits to meet 100 percent of its

compliance obligation in the prior compliance year, or

b. Minimize its compliance shortfall by retiring all credits

in its possession at the end of the previous

compliance year, as well as all credits purchased

during the carryback period that are eligible to be

used as carryback credits.

(b) Calculation of Credits and Deficits Generated. The Executive Officer will

calculate the number of credits and deficits generated within the LRT-CBTS

using the methods specified in section 95486.1 and section 95489. The total

credits and deficits generated are used in determining the overall credit balance

for a compliance period, pursuant to section 95485. All credits and deficits are

denominated in units of metric tons (MT) of carbon dioxide equivalent.

(1) All LCFS fuel quantities used for credit calculation using fuel pathways are

in energy units of megajoules (MJ).

Fuel quantities denominated in other units, such as those shown in

Table 4, are converted to MJ in the LRT-CBTS by multiplying by the

corresponding energy density

Energy density factors are based on the lower heating values of fuels in CA-GREET3.0 using BTU to

MJ conversion of 1055.06 J/Btu.

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§ 95486. Generating and Calculating Credits and Deficits. 70

Table 4. Energy Densities and Conversion Factors for LCFS Fuels and

Blendstocks.

Fuel (units)

Energy Density

CARBOB (gal)

119.53 (MJ/gal)

CaRFG (gal)

115.83 (MJ/gal)

Diesel fuel (gal)

134.47 (MJ/gal)

LNG (gal)

78.83 (MJ/gal)

CNG (Therms)

105.5 (MJ/Therm)

Electricity (KWh)

3.60 (MJ/KWh)

Hydrogen (kg)

120.00 (MJ/kg)

Undenatured Anhydrous Ethanol

80.53 (MJ/gal)

Denatured Ethanol (gal)

81.51 (MJ/gal)

FAME Biodiesel (gal)

126.13 (MJ/gal)

Renewable Diesel (gal)

129.65 (MJ/gal)

Alternative Jet Fuel (gal)

126.37 (MJ/gal)

Propane (LPG) (gal)

89.63 (MJ/gal)

(2) The total credits and deficits generated by a credit or deficit generator in a

compliance period will be calculated as follows:

where:

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§ 95486. Generating and Calculating Credits and Deficits. 71





represents the total credits (a zero or positive value), in units

of metric tons (MT), for all fuels and blendstocks determined from the

credits generated under the gasoline, diesel, and jet fuel annual carbon

intensity benchmarks, and from opt-in projects, if applicable;





represents the total deficits (a negative value), in MT, for all

fuels and blendstocks determined from the deficits generated under either

or both of the gasoline and diesel fuel annual carbon intensity

benchmarks;

 is the finished fuel or blendstock index; and

 is the total number of finished fuels and blendstocks provided by a

credit or deficit generator in a compliance period.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways.

(a) General Calculation of Credits and Deficits Using Fuel Pathways. LCFS credits

or deficits for each fuel or blendstock for which a fuel reporting entity is the credit

or deficit generator will be calculated according to the following equations:

where:







/





() is either the number of LCFS credits

generated (a zero or positive value), or deficits incurred (a negative value),

in metric tons, by a fuel or blendstock under the average carbon intensity

requirement for gasoline ( = “gasoline”), diesel ( = “diesel”), or jet

fuel ( = “jet”);







is the average carbon intensity requirement of either gasoline

( = “gasoline”), diesel ( = “diesel”), or jet fuel ( = “jet”) for a given

year as provided in sections 95484(b), (c) and (d), respectively;







is the adjusted carbon intensity value of a fuel or blendstock, in

gCO

e/MJ, calculated pursuant to section 95486.1(a)(2);

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 72







is the total quantity of gasoline ( = “gasoline), diesel ( =

“diesel”), or jet ( = “jet”) fuel energy displaced, in MJ, by the use of an

alternative fuel, calculated pursuant to section 95486.1(a)(3); and

 is a factor used to convert credits to units of metric tons from gCO

and has the value of:

 = 1.010



()

(



)

(2) 













where:





is the carbon intensity of the fuel or blendstock, measured in

gCO

e/MJ, determined by a CA-GREET pathway or a custom pathway

and incorporates a land use modifier (if applicable); and





is the dimensionless Energy Economy Ratio (EER) relative to

gasoline ( = “gasoline”), diesel ( = “diesel”), or jet fuel ( = “jet”)

as listed in Table 5. For a vehicle-fuel combination not listed in Table 5,





= 1 must be used unless an applicant is granted certification of an

EER-adjusted CI value pursuant to section 95488.7(a)(3).

(3) 





= 



× 



where:





is the energy of the fuel or blendstock, in MJ, determined from the

energy density conversion factors in Table 4, except as noted in

subsection (4) below.

(4) For Fixed Guideway Systems and Forklifts:







= 



where:





is the energy of the fuel used to propel fixed guideway systems, electric

forklifts, and hydrogen fuel cell forklifts. For fixed guideway system

expansion beyond 2010, and for electric and hydrogen fuel cell forklifts

with model year 2011 or later, the formula for displaced energy in section

95486.1(a)(3) may be used with Executive Officer approval.

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 73

Table 5. EER Values for Fuels Used in Light- and Medium-Duty, and Heavy-Duty

Applications.

Light/Medium-Duty

Applications

Heavy-Duty/Off-Road

Applications

Aviation

Applications

(Fuels used as gasoline

replacement)

(Fuels used as diesel

replacement)

(Fuels used as jet fuel

replacement)

Fuel/Vehicle

Combination

EER

Values

Relative

Gasoline

Fuel/Vehicle

Combination

EER

Values

Relative

Diesel

Fuel/Vehicle

Combination

EER

Values

Relative

Conven-

tional Jet

Gasoline (incl. E6

and E10)

Diesel fuel

Or 1 Or 1

Alternative Jet

Fuel

E85 (and other

ethanol blends)

Biomass-based

diesel blends

CNG or LNG

(Spark-Ignition

Engines)

0.9

CNG/ICEV

CNG or LNG

(Compression-

Ignition Engines)

Electricity/BEV or

PHEV* Truck or

Bus

5.0

Electricity/BEV, or

PHEV

3.4

Electricity/Fixed

Guideway, Heavy

Rail

4.6

Electricity/Fixed

Guideway, Light

Rail

3.3

On-Road Electric

Motorcycle

4.4

Electricity/Trolley

Bus, Cable Car,

Street Car

3.1

Electricity Forklifts

3.8

eTRU

3.4

eCHE

2.7

eOGV 2.6

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 74

H2/FCV 2.5

H2/FCV

1.9

H2 Fuel Cell

Forklifts

2.1

Propane 1.0 Propane 0.9

*BEV = battery electric vehicle, PHEV= plug-in hybrid electric vehicle, FCV = fuel cell vehicle,

ICEV = internal combustion engine vehicle.

(b) Credit and Deficit Generation Frequency Using Fuel Pathways. Unless

expressly provided elsewhere in this subarticle, credits and deficits for fuel

transactions reported each quarter will be generated in LRT-CBTS accounts

upon completion of the reporting period for the given quarter, if all the conditions

set forth in section 95486(a)(1) are met.

(1) Base Credits to EDUs. “Base Credit” refers to the credit generated by an

EDU for electricity using carbon intensity values provided in the Lookup

Table pathway for California Average Grid Electricity and the credit

calculation in 95486.1(a).

(A) Determining Quantity of Electricity. For calculating base credits to

EDUs, the quantity of electricity must be determined as follows:

1. For Non-Metered Residential EV Charging. The Executive

Officer will use the following method to calculate the quantity

of electricity used for non-metered residential charging:

































where:



 



is the total estimated electricity use in

kWh of non-metered residential plug-in electric vehicles

assigned to the EDU for the reporting period;



 



is the total number of non-metered residential

EVs within a given EDU service area for the reporting period;



 



is the quantity in kWh of electricity

used daily for residential charging of EVs, based upon the

best data available to the Executive Officer, during the

reporting period;

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 75



 



is the total number of days in the reporting

period.

2. Using the equation in subsection 1. above, the Executive

Officer may also calculate, based upon the best data

available, the quantity of non-metered electricity used in

residential EV charging within service areas for which the

EDU has not opted in or is not eligible to receive base

credits per section 95483(c)(1)(A). The Executive Officer

may then calculate credits generated from this quantity of

electricity and assign these credits to Large IOUs and Large

POUs that are eligible to receive base credits.

3. For Metered Residential EV Charging. The EDU may

demonstrate the quantity of electricity for the purposes of

calculating the base credits for metered charging at

residences through timely submission of Quarterly Fuel

Transaction Reports based on meter records.

(B) Calculation of Base Credits. The Executive Officer will use the

quantity of electricity as determined in subsection (A) above to

calculate the base credit using the Lookup Table pathway CI value

for California Average Grid Electricity and the credit generation

equation provided in section 95486.1(a).

are exempt from the credit generation requirements pursuant to

sections 95486(a)(2) and 95486.1(b).

(2) Incremental Credits for Residential EV Charging. “Incremental Credit”

refers to any credits generated in addition to the base credits generated by

an EDU pursuant to subsection (1)(B) above, for the same electricity,

using the calculation in subsection (2)(B), below.

(A) Quantity of Electricity.

1. Non-Metered Residential EV Charging. The Executive

Officer shall use the formula in 95486.1(c)(1)(A) for

calculating the quantity of electricity eligible to generate

incremental credits for each residence that has an electric

vehicle that is not separately metered and is shown to

receive low-CI electricity, and is not claimed by another

generator of incremental low-CI electricity credits using

metered data.

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 76

2. Metered Residential EV Charging for Incremental Credits.

Any entity generating incremental credit for metered

residential EV charging must supply the quantity of electricity

through timely submission of Quarterly Fuel Transaction

Reports based on meter records.

(B) Calculation of Incremental Credits. Incremental credits for

residential EV charging, including either low-CI electricity or smart

charging, and incremental credits for smart electrolysis pathways,

must be calculated according to the following equation:

where:





() is the number of incremental LCFS credits generated

(a zero or positive value), in metric tons, for improvements in

carbon intensity of electricity supplied to residential EV charging or

for hydrogen production using electrolysis compared to the grid-

average carbon intensity;



 

is the carbon intensity of California Average Grid

Electricity pathway certified by the Executive Officer for a given

year, or the applicable region’s average grid electricity for hydrogen

imported to California;





is the adjusted carbon intensity of electricity, in

gCO

e/MJ, as calculated for a certified Tier 2 pathway or a Lookup

Table pathway, including smart charging or smart electrolysis

pathways;



is the total quantity of either low-CI electricity supplied

for EV charging, or electricity supplied for smart charging or smart

electrolysis and reported by hourly windows, in MJ, determined

from the energy density conversion factors in Table 4; and

 is a factor used to convert credits to units of metric tons from

gCO

e and has the value of:

 = 1.010



()

(



)

(d) Calculation of Credits for Non-Residential EV Charging Using Fuel Pathways.

The base and incremental framework does not apply to non-residential EV

charging. Only one entity per FSE may claim credits for non-residential metered

EV charging.

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§ 95486.1. Generating and Calculating Credits and Deficits Using Fuel Pathways. 77

(1) An entity may generate credits for Non-Residential EV charging using a

carbon intensity for California Average Grid Electricity, Zero-CI Electricity,

or Smart Charging pathway from the Lookup Table in section 95488.5, or

a carbon intensity value certified through the Tier 2 pathway application

process, and the credit calculation in 95486.1(a).

(e) Calculation of Credits for Other Electricity used as Transportation Fuel Using

Fuel Pathways. An entity may generate credits for the non-EV charging

applications listed in sections 95483(c)(3) to (6), which use electricity to displace

conventional transportation fuel, using a carbon intensity for California Average

Grid Electricity or Zero-CI Electricity from the Lookup Table 7-1 in section

95488.5, or a carbon intensity value certified through the Tier 2 pathway

application process, and the credit calculation in 95486.1(a).

(f) Calculation of Credits for Hydrogen Using Fuel Pathways.

(1) An entity may generate credits for hydrogen used as a transportation fuel

using a carbon intensity for hydrogen found in the Lookup Table in section

95488.5, or a carbon intensity value certified through the Tier 2 pathway

application process, and the credit calculation in 95486.1(a).

(2) Smart Electrolysis Pathways for Hydrogen Production. An entity can

generate incremental credits, in addition to credits generated under a

pathway for electrolytic hydrogen produced using average grid electricity,

for hydrogen using smart electrolysis pursuant to section 95488.5 and the

incremental credit calculation in section 95486.1(c)(2)(B).

NOTE: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure

Pathways.

(a) Hydrogen Refueling Infrastructure (HRI) Pathways.

(1) HRI Pathway Eligibility. A hydrogen station owner may submit an

application to certify an HRI pathway subject to the following eligibility

conditions:

(A) The proposed HRI must be located in California and open to the

public.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 78

(B) The HRI pathway application must be received on or before

December 31, 2025.

1. Any station receiving or spending funds pursuant to any

settlement related to any California or Federal regulation

enforcement; or

2. Any station built as a required mitigation measure pursuant

to the California Environmental Quality Act.

(2) HRI Application Requirements. For each hydrogen refueling station, the

station owner must submit an application in the LRT-CBTS containing the

following information:

(A) Name and address of the owner of the proposed station.

(B) Contact person for the owner entity.

1. Name

2. Title or position

3. Phone number

4. Mobile phone number

5. Email address

for the proposed station.

(D) Expected daily permitted hours of operation for the station. If the

daily permitted hours are less than 24 hours, the applicant must

provide documentation from a permitting authority demonstrating

that daily permitted hours for the station are limited.

(E) The station nameplate refueling capacity for the permitted hours of

operation calculated using the HySCapE 1.0 model or an

equivalent model or capacity estimation methodology approved by

the Executive Officer. The applicant must submit a completed

model with the application.

(F) The HRI refueling capacity for the station is the nameplate refueling

capacity determined in subsection (E) above or 1,200 kg/day,

whichever is less.

(G) The number of dispensing units at the station.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 79

(H) Expected source(s) of hydrogen, CI value(s), and method(s) used

for delivery.

(I) Expected date that the station will be operational.

(J) Justification for the station location and how the proposed location

contributes in developing a hydrogen refueling station network to

support ZEV adoption. The justification must include:

1. The role(s) the station location will play in the developing

hydrogen station network;

2. The means by which the station contributes to robust growth

of the statewide hydrogen fueling network;

3. Demonstration of potential for consistent and calculable

hydrogen demand;

4. Demonstration that the proposed station capacity is an

appropriate capacity based on documented, verifiable, and

reproducible projections of daily hydrogen demand at the

proposed location;

5. Calculation of the projected trajectory of annualized average

station utilization (calculated as annual throughput divided by

annual station capacity) at the proposed location; and

6. Demonstration that the proposed station location has been

discussed with local authorities having jurisdiction and no

early roadblocks have been identified.

(K) A signed attestation letter from the applicant attesting to the

veracity of the information in the application packet. The

attestation letter must be submitted as an electronic copy, be on

company letterhead, be signed by an officer of the applicant with

authority to attest to the veracity of the information in the application

and to sign on behalf of the applicant, be from the applicant and not

from an entity representing the applicant (such as a consultant or

legal counsel), and include the following attestation:

I, an authorized representative of _______________ (applicant entity), attest to the veracity of the

information submitted as part of the Hydrogen Refueling Infrastructure (HRI) application, attest that the

proposed FSE is not receiving funds pursuant to any enforcement settlement related to any California or

Federal regulation, and declare that the information submitted accurately represents the anticipated and

intended design and operation of the hydrogen refueling station. Further, I understand and agree to

each of the statements in the attached application. I am a duly authorized officer with authority to attest

to the veracity of the information in the application and to sign on behalf of the respective applicant.

I understand that the following information in the HRI application will be made available on the LCFS web

site: Name of the Applicant Entity, Station Name, Station Address, Number of Dispensing Units, HRI

Refueling Capacity, and Effective Date Range for HRI Crediting.

By submitting this application, ______________________________________________(applicant entity)

accepts responsibility for the information herein provided to CARB. I certify under penalty of perjury

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 80

under the laws of the State of California that I have personally examined, and am familiar with, the

statements and information submitted in this document. I certify that the statements and information

submitted to CARB are true, accurate, and complete.

______________________________ ______________________________

__________

Signature Print Name & Title Date

(L) CBI must be designated pursuant to the requirements described in

section 95488.8(c).

(M) An application and supporting documents must be submitted

electronically via the LRT-CBTS unless the Executive Officer has

approved or requested in writing another format.

(3) Application Approval Process.

(A) The HRI application must be approved by the Executive Officer

before the station owner may generate hydrogen refueling

infrastructure credits. If estimated potential HRI credits from all

approved stations exceed 2.5 percent of deficits in the prior quarter,

the Executive Officer will not approve additional HRI pathways and

will not accept additional applications until estimated potential HRI

credits are less than 2.5 percent of deficits. HRI applications will

be evaluated for approval on a first come, first served basis.

Estimated potential HRI credits will be calculated using the

following equation:







= 



 













where:







means the estimated potential HRI credits from all

approved HRI stations;





 

means the total HRI credits generated by

operational stations in the prior quarter;







means the total HRI capacity of stations that were

operational in the prior quarter; and







means the total HRI capacity of all approved stations,

both operational and nonoperational.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 81

(B) After receipt of an application designated by the applicant as ready

for formal evaluation, the Executive Officer will advise the applicant

in writing either that:

1. The application is complete, or

2. The application is incomplete, in which case the Executive

Officer will identify which requirements of section

95486.2(a)(2) have not been met.

a. The applicant may submit additional information to

correct deficiencies identified by the Executive Officer.

b. If the applicant is unable to achieve a complete

application within 180 days of the Executive Officer’s

receipt of the original application, the application will

be denied on that basis, and the applicant will be

informed in writing.

3. At any point during the application evaluation process, the

Executive Officer may request in writing additional

information or clarification from the applicant.

Executive Officer determines, based upon the information

submitted in the application and any other available information,

that the application does not meet requirements in subsections

95486.2(a)(1) and (a)(2). The Executive Officer may reject an

application if satisfactory justification is not provided for station

location pursuant to subsection 95486.2(a)(2)(J). If the Executive

Officer does not approve the application, the applicant will be

notified in writing and the basis for the disapproval shall be

identified.

(D) If the Executive Officer determines that the applicant and

application have met all requirements for approval pursuant to

subsections 95486.2 (a)(1) and (a)(2), the Executive Officer will

approve the application and provide an approval summary on the

LCFS website including the station location and assigned identifier,

number of dispensing units, HRI refueling capacity, and effective

date range for HRI pathway crediting.

(E) Crediting Period. HRI crediting is limited to 15 years starting with

the quarter following Executive Officer approval of the application.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 82

(4) Requirements to Generate HRI Credits. To generate credits using HRI

pathways the station must meet the following conditions. The station

owner must maintain, and submit to CARB upon request, records

demonstrating adherence to these conditions.

(A) The station owner must update the HRI refueling capacity if

different from the design HRI refueling capacity provided in the

application. Any station design or operational information that

deviates from the original application must be declared to the

Executive Officer, and a new attestation must be submitted

pursuant to 95486.2(a)(2).

(B) The station must be open to the public, meaning that no

obstructions or obstacles exist to preclude vehicle operators from

entering the station premises, no access cards or personal

identification (PIN) codes are required for the station to dispense

fuel, and no formal or registered station training shall be required

for individuals to use the hydrogen refueling station.

credit and debit cards.

(D) The station is connected to the Station Operational Status System

(SOSS), is listed open for retail, and:

1. The station passed final inspection by the appropriate

authority having jurisdiction and has a permit to operate.

2. The station owner has fully commissioned the station, and

has declared it fit to service retail FCV drivers. This

includes the station owner’s declaration that the station

meets an appropriate SAE fueling protocol.

3. At least three OEMs have confirmed that the station meets

protocol expectations, and their customers can fuel at the

station.

4. All dispensers installed in the hydrogen refueling station

have undergone type evaluation according to the California

Type Evaluation Program (CTEP) administered by the

California Department of Food and Agriculture/Division of

Measurement Standards (CDFA/DMS) and have either a

Temporary Use Permit or a type approval Certificate of

Approval issued by CDFA/DMS.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 83

(E) The FSE registration must be completed pursuant to section

95483.2(b)(8) and the quantity of dispensed hydrogen must be

reported as required in section 95491.

(F) Dispensed hydrogen meets the following CI and renewable content

requirements on a company-wide, weighted average basis. The

Executive Officer will consider all the stations registered by an

entity with a unique FEIN in the LRT-CBTS for calculating the

company-wide weighted average CI and renewable content.

1. CI of 150 gCO

e/MJ or less, and

2. Renewable content of 40 percent or greater.

(G) The station must be operational within 24 months of application

approval. If the applicant fails to demonstrate the operability within

24 months of approval then the application will be canceled. The

applicant can reapply for the same station eligible only for 10 years

of crediting.

(5) Calculation of HRI Credits. HRI credits will be calculated using the

following equation:





()

where:







is the average carbon intensity requirement of gasoline ( =

“gasoline”) for a given year as provided in sections 95484(b);

 is the dimensionless Energy Economy Ratio for H2/FCV relative to

gasoline as listed in Table 5;





is the carbon intensity used for HRI crediting. Company-wide

weighted average CI for dispensed hydrogen during the quarter or 0 g/MJ,

whichever is greater;





is the energy density for hydrogen in MJ/kg as listed in Table 4;





is the HRI refueling capacity for the station (kg/day);

 is the the uptime multiplier which is the percentage of time that the

station is available as reported to SOSS during the quarter;

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 84

2



is the quantity of hydrogen dispensed during the quarter (kg);

 is the number of days during the quarter;

 is a factor used to convert credits to units of metric tons from gCO

and has the value of:

 = 1.010



()

(



)

(6) Reporting and Recordkeeping Requirements. The following must be

reported to the Executive Officer each quarter as set forth in section

95491 before credits will be issued to the LRT account associated with an

approved HRI pathway.

(A) Station availability. This is the percentage of hours the station is

available for fueling during the quarter relative to the permitted

hours of operation for the station, as reported to the SOSS. Any

period of time that SOSS reports that a portion of the station

capacity is not available will count as a pro-rated amount of station

availability, proportional to the percentage of the station capacity

that remains available for fueling for this period of time.

(B) Company-wide, weighted average renewable content (percent) for

dispensed hydrogen.

following costs borne and revenues received by the station owner

up through the most recent reporting quarter per station.

1. Total capital expenditures ($)

2. Total delivered cost ($) of hydrogen and average delivered

cost ($/kg) for hydrogen

3. Total maintenance costs ($)

4. Total land rental cost ($)

5. Total grant revenue or other external funding received

towards capital expenditures ($)

6. Total grant revenue or other external funding received

towards operational and maintenance expenditures ($)

7. Total revenue ($) received from sale of hydrogen and

average retail price ($/kg) for hydrogen sold

8. Other operational expenditures ($)

(7) Applications for Expanded HRI Refueling Capacity. Station owners who

expand the capacity of a station and that is already generating HRI credits

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 85

under the LCFS must submit an application to the Executive Officer to

generate additional credits based on the updated capacity. Applications

for expanded station capacity must be received before

December 31, 2025 and do not extend the effective date range for the HRI

crediting specified upon initial project approval in 95486.2(a)(3)(D). The

application must include the following elements.

(A) In order to be eligible to generate HRI credits for expanded

capacity, the station owner must demonstrate that station

throughput in a reporting quarter is greater than or equal to

50 percent of the original approved HRI refueling capacity.

(B) Updated nameplate refueling capacity and updated HRI refueling

capacity.

original HRI application will change as a result of the added

capacity, the station owner must disclose the new hydrogen

sources and delivery methods.

(D) The station owner must maintain records demonstrating that any

new equipment added as a result of the expansion in capacity,

including storage and fueling dispensers, meet the requirements

listed in 95486.2(a).

(b) DC Fast Charging Infrastructure (FCI) Pathways.

(1) FCI Pathway Eligibility. An FSE owner may submit an application to

receive an FCI pathway subject to the following eligibility conditions:

(A) The proposed FSE must be located in California and open to the

public for charging.

(B) Upon an individual applicant’s estimated potential FCI credits,

calculated pursuant to section 95486.2(b)(3)(B), exceeding 0.5

percent of the deficits in the prior quarter, each additional site

applied for by the applicant must meet the following requirements:

1. Charging equipment at the site must support at least two of

the following three fast charging connectors: CHAdeMO,

SAE CCS, and/or Tesla;

2. The site must have at least one FSE with a CHAdeMO

connector protocol and at least one FSE with an SAE CCS

connector protocol; and

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 86

3. No more than three-quarters of all FSE subject to this

provision at the site can support only a single fast charging

connector protocol.

December 31, 2025.

(D) The following FSE are not eligible for FCI crediting:

1. Any FSE that is permitted to operate prior to January 1,

2019; or

2. Any FSE receiving or spending funds pursuant to any

settlement related to any California or Federal regulation

enforcement; or

3. Any FSE built as a required mitigation measure pursuant to

the California Environmental Quality Act.

(E) Each FSE must have a minimum nameplate power rating of 50 kW.

(F) Each FSE must be networked and capable of monitoring and

reporting its availability for charging.

(2) FCI Application Requirements. The applicant must submit an application

in the LRT-CBTS containing the following information:

(A) Name and address of the owner of the proposed FSE.

(B) Contact person for the owner entity.

1. Name

2. Title or position

3. Phone number

4. Mobile phone number

5. Email address

for each proposed FSE site.

(D) The number of FSEs.

(E) The nameplate power rating (kW), connector type(s), and model for

each FSE.

1. The total nameplate power rating for all FSE at a single site

claiming FCI credit under this provision cannot exceed 2,500

kW.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 87

2. Notwithstanding 95486.2(b)(2)(E)1 above, upon request the

Executive Officer may approve an application with total

nameplate power rating for all FSE at a single site up to

6,000 kW. The total number of FSE at sites with total

nameplate power rating greater than 2,500 kW cannot

exceed 10 percent of total FSE approved under FCI

pathways. The applicant must provide justification for

requesting a total power rating greater than 2,500 kW at the

given site.

(F) The effective simultaneous power rating (kW) for each FSE

calculated using the equation below. The effective simultaneous

power rating must be at least 50 percent of the nameplate power

rating for each FSE.







= 





















where:







is the simultaneous power rating (kW) for FSE ;







is the nameplate power rating (kW) for FSE ;







is the maximum total power (kW) that can be delivered to all

FSEs at a single site when they are operated simultaneously; and

 is the number of FSEs at a single site.

(G) The FCI charging capacity for each FSE calculated using the

following equation:







= 43 × (





)

.

where:







is the FCI charging capacity (kWh/day) for the FSE i; and







is the nameplate power rating for the FSE or 350 kW,

whichever is less.

(H) Expected date that the FSE will be operational.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 88

(I) Expected daily permitted hours of operation for the site. If the

daily permitted hours are less than 24 hours, the applicant must

provide documentation from a permitting authority demonstrating

that daily permitted hours for the FSE are limited.

(J) A signed attestation letter from the applicant attesting to the

veracity of the information in the application packet. The

attestation letter must be submitted as an electronic copy, be on

company letterhead, be signed by an officer of the applicant with

authority to attest to the veracity of the information in the application

and to sign on behalf of the applicant, be from the applicant and not

from an entity representing the applicant (such as a consultant or

legal counsel), and include the following attestation:

I, an authorized representative of _______________ (proposed FSE owner entity), attest to the veracity

of the information submitted as part of the DC Fast Charging Infrastructure (FCI) application, attest that

the proposed FSE is not receiving funds pursuant to any enforcement settlement related to any California

or Federal regulation, and declare that the information submitted accurately represents the anticipated

and intended design and operation of the charging infrastructure. Further, I understand and agree to

each of the statements in the attached application. I am a duly authorized officer with authority to attest

to the veracity of the information in the application and to sign on behalf of the respective applicant.

I understand that the following information in the FCI application will be made available on the LCFS web

site: Name of the Applicant Entity, Site Name, Site Address, Number and Type of Charging Units,

Nameplate and Effective Simultaneous Power Rating for Each Unit, and Effective Date Range for FCI

Crediting

By submitting this application, ______________________________________________(applicant entity)

accepts responsibility for the information herein provided to CARB. I certify under penalty of perjury

under the laws of the State of California that I have personally examined, and am familiar with, the

statements and information submitted in this document. I certify that the statements and information

submitted to CARB are true, accurate, and complete.

(K) CBI must be designated pursuant to the requirements described in

section 95488.8(c).

(L) An application and supporting documents must be submitted

electronically via the LRT-CBTS unless the Executive Officer has

approved or requested in writing another format.

(3) Application Approval Process.

(A) The FCI application must be approved by the Executive Officer

before the applicant may generate FCI credits. If estimated

potential FCI credits from all approved FSEs exceed 2.5 percent of

deficits in the prior quarter, the Executive Officer will not approve

additional FCI pathways and will not accept additional applications

until FCI credits are less than 2.5 percent of deficits. FCI

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 89

applications will be evaluated for approval on a first come, first

served basis.

Estimated potential FCI credits will be calculated using the following

equation:







= 























where:







means the estimated potential FCI credits from all

approved FSEs;











means the total FCI credits generated by

operational FSEs in the prior quarter;







means the total FCI charging capacity of FSEs that

were operational in the prior quarter; and









means the total FCI charging capacity of all approved

FSEs, both operational and nonoperational.

(B) The estimated potential FCI credits for an individual applicant will

be calculated using the same equation as in subsection (A) above,

where:







means the estimated potential FCI credits from the

applicant’s approved FSEs;











means the total FCI credits generated by the

applicant for operational FSEs in the prior quarter;







means the total FCI charging capacity of the

applicant’s FSEs that were operational in the prior quarter; and









means the total FCI charging capacity of all of the

applicant’s approved FSEs, both operational and nonoperational.

for formal evaluation, the Executive Officer shall advise the

applicant in writing either that:

1. The application is complete, or

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 90

2. The application is incomplete, in which case the Executive

Officer will identify which requirements of section

95486.2(b)(2) have not been met.

a. The applicant may submit additional information to

correct deficiencies identified by the Executive Officer.

b. If the applicant is unable to achieve a complete

application within 180 days of the Executive Officer’s

receipt of the original application, the application will

be denied on that basis, and the applicant will be

informed in writing.

3. At any point during the application evaluation process, the

Executive Officer may request in writing additional

information or clarification from the applicant.

(D) The Executive Officer shall not approve an application if the

Executive Officer determines, based upon the information

submitted in the application and any other available information,

that the application does not meet requirements in subsections

95486.2(b)(1) and (b)(2). If the Executive Officer does not

approve the application, the applicant will be notified in writing and

the basis for the disapproval shall be identified.

(E) If the Executive Officer determines the application has met all

requirements for approval pursuant to subsections 95486.2(b)(1)

and (b)(2), the Executive Officer will approve the application and

provide an approval summary on the LCFS website including the

site location and FSE ID, number and type of FSE, nameplate and

effective simultaneous power rating for each FSE, and effective

date range for FCI pathway crediting.

(F) Crediting Period. FCI crediting is limited to 5 years starting with

the quarter following Executive Officer approval of the application.

(4) Requirements to Generate FCI Credits. To generate credits using FCI

pathways the following conditions must be met. The applicant must

maintain, and submit to CARB upon request, records demonstrating

adherence to these conditions.

(A) The applicant must update the nameplate and effective

simultaneous power rating of FSE if different from the power rating

provided in the application. Any FSE design or operational

information that deviates from the original application must be

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 91

declared to the Executive Officer, and a new attestation must be

submitted using the language in section 95486.2(b)(2).

(B) The FSE must be open to the public, meaning that no obstructions

or obstacles exist to preclude vehicle operators from entering the

FSE premises, no access cards or personal identification (PIN)

codes are required for the FSE to dispense fuel, and no formal or

registered equipment training shall be required for individuals to

use the FSE.

supporting a public point-of-sale method that accepts all major

credit or debit cards.

(D) The FSE passed final inspection by the appropriate authority

having jurisdiction and has a permit to operate.

(E) The FSE owner has fully commissioned the FSE, and has declared

it fit to service retail EV drivers.

(F) The FSE registration must be completed pursuant to section

95483.2(b)(8) and the quantity of dispensed electricity must be

reported as required in section 95491.

(G) The FSE must be operational within 12 months of application

approval. If the applicant fails to demonstrate the operability within

12 months of approval then the application will be canceled. The

applicant can reapply for the same FSE site eligible only for 2 years

of crediting.

(H) The estimated cumulative value of FCI credits generated for the

FSE in the prior quarter must be less than the difference between

the total capital expenditure reported pursuant to section

95486.2(b)(6)(B)1 and the total grant revenue or other funding

reported pursuant to section 95486.2(b)(6)(B)5 in the prior quarter.

1. The estimated value of FCI credits, for the purpose of this

determination, shall be calculated using the number of FCI

credits generated for the FSE in the quarter and the average

LCFS credit price for that quarter published on the LCFS

website.

2. The cumulative credit value generated for each FSE will be

tracked as the sum of all quarterly credit values in constant-

dollar for the year in which the FCI application was approved

using an annual discount rate of 10%.

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 92

3. The estimated value calculated under this provision will be

made available only to the respective reporting entity in LRT-

CBTS and will not be published on the LCFS website.

4. This will not affect the reporting entity’s ability to generate

non-FCI LCFS credits for the electricity dispensed at the

FSE.

(5) Calculation of FCI Credits. FCI credits will be calculated using the

following equation for each FSE approved under this provision:





()

where:







is the average carbon intensity requirement of gasoline (XD =

“gasoline”) for a given year as provided in section 95484(b);

 is the dimensionless Energy Economy Ratio for Electricity/BEV or

PHEV relative to gasoline as listed in Table 5;





is the California average grid electricity carbon intensity as listed in

Table 7-1;





is the conversion factor for electricity as listed in Table 4;







is the FCI charging capacity (kWh/day) for the FSE;

 is the number of days during the quarter;

 is the uptime multiplier which is the fraction of time that the FSE is

available for charging during the quarter;





is the quantity of electricity dispensed during the quarter (kWh);

 is a factor used to convert credits to units of metric tons from gCO

and has the value of:

 = 1.010



()

(







)

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§ 95486.2. Generating and Calculating Credits for ZEV Fueling Infrastructure Pathways. 93

(6) Reporting and Recordkeeping Requirements. The following must be

reported to the Executive Officer each quarter as set forth in section

95491 before credits will be issued to the LRT account associated with an

approved FCI pathway.

(A) FSE availability. This is the percentage of hours the FSE is

available for charging during the quarter relative to the permitted

hours of operation for the site.

(B) Cost and revenue data. Provide a quarterly account of the

following costs borne and revenues received by the FSE owner up

through the most recent reporting quarter per site.

1. Total capital expenditures ($)

2. Total delivered cost ($) of electricity, including demand

charges, and average delivered cost ($/kWh) for electricity

3. Total maintenance costs ($)

4. Total land rental cost ($)

5. Total grant revenue or other external funding received

towards capital expenditures ($)

6. Total grant revenue or other external funding received

towards operational and maintenance expenditures ($)

7. Total revenue ($) received from sale of electricity and

average retail price ($/kWh) for electricity sold

8. Other operational expenditures ($)

(7) Applications for Expanded FCI Capacity. Applicants who increase the

power rating of an FSE or add an FSE to a site that is already generating

FCI credits under the LCFS must submit an application to the Executive

Officer to generate additional credits based on the increased power or

number of FSEs. Applications must be received before

December 31,

2025 and do not extend the end date for the FCI crediting

specified upon initial project approval in 95486.2(b)(3). The application

must include the following elements.

(A) Updated number and type of FSE at the site.

(B) Updated FCI charging capacity, nameplate power rating and

effective simultaneous power rating for each FSE at the site.

equipment added as a result of the expansion in capacity meet the

requirements listed in 95486.2(b).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

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§ 95487. Credit Transactions. 94

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95487. Credit Transactions.

(a) General. LCFS credits shall not constitute instruments, securities, or any other

form of property.

(1) A regulated entity may:

(A) Retain LCFS credits without expiration for use within the LCFS

market; and

(B) Acquire or transfer LCFS credits. A third-party, which is not a

regulated entity or acting on behalf of a regulated entity, may not

hold, purchase, sell, or trade LCFS credits, except as otherwise

specified in section 95483.

(2) A regulated entity may not:

(A) Use credits in the LCFS program that are generated outside the

LCFS program, including credits generated in other tradeable

emission credit programs administered by the California Air

Resources Board.

(B) Borrow or use credits from anticipated future carbon intensity

reductions to demonstrate compliance pursuant to section

95485(a). This does not preclude contracting for future delivery of

LCFS credits as described in section 95487(b)(1)(B), nor

participation in the credit clearance market described in section

95485(c).

section 95482(d) or are otherwise not eligible pursuant to section

95482.

(D) Sell or transfer credits at a price that exceeds the Maximum Price

set by the following formula:

1. $200/credit (MTCO2e) in 2016.

2. This per credit price shall be adjusted annually by the rate of

inflation as measured by the most recently available twelve

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§ 95487. Credit Transactions. 95

months of the Consumer Price Index for All Urban

Consumers.

“Consumer Price Index for All Urban Consumers” means a

measure that examines the changes in the price of a basket

of goods and services purchased by urban consumers, and

is published by the U.S. Bureau of Labor Statistics.

3. The Maximum Price will be published on the first Monday of

April and go into effect on June 1

(b) Credit Transfers between Parties.

(1) A regulated entity that wishes to sell or transfer credits (“the Seller”) and a

regulated entity that wishes to purchase or acquire a credit (“the Buyer”)

may enter into an agreement to transfer credits. Any such agreement

must be fully documented in the LRT-CBTS pursuant to section

95487(b)(1)(B) through (F).

(A) General Requirements for Credit Transfers. The Seller may

transfer credits provided the number of credits to be transferred by

the Seller does not exceed the number of total credits in the Seller’s

credit account defined as follows:

 = 



+ 





 (



+ 



+ 







+ 



)

where:





, 



, 



, 







, 



, and 



have the same

meaning as those in section 95485(b).

(B) The credit transfer request must identify the type of transaction

agreement for which the transfer request is being submitted,

selecting one of the following types:

1. Type 1 Transfer: Over-the-counter agreement for the sale

or transfer of LCFS credits for which delivery will take place

no more than 10 days from the date the parties enter into the

transaction agreement.

2. Type 2 Transfer: Over-the-counter agreement for the sale

or transfer of LCFS credits for which delivery is to take place

more than 10 days from the date the parties enter into the

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§ 95487. Credit Transactions. 96

transaction agreement or that involve multiple transfers of

LCFS credits over time.

3. Type 3 Transfer: Agreements for the sale of LCFS credits

through any contract arranged through a clearing service

provider.

enter into the credit transaction agreement, the Seller and the

Buyer must initiate and complete the transfer request using the

Credit Transfer Form (CTF) provided in the LRT-CBTS. The

parties must provide:

1. Date of Transaction Agreement. The date on which the

Buyer and Seller enter into the credit transaction agreement;

2. Names and the Federal Employer Identification Numbers

(FEIN) of the Seller and the Buyer as registered in the LRT-

CBTS;

3. First name, last name, and contact information of the Seller

and Buyer representative;

4. The number of credits proposed to be transferred; and

5. The price or equivalent value of the consideration (in U.S.

dollars) per credit proposed for transfer, excluding any fees.

(D) For Type 2 Transfer. Within 10 days from the date the parties

enter into the credit transaction agreement, the Seller and the

Buyer must report the following using the Credit Transfer Form

(CTF) provided in the LRT-CBTS:

1. Date of Transaction Agreement. The date on which the

Buyer and Seller enter into the credit transaction agreement;

2. Names and the Federal Employer Identification Numbers

(FEIN) of the Seller and the Buyer as registered in the LRT-

CBTS;

3. First name, last name, and contact information of the Seller

and Buyer representative;

4. If the agreement requires a single delivery of credits or

multiple deliveries of credits. The Executive Officer may

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§ 95487. Credit Transactions. 97

assign reference numbers for reporting future credit transfers

under agreements for multiple deliveries of credits;

5. The expected date of last credit delivery or the length of the

agreement including the date by which all deliveries are to

be completed;

6. The total number of credits anticipated to be transferred

under the agreement;

7. The price per credit (in U.S. dollars) or the terms to

determine the price for future credit transfer as per the

agreement;

8. If the agreement is terminated or amended prior to its full

execution as provided in subsection 5. above, the parties

must notify the Executive Officer within 10 days; and

9. If the credit transfer is one of multiple deliveries under an

agreement previously reported using a CTF, the parties must

provide the reference number (if any) assigned by the

Executive Officer.

(E) For Type 3 Transfer. A credit transfer request submitted for an

agreement executed through a clearing service provider must

provide the following information:

1. Identify the exchange through which the transaction is

conducted;

2. Date of close of trading for the contract;

3. Identify the contract description code assigned by the

exchange to the contract;

4. Price at close of trading for the contract;

5. The number of credits in the contract to be transferred; and

6. Date of delivery of LCFS credits covered by the contract.

(F) If the transaction agreement does not specify the price for LCFS

credits, the Seller must provide a brief description of the pricing

method for the full transaction inclusive of all products and value

exchanged. The seller must also select one of the following

options:

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§ 95487. Credit Transactions. 98

1. The proposed transfer is to reflect an adjustment in CI value

of fuel transacted between Seller and Buyer;

2. The proposed transfer incorporates a credit trade along with

the sale or purchase of other product, and does not specify a

price or cost basis for the sale of the credits alone.

(G) Recording a Credit Transfer. Upon receiving a fully-completed

CTF, the Executive Officer shall, either:

1. Process and approve the transfer request and update the

account balances of the Seller and Buyer to reflect the credit

transfer, provided the Executive Officer determines all

required information was submitted, and it accurately reflects

the parties’ positions at the time of the proposed transfer; or

2. Notify the parties that the proposed credit transfer is

infeasible and identify the reasons for rejecting the transfer.

(2) Facilitation of Credit Transfer. A Seller or Buyer may elect to use a

third-party broker as defined in section 95481 to facilitate the transfer of

credits. A broker cannot acquire credits. A broker who will document

transfers in LRT-CBTS must register in the LRT-CBTS, and the Buyer,

Seller, or both must document, using the LRT-CBTS, authorization for

broker to act on their behalf. A broker may, with the consent of the

parties, conduct a “blind transaction” where the Buyer of the credit does

not know the identity of the Seller, and/or the Seller of the credit does not

know the identity of the Buyer.

(3) Correcting Credit Transfer Errors. A regulated entity is responsible for

the accuracy of information submitted to the Executive Officer. If a

regulated entity discovers an error in the information reported to the

Executive Officer or recorded by the Executive Officer, the regulated entity

must inform the Executive Officer in writing within five (5) days of the

discovery and request a correction. Each submitted request is subject to

Executive Officer review and approval. If the Executive Officer

determines that the error occurred during the recording of the credit by

Board staff, the Executive Officer will make the correction and no

additional re-submissions are required.

(1) The Executive Officer shall, no less frequently than quarterly, provide to

the public reports containing a summary of credit generation and transfer

information including, but not limited to:

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§ 95487. Credit Transactions. 99

(A) Total deficits and credits generated or incurred in the most recent

quarter for which data are available, including information on the

types and quantities of fuels used to generate credits.

(B) Total deficits and credits generated or incurred in all previous

quarters of the most recent year for which data are available,

including information on the types and quantities of fuels used to

generate credits.

outstanding deficits carried over by regulated entities from a

previous compliance year.

(D) Information on the credits transferred during the most recent

quarter for which data is available including the total number of

credits transferred, the number of transfers, the number of parties

making transfers, and the monthly average credit price for transfers

that reported a price.

(2) The Executive Officer shall provide reports, no less frequently than

monthly, to regulated entities and the public containing information

necessary or helpful to the functioning of a credit market. Such reports

may include recent information on credit transfer volumes, credit prices

and price trends, and other information determined by the Executive

Officer to be of value to market participants and the public. The

Executive Officer shall establish, and may periodically modify, a schedule

for the routine release of these reports.

(d) Prohibited Transactions. A trade involving, related to, or associated with any of

the following is prohibited:

(1) Any manipulative or deceptive device;

(2) A corner or an attempt to corner the market for credits;

(3) Fraud, or an attempt to defraud any other entity;

(4) A false, misleading or inaccurate report concerning information or

conditions that affects or tends to affect the price of a credit;

(5) An application, report, statement, or document required to be filed

pursuant to this subarticle which is false or misleading with respect to a

material fact, or which omits to state a material fact necessary to make the

contents therein not misleading. A fact is material if it is reasonably likely

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§ 95487. Credit Transactions. 100

to influence a decision by a counterparty, the Executive Officer, the Board,

or the Board’s staff; or

(6) Any trick, scheme, or artifice to falsify or conceal a material fact, including

use of any false statements or representations, written or oral, or

documents made by or provided to an entity through which transactions in

credits are settled, or are cleared.

(7) Upon investigation pursuant to section 95495, the Executive Officer may

cancel or reverse a credit transfer if a credit transfer is determined to be a

prohibited transaction as per subsection (1) through (6) above. The

Executive Officer shall notify the parties and identify the reasons for

cancelling or reversing a credit transfer.

NOTE: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018 Health

and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515,

39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety Code;

Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95488. Entities Eligible to Apply for Fuel Pathways.

(a) Any person may apply to the Executive Officer for fuel pathway carbon intensity

certification for the purpose of credit or deficit generation.

(b) Joint Applicants. Multiple entities may contribute site-specific data to a single

pathway application. In these cases, the parties involved may either designate

a single entity as the pathway applicant, or designate multiple entities as joint

applicants on a single pathway. Applying as joint applicants allows each entity

to maintain control of confidential data for the portions of the pathway they

submit.

(1) Each joint applicant is subject to all requirements for pathway application,

attestations, validation and verification, recordkeeping, pursuant to this

subarticle, for the portion of the pathway they control.

(2) A single entity designated to submit data on behalf of multiple entities

within a pathway does not relieve any other entity in the pathway from

responsibility for ensuring that the data submitted on its behalf is accurate.

(1) Existing certified pathways. In the first quarter of 2021, the Executive

Officer will deactivate all fuel pathway codes in the LRT-CBTS for fuel

pathways that were certified pursuant to a prior version of this subarticle,

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§ 95488. Entities Eligible to Apply for Fuel Pathways. 101

which used the CA-GREET2.0 model to determine CI, for the purpose of

reporting fuel transactions that occurred after December 31, 2020. Fuel

pathway holders seeking to generate credits from these pathways after

that date must follow the pathway application and certification process

outlined in this subarticle to receive a certified pathway.

(A) Existing Lookup Table Pathways. Fuel reporting entities using

Lookup Table pathways that do not require an application pursuant

to section 95488.1(b)(1) will be automatically updated in the LRT-

CBTS to the values in Table 7-1 on the effective date of this

subarticle.

(2) New Pathway Applications. Beginning in 2019 or the effective date of

this subarticle, new fuel pathway applications using CA-GREET2.0 will not

be processed. The requirement to obtain a third-party validation

statement is effective for all pathway applications pending or submitted on

or after January 1, 2020. All new pathway applications certified in 2019

will be validated by the Executive Officer.

NOTE: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018 Health

and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515,

39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516 and 43000, Health and Safety Code;

Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

§ 95488.1. Fuel Pathway Classifications.

(a) For purposes of fuel pathway carbon intensity determination, all new LCFS fuel

pathways certified after January 1, 2019 (or the effective date of this regulation)

shall be classified as either a:

(1) Lookup Table pathway;

(2) Tier 1 pathway; or

(3) Tier 2 pathway, as described below.

(b) Lookup Table Classification. Pathways falling under this classification are the

simplest pathways to use. The Board’s staff develops Lookup Table pathway CI

values using the CA-GREET3.0 model. Input variables and assumptions are

provided in the CA-GREET3.0 Lookup Table Pathways – Technical Support

Documentation (August 13, 2018), which is incorporated herein by reference.

(1) Lookup Table Pathways That Do Not Require a Fuel Pathway Application.

The following pathways are developed using average values for inputs

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§ 95488.1. Fuel Pathway Classifications. 102

into the CA-GREET3.0 model, which are not expected to vary significantly

across providers of the fuel. Entities seeking to generate credits under

the pathways listed in 95488.1(b)(1)(A) through (E) may report fuel

transactions directly in the LRT-CBTS without taking any action in the

AFP.

(A) California Reformulated Gasoline Blendstock for Oxygenate

Blending (CARBOB)

(B) California Ultra-low Sulfur Diesel (ULSD)

(D) Propane

(E) Electricity (California average grid)

(2) Lookup Table Pathways That Require a Fuel Pathway Application. Fuel

pathway applicants for the following Lookup Table pathways must register

in the AFP and meet the application requirements of section 95488.5(b).

Fuel pathway applicants may then report fuel transactions in the LRT-

CBTS for the fuel pathways listed in 95488.1(b)(2)(A) through (F).

(A) Electricity (100 percent zero-CI sources, which include: eligible

renewable energy resources as defined in California Public Utilities

Code sections 399.11-399.36, excluding biomass, biomethane,

geothermal, and municipal solid waste)

(B) Electricity associated with smart charging pathway for EV charging

and smart electrolysis pathway for hydrogen production through

electrolysis

American fossil-based natural gas

(D) Hydrogen (gaseous and liquefied) from central SMR of biomethane

(E) Hydrogen (gaseous) from electrolysis using California grid-average

electricity

(F) Hydrogen (gaseous) from electrolysis using electricity from a zero-

CI source as defined in (A) above

categories that the Board’s staff has extensive experience evaluating. This

classification includes fuel pathways for which the Executive Officer has identified

a discrete set of site-specific inputs that can be modified to achieve CI changes.

CI values for Tier 1 fuel pathways are determined using Board-approved

Simplified CI Calculators. The Simplified CI Calculators provide a framework for

applicants to enter monthly operational data inputs that are combined with

emission factors and life cycle inventory data from the CA-GREET3.0 model to

calculate the pathway CI. The Tier 1 classification includes, but is not limited to,

the following fuel pathways:

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§ 95488.1. Fuel Pathway Classifications. 103

(1) Ethanol derived from starch or fiber in corn kernels or grain sorghum, and

sugarcane;

(2) Biodiesel produced from feedstocks including but not limited to oilseed

crop-derived oils; rendered animal fat, distiller’s corn oil, distiller’s sorghum

oil, and used cooking oil;

(3) Renewable Diesel produced by hydrotreatment of feedstocks in a stand-

alone reactor, including but not limited to oilseed crop-derived oils,

rendered tallow, distiller’s corn oil, distiller’s sorghum oil, and used cooking

oil;

(4) LNG and L-CNG from North American fossil natural gas; and

(5) Biomethane from North American landfills, anaerobic digestion of

wastewater sludge, dairy and swine manure, and food, urban landscaping

waste, and other organic waste.

(d) Tier 2 Classification. The Tier 2 pathway classification shall apply to fuel

pathways that the Board’s staff has limited experience evaluating and certifying,

including fuel pathways that are not currently in widespread commercial

production. The Tier 2 classification includes all fuel pathways not included in

Tier 1 or the Lookup Table pathways. The Tier 2 classification includes, but is

not limited to the following fuel pathways:

(1) Cellulosic alcohols;

(2) Biomethane from sources other than those listed under the Tier 1

classification in (c)(5), above;

(3) Hydrogen pathways not found in the Lookup Table;

(4) Electricity pathways not found in the Lookup Table;

(5) Drop-in fuels (renewable hydrocarbons) except for renewable diesel

produced from feedstocks described in section 95488.1(c)(3). This

category includes fuels produced from low carbon feedstocks co-

processed with fossil feedstocks in petroleum refineries;

(6) Any fuel produced from unconventional feedstocks, such as algae oil;

(7) Pathways classified as Tier 1 that are produced using innovative

production methods. Innovative production methods include, but are not

limited to:

(A) Use of one or more low-CI process energy sources.

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§ 95488.1. Fuel Pathway Classifications. 104

(B) Use of carbon capture and sequestration. (Projects that utilize

carbon capture and sequestration are subject to the provisions of

section 95490).

using the Simplified CI Calculators. Such pathways must meet the

substantiality requirements of 95488.9(a).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.2. Relationship Between Pathway Registration and Facility Registration.

After establishing an account in the Alternative Fuels Portal, per the requirements of

section 95483.2(a), fuel pathway applicants must begin the application process by

completing the facility and pathway registration through the AFP web portal. The

provisions of 95488.2 do not apply to entities seeking to report fuel transactions for the

fuel pathways listed in 95488.1(b)(1).

(a) Production and Intermediate Facility Registration. All production facilities and

intermediate facilities from which site-specific operational data is relied upon in

determining the CI score for a pathway must be registered in the AFP. All of the

following fields that apply are required:

(1) Production company name and full mailing address.

(2) U.S. EPA Company ID for fuels covered by the federal RFS program.

For fuels not covered by the RFS program, the AFP system will generate

a Company ID.

(3) Company contact person’s contact information.

(A) Name

(B) Title or position

(D) Mobile phone number

(E) Email address

(F) Company web site URL

(4) The fuel production facility name and address, for each proposed

pathway.

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§ 95488.2. Relationship Between Pathway Registration and Facility Registration. 105

(A) For biomethane to vehicle fuel pathways, the fuel production facility

is the upgrading facility that purifies or otherwise produces

biomethane that meets the applicable standards for pipeline or

vehicle-quality natural gas.

(5) The names and addresses of any intermediate facilities, for

each proposed pathway.

(A) For biomethane to vehicle fuel pathways, intermediate facilities that

must be registered include the liquefaction facility, and the location

where biogas or other biomethane feedstock is produced, if that

location is not also the upgrading facility that is registered as the

fuel production facility.

(B) For any feedstock whose supplier applies using site-specific CI

data, the feedstock-processing facility must be registered as an

intermediate facility for the fuel pathway in which the feedstock

is utilized.

(6) U.S. EPA Facility ID for fuels covered by the federal RFS program. For

fuels not covered by the RFS program, the Executive Officer will assign a

Facility ID.

(7) Facility geographical coordinates (for each facility covered by the

proposed pathways). Coordinates can be reported using either the

latitude and longitude or the Universal Transverse Mercator coordinate

systems.

(8) Facility contact person’s contact information.

(A) Name

(B) Title or position

(D) Mobile phone number

(E) Email address

(9) Facility nameplate production capacity, or maximum expected throughput,

in million gasoline gallon equivalents per year or other appropriate units.

This information is required for each facility contributing site-specific data

to the proposed pathways, including intermediate facilities in the supply

chain.

(b) Pathway Registration. All of the following fields that apply are required.

(1) Consultant’s contact information

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§ 95488.2. Relationship Between Pathway Registration and Facility Registration. 106

(A) Name

(B) Title or position

(D) Phone number

(E) Mobile phone number

(F) Email address

(G) Web site URL

(2) Fuel type (renewable diesel, ethanol, etc.)

(3) Feedstock

(4) Brief pathway description (one to two sentences describing the

technology, transport mode, and any non-standard co-products)

(5) Proposed pathway carbon intensity value

(6) Estimated annual fuel production quantity under the proposed pathway

(estimated minimum, maximum, and average), in the applicable units

specified for reporting in 95491(d)(1) through (5).

(7) Classification. The fuel pathway applicant must declare whether the

proposed fuel pathway falls under the Lookup Table, Tier 1 or Tier 2

provisions of this regulation as specified in section 95488.1. The

Executive Officer will evaluate the fuel pathway applicant’s classification

declaration and either approve or change it.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.3. Calculation of Fuel Pathway Carbon Intensities.

(a) Calculating Carbon Intensities. Fuel pathway applicants and the Executive

Officer will evaluate all pathways based on life cycle greenhouse gas emissions

per unit of fuel energy, or carbon intensity, expressed in gCO

e/MJ. For this

analysis, the fuel pathway applicant must use CA-GREET3.0 model (including

the Simplified CI Calculators derived from that model) or another model

determined by the Executive Officer to be equivalent or superior to

CA-GREET3.0.

(b) CA-GREET3.0. The CA-GREET3.0 model (August 13, 2018) contains emission

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§ 95488.3. Calculation of Fuel Pathway Carbon Intensities. 107

factors for calculating greenhouse gas emissions from site-specific inputs to fuel

pathways and standard values for parts of the life cycle not included in applicant-

specific data submission. The model is open source and publicly available at

http://www.arb.ca.gov/fuels/lcfs/lcfs.htm and is incorporated herein by reference.

CA-GREET3.0 includes contributions from the Oil Production Greenhouse Gas

Estimator (OPGEE2.0) model (for emissions from crude extraction) and Global

Trade Analysis Project (GTAP-BIO) together with the Agro-Ecological Zone

Emissions Factor (AEZ-EF) model for land use change (LUC).

Tier 1 Simplified CI Calculators, which incorporate emission factors and life cycle

inventory data from the CA-GREET3.0 model, are used to calculate carbon

intensities for Tier 1 pathways. The eight Simplified CI Calculators listed below

are publicly available at http://www.arb.ca.gov/fuels/lcfs/lcfs.htm and are

incorporated herein by reference:

(1) Tier 1 Simplified CI Calculator for Starch and Fiber* Ethanol (August

13, 2018)

(2) Tier 1 Simplified CI Calculator for Sugarcane-derived Ethanol (August

13, 2018)

(3) Tier 1 Simplified CI Calculator for Biodiesel and Renewable Diesel

(August 13, 2018)

(4) Tier 1 Simplified CI Calculator for LNG and L-CNG from North American

Natural Gas (August 13, 2018)

(5) Tier 1 Simplified CI Calculator for Biomethane from North American

Landfills (August 13, 2018)

(6) Tier 1 Simplified CI Calculator for Biomethane from Anaerobic Digestion of

Wastewater Sludge (August 13, 2018)

(7) Tier 1 Simplified CI Calculator for Biomethane from Anaerobic Digestion of

Dairy and Swine Manure (August 13, 2018)

(8) Tier 1 Simplified CI Calculator for Biomethane from Anaerobic Digestion of

Organic Waste (August 13, 2018)

* Fiber in this case refers to corn and grain sorghum fiber exclusively.

crude oil used in the production of ultra-low sulfur diesel (ULSD) and California

Reformulated Gasoline Blendstock for Oxygenate Blending (CARBOB).

(d) Accounting for Land Use Change. The Executive Officer calculates LUC effects

for certain crop-based biofuels using the GTAP model (modified to include

agricultural data and termed GTAP-BIO) and the AEZ-EF model. LUC values

for six feedstock/finished biofuel combinations are provided in Table 6 below.

The Executive Officer may use the same modeling framework to assess LUC

values for other fuel or feedstock combinations, not currently found in Table 6, as

part of processing a pathway application. Alternatively, the Executive Officer

may require a fuel pathway applicant to use one of the values in Table 6, if the

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§ 95488.3. Calculation of Fuel Pathway Carbon Intensities. 108

Executive Officer deems that value appropriate to use for a fuel or feedstock

combination not currently listed in Table 6.

Table 6. Land Use Change Values for Use in CI Determination

Biofuel

LUC (gCO

/MJ)

Corn Ethanol

19.8

Sugarcane Ethanol

11.8

Soy Biomass-Based Diesel

29.1

Canola Biomass-Based Diesel

14.5

Grain Sorghum Ethanol

19.4

Palm Biomass-Based Diesel

71.4

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.4. Relationship of Pathway Carbon Intensities to Units of Fuel Sold in

California.

(a) LCFS CIs represent the life cycle greenhouse gas emissions, expressed in a per-

megajoule of finished-fuel energy basis, associated with long-term, steady-state

fuel production operations. Actual CIs vary over time due to a variety of factors,

including but not limited to seasonality, feedstock properties, plant maintenance,

and unplanned interruptions and shutdowns. A fuel production operation will not

be found to be in violation of its certified pathway based on CI unless a CI

calculated from production data covering 24 months of operations is higher than

the certified CI reported for that fuel in the LRT-CBTS system. A fuel pathway

applicant may add a conservative margin of safety, of a magnitude determined

by the applicant, to increase the certified CI above the operational CI calculated

based on the data submitted in the initial fuel pathway application, to account for

potential process variability and diminish the risk of non-compliance with the

certified CI. Fuel producers labeling fuel sold in California with LCFS CIs (in

product transfer or similar documents), and fuel reporting entities using those CIs

to report the fuel in the LRT-CBTS system, must ensure that the fuel so labeled

and so reported will be found to have a life cycle CI, as calculated from

production data covering 24 months of operation, that is equal to or less than the

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§ 95488.4. Relationship of Pathway Carbon Intensities to Units of Fuel Sold in California. 109

CIs reported in the LRT-CBTS system and on product transfer documents. Fuel

reporting entities shall not report fuel sales under any LCFS CI unless the actual

CI of that fuel, calculated as described in this subarticle, is equal to or less than

the LCFS CI under which sales of that fuel are reported in the LRT-CBTS

system.

(b) General Rule. Except as provided in subdivision (c) below, fuel producers and

fuel reporting entities covered by this regulation order must associate a CI with

each unit of fuel sold in California. In general, fuel producers and fuel reporting

entities shall assign all units of fuel produced while a given set of production

parameters is in effect the same CI, regardless whether those units will be sold in

California. For example, where a producer uses both biogas and natural gas as

process fuel, the producer shall assign all units produced a single CI that reflects

the mix of process fuels used to produce those units; the producer shall not

assign the units destined for the California market a CI associated only with the

use of biogas.

A producer or fuel reporting entity may assign a different certified CI only when

one or more production parameters changes. Following that change, all units

produced while the new set of production parameters is in effect have the new

CI, regardless of whether those units will be sold in California.

reporting entity may assign different CIs to portions of the fuel produced while a

given set of production parameters is in effect. Those conditions are:

(1) Two or more feedstocks are being simultaneously fed into the production

process. For example, a renewable diesel production facility may feed a

mixture of soy oil, tallow, and used cooking oil into its production process.

Or a hydrogen production facility may use both natural gas and renewable

natural gas as feedstock for steam methane reformation.

(2) Two or more co-products are being produced simultaneously. For

example, a corn ethanol plant may dry only a portion of the distiller’s

grains it produces; a portion of the distiller’s grains produced is sold dry,

and the remainder is sold wet.

(d) How to Use the Multiple Feedstock Exception. When two or more feedstocks

are being simultaneously fed into the production process, the producer or fuel

reporting entity shall associate a portion of the fuel produced with each

feedstock, using the production facility’s average production yield and one of the

methods provided in section 95491(d)(1)(C). The producer or fuel reporting

entity must then label each feedstock-specific subdivision of the total fuel quantity

produced with the certified CI associated with that feedstock.

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§ 95488.4. Relationship of Pathway Carbon Intensities to Units of Fuel Sold in California. 110

(e) How to use the Multiple Co-Product Exception. When two or more co-products

are being simultaneously produced, the producer or fuel reporting entity may

label the fuel associated with those co-products one of two ways:

(1) If the production facility has available to it a single CI reflective of the

current set of operational conditions (including the production of two or

more co-products, in the proportions currently being produced), the

producer or fuel reporting entity may label the facility’s entire production

run with that CI.

(2) If the production facility has available to it separate CIs associated with the

production of each co-product, the producer or fuel reporting entity may

label portions of the fuel produced with the certified CIs associated with

each co-product, in proportion to the co-product stream fraction that each

co-product comprises. The producer or fuel reporting entity shall

calculate the co-product proportions on an appropriate basis to conform to

the life cycle approach used for the fuel pathway.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.5. Lookup Table Fuel Pathway Application Requirements and

Certification Process.

(a) Applicability. A fuel reporting entity may use a Lookup Table pathway if the

Lookup Table (Table 7-1 in section 95488.5(e)) contains a fuel pathway that

closely corresponds to the actual physical fuel production pathways used to

produce the fuel in question. A fuel’s actual physical fuel production pathway

corresponds closely with a Lookup Table pathway when it is consistent with the

Lookup Table pathway in all the areas listed in (1) through (6) below:

(1) Feedstocks used to produce the fuel;

(2) Fuel and feedstock production technology;

(3) Regions in which feedstocks and finished fuel are produced;

(4) The modes used to transport feedstocks and finished fuel and the

transport distances involved;

(5) The types and amounts of thermal and electrical energy consumed in both

feedstock and finished fuel production. This applies both to the energy

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 111

consumed in the production process and to the upstream energy

consumed (e.g., fuels used to generate electricity; energy consumed to

produce natural gas, etc.); and

(6) The CI of the fuel pathway applicant’s product must be lower than or equal

to the Lookup Table pathway CI. If the Executive Officer determines the

product has an actual CI that is likely to be higher than the Lookup Table

CI value, the applicant may apply for a Tier 2 pathway.

(b) Lookup Table Pathway Application Requirements. Entities seeking approval to

report fuel transactions using the fuel pathways listed in 95488.1(b)(2)(A) through

(F) (electricity generated from one of the zero-CI sources listed in

95488.1(b)(2)(A), smart charging or smart electrolysis, and all hydrogen Lookup

Table pathways) must submit the fuel pathway applicant attestation letter

pursuant to the requirements of 95488.8(a) and meet the following requirements:

(1) The following information must be submitted with applications for the

Lookup Table pathway for electricity generated from zero-CI sources and

smart charging or smart electrolysis:

(A) For directly supplied zero-CI electricity, an applicant must indicate

the locations of electricity generation equipment, meters, meter ID

numbers, and identify any other users of the electricity.

(B) For zero-CI electricity supplied using book-and-claim accounting,

contracts and invoices are required to demonstrate that the

electricity meets the requirements of section 95488.8(i)(1).

demonstrating the quantity of electricity dispensed during each hour

for the latest quarter.

(2) The following information shall be submitted with applications for any

hydrogen Lookup Table pathways:

(A) Submittal of the fuel pathway applicant attestation letter affirms that

the applicant has reviewed and understood the pathway conditions

described in the Lookup Table Pathways – Technical Support

Documentation specified in section 95488.5(e), and attests that

their actual physical pathway is consistent with the Lookup Table

pathway in the areas listed in 95488.5(a). Any exceptions,

whether likely to result in a higher or lower CI, must be noted in the

attestation letter.

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 112

(B) The completed NREL National Fuel Cell Technology Evaluation

Center’s Hydrogen Station Infrastructure Data Template covering

three months of operation, if available, is required.

(3) The following information must be submitted with all Lookup Table

pathway applications for renewable hydrogen:

(A) Contracts and invoices meeting the requirements of 95488.8(h), or

95488.8(i), are required to substantiate type and source of

renewable input used to produce the fuel.

Lookup Table pathways listed in 95488.1(b)(2)(A) through (F), the Executive

Officer will evaluate submitted information for completeness. The Executive

Officer shall contact the applicant regarding any lack of required information or

clarification of submitted information. If the fuel pathway applicant does not

provide a satisfactory response to address the request within 15 business days,

the Executive Officer will reject the pathway application. Applicants whose

applications are rejected may submit a new application that addresses

deficiencies highlighted during the earlier review.

(d) Updates to Electricity Pathways.

(1) Annual Update to California Average Grid Electricity Pathway. In order to

reflect the rapidly evolving portfolio of electricity generating resources in

California, the Executive Officer will update the “California Average Grid

Electricity Used as a Transportation Fuel in California” Lookup Table

pathway CI value on an annual basis. The Executive Officer will use the

methodology described in the supporting document specified in section

95488.5(e) to determine the carbon intensity. The CA-GREET3.0 model

inputs and data sources used to calculate the CI will be posted for 45 days

for public comment prior to certification. If these comments require

significant revision of the originally published pathway, an updated

pathway will be posted for public comment. The updated Lookup Table

pathway CI value will be available for reporting in the quarter in which it is

certified.

(2) Update to Smart Charging Electricity Pathways. In order to reflect the

seasonal variation of electricity generating resources in California and to

maintain accounting consistency with the CI of the California Average Grid

Electricity pathway, the Executive Officer will use the methodology

described in the supporting document specified in section 95488.5(e) and

the public comment process described in 95488.5(d)(1) to update the

smart charging or smart electrolysis pathway CIs in Table 7-2.

(e) The following supporting document, which is incorporated herein by reference,

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 113

describes the methodology and data sources used to determine the carbon

intensity values for the fuel pathways, shown below in Table 7-1, and the hourly

windows for smart charging or smart electrolysis electricity pathways, shown

below in Table 7-2:

Industrial Strategies Division, California Air Resources Board. August 13,

2018. CA-GREET3.0 Lookup Table Pathways Technical Support

Documentation.

THIS SPACE INTENTIONALLY LEFT BLANK

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 114

Table 7-1. Lookup Table for Gasoline and Diesel and Fuels that Substitute for

Gasoline and Diesel

Fuel

Pathway

Code

Fuel Pathway Description

Carbon Intensity

Values

(gCO

e/MJ)

CARBOB CBOB

CARBOB - based on the average crude oil supplied

to California refineries and average California

refinery efficiencies

100.82

Diesel ULSD

ULSD - based on the average crude oil supplied to

California refi

neries and average California refinery

efficiencies

100.45

Compressed

Natural Gas

CNGF

Compressed Natural Gas from Pipeline Average

North American Fossil Natural Gas

79.21

Propane PRPF

Fossil LPG from crude oil refining and natural gas

processing used as

a transport fuel

83.19

ELCG

California average grid electricity

used as a

transportation fuel

in California

93.75

(and subject

to annual updates)

Electricity ELCR

Electricity that is generated from 100 percent zero-

CI sources

used as a transportation fuel in

California

0.00

ELCT

Electricity supplied under the smart charging

smart electrolysis

provision

(See Table 7-2)

HYF

Compressed H2 produced in California from central

SMR of North American fossil

-based NG

117.67

HYFL

Liquefied H2 produced in California from central

SMR of North American fossil

-based NG

150.94

Hydrogen HYB

Compressed H2 produced in California from central

SMR of biomethane (renewable feedstock) from

North American landfills

99.48

HYBL

Liquefied H2 produced in California from central

SMR of biomethane (renewable feedstock) from

North American landfills

129.09

HYEG

Compressed H2 produced in California from

electrolysis using California average grid electricity

164.46

HYER

Compressed H2 produced in California from

electrolysis using zero

-CI electricity

10.51

For comparison on an equivalent basis (gCO

e per MJ of conventional fuel displaced), the CIs listed in

Tables 7-1 and 7-2 must be divided by the EER in Table 5 for the appropriate fuel-vehicle combination.

The EER-adjustment is made when fuel quantities are reported in the LRT-CBTS to calculate the correct

number of credits or deficits, using the equations in 95486.1(a).

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 115

(f) Smart Charging or Smart Electrolysis Lookup Table Pathways. The Executive

Officer will calculate the following carbon intensity lookup table that may be used

for reporting electric vehicle charging and hydrogen produced via electrolysis in

California. For hydrogen production through electrolysis outside of California,

an applicant must provide, through the Tier 2 application process, a comparable

method to determine smart electrolysis carbon intensity values for the grid

electricity in the state or region where hydrogen is produced.

Updates to this table will be provided at least annually on the LCFS web site.

Table 7-2. Calculated Smart Charging or Smart Electrolysis Carbon Intensity

Values for 2019

Hourly Window

CI (gCO2e/MJ)

12:01 AM – 1:00 AM

87.06

86.91

86.87

90.25

1:01 AM – 2:00 AM

87.06

85.91

86.80

88.55

2:01 AM – 3:00 AM

87.06

87.20

86.77

87.80

3:01 AM – 4:00 AM

87.06

87.03

86.72

87.91

4:01 AM – 5:00 AM 87.63 91.45 87.17 90.98

5:01 AM – 6:00 AM 94.46 105.76 95.77 105.08

6:01 AM – 7:00 AM 110.98 94.28 92.09 122.40

7:01 AM – 8:00 AM

105.79

2.48

88.39

109.22

8:01 AM – 9:00 AM

86.35

1.96

89.39

94.27

9:01 AM – 10:00 AM

58.66

2.92

91.09

90.26

10:01 AM – 11:00 AM

57.80

50.25

93.23

89.84

11:01 AM – 12:00 PM

56.52

53.31

97.87

91.17

12:01 PM – 1:00 PM

55.97

55.12

104.23

92.03

1:01 PM – 2:00 PM 56.50 58.67 110.13 93.36

2:01 PM – 3:00 PM 56.53 63.57 115.76 95.25

3:01 PM – 4:00 PM 57.80 26.45 123.91 104.30

4:01 PM – 5:00 PM 92.45 48.57 131.52 136.96

5:01 PM – 6:00 PM

125.85

120.79

146.52

156.40

6:01 PM – 7:00 PM

144.90

151.38

155.70

153.00

7:01 PM – 8:00 PM

127.62

150.96

140.27

141.37

8:01 PM – 9:00 PM

114.50

122.63

118.35

130.78

9:01 PM – 10:00 PM

95.55

93.62

100.45

115.22

10:01 PM – 11:00 PM

88.25

88.12

91.21

102.03

11:01 PM – 12:00 AM

87.07

87.12

88.57

93.34

Based on 2019 marginal emission rates determined using the Avoided Cost Calculator (May 2018),

which is incorporated herein by reference.

(g) Executive Officer Review of CI Selection. A fuel reporting entity’s choice of

carbon intensity value from the Lookup Table is subject in all cases to Executive

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§ 95488.5. Lookup Table Fuel Pathway Application Requirements and Certification Process. 116

Officer review. The Executive Officer may request any documentation

necessary to determine that the pathway conforms to the Lookup Table pathway.

(1) If the Executive Officer has reason to believe that a fuel reporting entity’s

Lookup Table choice is not the CI value that most closely corresponds to

its actual pathway CI, the Executive Officer shall notify the entity through

the LRT-CBTS to choose a different pathway from the Lookup Table; or

(2) If the Executive Officer has reason to believe that the Lookup Table does

not contain a fuel pathway that closely corresponds with the actual fuel

pathway, the Executive Officer will notify the entity accordingly and the

fuel reporting entity will not be allowed to use the Lookup Table to

generate credits or deficits. In that case, the entity may apply for a Tier 1

or Tier 2 pathway.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.6. Tier 1 Fuel Pathway Application Requirements and Certification

Process.

(a) Documentation Required for Tier 1 Pathways. A fuel pathway applicant may

apply for a Tier 1 pathway using the provisions set forth in this section. After

satisfying all requirements for pathway and facility registration in 95488.2, the

applicant must submit the following information to the Executive Officer for

consideration of a Tier 1 pathway CI.

(1) Simplified CI Calculator. A fuel-specific Simplified CI Calculator

populated with all applicable site-specific operational data inputs is

required. The period covered shall be the most recent 24 month period

of operation. Fields that require site-specific inputs are marked in the

Simplified CI Calculator. Site-specific inputs include, but are not limited

to, the monthly quantity of all feedstocks consumed in the fuel production

facility, the electricity generation mix of the subregion(s) where feedstock

and fuel production occur, the types and monthly quantities of all energy

used in the production of the fuel, and the monthly quantities of fuel

produced.

(A) The Simplified CI Calculators include appropriate LUC or other

indirect carbon intensity modifiers from Table 6 when applicable.

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§ 95488.6. Tier 1 Fuel Pathway Application Requirements and Certification Process. 117

(B) Applicants must follow the instructions for completing site-specific

inputs in the Simplified CI Calculators found in the Tier 1 Simplified

CI Calculator Instruction Manual (August 13, 2018), incorporated

herein by reference.

Industrial Strategies Division, California Air Resources Board.

August 13, 2018. Tier 1 Simplified CI Calculator Instruction

Manual.

generation energy mixes from among the subregions in CA-

GREET3.0 and the Simplified CI Calculators, if applicable. The

options include the 26 subregions defined in the U.S. EPA’s

Emissions and Generation Resource Integrated Database with year

2014 data (eGRID2014v2, released on February 27, 2017), and a

national grid mix for Brazil and Canada.

1. User-defined Process Energy Option. Applicants whose

fuel production facilities or feedstock source regions are

located in an area for which there is no corresponding

subregion included in the Simplified CI Calculator may select

the user-defined option, and shall consult with the Executive

Officer for approval of the data prior to submitting an

application.

(2) Supplemental Information. Supporting evidence for specified inputs to

the CI calculator can be uploaded to the AFP as a supplemental

information document, as needed. Supplemental information is required

under the following circumstances:

(A) If an alternative form of process energy supplied directly to the

production facility are used, evidence must be provided to identify

the source, to demonstrate that it is delivered directly to the

production facility, and to determine the carbon intensity of the

process energy input.

(B) If the fuel pathway applicant selects user-defined emission factors

for regions not currently included in the Simplified CI Calculator, to

reflect the grid electricity resource mix, crude and natural gas for

that region. Supporting evidence and data sources for these

emission factors must be provided.

additional processing after they leave site, such as additional

distiller’s grains drying or fuel distillation, supporting evidence of the

energy consumed for those processes must also be submitted.

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§ 95488.6. Tier 1 Fuel Pathway Application Requirements and Certification Process. 118

(D) If the fuel production facility is co-located with one or more

unrelated facilities, and energy consumption data (or other data

required in calculating CI) are not separately available for the fuel

production facility, the applicant shall install automated metering

equipment with electronic data archival to enable an Executive

Officer accredited verification body to confirm energy consumption

data for the 24 months of operation submitted in the application.

The metering should be capable of recording daily total energy

consumption data. The same requirements apply if a single facility

includes multiple operations including fuel production.

(E) Other information to facilitate staff review may also be included as

part of the supplemental information.

(b) Certification Process for Tier 1 Pathway Applications.

(1) Validation. The applicant must seek the services of an Executive Officer

accredited verification body to complete a pathway validation as specified

in section 95500. A positive or qualified positive validation statement

must be received by the Executive Officer from the verification body in

order for CARB’s completeness review, evaluation, and certification of the

pathway application to proceed. In cases where a single applicant or a

joint applicant does not complete validation, the application will be denied

without prejudice. In cases where an applicant cannot complete

validation within six months of submitting an application or receives an

adverse validation statement, the application will be denied without

prejudice.

(2) Completeness Review. Upon receipt of a positive or qualified positive

validation statement, the Executive Officer will conduct a completeness

review of the Tier selection to ensure the pathway meets the requirements

for Tier 1, and evaluate if the inputs to the Simplified CI Calculator are

complete.

(A) Application Complete. If the Executive Officer deems complete

the applicant’s Simplified CI Calculator and supplemental

information, the fuel pathway applicant shall be notified as such.

(B) Application Incomplete. If the Executive Officer deems the

Simplified CI Calculator and supplemental information incomplete,

the Executive Officer will reject the pathway application without

prejudice and inform the fuel pathway applicant of the rationale for

rejection. Applicants whose applications are rejected may submit

a new application that addresses deficiencies highlighted during the

earlier review.

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§ 95488.6. Tier 1 Fuel Pathway Application Requirements and Certification Process. 119

(3) Certification. The Executive Officer may certify or reject a pathway

application.

(A) The Executive Officer will evaluate the application to determine

whether it has met all requirements necessary for certification. At

any point during the evaluation process, the Executive Officer may

request in writing additional information or clarification from the

applicant.

(B) If the Executive Officer determines the application has met all

requirements necessary for certification, the Executive Officer will

complete a pathway summary of the inputs, the facility average fuel

production yield, CI results, and any applicable limitations or

conditions. Upon certification of a Tier 1 application, the pathway

will be available for reporting for the quarter in which it was deemed

complete.

pathway holder(s) for the certified fuel pathway and is subject to the

requirements of 95488.10, and any limitations or conditions

identified by the Executive pursuant to (3)(B) above, in order for

that pathway to remain eligible for reporting and credit generation

purposes.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification

Process.

(a) Documentation Required for Tier 2 Pathways. A fuel pathway applicant may

apply for a Tier 2 pathway using the provisions set forth in this section. After

satisfying all requirements for pathway and facility registration in 95488.2, the

applicant must submit the following information to the Executive Officer for

consideration of a Tier 2 pathway CI:

(1) CA-GREET Model. A copy of the CA-GREET3.0 spreadsheet prepared

for the life cycle analysis of the proposed fuel pathway. Tier 2 pathway

carbon intensities must be calculated using the CA-GREET3.0 model, with

the most current 24 months of operational data, unless the Executive

Officer has approved the use of a method or model that the Executive

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 120

Officer has determined is at least equivalent to the calculation

methodology used by CA-GREET3.0. The CA-GREET3.0 model shall

include appropriate LUC or other indirect carbon intensity modifier from

Table 6 when applicable.

(2) Life Cycle Analysis Report. A life cycle analysis report that describes the

full fuel life cycle, and describes in detail the calculation of the fuel

pathway CI. The report shall contain sufficient detail to allow the Board’s

staff to replicate the CI calculated by the applicant. All inputs to, and

outputs from, the fuel production process that contribute to the life cycle CI

must be described in the life cycle analysis report. These inputs and

outputs must then be fully accounted for in the calculation of the fuel

pathway CI. The life cycle analysis report shall include the following

information:

(A) A detailed description of the full fuel production process. The

description shall include:

1. A description of the full well-to-wheels fuel life cycle,

including the locations where each primary step in the fuel

life cycle occurs. This description shall identify where the

system boundary was established for the purposes of

performing the life cycle analysis on the proposed pathway.

The discussion of the system boundary shall be

accompanied by a schematic depicting the system

boundary. That schematic shall show all feedstock and fuel

production units that are included in the system boundary, as

well as all material and energy flows across the system

boundary. Any feedstock or fuel production units that have

been excluded from the system must be shown on the

schematic, and must be explicitly discussed in the narrative

description of the full fuel life cycle.

2. A description of all fuel production feedstocks used,

including all pre-processing to which feedstocks are subject.

For fuels utilizing agricultural crops for feedstocks, the

description shall include the agricultural practices used to

produce those crops. This discussion shall cover energy

and chemical use, typical crop yields, feedstock harvesting,

transport modes and distances, storage, and pre-processing

(such as drying or oil extraction).

3. A description of all material inputs to the production process

not covered in 2, above. These include, but are not limited

to enzymes, nutrients, chemicals, catalysts, and

microorganisms.

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 121

4. A description of the transportation modes used throughout

the fuel life cycle. This discussion must identify origins and

destinations, cargo carrying capacities, fuel shares, and the

distances traveled for each transport mode.

5. A description of all facilities and process units involved in the

production of fuel under the proposed pathway.

6. A list of all combustion-powered equipment, along with their

respective capacities, sizes, or rated power, and type and

amount of fuel combusted, throughout all phases of the fuel

life cycle over which the fuel pathway applicant exercises

control.

7. A quantitative discussion of the thermal and electrical energy

consumption that occurs throughout all phases of the fuel life

cycle over which the applicant exercises control. All fuels

used (natural gas, biogas, coal, biomass, etc.) must be

identified and use rates quantified. The regional electrical

energy generation fuel mix used in the CA-GREET3.0

analysis must be identified. Internally generated power

such as cogeneration and combined heat and power must

also be described. All fuel pathway applicants using grid

electricity must choose electrical generation energy mixes

from among the subregions in CA-GREET3.0, if applicable.

The options include the 26 subregions defined in

eGRID2014v2, and a national grid mix for Brazil and

Canada. Applicants whose fuel production facilities or

feedstock source regions are located in an area for which

there is no corresponding subregion included in CA-

GREET3.0 must enter user-defined energy resources and

submit the source of the data utilized to the Executive Officer

for approval.

8. A description of all co-products, byproducts, and waste

products associated with production of the fuel. That

description shall extend to all processing, such as drying of

distiller’s grains, applied to these materials after they leave

the fuel production process, including processing that occurs

after ownership of the materials passes to other parties.

Moreover, if a co-product credit is claimed for a co- or

by-product, that credit must reflect all post-fuel-production

processing steps covered by this section. If a co-product

(e.g., electricity) is exported across the fence line, details of

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 122

the quantity of energy transferred on a daily basis must be

monitored using data systems with electronic archival.

(B) A detailed description of the calculation of the pathway CI. This

description must provide clear, detailed, and quantitative

information on process inputs and outputs, energy consumption,

greenhouse gas emissions generation, and the final pathway

carbon intensity, as calculated using CA-GREET3.0. Important

intermediate values in each of the primary life cycle stages shall be

shown. Those stages include but are not limited to feedstock

production and transport; fuel production, fuel transport, and

dispensing; co-product production, transport and use; waste

generation, treatment and disposal; and fuel use in a vehicle. This

description shall include, at a minimum:

1. A table showing all CA-GREET3.0 input values entered by

the applicant. The worksheet, row, and column locations of

the cells into which these inputs were entered shall be

identified. In combination with the modifications identified in

subsection (B)2. below, this table shall enable the Executive

Officer to enter the reported inputs into a copy of

CA-GREET3.0 and to replicate the carbon intensity results

reported in the application.

2. A detailed discussion of all modifications other than those

covered by subsection (B)1. above, made to the CA-

GREET3.0 spreadsheet. This discussion shall allow the

Executive Officer to duplicate all such modifications and, in

combination with the inputs identified in subsection (B)1.

above, replicate the carbon intensity results reported in the

application.

3. Documentation of all CA-GREET3.0 values used in the

carbon intensity calculation process.

4. A detailed description of all supporting calculations that were

performed outside of the CA-GREET3.0 spreadsheet.

outputs from, or provide inputs to, the fuel production facility.

Such co-located facilities include but are not limited to cogeneration

facilities, facilities that otherwise provide heat or electrical energy to

the fuel production process, facilities that process or utilize co-

products such as distillers grains with solubles, and facilities which

provide or pre-process feedstocks or thermal energy fuels. If

energy is supplied to the fuel production facility by a co-located

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 123

cogeneration plant and that plant also supplies energy to other

facilities, those other facilities must be identified and described.

For facilities that are co-located with other production facilities or

utilize multiple processing operations in addition to fuel production,

demonstration of energy use should conform to section

95488.6(a)(2)(D).

(D) A list of references covering all information sources used in the

preparation of the life cycle analysis. All reference citations in the

application shall include standard in-text parenthetical citations

stating the author’s last name and date of publication. Each in-text

citation shall correspond to complete publication information

provided in the list of references. Complete publication

information shall at a minimum, identify the author(s), title of the

referenced document (and of the article within that document, if

applicable), publisher, publication date, and pages cited. For

internet citations, the reference shall include the universal resource

locator (URL) address of the citation, as well as the date the web

site was last accessed.

(E) One or more process flow diagrams that, singly or collectively,

depict the complete fuel production process. Each piece of

equipment or stream appearing on the process flow diagram shall

include data on its energy and materials balance, along with any

other critical information such as operating temperature, pH, rated

capacity, etc.

(F) A copy of the federal Renewable Fuel Standard (RFS) Third Party

Engineering Review Report required pursuant to 40 CFR part

80.1450, if available. If the RFS engineering report is not

available, the Life Cycle Analysis Report shall explain why it is not

available.

(G) A copy of the federal Renewable Fuel Standard (RFS) Fuel

Producer Co-products Report as required pursuant to 40 CFR

80.1451(b)(1)(ii)(M)-(N), if available.

(3) Tier 2 Pathways for EER-Adjusted Carbon Intensity. Applicants

supplying fuel for a transportation application that is not included in Table

5 may apply for an EER-adjusted carbon intensity for reporting and credit

generation purposes.

(A) Documentation Requirements. To request an EER-adjusted

carbon intensity, the applicant must provide the following in addition

to subsections (1) and (2) above:

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 124

1. A letter of intent to request an EER-adjusted CI and why the

EER values provided in Table 5 do not apply.

2. Supplemental information including a detailed description of

the methodology used, all assumptions made, and all data

and references used for calculation of the proposed EER-

adjusted CI value. The methodology used must compare

the useful output from the alternative fuel technology to that

of comparable conventional fuel technology.

3. If the applicant plans to use a Lookup Table pathway to

request an EER-adjusted CI then subsections (1) and (2)

above do not apply.

(b) Scientific Defensibility. For a proposed Tier 2 pathway to be certifiable by the

Executive Officer, the fuel pathway applicant must demonstrate that the life cycle

analysis prepared in support of the pathway application is scientifically defensible

in the Executive Officer’s best engineering and scientific judgment.

For purposes of this regulation, “scientifically defensible” means the method for

calculating the fuel’s carbon intensity may rely on, but is not limited to, publication

of the proposed pathway in a major, well-established and peer-reviewed scientific

journal (e.g., the International Journal of Life Cycle Assessment; The Journal of

Cleaner Production, Biomass and Bioenergy).

submittal of documents that contain confidential business information and

redacted versions for posting to a public LCFS web site.

(d) Certification Process for Tier 2 Pathway Applications.

(1) Completeness Review. The Executive Officer will evaluate the LCA

Report, CA-GREET3.0 model, and all submitted documentation for

completeness in order to conduct a comprehensive evaluation of the

pathway application and confirm that the methods presented are

appropriate from an LCA perspective and confirm that the fuel pathway

application meets the requirements for the Tier 2 classification. The

Executive Officer may contact the fuel pathway applicant for an

explanation of any questionable inputs, methods or lack of information in

the application. The applicant must respond and address the request

within 15 business days, as provided in subsection (1)(B) below:

(A) Application Complete. If the Executive Officer deems the Tier 2

application and LCA report complete and appropriate, the applicant

will be notified accordingly and provided with a list of site-specific

inputs required for validation. The fuel pathway applicant must

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 125

then seek the services of an Executive Officer accredited

verification body for validation as specified in section 95500.

(B) Application Incomplete. If the Executive Officer deems the Tier 2

application incomplete, and the applicant does not provide a

satisfactory response to address the deficiencies within 15

business days, the Executive Officer will reject the pathway

application without prejudice and inform the applicant of the

rationale for rejection. Fuel pathway applicants whose

applications are rejected may submit a new application that

addresses deficiencies highlighted during the earlier review.

(2) Site-specific Inputs. Tier 2 pathways are expected to be unique with no

predetermined life cycle analysis profile; therefore, such pathways do not

include a defined set of predetermined site-specific inputs that are

required to be provided in the annual Fuel Pathway Report and must be

verified. The Executive Officer shall identify all site-specific inputs for a

Tier 2 pathway and make this available for review by the fuel pathway

applicant. This includes any non-numerical parameters or conditions

which must be checked by the verifier. The applicant has 15 business

days to review and accept the Executive Officer’s proposed site-specific

inputs. If there is disagreement, the applicant may suggest modified site-

specific inputs within this period. The Executive Officer will review the

applicant’s suggested inputs and present to the applicant a final list of site-

specific inputs. The applicant then has 7 business days to accept the

updated site-specific inputs. If the applicant disagrees with the final list of

site-specific inputs, the applicant may withdraw the pathway application; if

not withdrawn, the application will be rejected by the Executive Officer.

The Executive Officer’s decision regarding the final list of site-specific

inputs for Tier 2 pathways is binding.

(3) Validation. A positive or qualified positive validation statement must be

received by the Executive Officer from the verification body in order for

CARB’s evaluation and certification of the pathway application to proceed.

In cases where a single applicant or a joint applicant does not complete

validation, the application will be denied without prejudice. In cases

where an applicant cannot complete validation within six months of

submitting an application, or receives an adverse validation statement, the

application will be denied without prejudice.

(4) Engineering Review. The Executive Officer has the authority to request

any supporting documentation to investigate specific inputs in the fuel

pathway applicant’s submitted CA-GREET3.0 model. The Executive

Officer will evaluate all applications against the following criteria:

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 126

(A) The Executive Officer will attempt to replicate the applicant’s

carbon intensity calculations. Replication will proceed as follows:

1. Starting with a copy of CA-GREET3.0 that has not previously

been used for calculations associated with the proposed

pathway, the Executive Officer will enter all the inputs

reported by the applicant.

2. The Executive Officer will then apply all CA-GREET3.0

modifications reported by the applicant.

3. If the Executive Officer is able to duplicate the applicant’s

results, the Executive Officer will proceed to subsection (B)

below. If the Executive Officer is not able to duplicate the

applicant’s CA-GREET3.0 results, the application shall be

denied.

(B) The Executive Officer will evaluate the validity of all inputs and

methods not directly related to energy consumption used to

calculate the applicant’s CI. If any of those inputs are found to be

invalid, the application will be denied.

the site-specific inputs, the facility average fuel production yield, CI

results, and any applicable limitations or conditions. The pathway

summary, with CBI redacted, will be posted to the LCFS web site

for public review.

(5) Public Comment Period. The application package, containing the

Executive Officer’s pathway summary and the documents prepared by the

applicant for public review, will be posted to the LCFS web site for public

comment once the Executive Officer completes a final check of the

pathway application to ensure it has met all requirements for certification.

(A) Comments will be accepted for 10 business days following the date

on which the application was posted. Only comments related to

potential factual or methodological errors will require responses

from the fuel pathway applicant. The Executive Officer will forward

to the applicant all comments identifying potential factual or

methodological errors. In response, the applicant must either:

1. Make revisions to its application that respond to the

comments received and submit those revisions to the

Executive Officer. The revised application packet must

include a detailed discussion of the revisions made. The

discussion must clearly delineate how each comment is

related to a responsive revision. The revisions submitted

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§ 95488.7. Tier 2 Fuel Pathway Application Requirements and Certification Process. 127

must be approved by the Executive Officer before the

application can be certified;

2. Submit a detailed written response to the Executive Officer

explaining why no revisions are necessary. The response

submitted by the fuel pathway applicant must be approved

by the Executive Officer before the application can be

certified;

3. As specified in subsection 1, revise portions of the

application in response to a subset of the comments

received, and, as specified in subsection 2., submit a written

response explaining why the remaining comments do not

warrant revisions; or

4. Withdraw the application.

(B) The Executive Officer will evaluate the fuel pathway applicant’s

responses to the comments received, and determine whether they

have adequately addressed the potential factual or methodological

errors identified in those comments. If deemed adequate, those

responses will be posted to the LCFS web site, and the pathway

(revised as needed) will be certified and posted to the LCFS web

site. If the applicant fails to submit responses or the responses

are deemed inadequate, the application will be denied.

and posted to the LCFS web site.

(6) Certification. The Executive Officer may certify or reject a pathway

application. Upon certification of a Tier 2 application, the pathway will be

available for reporting for the quarter in which it was deemed complete.

Upon certification, the fuel pathway applicant(s) becomes the fuel pathway

holder(s) for the certified fuel pathway and is subject to the requirements

of 95488.10 in order for that pathway to remain eligible for reporting and

credit generation purposes.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 128

§ 95488.8. Fuel Pathway Application Requirements Applying to All

Classifications.

(a) Requirements for Attestation Letter. Each fuel pathway application must include

a fuel pathway applicant attestation letter. The attestation letter must attest to

the veracity of the information in the application packet and declare that the

information submitted accurately represents the long-term, steady state operation

of the fuel production process described in the application packet. The

attestation letter must conform to the requirements of this subsection. The fuel

pathway applicant attestation letter must make the following specific attestations:

(1) No products, co-products, by-products, or wastes undergo additional

processing, such as drying, distillation, or clean-up, once they leave the

production facility, except as explicitly included in the pathway life cycle

analysis and pathway CI.

(2) All data and information supplied is true and accurate in all areas,

including, but not limited to the following:

(A) Feedstocks used to produce the fuel;

(B) Fuel and feedstock production technology;

(D) Modes used to transport feedstocks and finished fuel and the

transport distances involved;

(E) Types and amounts of thermal and electrical energy consumed in

both feedstock and finished fuel production;

(F) Full life cycle carbon intensity, which must be no higher than the

carbon intensity specified in the Lookup Table, or Tier 1 or Tier 2

application; and

(G) Fuel production operations.

(3) The signed LCFS fuel pathway applicant attestation letter must:

(A) Be submitted as an electronic copy;

(B) Be on company letterhead;

attest to the veracity of the information in the application and to sign

on behalf of the applicant;

(D) Be from the applicant and not from an entity representing the

applicant (such as a consultant or legal counsel); and

(E) Include the following attestation:

I certify that the current fuel production process used to produce __________ (fuel) at the __________

facility is consistent in all of the following areas with all information submitted to CARB in connection with

the pathway request: 1) feedstocks used in fuel production; 2) fuel and feedstock production technology;

3) geographic region in which feedstocks and finished fuel are produced; 4) transportation modes used to

transport feedstocks and finished fuel and transport distances; 5) types and amounts of thermal and

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 129

electrical energy consumed in both feedstock and finished fuel production; and 6) any other applicable

fuel pathway standard or operating condition established by CARB. The carbon intensity (CI) of the fuel

must be no higher than the CI for the certified FPC.

I understand that the following facility information will be posted on the LCFS web site: Facility Name,

Facility Address, Company ID, Facility ID, Fuel Pathway Code(s), CI values, and Fuel Pathway

Description(s).

By submitting this form, ______________________________________________(Fuel Pathway

Applicant) accepts responsibility for the information herein provided to CARB. I certify under penalty of

perjury under the laws of the State of California that I have personally examined, and am familiar with, the

statements and information submitted in this document. I certify that the statements and information

submitted to CARB are true, accurate, and complete.

______________________________ ______________________________

__________

Signature Print Name & Title Date

(b) If the Executive Officer at any time determines that a certified fuel pathway does

not meet the requirements of this subarticle or the operational conditions

specified in the pathway summary issued by the Executive Officer, the Executive

Officer may revoke or modify the certification.

business information,” for the purposes of this section, is the same as the

definition of “trade secret” found in Government Code, section 6254.7. All

documents (including spreadsheets and other items not in a standard document

format) that are designated to contain confidential business information (CBI)

must prominently display the phrase “Contains Confidential Business

Information” above the main document title and in a running header.

Additionally, a separate, redacted version of such documents must also be

submitted. The redacted versions must be approved by the applicant for public

posting on LCFS web site. Specific redactions must be replaced with the

phrase “Confidential business information has been redacted by the applicant.”

This phrase must be displayed clearly wherever CBI has been redacted. If the

applicant claims that information it submits is confidential, it must also provide

contact information required by California Code of Regulations, title 17,

section 91011.

(d) Public Disclosure of Application Materials and Use of Application Materials in the

LCFS Data Management System.

(1) All information not identified as trade secrets are subject to public

disclosure pursuant to California Code of Regulations, title 17, sections

91000 through 91022 and the California Public Records Act (Government

Code §§ 6250 et seq.); and

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 130

(2) If the application is certified by the Executive Officer, the carbon intensity

value(s) and its associated fuel pathway code(s) will be posted publicly on

the LCFS web site and incorporated into the LCFS Data Management

System for use by fuel reporting entities.

(e) Submittal Formats.

(1) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically via

the AFP unless the Executive Officer has approved or requested in writing

another format.

(2) The fuel pathway applicant must not convert spreadsheets, including CA-

GREET3.0 spreadsheets, into other file formats or otherwise take steps to

prevent the Executive Officer from examining all values and calculations in

those spreadsheets.

(f) Additional Demonstrations. Upon request from the Executive Officer, a fuel

pathway application must meet the following requirements:

(1) Demonstrate that the fuel that will be produced under the proposed

pathway would comply with all applicable ASTM or other generally

recognized national consensus standards; and

(2) Demonstrate that the fuel that will be produced under the proposed

pathway is not exempt from the LCFS under section 95482(c).

(g) Specified Source Feedstocks.

(1) Pathways Utilizing a Specified Source Feedstock. In order to be eligible

for a reduced CI that reflects the lower emissions or credit associated with

the use of a waste, residue, by-product or similar material as feedstock in

a fuel pathway, fuel pathway applicants must meet the following

requirements.

(A) Specified source feedstocks include:

1. Used cooking oil, animal fats, fish oil, yellow grease,

distiller’s corn oil, distiller’s sorghum oil, brown grease, and

other fats/oils/greases that are the non-primary products of

commercial or industrial processes for food, fuel or other

consumer products, which are used as feedstocks in

pathways for biodiesel, renewable diesel, alternative jet fuel,

and co-processed refinery products;

2. Biomethane supplied using book-and-claim accounting

pursuant to section 95488.8(i)(2) and is claimed as

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 131

feedstock in pathways for bio-CNG, bio-LNG, bio-L-CNG,

and hydrogen via steam methane reformation;

3. Any feedstock whose supplier applies for separate CARB

recognition using site-specific CI data; and

4. Other feedstocks designated as specified-source at the time

of pathway review and prior to certification.

(B) Chain-of-custody Evidence. Fuel pathway applicants using

specified source feedstocks must maintain either (1) delivery

records that show shipments of feedstock type and quantity directly

from the point of origin to the fuel production facility, or (2)

information from material balance or energy balance systems that

control and record the assignment of input characteristics to output

quantities at relevant points along the feedstock supply chain

between the point of origin and the fuel production facility. Chain-

of-custody evidence is used to demonstrate proper characterization

and accurate quantity. Chain-of-custody evidence must be

provided to the verifier and to CARB upon request. Joint

Applicants may assume responsibility for different portions of the

chain-of-custody evidence but each such entity must meet the

following requirements to be eligible for a pathway that utilizes a

specified source feedstock:

1. Maintain records of the type and quantity of feedstock

obtained from each supplier, including Feedstock transaction

records, Feedstock Transfer Documents pursuant to section

95488.8(g)(1)(C), weighbridge tickets, bills of lading or other

documentation for all incoming and outgoing feedstocks;

2. Maintain records used for material balance and energy

balance calculations.

3. Ensure CARB staff and verifier access to audit feedstock

suppliers to demonstrate proper accounting of attributes and

conformance with certified CI data.

must prominently state the information specified below.

1. Transferor Company name, address and contact

information;

2. Recipient Company name, address and contact information;

3. Type and amount of feedstock, including units;

4. Transaction date.

(h) Renewable or Low-CI Process Energy. Unless expressly provided elsewhere in

this subarticle, indirect accounting mechanisms for renewable or low-CI process

energy, such as the use of renewable energy certificates, cannot be used to

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 132

reduce CI. In order to qualify as a low-CI process energy source, energy from

that source must be directly consumed in the production process as described in

(1) and (2) below:

(1) Low-CI electricity must be supplied from generation equipment under the

control of the pathway applicant. Such electricity must be able to

demonstrate:

(A) Any renewable energy certificates or other environmental attributes

associated with the energy are not produced, or are retired and not

claimed under any other program with the exception of the federal

RFS, and the market-based compliance mechanism set forth in title

17, California Code of Regulations Chapter 1, Subchapter 10,

article 5 (commencing with section 95800).

(B) The generation equipment is directly connected through a

dedicated line to a facility such that the generation and the load are

both physically located on the customer side of the utility meter.

The generation source may be grid-tied, but a dedicated connection

must exist between the source and load.

electricity claimed using a monthly balancing period.

(2) Biogas or biomethane must be physically supplied directly to the

production facility. The applicant must submit the attestation set forth

below in section 95488.8(i)(2)(C)2.

(3) Solar steam or heat generation must be physically supplied directly to the

production facility, and any environmental attributes associated with the

energy are not produced, or are retired and not claimed under any other

program with the exception of the federal RFS, and the market-based

compliance mechanism set forth in title 17, California Code of Regulations

Chapter 1, Subchapter 10, article 5 (commencing with section 95800).

(i) Indirect Accounting for Renewable or Low-CI Electricity and Biomethane.

(1) Book-and-Claim Accounting for Renewable or Low-CI Electricity Supplied

as a Transportation Fuel or Used to Produce Hydrogen. Reporting

entities may use indirect accounting mechanisms for low-CI electricity

supplied as a transportation fuel or for hydrogen production through

electrolysis for transportation purposes (including hydrogen that is used in

the production of a transportation fuel), provided the conditions set forth

below are met:

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 133

(A) Reporting entities may report low-CI electricity used as a

transportation fuel or as an input to hydrogen production delivered

through the grid without regard to physical traceability if it meets all

requirements of this subarticle. The low-CI electricity must be

supplied to the grid within a California Balancing Authority (or local

balancing authority for hydrogen produced outside of California) or

alternatively, meet the requirements of California Public Utilities

Code section 399.16, subdivision (b)(1). Such book-and-claim

accounting for low-CI electricity may span only three quarters. If a

low-CI electricity quantity (and all associated environmental

attributes, including a beneficial CI) is supplied to the grid in the first

calendar quarter, the quantity claimed for LCFS reporting must be

matched to grid electricity used as a transportation fuel or for

hydrogen production no later than the end of the third calendar

quarter. After that period is over, any unmatched low-CI electricity

quantities expire for the purpose of LCFS reporting.

(B) Low-CI electricity can be indirectly supplied through a green tariff

program (including the Green Tariff Shared Renewables program

described in California Public Utilities Code Section 2831-2833) or

other contractual electricity supply relationship that meets the

following requirements:

1. Electricity is generated by, or supplied under contract to, the

pathway applicant for all environmental attributes of the

claimed electricity. In order to substantiate low-CI electricity

claims, the applicant must make contracts available to the

Executive Officer, upon request, to demonstrate that the

electricity meets the requirements of this subarticle.

Generation invoices or metering records are required to

substantiate the quantity of low-CI electricity produced from

the renewable assets. Monthly invoices must be

unredacted copies of originals showing electricity sourced (in

kWh) and contracted price;

2. All electricity procured by any LSE for the purpose of

claiming a lower CI must be in addition to that required for

compliance with the California Renewables Portfolio

Standard (described in California Public Utilities Code

sections 399.11-399.32) or, for hydrogen produced outside

of California, in addition to local renewable portfolio

requirements;

3. Renewable energy certificates or other environmental

attributes associated with the electricity, if any, are retired

and not claimed under any other program with the exception

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 134

of the federal RFS, and the market-based compliance

mechanism set forth in title 17, California Code of

Regulations Chapter 1, Subchapter 10, article 5

(commencing with section 95800). Retirement of

renewable energy credits for the purpose of demonstrating

Green Tariff Shared Renewables procurement to the

California Public Utilities Commission does not constitute a

double claim.

(2) Book-and-Claim Accounting for Pipeline-Injected Biomethane Used as a

Transportation Fuel or to Produce Hydrogen. Indirect accounting may be

used for RNG used as a transportation fuel or to produce hydrogen for

transportation purposes (including hydrogen that is used in the production

of a transportation fuel), provided the conditions set forth below are met:

(A) RNG injected into the common carrier pipeline in North America

(and thus comingled with fossil natural gas) can be reported as

dispensed as bio-CNG, bio-LNG, or bio-L-CNG, or as an input to

hydrogen production, without regards to physical traceability.

Entities may report natural gas as RNG within only a three-quarter

time span. If a quantity of RNG (and all associated environmental

attributes, including a beneficial CI) is pipeline-injected in the first

calendar quarter, the quantity claimed for LCFS reporting must be

matched to natural gas sold in California as RNG no later than the

end of the third calendar quarter. After that period is over, any

unmatched RNG quantities expire for the purpose of LCFS

reporting.

(B) To substantiate RNG quantities injected into the pipeline for

dispensing as bio-CNG, bio-LNG, or bio-L-CNG or as an input to

hydrogen production, the pathway application and subsequent

Annual Fuel Pathway Reports must include the following

documents linking the environmental attributes of RNG (in MMBtu

or Therms) with corresponding quantities of natural gas withdrawn:

unredacted monthly invoices showing the quantities of RNG (in

MMBtu) sourced and the contracted price per unit; and the

unredacted contract by which the fuel pathway holder obtained the

environmental attributes.

1. Upstream Attestations. An entity reporting any RNG as a

transportation fuel in LRT-CBTS, and a fuel pathway holder

using biogas or biomethane as feedstock or process energy,

must obtain and keep attestations from each upstream party

collectively demonstrating that (a) the entity claiming the

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 135

environmental attributes has the exclusive right to claim

environmental attributes associated with the sale or use of

the biogas or biomethane, and (b) the environmental

attributes have not been used or claimed in any other

program or jurisdictions with the exception of the federal

RFS, and the market-based compliance mechanism set forth

in title 17, California Code of Regulations Chapter 1,

Subchapter 10, article 5 (commencing with section 95800).

The attestations must be made available to the Executive

Officer or a verifier upon request. The inability to promptly

produce the attestations constitutes ground for credit

invalidation pursuant to section 95495.

2. Attestation to CARB. An officer of any entity reporting

biomethane in LRT-CBTS under the provisions of section

95488.8(i)(2), and an officer of any fuel pathway holder

claiming use of biogas or biomethane as process energy

under the provisions of section 95488.8(h)(2), must annually

submit the following attestation to the Executive Officer:

I certify that to the extent that the gas used in the fuel pathway or supplied as transportation fuel is

characterized as biomethane, __________ (entity name) owns the exclusive rights to the corresponding

environmental attributes.

__________ (entity name) has not sold, transferred, or retired those environmental attributes in any

program or jurisdiction other than the federal RFS.

Based on diligent inquiry and review of contracts and attestations from our business partners, I certify

under penalty of perjury under the laws of the State of California that no other party has or will sell,

transfer, or retire the environmental attributes corresponding to the biomethane for which _______(entity

name) claims credit in the LCFS program.

______________________________ ______________________________

__________

Signature Print Name & Title Date

(j) Measurement Accuracy.

(1) Calibration Requirement. All measurement devices that log or record

data for use in fuel pathway applications must comply with the

manufacturer-recommended calibration frequency and precision

requirements. If manufacturer-recommendations are not provided, the

measurement devices must be calibrated every six years.

(2) Requests to Postpone Calibration. For units and processes that operate

continuously with infrequent outages, it may not be possible to meet

manufacturer-recommended calibration deadlines for measurement

devices. In such cases, the owner or operator may submit a written

request to the Executive Officer to postpone calibration or inspection until

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 136

the next scheduled maintenance outage. Such postponements are

subject to the procedures of subsections (A) through (B) below and must

be documented in the monitoring plan.

(A) A written request for postponement must be submitted to the

Executive Officer not less than 30 days before the required

calibration, recalibration or inspection date. The Executive Officer

may request additional documentation to validate the operator’s

claim that the device meets the accuracy requirements of this

section. The operator shall provide any additional documentation

to CARB within ten (10) business days of a request by CARB.

(B) The request must include:

1. The date of the required calibration, recalibration, or

inspection;

2. The date of the last calibration or inspection;

3. The date of the most recent field accuracy assessment, if

applicable;

4. The results of the most recent field accuracy assessment, if

applicable, clearly indicating a pass/fail status;

5. The proposed date for the next field accuracy assessment, if

applicable;

6. The proposed date for calibration, recalibration, or inspection

which must be during the time period of the next scheduled

shutdown. If the next shutdown will not occur within three

years, this must be noted and a new request must be

received every three years until the shutdown occurs and the

calibration, recalibration or inspection is completed.

7. A description of the meter or other device, including at a

minimum:

a. Make,

b. Model,

c. Install date,

d. Location,

e. Parameter measured by the meter or other device,

including the data capture rate,

f. Description of how data from the meter or other

device is used in a fuel pathway,

g. Calibration or inspection procedure,

h. Reason for delaying calibration or inspection,

i. Proposed method to ensure that the precision

requirements listed by the manufacturer are upheld,

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§ 95488.8. Fuel Pathway Application Requirements Applying to All Classifications. 137

j. Name, title, phone number and e-mail of contact

person capable of responding to questions regarding

the device.

(k) Missing Data Provisions.

(1) Meter Record, Accuracy, or Calibration Requirements Not Met. If a

measurement device is not functional, not calibrated within the time period

recommended by the manufacturer, or fails a field accuracy assessment,

the operator must otherwise demonstrate to the verifier that the reported

data are accurate within +/-5 percent.

(A) If the operator can demonstrate to the verifier that reported data are

accurate, the data are acceptable. The entity must then provide a

detailed plan describing when the measurement device will be

brought into calibration. This plan is subject to approval by the

Executive Officer.

(B) If the operator cannot demonstrate to the verifier that reported data

are accurate, the data is not acceptable and missing data

provisions apply.

(2) Missing Data Provisions. If missing data exists, the entity must submit for

Executive Officer approval an alternate method of reporting the missing

data. Alternate methods shall be evaluated on a case-by-case basis.

(3) Force Majeure Events. In the event of a facility shutdown or disruption

drastically affecting production attributable to a force majeure event, the

fuel pathway applicant or holder must notify the Executive Officer.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.9. Special Circumstances for Fuel Pathway Applications.

(a) Substantiality Requirements.

(1) The substantiality requirement applies in the two scenarios listed below.

The substantiality requirement does not apply when re-applying for a

Provisional pathway with a new operational data period due to a process

change as described in 95488.9(c), or when replacing a certified CI after

verification using the process described in 95488.10(a)(6).

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 138

(A) Multiple applications for the same feedstock-fuel combination.

When a fuel pathway applicant applies for two or more pathways

based on different inputs for the same feedstock-fuel combination

processed within an operational data period at a single fuel

production facility, the Executive Officer will consider separate

pathways only when the CI of one or more of the proposed

pathways meet the substantiality requirement relative to the CI of

the reference pathway. The “reference” pathway is the composite

CI that results when the fuel is modeled using a single pathway that

represents the average production of all quantities of the feedstock-

fuel combination produced in the operational data period.

(B) Tier 1 Pathways using Innovative Methods. The Executive Officer

will consider a Tier 2 application for a pathway that would otherwise

be classified as Tier 1 if the Simplified CI Calculator for that fuel

type cannot be used to accurately model the pathway due to

process innovations and the proposed pathway meets the

substantiality requirement relative to the CI of the reference

pathway. The “reference” pathway is the CI of the proposed

pathway as calculated by the applicable Simplified CI Calculator.

The substantiality requirement does not apply to pathways that

qualify for Tier 2 due to the use of low-CI process energy sources,

or use of carbon capture, as described in 95488.1(d)(7).

(2) The applicant seeking to apply under one of the scenarios described in

subsection (1), above, must demonstrate, to the Executive Officer’s

satisfaction, that the proposed pathway meets the following requirements:

(A) The source-to-tank carbon intensity of the fuel under the proposed

pathway meets one of the following two criteria. “Source-to-tank”

means all the steps involved in feedstock production and transport,

finished fuel production and transport. A source-to-tank CI does

not include the carbon intensity associated with the use of the fuel

in a vehicle and does not include the LUC modifier.

1. For proposed pathway applications with source-to-tank

carbon intensities greater than 20 gCO

e/MJ (absolute

value), that source-to-tank carbon intensity must be at least

5 percent lower than the source-to-tank carbon intensity of

the reference pathway; or

2. For proposed pathway applications with source-to-tank

carbon intensities of 20 gCO

e/MJ (absolute value) or less,

that source-to-tank carbon intensity must be at least

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 139

1 gCO

e/MJ less than the source-to-tank carbon intensity of

the reference pathway.

(b) Temporary Fuel Pathways.

(1) Fuel reporting entities may petition the Executive Officer to use a

Temporary fuel pathway carbon intensity value for reporting quantities of

fuel to generate credits or deficits.

(2) A Temporary pathway petition approved by the Executive Officer will allow

the fuel reporting entity to use the pathway for LRT-CBTS reporting

purposes for up to two quarters at a time. Reporting will be granted only

for the quarter during which the Temporary pathway is approved for use

and the subsequent full quarter. The Executive Officer may approve

multiple subsequent petitions from the same fuel reporting entity, of up to

two quarters each, but each approval will require a new petition.

(3) A petition to use a Temporary pathway must be submitted online in the

AFP.

(4) New Temporary Fuel Pathways. An entity can apply for the use of a

Temporary fuel pathway CI value if it appears in Table 8 in this subarticle

or if the Executive Officer approves a new Temporary pathway (for a fuel

or feedstock-fuel combination not found in Table 8) and publishes it on the

LCFS web site. Any new Temporary pathway proposed by the Executive

Officer will be posted for 45 days for public comment prior to

certification. The posted information will include the rationale for

assigning the CI to that particular Temporary pathway. If these

comments require significant revision of the originally published pathway,

a revised pathway will be posted for public comment. Upon certification

of a new Temporary pathway created by the Executive Officer, the

pathway will be available for reporting for the quarter in which it is certified.

THIS SPACE INTENTIONALLY LEFT BLANK

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 140

Table 8. Temporary Pathways for Fuels with Indeterminate CIs

Fuel Feedstock Process Energy

(gCO

e/MJ)

Corn

Grid electricity, natural

gas, and/or renewables

Ethanol Grain Sorghum

Grid electricity, natural

gas, and/or renewables

Any Sugar Feedstock

Bagasse and straw only;

no grid electricity

Any Cellulosic Biomass

Grid electricity, natural

gas, and/or renewables

Fats/Oils/Grease

Residues

Grid electricity, natural

gas, and/or renewables

Biomass-based Diesel

Any feedstock derived

from plant oils, excluding

palm oil

Grid electricity, natural

gas, and/or renewables

Any other feedstock

Grid electricity, natural

gas, and/or renewables

Baseline

(2010) CI

value for

ULSD

Fossil LNG Petroleum Natural Gas N/A 95

Fossil L-CNG Petroleum Natural Gas N/A 100

Biomethane CNG Landfill gas

Grid electricity, natural

gas, and/or parasitic load

Biomethane LNG Landfill gas

Grid electricity, natural

gas, and/or parasitic load

Biomethane L-CNG Landfill gas

Grid electricity, natural

gas, and/or parasitic load

Biomethane CNG

Municipal Wastewater

sludge, Food Scraps,

Urban Landscaping

Waste, or Other Organic

Waste

Grid electricity, natural

gas, and/or parasitic load

Biomethane LNG

Municipal Wastewater

sludge, Food Scraps,

Urban Landscaping

Waste, or Other Organic

Waste

Grid electricity, natural

gas, and/or parasitic load

Biomethane L-CNG

Municipal Wastewater

sludge, Food Scraps,

Urban Landscaping

Waste, or Other Organic

Waste

Grid electricity, natural

gas, and/or parasitic load

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 141

Fuel Feedstock Process Energy

(gCO

e/MJ)

Biomethane CNG, LNG or L-

CNG

Dairy Manure

Grid electricity, natural

gas, and/or parasitic load

 150

Hydrogen

Centralized SMR of

fossil LNG

Grid electricity, natural

gas and/or renewables

185

Any gasoline substitute

feedstock-fuel combination

not identified above

Any Any

Baseline

(2010) CI

value for

CaRFG

Any diesel substitute

feedstock-fuel combination

not identified above

Any Any

Baseline

(2010) CI

value for

ULSD

LCFS fuel pathways are generally developed based on 24 months of operational

data. The Executive Officer may consider Provisional pathway applications

from 1) facilities that have been in operation for less than 24 months, or 2)

existing facilities that can demonstrate a process change has been implemented,

based on at least three months of operational data. Based on timely reports,

the fuel reporting entity may generate credits or deficits using a provisionally-

certified CI.

(1) Application process. Application requirements are the same as those for

the applicable pathway classification, specified in sections 95488.6 and

95488.7 including validation of the data submitted in support of the

provisional pathway application.

(2) Verification schedule. The certified pathway is subject to periodic

verification as described in section 95500(b)(2) as applicable for the fuel

pathway classification.

(3) Adjusting CI and Credit Balance. At any time during the 24 months

following provisional certification, the Executive Officer may revise as

appropriate the provisionally-certified CI. Until the Executive Officer has

removed the provisional status pursuant to subsection (4) below, the

Executive Officer may adjust the number of credits or reverse any credit in

the fuel reporting entity’s account using the provisional pathway without a

hearing, notwithstanding the requirements of section 95495. At the end

of the provisional period, the certified CI will be determined on the basis of

24 months of operational data.

(A) If the verified operational CI is higher than the provisionally-certified

CI, the Executive Officer will replace the certified CI with the verified

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 142

operational CI in the LRT-CBTS and will make any necessary credit

adjustment in the fuel reporting entity’s account using the

provisional fuel pathway for reporting. Any credits generated

using a provisionally-certified CI, across the entire period from

original validation to completion of the periodic verification, are

subject to adjustment.

(B) If the verified operational CI is lower than the provisionally-certified

CI, the Executive Officer will certify the pathway with the lower CI,

adding a conservative margin of safety per section 95488.4(a) if the

applicant so desires. The fuel reporting entity will not be eligible

for any retroactive credit generation for any quarter for which the

reporting deadline has passed, but the revised CI will be valid for

future reporting periods.

(4) Removal of provisional status. Positive or qualified positive verification

statements covering at least 24 months of operational data will result in

the removal of the provisional status for the certified pathway.

(d) Substitute Pathways for Reporting Exports and Other Transaction Types. If a

fuel reporting entity is unable to determine the pathway for reporting a fuel

transaction type listed in subsection (1) below, a Substitute pathway

corresponding to the fuel type must be used for reporting. Substitute pathways

have CI values based on weighted average CIs of that fuel in the prior year, and

are provided on the LCFS web site.

(1) The Substitute pathways are only available in the LRT-CBTS for reporting

the following transaction types:

(A) Sold without obligation

(B) Purchased without obligation

(D) Loss of inventory

(E) Not used for transportation

(2) When using a Substitute pathway, the fuel reporting entity must use

default Company ID and Facility ID values for reporting in the LRT-CBTS.

These default values are provided on the LCFS web site.

(e) Design-based Pathways. As set forth in sections 95488.6(a) and 95488.7(a),

LCFS fuel pathways are generally developed based on 24 months of operational

data. However, in order to encourage the development of innovative fuel

technologies, an applicant may submit a Design-based pathway application in

the AFP for a fully engineered and designed facility with no operational data.

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 143

(1) Applications for Design-based pathways must include a detailed life cycle

analysis of the anticipated pathway performed using the CA-GREET3.0

model, and an LCA report as described in 95488.7(a)(2) detailing facility

plans and specifications expected during commercial operation.

(2) The Executive Officer may, fully at his or her discretion, choose to conduct

a detailed evaluation of the submitted information and evaluate whether

the applicant provided a sufficient level of detail to warrant confidence in

energy consumption and other key CI performance metrics. If the

Executive Officer chooses to undertake such a review, and the Executive

Officer agrees that the pathway warrants publication on the LCFS web

site, a Design-based pathway summary will be posted for public comment

as detailed in section 95488.7(d)(5) for Tier 2 pathways. Executive

Officer approval of Design-based pathways will generally be contingent

upon meeting the requirements detailed in section 95488.7, exclusive of

the requirement to obtain a validation statement.

(3) Ineligibility for credit generation. Design-based pathways are not eligible

to report fuel volumes to the LRT-CBTS or generate credits. After a

pathway has been in production for at least three months, in order to be

eligible to report and generate credits, the applicant must complete a

Provisional pathway application per section 95488.9(c).

(f) Carbon Intensities that Reflect Avoided Methane Emissions from Dairy and

Swine Manure or Organic Waste Diverted from Landfill Disposal.

(1) A fuel pathway that utilizes biomethane from dairy cattle or swine manure

digestion may be certified with a CI that reflects the reduction of

greenhouse gas emissions achieved by the voluntary capture of methane,

provided that:

(A) A biogas control system, or digester, is used to capture biomethane

from manure management on dairy cattle and swine farms that

would otherwise be vented to the atmosphere as a result of

livestock operations from those farms.

(B) The baseline quantity of avoided methane reflected in the CI

calculation is additional to any legal requirement for the capture and

destruction of biomethane.

(2) A fuel pathway that utilizes an organic material may be certified with a CI

that reflects the reduction of greenhouse gas emissions achieved by the

voluntary diversion from decomposition in a landfill and the associated

fugitive methane emissions, provided that:

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 144

(A) The organic material that is used as a feedstock would otherwise

have been disposed of by landfilling, and the diversion is additional

to any legal requirement for the diversion of organics from landfill

disposal.

(B) Any degradable carbon that is not converted to fuel is subsequently

treated in an aerobic system or otherwise is prevented from release

as fugitive methane. Upon request, the applicant must

demonstrate that emissions are not significant beyond the system

boundary of the fuel pathway.

calculation is additional to any legal requirement for the avoidance

or capture and destruction of biomethane.

(3) Carbon intensities that reflect avoided methane emissions from dairy and

swine manure or organic waste projects are subject to the following

requirements for credit generation:

(A) Crediting Periods. Avoided methane crediting for dairy and swine

manure pathways as described in (f)(1) above, and for landfill-

diversion pathways as described in (f)(2) above, is limited to three

consecutive 10 years crediting periods, counting from the quarter

following Executive Officer approval of the application. The

pathway holder must formally request each subsequent crediting

period for the project through the LRT-CBTS.

(B) Notwithstanding (A) above, in the event that any law, regulation, or

legally binding mandate requiring either greenhouse gas emission

reductions from manure methane emissions from livestock and

dairy projects or diversion of organic material from landfill disposal,

comes into effect in California during a project’s crediting period,

then the project is only eligible to continue to receive LCFS credits

for those greenhouse gas emission reductions for the remainder of

the project’s current crediting period. The project may not request

any subsequent crediting periods.

Compliance Offset Credits under the market-based compliance

mechanism set forth in title 17, California Code of Regulations

Chapter 1, Subchapter 10, article 5 (commencing with section

95800) may apply to receive credits under the LCFS. However,

the LCFS crediting period for such projects is aligned with the

crediting period for Compliance Offset Credits, and does not reset

when the project is certified under the LCFS.

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§ 95488.9. Special Circumstances for Fuel Pathway Applications. 145

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95488.10. Maintaining Fuel Pathways.

(a) CI Data Reporting Requirement and Deadline. Beginning in 2021, each fuel

pathway holder must submit an annual Fuel Pathway Report to the AFP no later

than March 31 of each calendar year.

(1) The annual Fuel Pathway Report must include the certified version of the

Simplified CI Calculator or the CA-GREET3.0 model, if required in the

initial certification, updated to include the most recent two calendar years

of operational data.

(2) The annual Fuel Pathway Report for Lookup Table pathways listed in

95488.1(b)(2), in lieu of the CI calculator, must include invoices or

metering records substantiating the quantity of renewable or low-CI inputs

procured from a qualifying source.

(3) Entities specified in section 95488.8(i)(2)(C) must provide the annual

attestation regarding environmental attributes required by that provision.

(4) Any fuel pathway holder, including a joint applicant, who is not subject to

site visits by a third party verifier, whose pathway involves the use of

renewable or low-CI process energy, must submit invoices for that energy

to the AFP. Additionally, for any electricity that is used to reduce carbon

intensity of electricity used as a transportation fuel or hydrogen production

via electrolysis, the pathway holder must upload records demonstrating

that any renewable energy certificates generated were retired in WREGIS

for the purpose of LCFS credit generation.

(5) The annual Fuel Pathway Report must include any temporally-variable

information requested by the Executive Officer to be included in the initial

application as supplementary information, or required data or

documentation listed in the pathway summary operating conditions, must

continue to be submitted annually as part of the annual Fuel Pathway

Report.

(6) If the verified operational CI as calculated from production data covering

the 24 months of operations is found to be lower than the certified CI, and

a positive verification statement is issued for this period, the following

options are available:

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§ 95488.10. Maintaining Fuel Pathways. 146

(A) The fuel pathway holder may elect to keep the original certified CI.

(B) The fuel pathway holder may request to replace the certified CI with

the verified operational CI based on the most recent 24 months of

operational data, adding a conservative margin of safety per

section 95488.4(a) if the applicant so desires. Fuel pathway

holders requesting to replace the certified CI must submit an

attestation that the new CI can be maintained through the next

reporting period, and acknowledging that exceeding the newly

certified CI in subsequent verifications will constitute non-

compliance with the requirements of this subarticle.

(7) If the verified operational CI is found to be greater than the certified CI, the

fuel pathway holder is out of compliance with this subarticle and subject to

investigation by the Executive Officer and possible enforcement action.

(b) Monitoring Plan for Entities Required to Obtain Validation or Verification Services

under the LCFS. Each entity responsible for obtaining validation or verification

under this subarticle must complete and retain for review by a verifier, or the

Executive Officer, a written Monitoring Plan. Specific requirements for

Monitoring Plans are detailed in section 95491.1(c).

exempt from obtaining verification in section 95500, must ensure that a positive

or qualified positive verification statement covering the annual Fuel Pathway

Report is received by the Executive Officer from the verification body pursuant to

the schedule in 95500 in order to maintain a valid fuel pathway code for use in

reporting fuel transactions. An adverse fuel pathway verification statement

would result in investigation by the Executive Officer. It is the responsibility of

the fuel pathway holder to ensure this deadline is met.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95489. Provisions for Petroleum-Based Fuels.

(a) Deficit Calculation for CARBOB or Diesel Fuel. A fuel reporting entity for

CARBOB or diesel fuel must calculate separately the base deficit and

incremental deficit for each fuel or blendstock derived from petroleum feedstock

as specified in this provision.

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§ 95489. Provisions for Petroleum-Based Fuels. 147

Base Deficit Calculation







(



)

= (











) × 



× 

Incremental Deficit Calculation to Mitigate Increases in the Carbon Intensity of

Crude Oil

If 



> 



+ 0.10 then:







= (







) × 



× 

If 







+ 0.10 then:







= 0

where:







(



)

and 





mean the amount of LCFS deficits

incurred (a negative value), in metric tons, by the volume of CARBOB

( = “CARBOB”) and diesel fuel ( = “diesel”) that is derived from petroleum

feedstock and is either produced in or imported into California during a specific

calendar year;







has the same meaning as specified in section 95486.1(a);







is the average carbon intensity value of CARBOB or diesel, in

gCO

e/MJ, that is derived from petroleum feedstock and is either produced in or

imported into California during the baseline calendar year, 2010. For purposes

of this provision, 





for CARBOB ( = “CARBOB”) and diesel fuel

( = “diesel”) are the Baseline Average carbon intensity values for CARBOB

and diesel (ULSD) set forth in Table 7-1. The Baseline Average carbon

intensity values for CARBOB and diesel (ULSD) are calculated using data for

crude oil supplied to California refineries during the baseline calendar year, 2010.





is the California Baseline Crude Average carbon intensity

value, in gCO

e/MJ, attributed to the production and transport of the crude oil

supplied as petroleum feedstock to California refineries during the baseline

calendar year, 2010. For comparison to 



, the baseline is:





[

11.98 × 



+ 11.98 × 



+ 11.78 × 



]

[





+ 



+ 



]

For comparison to





, the baseline is:

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§ 95489. Provisions for Petroleum-Based Fuels. 148





[

11.98 × 



+ 11.78 × 



+ 11.78 × 



]

[





+ 



+ 



]

For comparison to 



and subsequent years, the baseline is









is the Three-year California Crude Average carbon intensity value,

in gCO

e/MJ, attributed to the production and transport of the crude oil supplied

as petroleum feedstock to California refineries during the most recent three

calendar years. For example, the Three-year California Crude Average carbon

intensity value for 2018 is:





[





× 



+ 



× 



+ 



× 



]

[





+ 



+ 



]





is the total volume of crude supplied to California refineries during the

specified year 20XX.





is the Annual Crude Average carbon intensity value, calculated annually

as described in section 95489(b). The Annual Crude Average carbon intensity

value for 2016 and 2017 are specified in Table 9.





is the amount of fuel energy, in MJ, from CARBOB ( = “CARBOB”) or

diesel ( = “diesel”), determined from the energy density conversion factors

in Table 4, either produced in California or imported into California during a

specific calendar year and sold, supplied, or offered for sale in California.

= 1.0 × 10











(b) Addition of Incremental Deficits that Result from Increases in the Carbon

Intensity of Crude Oil to a Fuel Reporting Entity’s Compliance Obligation.

(1) Incremental deficits for CARBOB or diesel fuel that result from increases

in the carbon intensity of crude oil will be calculated and added to each

affected fuel reporting entity’s compliance obligation for the compliance

period in which the 





become effective, which will be

the year following the year in which the 



was established.

(2) Incremental deficits for CARBOB or diesel fuel for each fuel reporting

entity will be based upon the amount of CARBOB and diesel fuel supplied

by the fuel reporting entity in each compliance period for which the







are effective.

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§ 95489. Provisions for Petroleum-Based Fuels. 149

(3) Process for Calculating the Annual Crude Average Carbon Intensity

Value.

(A) An Annual Crude Average carbon intensity value will be calculated

for each calendar year using a volume-weighted average of crude

carbon intensity values. The volume for each imported crude will

be the total volume of that crude reported by all fuel reporting

entities in the Annual Compliance Reports for the calendar year.

Volume contributions for California State fields will be based on oil

production data from the California Department of Conservation

and volume contributions for California Federal Offshore fields will

be based on oil production data from the Bureau of Safety and

Environmental Enforcement. Field production volumes for

California-produced crude will be reduced, if necessary, to account

for crude exports. Crude carbon intensity values are those listed

in Table 9. For crude names not listed, the default carbon

intensity value from Table 9 will be used until the crude name and

carbon intensity value is added to Table 9 as described in section

95489(b)(3).

(B) Within 15 days of receiving the Annual Compliance reports, the

Executive Officer shall post the Annual Crude Average carbon

intensity calculation at the LCFS web site for public comment.

Written comments shall be accepted for 15 days following the date

on which the analysis was posted. Only comments related to

potential factual or methodological errors in the posted Annual

Crude Average carbon intensity value may be considered. The

Executive Officer shall evaluate the comments received and, if the

Executive Officer deems it necessary, may request in writing

additional information or clarification from the commenters.

Commenters shall be provided 10 days to respond to these

requests. The Executive Officer shall post the final Annual Crude

Average carbon intensity value at the LCFS web site within 15 days

of receiving positive or qualified positive MCON verification reports

per section 95500. An adverse verification statement would result

in Executive Officer investigation and may result in delay of

finalizing and posting the Annual Crude Average carbon intensity

value.

updates to all carbon intensity values listed in Table 9 will be

considered on a three-year cycle through proposed amendments of

the Low Carbon Fuel Standard regulation.

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§ 95489. Provisions for Petroleum-Based Fuels. 150

Table 9. Carbon Intensity Lookup Table for Crude Oil Production and Transport.

Country of Origin Crude Identifier

Carbon Intensity

(gCO

e/MJ)

Baseline Crude Average*

California Baseline Crude Average

applicable to crudes supplied during 2018

and subsequent years

11.78

California Baseline Crude Average

applicable to crudes supplied in 2016 and

2017

11.98

Annual Crude Average

Volume-weighted California average CI

for crudes supplied during 2016

12.14

Annual Crude Average

Volume-weighted California average CI

for crudes supplied during 2017

11.93

Algeria

Saharan

14.77

Angola

Cabinda

8.99

Clov

7.31

Dalia

8.90

Gimboa 8.86

Girassol 9.95

Greater Plutonio 8.72

Hungo 8.23

Kissanje 8.66

Mondo 8.98

Nemba 9.08

Pazflor 8.02

Sangos 7.06

Argentina Canadon Seco 10.16

Escalante 10.15

Hydra

7.77

Medanito

10.78

Australia

Enfield

6.84

Pyrenees

8.24

Stybarrow

7.84

Van Gogh

8.46

Vincent

6.83

Azerbaijan

Azeri

6.40

Belize Belize Light 9.70

Brazil Albacora Leste 5.99

Bijupira-Salema 7.18

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§ 95489. Provisions for Petroleum-Based Fuels. 151

Frade 5.63

Iracema 5.54

Jubarte 6.28

Lula 6.24

Marlim 6.76

Marlim Sul 7.78

Ostra 5.65

Papa Terra 4.29

Peregrino 4.16

Polvo 4.31

Roncador

6.77

Roncador Heavy

6.45

Sapinhoa

6.00

Tubarao Azul

5.45

Tubarao Martelo

5.37

Cameroon

Lokele

19.27

Canada

Access Western Blend

15.15

Albian Heavy Synthetic (all grades)

23.68

BC Light

8.11

Bonnie Glen 8.11

Borealis Heavy Blend 15.41

Boundary Lake 8.11

Bow River 9.42

Cardium 8.11

Christina Dilbit Blend 12.71

Christina Synbit 18.66

Cold Lake 17.87

Conventional Heavy 9.42

CNRL Light Sweet Synthetic 25.27

Federated

8.11

Fosterton

9.42

Gibson Light Sweet

8.11

Halkirk

8.11

Hardisty Light

8.11

Hardisty Synthetic

36.39

Husky Synthetic

32.66

Joarcam

8.11

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§ 95489. Provisions for Petroleum-Based Fuels. 152

Kearl Lake 12.89

Kerrobert Sweet 8.11

Koch Alberta 8.11

Light Sour Blend 8.11

Light Sweet 8.11

Lloyd Blend 9.42

Lloyd Kerrobert 9.42

Lloydminster 9.42

Long Lake Heavy 30.54

Long Lake Light Synthetic 40.12

Mackay Heavy Blend

20.43

Medium Gibson Sour

8.11

Medium Sour Blend

8.11

Midale

8.11

Mixed Sour Blend

8.11

Mixed Sweet

8.11

Moose Jaw Tops

8.11

Peace

8.11

Peace Pipe Sour

8.11

Peace River Heavy 19.21

Peace River Sour 8.11

Pembina 8.11

Pembina Light Sour 8.11

Premium Albian Synthetic 29.49

Premium Conventional Heavy 9.42

Premium Synthetic 27.38

Rainbow 8.11

Rangeland Sweet 8.11

Redwater 8.11

Seal Heavy

9.42

Shell Synthetic (all grades)

29.49

Smiley-Coleville

9.42

Sour High Edmonton

8.11

Sour Light Edmonton

8.11

Statoil Cheecham Dilbit

16.41

Statoil Cheecham Synbit

21.08

Suncor Synthetic (all grades)

27.09

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§ 95489. Provisions for Petroleum-Based Fuels. 153

Surmont Heavy Blend 22.48

Synbit Blend 22.64

Syncrude Synthetic (all grades) 31.62

Synthetic Sweet Blend 29.36

Tundra Sweet 8.11

Wabasca 6.88

Western Canadian Blend 9.42

Western Canadian Select 19.04

Chad Doba 11.42

Colombia Acordionero 6.96

Cano Limon

9.29

Castilla

10.55

Cusiana

9.99

Magdalena

22.28

Rubiales

9.79

South Blend

9.25

Vasconia

9.62

Congo

Azurite

10.25

Djeno

10.73

Ecuador Napo 8.31

Oriente 10.07

Equatorial Guinea Ceiba 7.82

Zafiro 20.56

Ghana Ten Blend 8.08

Iran Dorood 12.65

Forozan 21.97

Iran Heavy 13.25

Iran Light 14.35

Lavan 11.11

Nowruz-Soroosh

10.53

Sirri

10.15

Iraq

Basra Light

13.45

Basra Heavy

10.69

Kuwait

10.56

Libya

Amna

15.82

Malaysia

Tapis

12.73

Mauritania

Chinquetti

13.74

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§ 95489. Provisions for Petroleum-Based Fuels. 154

Mexico Isthmus 11.31

Isthmus Topped 14.31

Maya 7.85

Neutral Zone Eocene 7.85

Khafji 7.84

Ratawi 9.42

Nigeria Agbami 12.04

Amenam 10.65

Antan 21.98

Bonga 5.06

Bonny

9.91

Brass

14.27

6.66

Erha

10.91

Escravos

12.00

Forcados

8.97

Okono

8.67

OKWB

22.76

Pennington

11.18

Qua Iboe 11.45

Yoho 11.45

Oman Oman 13.32

Peru Loreto 9.86

Mayna 11.07

Pirana 8.43

Russia ESPO 11.55

M100 17.35

Sokol 6.94

Vityaz 9.60

Saudi Arabia

Arab Extra Light

9.41

Arab Light

9.23

Arab Medium

8.72

Arab Heavy

7.92

Thailand

Bualuang

4.07

Trinidad

Calypso

7.41

Galeota

11.41

UAE

Murban

10.01

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§ 95489. Provisions for Petroleum-Based Fuels. 155

Upper Zakum 7.96

Venezuela Bachaquero 28.75

Boscan 13.91

Hamaca 23.04

Hamaca DCO 10.02

Laguna 28.75

Mesa 30 12.49

Petrozuata (all synthetic grades) 23.09

Santa Barbara 17.32

Zuata (all synthetic grades) 23.04

US Alaska

Alaska North Slope

15.91

US Colorado

Niobrara

6.81

US Gulf of Mexico

Mars

6.62

US Louisiana

GCA

8.72

US New Mexico

Four Corners

11.11

New Mexico Intermediate

11.11

New Mexico Sour

11.11

New Mexican Sweet

11.11

US North Dakota

Bakken

9.73

North Dakota Sweet 9.73

Williston Basin Sweet 9.73

US Oklahoma Oklahoma Sour 11.93

Oklahoma Sweet 11.93

US Texas Eagle Ford Shale 11.93

East Texas 11.93

North Texas Sweet 11.93

South Texas Sweet 11.93

West Texas Intermediate 11.93

West Texas Sour 11.93

US Utah

Covenant

4.43

Grand Cane

6.92

Utah Black Wax

5.85

Utah Sweet

6.92

US Wyoming

Wyoming Sweet

10.98

US California Fields

Aliso Canyon

4.94

Ant Hill

20.81

Antelope Hills

2.84

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§ 95489. Provisions for Petroleum-Based Fuels. 156

Antelope Hills, North 24.75

Arroyo Grande 31.11

Asphalto 8.01

Bandini 3.09

Bardsdale 3.47

Barham Ranch 4.15

Beer Nose 3.98

Belgian Anticline 5.01

Bellevue 5.95

Bellevue, West 6.60

Belmont, Offshore

5.12

Belridge, North

4.11

Belridge, South

17.09

Beverly Hills

5.41

Big Mountain

4.65

Blackwells Corner

3.07

Brea-Olinda

3.59

Buena Vista

7.44

Burrel

29.43

Cabrillo 4.14

Canal 4.40

Canfield Ranch 4.53

Carneros Creek 4.06

Cascade 3.00

Casmalia 10.26

Castaic Hills 2.68

Cat Canyon 7.83

Cheviot Hills 3.49

Chico-Martinez 48.13

Cienaga Canyon

5.78

Coalinga

25.81

Coles Levee, N

4.09

Coles Levee, S

5.87

Comanche Point

5.03

Coyote, East

5.96

Cuyama, South

14.70

Cymric

15.69

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§ 95489. Provisions for Petroleum-Based Fuels. 157

Deer Creek 11.51

Del Valle 5.78

Devils Den 7.51

Dominguez 3.57

Edison 14.53

El Segundo 4.38

Elk Hills 8.02

Elwood, S., Offshore 3.52

Fruitvale 3.75

Greeley 7.91

Hasley Canyon

2.25

Helm

3.99

Holser

3.80

Honor Rancho

3.43

Huntington Beach

6.62

Hyperion

1.90

Inglewood

10.06

Jacalitos

2.72

Jasmin

16.59

Kern Bluff 12.54

Kern Front 35.68

Kern River 15.09

Kettleman Middle Dome 3.93

Kettleman North Dome 3.42

Landslide 12.53

Las Cienegas 4.96

Livermore 2.66

Lompoc 28.45

Long Beach 5.48

Long Beach Airport

4.92

Los Angeles Downtown

5.89

Los Angeles, East

14.71

Lost Hills

12.99

Lost Hills, Northwest

5.36

Lynch Canyon

23.10

Mahala

4.99

McCool Ranch

9.59

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§ 95489. Provisions for Petroleum-Based Fuels. 158

McDonald Anticline 4.33

McKittrick 25.31

Midway-Sunset 29.33

Montalvo, West 2.65

Montebello 17.03

Monument Junction 4.95

Mount Poso 3.71

Mountain View 3.97

Newhall-Potrero 3.66

Newport, West 5.21

Oak Canyon

4.04

Oak Park

3.01

Oakridge

3.46

Oat Mountain

3.17

Ojai

4.94

Olive

1.82

Orcutt

11.76

Oxnard

5.39

Paloma

4.88

Placerita 32.78

Playa Del Rey 6.87

Pleito 2.09

Poso Creek 21.96

Pyramid Hills 3.36

Railroad Gap 7.08

Raisin City 9.13

Ramona 4.47

Richfield 4.75

Rincon 4.88

Rio Bravo

6.98

Rio Viejo

2.74

Riverdale

3.80

Rose

2.91

Rosecrans

5.76

Rosecrans, South

3.54

Rosedale

2.35

Rosedale Ranch

8.32

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§ 95489. Provisions for Petroleum-Based Fuels. 159

Round Mountain 24.04

Russell Ranch 8.58

Salt Lake 3.18

Salt Lake, South 6.34

San Ardo 26.42

San Miguelito 5.25

San Vicente 3.22

Sansinena 3.21

Santa Clara Avenue 3.53

Santa Fe Springs 12.53

Santa Maria Valley

4.80

Santa Susana

5.29

Sargent

4.00

Saticoy

3.68

Sawtelle

2.56

Seal Beach

5.19

Semitropic

4.30

Sespe

3.98

Shafter, North

3.32

Shiells Canyon 5.07

South Mountain 3.58

Stockdale 2.18

Tapia 6.92

Tapo Canyon, South 3.08

Tejon 13.77

Tejon Hills 9.39

Tejon, North 5.63

Temescal 3.40

Ten Section 7.50

Timber Canyon

4.74

Torrance

3.99

Torrey Canyon

3.52

Union Avenue

5.58

Vallecitos

4.53

Ventura

4.54

Wayside Canyon

2.36

West Mountain

3.53

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§ 95489. Provisions for Petroleum-Based Fuels. 160

* Based on production and transport of the crude oil supplied to the indicated California refinery(ies)

during the baseline calendar year, 2010.

Credits may be generated for crude oil that has been produced or transported

using innovative methods and delivered to California refineries for processing.

(1) General Requirements.

(A) For the purpose of this section, an innovative method means crude

production or transport using one or more of the following

technologies:

1. Solar steam generation (generated steam of 45 percent

quality or greater). Steam must be used onsite at the crude

oil production or transport facilities.

2. Carbon capture and sequestration (CCS). Carbon capture

must take place onsite at the crude oil production or

transport facilities.

3. Solar or wind electricity generation. To qualify for the

credit, electricity must be produced and consumed onsite or

be provided directly to the crude oil production or transport

facilities from a third-party generator and not through a utility

owned transmission or distribution network. Energy storage

may be used to increase the quantity of electricity supplied

Wheeler Ridge 2.80

White Wolf 1.92

Whittier 3.71

Wilmington 8.31

Yowlumne 13.90

Zaca 9.53

US Federal OCS Beta 1.59

Carpinteria 3.28

Dos Cuadras 4.57

Hondo 5.93

Hueneme

4.67

Pescado

7.07

Point Arguello

14.07

Point Pedernales

8.26

Sacate

4.77

Santa Clara

2.46

Sockey

13.09

Default

11.78

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§ 95489. Provisions for Petroleum-Based Fuels. 161

to crude oil production or transport facilities from intermittent

solar and wind electricity generation sources.

4. Solar heat generation including, but not limited to, boiler

water preheating and solar steam generation with a steam

quality of less than 45 percent. Heat must be used onsite

at the crude oil production or transport facilities.

5. Renewable natural gas (RNG) or biogas energy. RNG or

biogas must be physically supplied directly to the crude oil

production or transport facilities.

(B) The innovative method must become operational no earlier than

2010 for solar steam and CCS projects or January 1, 2015, for any

other innovative method above. Any project must be approved for

use by the Executive Officer before generating credit under the

LCFS regulation. Projects that utilize carbon capture and

sequestration are subject to the provisions of section 95490.

No credits may be generated for any quarter preceding the quarter

in which the application is approved.

the innovative method through a written application to the Executive

Officer. If the innovative method involves steam, heat, or

electricity produced by a third party and delivered to the crude oil

producer or transporter, both the crude producer or transporter and

the third party must apply and will be considered joint applicant

project operator for approval of the innovative method. If more

than one crude producer or transporter receives steam, heat, or

electricity from a single third-party facility, each crude producer or

transporter must submit an independent application with the third

party as a joint applicant on each submittal. If the innovative

method involves delivery of carbon captured by the crude oil

producer or transporter to a third party to store the carbon, both the

crude producer or transporter and the third party must apply and

will be considered joint applicants for approval of the innovative

method.

(D) A crude oil producer or transporter must register under section

95483.1 as an opt-in project operator to receive credits for an

approved innovative method. The crude oil producer or

transporter, through a written agreement, may elect to transfer the

right to opt in for credit generation to the joint applicant. If neither

the crude oil producer or transporter nor the joint applicant using an

approved innovative method registers as an opt-in project operator,

credits generated by the producer’s or transporter’s use of the

innovative method may be claimed by California refinery(ies) that

purchase the crude produced or transported using the innovative

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§ 95489. Provisions for Petroleum-Based Fuels. 162

method if CARB receives all information it needs to ensure

compliance with limitations and reporting requirements applied to

the method.

(E) The innovative method must achieve one of the following threshold

criteria:

1. A carbon intensity reduction from the comparison baseline of

at least 0.10 gCO

e/MJ, or

2. An emissions reduction of at least 5,000 metric tons CO

per year.

If the innovative method involves more than one crude producer or

transporter using steam, heat, or electricity produced at a single

third-party facility, the threshold criteria listed above may apply to

the aggregated project total.

(F) Credits for producing crude oil with innovative methods must be

calculated as specified below:

For crude oil produced using solar steam generation:





(



)

=  ×





× 







× 



× 

Where avoided emissions, as calculated using the OPGEE model

assuming displacement of steam produced using a natural gas fired

once through steam generator, are correlated with the steam

quality as tabulated below:

Steam quality

Avoided emissions (gCO

e/bbl solar

steam)

95% and above 34,875

85% to <95% 30,443

75% to <85% 28,188

65% to <75% 25,932

55% to <65% 23,677

45% to <55% 21,421

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§ 95489. Provisions for Petroleum-Based Fuels. 163

For crude oil produced or transported using solar or wind based

electricity:





(



)

= 511 ×





× 







× 



× 

For crude oil produced or transported using any other innovative

method listed in section 95489(c)(1)(A):





(



)

= 



× 



× 



× 

where:





(



)

means the amount of LCFS credits generated

(a positive value), in metric tons, by the volume of a crude oil

produced or transported using the innovative method and delivered

to California refineries for processing;





means the overall volume, in barrels cold water equivalent,

of steam injected;





means the fraction of injected steam that is produced using

solar;





means the volume, in barrels, of crude oil produced

or transported using the innovative method;





means the volume, in barrels, of crude oil produced or

transported using the innovative method and delivered to California

refineries for processing. If the crude produced or transported

using the innovative method and delivered to California refineries is

part of a blend, then 



is the volume of blend delivered to

California refineries times the volume fraction of the crude within

the blend that was produced or transported using the innovative

method.

 = 1.0 × 10















means the overall electricity consumption to produce or

transport the crude, in kW-hr;





means the fraction of consumed electricity that is produced

using qualifying solar or wind power;

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§ 95489. Provisions for Petroleum-Based Fuels. 164





means the reduction in carbon intensity (a positive value),

in gCO

e/MJ

crude

, associated with crude oil production or transport

with the innovative method as compared to crude oil production or

transport by a baseline process without the method (hereafter

referred to as the comparison baseline method); and





means the energy density (lower heating value), in

MJ/barrel, for the crude oil produced or transported with the

innovative method.

(G) Renewable or low-CI energy sources listed in (A) that are used to

generate LCFS credit for innovative crude may not also claim

renewable energy certificates or other environmental attributes

recognized or credited by any other jurisdiction or regulatory

program, other than the market-based compliance mechanism set

forth in title 17, California Code of Regulations Chapter 1,

Subchapter 10, article 5 (commencing with section 95800).

(2) Application and Data Submittal. Unless otherwise noted, an application

for an innovative method shall comply with the requirements below:

(A) An applicant that submits any information or documentation in

support of a proposed innovative method must include with the

application a written statement clearly showing that the applicant

understands and agrees to the following:

1. That all information in the application not identified as

confidential business information is subject to public

disclosure pursuant to California Code of Regulations,

title 17, sections 91000 through 91022 and the California

Public Records Act (Government Code §§ 6250 et seq.), and

that information claimed by the applicant to be confidential

might later be disclosed under section 91022 if the state

board determines the information is subject to disclosure.

2. That the crude oil producer or transporter or third-party joint

applicant must register under section 95483.1 as an opt-in

project operator to receive LCFS credit for an innovative

method, and that if the crude oil producer or transporter or

third-party joint applicant does not register as an opt-in

project operator, credits from an approved innovative

method may be claimed by California refinery(ies) that

purchase crude produced from the innovative method.

(B) An application must contain the following summary material:

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§ 95489. Provisions for Petroleum-Based Fuels. 165

1. A complete description of the innovative method and how

emissions are reduced;

2. An engineering drawing(s) or process flow diagram(s) that

illustrates the innovative method and clearly identifies the

system boundaries, relevant process equipment, mass

flows, and energy flows necessary to calculate the

innovative method credits;

3. A map including global positioning system coordinates for

the facilities described in section 95489(c)(2)(B)2.; and

4. A preliminary estimate of the potential innovative method

credit, calculated as required in section 95489(c)(1)(F),

including descriptions and copies of production and

operational data or other technical documentation utilized in

support of the calculation.

production (45 percent steam quality or greater), wind-based

electricity, or solar-based electricity, shall include a detailed

description of the innovative method and its comparison baseline

method. The description of innovative and comparison baseline

methods can be limited to those portions of the crude production or

transport process affected by the innovative method. The

description of the innovative method and its comparison baseline

method must include each of the following, to the extent each is

applicable to the innovative method:

1. Schematic flow charts that identify the system boundaries

used for the purposes of performing the life cycle analyses

on the proposed innovative method and the comparison

baseline method. Each piece of equipment or stream

appearing on the process flow diagrams shall be clearly

identified and shall include data on its energy and materials

balance. The system boundary shall be clearly shown in

the schematic.

2. A description of all material and energy inputs entering the

system boundaries, including their points of origination,

modes of transportation, transportation distances, means of

storage, and all processing to which material inputs are

subject.

3. A description of all material and energy products,

co-products, byproducts, and waste products leaving the

system boundaries, including their respective destinations,

transportation modes, and transportation distances.

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§ 95489. Provisions for Petroleum-Based Fuels. 166

4. A description of all facilities within the system boundaries

involved in the production or transport of the crude oil and

other byproducts, co-products, and waste products.

5. A description of all combustion and electricity-powered

equipment within the system boundaries, including their

respective capacities, sizes, or rated power, fuel utilization

type, fuel shares, energy efficiency (lower heating value

basis), and proposed use.

6. A description of the thermal and electrical energy production

that occurs within the system boundaries, including the

respective capacities, sizes, or rated power, fuel utilization

type, fuel shares, energy efficiency (lower heating value

basis), and proposed use.

7. A description of all sources of flared, vented, and fugitive

emissions within the system boundaries, including the

compositions of the flared, vented, and fugitive emission

streams leaving the system boundaries.

(D) An application, except for solar-generated steam for crude oil

production (45 percent steam quality or greater), wind-based

electricity, or solar-based electricity shall include descriptions of the

life cycle assessments (LCAs) performed on the proposed

innovative method and its comparison baseline method using the

CARB OPGEE model or an alternative model or LCA methodology

approved by the Executive Officer. Electronic copies of the

models and calculations shall be provided with the application.

The descriptions of the life cycle assessment results must include

each of the following:

1. Detailed information on the energy consumed, the

greenhouse gas emissions generated for the innovative

method and the comparison baseline method;

2. Documentation of all non-default model input values used in

the emissions calculation process. If values for any

significant production parameters are unknown, the

application shall so state and model default values shall be

used for these parameters in the analysis;

3. Detailed description of all supporting calculations that were

performed outside of the model; and

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§ 95489. Provisions for Petroleum-Based Fuels. 167

4. Documentation of all modifications other than those covered

by subsection 2., above, made to the model. This

discussion shall include sufficient specific detail to enable

the Executive Officer to replicate all such modifications and,

in combination with the inputs and supporting calculations

identified in subsections 2. and 3., above, replicate the

carbon intensity results reported in the application.

(E) An application shall include a list of references covering all

information sources used in the preparation of the life cycle

analysis and calculation of innovative method credit. The

reference list must meet the requirements of section

95488.7(a)(2)(D).

(F) An application shall include a signed transmittal letter from the

applicant attesting to the veracity of the information in the

application packet and declaring that the information submitted

accurately represents the actual and/or intended long-term,

steady-state operation of the innovative method described in the

application packet. The transmittal letter must meet the

requirements of section 95488.8(a)(3)(A) through (D).

(G) CBI must be designated and a redacted version of any submitted

documents designated to include CBI must be provided pursuant to

the requirements described in section 95488.8(c).

(H) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically

via the AFP unless the Executive Officer has approved or

requested another format.

(3) Application Approval Process. The application must be approved by the

Executive Officer before the crude oil producer or transporter, joint

applicant, or purchasing refinery may generate credit for the innovative

method.

(A) Within 30 calendar days of receipt of an application designated by

the applicant as ready for formal evaluation, the Executive Officer

shall advise the applicant in writing either that:

1. The application is complete, or

2. The application is incomplete, in which case the Executive

Officer will identify which requirements of section 95489(c)

have not been met.

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§ 95489. Provisions for Petroleum-Based Fuels. 168

a. The applicant may submit additional information to

correct deficiencies identified by the Executive Officer.

b. If the applicant is unable to achieve a complete

application within 180 days of the Executive Officer’s

receipt of the original application, the application will

be denied on that basis, and the applicant will be

informed in writing.

(B) After accepting an application as complete, the Executive Officer

will post the application at http://www.arb.ca.gov/fuels/lcfs/lcfs.htm.

Public comments will be accepted for 10 days following the date on

which the application was posted. Only comments related to

potential factual or methodological errors may be considered. The

Executive Officer will forward to the applicant all comments

identifying potential factual or methodological errors. Within

30 days, the applicant shall either submit revisions to its application

to the Executive Officer, or submit a detailed written response to

the Executive Officer explaining why no revisions are necessary.

Executive Officer determines, based upon the information

submitted in the application and any other available information,

that:

1. The proposed crude production or transport method is not an

innovative method, as that term is defined in section

95489(c)(1).

2. Based upon the application information submitted pursuant

to this section, the applicant’s greenhouse gas emissions

calculations cannot be replicated using the CARB OPGEE

model or alternative model or LCA methodology approved by

the Executive Officer.

(D) As part of any action approving an application, the Executive

Officer may prescribe conditions of the approval that contain

special limitations, recordkeeping and reporting requirements, and

operational conditions that the Executive Officer determines should

apply to the innovative method. If the Executive Officer

determines the application will not be approved, and the applicant

will be notified in writing and the basis for the disapproval shall be

identified.

(4) Recordkeeping and Reporting. Each applicant that receives approval for

an innovative method must maintain records identifying each facility at

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§ 95489. Provisions for Petroleum-Based Fuels. 169

which it produces crude oil for sale in California under the approved

innovative method. For each such facility, the applicant must report

quarterly (through a Project Report) and maintain records for at least ten

years showing:

(A) The volume (barrels) of crude oil produced or transported using the

approved innovative method and the crude name(s) under which it

is marketed.

(B) If the crude oil produced or transported with an approved innovative

method is marketed as part of a crude blend that is not wholly

refined in California, the name of the blend and the volume fraction

that the crude produced with the innovative method contributes to

the blend.

the innovative crude was supplied to one or more California refinery

and the volume (barrels) of innovative crude supplied to each

California refinery. For crude oil produced in California,

documentation showing the innovative crude was supplied to one

or more California refinery, the total volume (barrels) of innovative

crude supplied to California refineries, and the total volume

(barrels) of innovative crude exported from California.

(D) For solar or wind electricity projects, the following additional

recordkeeping and reporting will be required:

1. Metered data on solar or wind electricity consumed at the

crude oil production or transport facilities during the quarter

(kWh);

2. Metered data on total electricity consumed at the crude oil

production or transport facilities during the quarter (kWh);

and

3. An attestation letter stating that all solar or wind electricity

was supplied directly for crude oil production or transport

and that the solar or wind electricity reported for generating

LCFS credit did not produce renewable energy certificates or

other environmental attributes recognized or credited by any

other jurisdiction or regulatory program, other than the

market-based compliance mechanism set forth in title 17,

California Code of Regulations Chapter 1, Subchapter 10,

article 5 (commencing with section 95800).

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§ 95489. Provisions for Petroleum-Based Fuels. 170

(E) For solar steam projects at crude oil production facilities, the

following additional recordkeeping and reporting will be required:

1. Metered data on solar steam consumed for crude oil

production at the oil field during the quarter (barrels cold

water equivalent);

2. Metered data on total steam consumed for crude oil

production at the oil field during the quarter (barrels cold

water equivalent);

3. Volume-weighted average steam quality for solar steam

consumed for crude oil production at the oil field during the

quarter; and

4. An attestation letter stating that all solar steam was supplied

directly for crude oil production at the oil field and that the

solar steam reported for generating LCFS credit did not

produce renewable energy certificates or other

environmental attributes recognized or credited by any other

jurisdiction or regulatory program, other than the market-

based compliance mechanism set forth in title 17, California

Code of Regulations Chapter 1, Subchapter 10, article 5

(commencing with section 95800).

(F) Any additional records that the Executive Officer requires to be kept

in pursuant to section 95489(c)(3)(D), and records that demonstrate

compliance with all special limitations and operating conditions

specified pursuant to section 95489(c)(3)(D).

These records shall be submitted to the Executive Officer during the

quarterly reporting period specified in section 95491(b).

(5) Credits for Producing or Transporting Crude Oil Using Innovative

Methods. Credits for producing or transporting crude oil using innovative

methods may be generated quarterly or annually, at the discretion of the

credit generating party. Within 30 days of receiving reports from

California refineries detailing crude names and volumes supplied to the

refineries during the applicable crediting period, any records requested of

the applicant under section 95489(c)(4), and a positive or qualified positive

verification of the applicable Project Reports per section 95500, the

Executive Officer will determine the number of credits to be issued to the

crude oil producer or transporter, joint applicant, or purchasing refinery for

the innovative method. An adverse verification statement would result in

no credit issuance and Executive Officer investigation.

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§ 95489. Provisions for Petroleum-Based Fuels. 171

(d) Low-Complexity/Low-Energy-Use Refinery Credit. A refinery may receive credit

for being a low-complexity and low-energy-use refinery.

(1) To be eligible for the credit calculation in section 95489(d)(3), a Low-

Complexity/Low-Energy-Use Refinery must meet the criteria in the

definition of “Low-Complexity/Low-Energy-Use Refinery” provided in

section 95481(a) using the following equations:

(A) Modified Nelson Complexity Score

where:





is the 2012 Nelson Complexity Index listed in Table 10;





is the capacity of each unit listed in Table 10 in barrels

per day unless otherwise indicated;





is the capacity of the distillation unit in barrels per day;

 is the process unit; and

 is the total number of process units.

Table 10. Nelson Complexity Indices.

rocess Unit Index Value

Atmospheric Distillation

1.00

Vacuum Distillation

1.30

Thermal Processes

2.75

Delayed and Fluid Coking

7.50

Catalytic Cracking

6.00

Catalytic Reforming

5.00

Catalytic Hydrocracking

8.00

Catalytic Hydrorefining/Hydrotreating

2.50

Alkylation

10.00

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§ 95489. Provisions for Petroleum-Based Fuels. 172

rocess Unit Index Value

Polymerization

10.00

Aromatics

20.00

Isomerization

3.00

Oxygenates

10.00

Hydrogen (MMcfd)

1.00

Sulfur Extraction (Metric Tons per day)

240.00

(B) Annual Energy Use

  

(

 

)

=  + + 

where:

  is the MMBtu of all fuel combusted during the compliance

period;

 is the imported electricity minus exported electricity per

compliance period converted to MMBtu by using

3.142 MMBtu/MWh; and

 is the imported thermal energy minus exported thermal

energy per compliance period in MMBtu.

(2) In addition to other reporting requirements, a refinery operator that is

claiming credits for a Low-Complexity/Low-Energy-Use Refinery must also

report the following volumes produced during a specific calendar year and

sold, supplied, or offered for sale in California for that refinery:

(A) The volume of CARBOB and volume of diesel produced from crude

oil;

(B) The volume of CARBOB and volume of diesel produced from

transmix;

Petroleum Intermediate feedstocks; and

(D) The volume of CARBOB and volume of diesel purchased for

blending.

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§ 95489. Provisions for Petroleum-Based Fuels. 173

(E) If CARBOB or diesel is produced from feedstock other than crude

oil (volumes in (2)(B) through (D), above), a separate annual report

with third-party verification is required for produced volumes of

CARBOB and diesel from crude oil. The annual report must be

submitted by March 31

and the verification statement is due

August 31

(3) Credits for a low-complexity/low-energy-use refinery must be calculated

using the following equations:

(A) Carbon Intensity Adjustment. For volumes reported in section

95489(d)(2)(A) a non-transferable credit of 5.0 gCO

e/MJ will be

generated.

(B) Credit Calculation. For CARBOB and diesel volumes reported in

section 95489(d)(2)(A):







= 5 2/× 



× 



× 

where:







is the amount of LCFS credits generated (a zero or

positive value), in metric tons, by a fuel or blendstock under the

average carbon intensity requirement for gasoline ( =

“gasoline”) or diesel ( = ”diesel”);





means the volume fraction of CARBOB ( = “CARBOB”) or

diesel ( = “diesel”) fuel that is derived from crude oil supplied to

the Low-Complexity/Low-Energy-Use refinery. 



is calculated

by dividing the volume of CARBOB or diesel reported for section

95489(d)(2)(A) by the total volume of CARBOB or diesel reported

for section 95489(d)(2)(A) through (D);





is the amount of fuel energy, in MJ, from CARBOB

( = “CARBOB”) or diesel ( = “diesel”), determined from the

energy density conversion factors in Table 4, either produced in

California or imported into California during a specific calendar year

and sold, supplied, or offered for sale in California; and

 = 1.0 × 10











transferred to any other party.

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§ 95489. Provisions for Petroleum-Based Fuels. 174

(4) Application Contents and Submittal. An application for

Low-Complexity/Low-Energy-Use Refinery Credits must comply with the

following requirements:

(A) An application must contain the following summary material:

1. A complete description of the refinery including processing

units and their capacity, and energy use;

2. An engineering drawing(s) or process flow diagram(s) that

illustrates the project, relevant process equipment, and mass

or volumetric flows necessary to calculate the

Low-Complexity/Low-Energy-Use Refinery Credits; and

3. A preliminary estimate of the credit, calculated as required in

section 95489(d)(3)(B), including descriptions and copies of

production and operational data other technical

documentation utilized in support of the calculation.

(B) An application must include a list of references covering all

information sources used in the calculation of Low-Complexity/Low-

Energy-Use Refinery Credits. The reference list must meet the

requirements of section 95488.7(a)(2)(D).

applicant attesting to the veracity of the information in the

application packet and declaring that the information submitted

accurately represents the actual operation of the refinery. The

transmittal letter must meet the requirements of section

95488.8(a)(3)(A) through (D).

(D) An applicant that submits any information or documentation in

support of a proposed Low-Complexity/Low-Energy-Use Refinery

Credit must include a written statement clearly showing that the

applicant understands and agrees that all information in the

application not identified as confidential business information is

subject to public disclosure pursuant to California Code of

Regulations, title 17, sections 91000 through 91022 and the

California Public Records Act (Government Code, §§. 6250 et

seq.), and that information claimed by the applicant to be

confidential might later be disclosed under section 91022 if the

Board determines the information is subject to disclosure.

(E) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically

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§ 95489. Provisions for Petroleum-Based Fuels. 175

via the AFP unless the Executive Officer has approved or

requested another format.

(F) If there is a change to an approved Low-Complexity/Low-Energy-

Use Refinery which could impact the eligibility of the refinery, the

refinery operator must notify the Executive Officer in writing within

30 business days after the material change has occurred, and the

previously-approved application shall become invalid 30 business

days after the material change has occurred.

(5) Credit Issuance. The Executive Officer will issue Low-Complexity/Low-

Energy-Use Refinery Credits annually for the prior year upon the

completion of the following:

(A) Confirmation of eligibility by the Executive Officer based on the

refinery energy use verified under MRR annually.

(B) Receipt of a positive or qualified positive verification statement for

the quarterly fuel transactions reported pursuant to section

95489(d)(2). An adverse verification statement would result in no

credit issuance and Executive Officer investigation.

(e) Refinery Investment Credit Program. A refinery may receive credit for reducing

greenhouse gas emissions from its facility. Any such credits must be based on

fuel volumes sold, supplied, or offered for sale in California as set forth below.

(1) General Requirements.

(A) The application for a refinery investment credit must be submitted

during or after the year 2016 and must be approved pursuant to this

section before the refinery can receive credit. A project is eligible

if the project completion date is on January 1, 2016 or later.

(B) The refinery investment credit project must occur within the

boundaries of the refinery, unless it involves carbon capture from

hydrogen production. Sequestration sites for CCS do not need to

be on-site at the refinery.

air pollutant or toxic air contaminant emissions from the refinery

investment credit project are mitigated in accordance with all local,

state, and national environmental and health and safety

regulations.

(D) The following project types are eligible for the refinery investment

project credits:

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§ 95489. Provisions for Petroleum-Based Fuels. 176

1. CO

capture at refineries, or at hydrogen production facilities

that supply hydrogen to refineries, and subsequent geologic

sequestration;

2. Use of renewable or low-CI electricity supplied behind the

meter that meets the requirements of 95488.8(h)(1);

3. Use of lower-CI process energy such as biomethane,

renewable propane, and renewable coke, to displace fossil

fuel;

4. Electrification at refineries that involves substitution of high

carbon fossil energy input with grid electricity.

5. Process improvement projects that deliver a reduction in

baseline refinery-wide greenhouse gas emissions as

outlined in 95489(e)(1)(G)2. Greenhouse gas emissions

reductions due to curtailment, simple maintenance; and

crude oil switching that results in greenhouse gas reductions

in the project system boundary without improvements in the

processing units or equipment involved are not eligible. For

the purposes of this section, curtailment is defined as an

intentional operational and/or physical change exclusively for

the reduction or cessation of total gasoline and gasoline

blendstocks and diesel production at the refinery.

Curtailment does not include the coincidental rate reduction

or shutdown of associated emitting equipment as part of a

process improvement project or projects aimed primarily at

optimizing refinery efficiency.

(E) Credits must be pro-rated for years where the units within the

project system boundary were non-operational. This pro-rating will

consider the calendar days of operation relative to non-operation.

(F) Credits must be pro-rated if the hydrogen production facility that

captures CO

does not supply all of its hydrogen to the applicant

refinery.

(G) Credits generated pursuant to section 95489(e)(1)(D)5. are subject

to the following limitations:

1. Credits may not be used to meet more than 10 percent of

any entity’s annual compliance obligation. The Executive

Officer will exclude incremental deficits incurred pursuant to

section 95489(b) when assessing this 10 percent limitation.

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§ 95489. Provisions for Petroleum-Based Fuels. 177

2. Each project must generate at least 10,000 credits or one

percent of the facility’s annual pre-project emissions,

whichever is less.

3. Crediting is limited to 15 years from the quarter in which the

Executive Officer approves the project’s application.

(H) Projects that utilize carbon capture and sequestration are subject to

the provisions of section 95490.

(2) Calculation of Credits.

(A) For carbon capture and sequestration projects, determine the credit

in accordance with the CCS protocol.

(B) For other refinery investment credit projects, determine the credit

as follows:

1. Establish a project system boundary. The project system

boundary should include direct impacts and at least first

order indirect impacts;

2. Determine the credit for the refinery investment credit project

by calculating pre-project life cycle greenhouse gas

emissions and project life cycle greenhouse gas emissions

within the project system boundary;





= (



 



)









where:





is the annual credit for the refinery investment

credit project in metric tons per year;





is the annual life cycle greenhouse gas

emissions from the use of fuels, electricity, steam/heat and

hydrogen in the project system boundary prior to project

implementation in metric tons per year corrected for

downtime;





is the annual life cycle greenhouse gas

emissions from the use of fuels, electricity, steam/heat and

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§ 95489. Provisions for Petroleum-Based Fuels. 178

hydrogen in the project system boundary due to project

implementation in metric tons per year corrected for

downtime;





is the volume of gasoline, gasoline blendstocks,

and diesel in gallons per quarter or per year produced at the

refinery and sold, supplied, or offered for sale in California by

the refinery involved in the Refinery Investment Credit

Program; and





is the total volume of gasoline, gasoline

blendstocks, and diesel in gallons produced at the refinery

per quarter or per year.

(3) Application Contents and Submittal. Unless otherwise noted, an

application for refinery investment credits must comply with the following

requirements:

(A) An application must contain the following summary material:

1. A complete description of the refinery investment credit

project and how emissions are reduced;

2. An engineering drawing(s) or process flow diagram(s) that

illustrates the project and clearly identifies the system

boundaries, relevant process equipment, mass flows, and

energy flows necessary to calculate the refinery investment

credits, including any directly affected or indirectly affected

processing units (at least first order indirect impacts) and a

whole refinery diagram if requested; and

3. A preliminary estimate of the refinery investment credit,

calculated as required in section 95489(e)(2), including

descriptions and copies of any available production and

operational data including energy use and other technical

documentation utilized in support of the calculation. The

application must contain process-specific data showing that

the reductions are part of the transportation fuel pathway.

4. Supporting documents demonstrating that second or higher

order indirect impacts are not significant beyond the

identified project system boundary.

(B) An application must include a list of references covering all

information sources used in the calculation of refinery investment

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§ 95489. Provisions for Petroleum-Based Fuels. 179

credit. The reference list must meet the requirements of section

95488.7(a)(2)(D).

applicant attesting to the veracity of the information in the

application packet and declaring that the information submitted

accurately represents the actual and/or intended long-term,

steady-state operation of the refinery investment credit project

described in the application packet. The transmittal letter must

meet the requirements of section 95488.8(a)(3)(A) through (D).

(D) CBI must be designated and a redacted version of any submitted

documents designated to include CBI must be provided pursuant to

the requirements described in section 95488.8(c).

(E) An application must include all relevant documentation identifying

any changes, including decreases or increases, in criteria air

pollutant or toxic air contaminant emissions based on local air

permits and supporting permit documentation from the refinery

investment credit project. An applicant must include a signed

transmittal letter from the applicant attesting that any net increases

in emissions from the refinery investment credit project are

mitigated in accordance with all local, state, and national

environmental and health and safety regulations.

(F) An applicant that submits any information or documentation in

support of a proposed refinery investment credit must include a

written statement clearly showing that the applicant understands

and agrees that all information in the application not identified as

confidential business information is subject to public disclosure

pursuant to California Code of Regulations, title 17, sections 91000

through 91022 and the California Public Records Act (Government

Code, §§. 6250 et seq.), and that information claimed by the

applicant to be confidential might later be disclosed under section

91022 if the Board determines the information is subject to

disclosure.

(G) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically

via the AFP unless the Executive Officer has approved or

requested another format.

(H) Applications for process improvement projects must be submitted

on or before December 31, 2025.

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§ 95489. Provisions for Petroleum-Based Fuels. 180

(4) Application Approval Process. An application must be approved by the

Executive Officer before the refinery investment credit project can

generate credits under the LCFS regulation.

(A) After receipt of an application designated by the applicant as ready

for formal evaluation, the Executive Officer will advise the applicant

in writing either that:

1. The project system boundary is appropriate and the

application is complete, or

2. The application is incomplete, in which case the Executive

Officer will identify which requirements of section 95489(e)

have not been met. The applicant may submit additional

information to correct deficiencies identified by the Executive

Officer. If the applicant is unable to achieve a complete

application within 180 calendar days of the Executive

Officer’s receipt of the original application, the application will

be denied on that basis, and the applicant will be informed in

writing.

(B) After accepting an application as complete, the Executive Officer

will post the application at http://www.arb.ca.gov/fuels/lcfs/lcfs.htm.

Public comments will be accepted for 10 calendar days following

the date on which the application was posted. Only comments

related to potential factual or methodological errors may be

considered. The Executive Officer will forward to the applicant all

comments identifying potential factual or methodological errors.

Within 30 business days, the applicant must either submit revisions

to its application to the Executive Officer, or submit a detailed

written response to the Executive Officer explaining why no

revisions are necessary.

requirements set forth in section 95489(e), the Executive Officer will

take final action to approve the refinery investment credit project.

The Executive Officer may prescribe conditions of approval that

contain special limitations, recordkeeping and reporting

requirements, and operational conditions that the Executive Officer

determines should apply to the project. If the Executive Officer

finds that an application does not meet the requirements of section

95489(e), the application will not be approved, and the applicant

will be notified in writing, and the basis for the disapproval will be

identified.

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§ 95489. Provisions for Petroleum-Based Fuels. 181

(5) Credit Review and Issuance. Credits for refinery investment projects

may be generated quarterly or annually, at the discretion of the credit

generating party.

(A) Upon the completion of reporting period in which a positive or

qualified positive verification statement for the applicable Project

Reports per section 95500(e) is received, the Executive Officer will

determine the number of credits to be issued to the applicants. An

adverse verification statement would result in no credit issuance

and Executive Officer investigation.

(6) Recordkeeping. For each approved refinery investment credit project the

refinery must compile and retain records pursuant to section 95491.1(a)(2)

showing compliance with all limitation and recordkeeping requirements

identified by the Executive Officer pursuant to section 95489(e)(4)(C),

above.

(f) Renewable Hydrogen Refinery Credit Program. A refinery may receive credit

for greenhouse gas emission reductions from the production of CARBOB or

diesel fuel that is partially or wholly derived from renewable hydrogen. Any such

credits must be based on fuel volumes sold, supplied, or offered for sale in

California as set forth below.

(1) General Requirements.

(A) In order to receive a renewable hydrogen refinery credit, a refiner

must produce CARBOB or diesel fuel that is partially or wholly

derived from renewable hydrogen.

(B) The applicant must demonstrate that any net increases in criteria

air pollutant or toxic air contaminant emissions from the renewable

hydrogen refinery credit project are mitigated in accordance with all

local, state, and national environmental and health and safety

regulations.

(2) Calculation of Credits.

(A) For CARBOB or diesel fuel that is partially or wholly derived from

renewable hydrogen produced from RNG that displaces fossil

natural gas in a steam methane reforming unit, the calculation of

credits generated quarterly or annually must be as follows:







(









)

× 



× ×









where:

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§ 95489. Provisions for Petroleum-Based Fuels. 182







is the amount of LCFS credits generated (a zero or

positive value), in metric tons, by renewable hydrogen;





is the well-to-hydrogen production carbon intensity of North

American pipeline natural gas in gCO

e/MJ calculated using the

same feedstock assumptions and pipeline distance as the Lookup

Table pathway for Pipeline Average North American Fossil Natural

Gas (CNGF);





is the well-to-hydrogen production carbon intensity of the

RNG in gCO

e/MJ and must be determined using the CA-GREET

3.0 model unless the Executive Officer has approved the use of a

method that is at least equivalent to the calculation methodology

used by CA-GREET3.0 model. The process for obtaining 



will be identical to Tier 2 fuel pathway applications, and the life

cycle steps evaluated will stop at hydrogen production at the

refinery;





is the amount of RNG in MJ delivered to a refinery per quarter

or per year;





is the volume of gasoline, gasoline blendstocks, and

diesel in gallons per quarter or per year produced at the refinery

and sold, supplied, or offered for sale in California by the refinery;





is the total volume of gasoline, gasoline blendstocks,

and diesel in gallons produced at the refinery per quarter or per

year; and

 = 1.0 × 10





2

(B) For CARBOB or diesel fuel that is partially or wholly derived from

renewable hydrogen produced from other production processes,

such as electrolysis using renewable electricity or syngas from

biomass gasification, the calculation of credits generated quarterly

or annually must be as follows:







(













)

× 





× 





×  ×









where:

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§ 95489. Provisions for Petroleum-Based Fuels. 183







is the amount of LCFS credits generated (a zero or

positive value), in metric tons, by renewable hydrogen;







is the carbon intensity of fossil hydrogen in gCO

e/MJ

delivered or produced at the refinery, as determined using the

CA-GREET3.0 model or similar models approved by the Executive

Officer. The process for obtaining 





must comply with the

requirements in sections 95488 to 95488.10;







is the carbon intensity of renewable hydrogen in

gCO

e/MJ delivered or produced at the refinery, as determined

using the CA-GREET3.0 model. The process for obtaining







must comply with the requirements in sections 95488 to

95488.10;







is the amount of renewable hydrogen in kg per quarter

or per year;







is the energy density of hydrogen in MJ/kg from Table





is the volume of gasoline, gasoline blendstocks, and

diesel in gallons per quarter or per year sold, supplied, or offered

for sale in California by the refinery involved in the Renewable

Hydrogen Refinery Credit Program;





is the total volume of gasoline, gasoline blendstocks,

and diesel in gallons produced at the refinery per quarter or per

year; and

 = 1.0 × 10





2

(3) Application Contents and Submittal. Unless otherwise noted, an

application for renewable hydrogen credits must comply with the following

requirements:

(A) An application must contain the following summary material:

1. A complete description of the production of CARBOB or

diesel fuel with hydrogen and how renewable hydrogen is

replacing fossil hydrogen in that process;

2. Purchase records identifying the renewable hydrogen and/or

renewable feedstock used to produce the renewable

hydrogen; and

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§ 95489. Provisions for Petroleum-Based Fuels. 184

3. A preliminary estimate of the renewable hydrogen refinery

credit, calculated as required in section 95489(f)(2),

including descriptions and copies of production and

operational data, including energy use, and other technical

documentation utilized in support of the calculation. The

application must contain process-specific data showing that

the reductions are part of the transportation fuel pathway.

(B) An application must include a list of references covering all

information sources used in the calculation of renewable hydrogen

refinery credit project. The reference list must meet the

requirements of section 95488.7(a)(2)(D).

applicant attesting under penalty of perjury under California law, to

the veracity of the information in the application packet and

declaring that the information submitted accurately represents the

actual and/or intended long-term, steady-state operation of

renewable hydrogen refinery credit project described in the

application packet. The transmittal letter must meet the

requirements of section 95488.8(a)(3)(A) through (D).

(D) CBI must be designated and a redacted version of any submitted

documents designated to include CBI must be provided pursuant to

the requirements described in section 95488.8(c).

(E) An application must include all relevant documentation identifying

any changes, including decreases or increases, in criteria air

pollutant or toxic air contaminant emissions based on local air

permits from the renewable hydrogen refinery credit project. An

applicant must include a signed transmittal letter from the applicant

attesting that any net increases in emissions from renewable

hydrogen refinery credit project are mitigated in accordance with all

local, state, and national environmental and health and safety

regulations.

(F) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically

via the AFP unless the Executive Officer has approved or

requested another format.

(4) Application Approval Process. An application must be approved by the

Executive Officer before the renewable hydrogen refinery credit project

can generate credits under the LCFS regulation.

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§ 95489. Provisions for Petroleum-Based Fuels. 185

(A) Within 30 calendar days of receipt of an application designated by

the applicant as ready for formal evaluation, the Executive Officer

will advise the applicant in writing either that:

1. The application is complete, or

2. The application is incomplete, in which case the Executive

Officer will identify which requirements of section 95489(f)

have not been met. The applicant may submit additional

information to correct deficiencies identified by the Executive

Officer. If the applicant is unable to achieve a complete

application within 180 days of the Executive Officer’s receipt

of the original application, the application will be denied on

that basis, and the applicant will be informed in writing.

(B) If the Executive Officer finds that an application meets the

requirements set forth in section 95489(f), the Executive Officer will

take final action to approve the renewable hydrogen refinery credit

project. The Executive Officer may prescribe conditions of

approval that contain special limitations, recordkeeping and

reporting requirements, and operational conditions that the

Executive Officer determines should apply to the project. If the

Executive Officer finds that an application does not meet the

requirements of section 95489(f), the application will not be

approved, and the applicant will be notified in writing, and the basis

for the disapproval will be identified.

(5) Credit Review and Issuance. Credits for renewable hydrogen refinery

projects may be generated quarterly or annually, at the discretion of the

credit generating party.

(A) Upon the completion of reporting period in which a positive or

qualified positive verification statement for the applicable Project

Reports per section 95500(e) is received, the Executive Officer will

determine the number of credits to be issued to the applicants. An

adverse verification statement would result in no credit issuance

and Executive Officer investigation.

(6) Recordkeeping. For each approved renewable hydrogen refinery credit

project, the refinery must compile and retain records pursuant to section

95491.1(a)(2) showing compliance with all limitation and recordkeeping

requirements identified by the Executive Officer pursuant to section

95489(f)(4)(B), above.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

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§ 95489. Provisions for Petroleum-Based Fuels. 186

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration.

(a) Eligibility. The following entities are eligible to submit project applications and, if

approved, receive CCS credits, in accordance with following protocol which is

incorporated herein by reference and is referred to as the “CCS Protocol”

hereafter.

Industrial Strategies Division, California Air Resources Board. August 13, 2018.

Carbon Capture and Sequestration Protocol under the Low Carbon Fuel

Standard.

(1) Alternative fuel producers, refineries, and oil and gas producers that

capture CO

on-site and geologically sequester CO

either on-site or

off-site.

(2) An entity that employs direct air capture to remove CO

from the

atmosphere and geologically sequester the CO

. If CO

derived from

direct air capture is converted to fuels, it is not eligible for project-based

CCS credits. However, applicants may apply for fuel pathway

certification using the Tier 2 pathway application process as described in

section 95488.7.

(b) General Requirements.

(1) Projects and fuel pathways claiming CCS credits must comply with the

CCS Protocol. To be considered in compliance with the CCS protocol, a

project must be issued executive orders and meet all the requirements

throughout the project life in accordance with the permanence

requirements of the CCS protocol.

(2) Credit determination for any project that utilizes CCS must be performed

in accordance with the accounting requirements of the CCS protocol.

(3) Except for direct air capture and sequestration projects, credits must be

prorated based on the volumes delivered to California.

(4) CCS credits generated by crude oil and gas producers must be claimed

under the Innovative Crude Provision (section 95489(c)).

(5) CCS credits generated by refiners must be claimed under the Refinery

Investment Credit Program (section 95489(e)).

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§ 95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration. 187

(6) The amount of net CO

sequestered by alternative fuel producers can be

used to adjust the carbon intensities of the associated fuel pathways.

(7) Projects utilizing CCS must undergo verification under section 95500 in

order to receive credits.

CCS credits must comply with the following requirements:

(1) An application must be filed jointly by an entity that captures CO

and an

entity that sequesters the resultant CO

, unless the same entity is

responsible for CO

capture and sequestration.

(2) An application must contain the following materials:

(A) A complete description of the CCS project and how greenhouse

gas emissions are reduced;

(B) An engineering drawing(s) or process flow diagram(s) that

illustrates the project and clearly identifies the system boundaries,

relevant process equipment, mass flows, including the quantity of

injected into pipeline or delivered by other modes of transport

for CO

injection, and energy flows necessary to calculate the CCS

credit;

within the system boundaries, including their respective capacities,

sizes, or rated power, fuel utilization type, fuel shares, energy

efficiency (lower heating value basis), and proposed use;

(D) A description of all sources of flared, vented, and fugitive emissions

within the system boundaries, including the compositions and

quantities of the flared, vented, and fugitive emission streams

leaving the system boundaries;

(E) Receipts/invoices for energy use and chemicals;

(F) An estimate of the CCS credit, calculated in accordance with the

accounting requirements of the CCS Protocol including descriptions

and copies of production and operational data or other technical;

and documentation utilized in support of the calculation. The

application must contain process-specific data showing that the

reductions are part of the CCS project, and

(G) Executive orders issued pursuant to the permanence requirements

of the CCS protocol, certifying the sequestration site as capable of

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§ 95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration. 188

permanently storing CO

and authorizing operation and credit

generation.

(3) An application must include a list of references covering all information

sources used in the calculation of the CCS credit. The reference list

must meet the requirements of section 95489(c)(2)(E).

(4) An application must include a signed transmittal letter from the applicant

attesting to the veracity of the information in the application packet and

declaring that the information submitted accurately represents the actual

CCS project greenhouse gas emissions reductions. The transmittal letter

must be the original copy, be on company letterhead, be signed by an

officer of the applicant with authority to attest to the veracity of the

information in the application and to sign on behalf of the applicant.

(5) CBI must be designated and a redacted version of any submitted

documents designated to include CBI must be provided pursuant to the

requirements described in section 95488.8(c).

(6) An applicant that submits any information or documentation in support of a

proposed CCS project must include a written statement clearly showing

that the applicant understands and agrees that all information in the

application not identified as confidential business information is subject to

public disclosure pursuant to California Code of Regulations, title 17,

sections 91000 through 91022 and the California Public Records Act

(Government Code, §§. 6250 et seq.), and that information claimed by the

applicant to be confidential might later be disclosed under section 91022 if

the Board determines the information is subject to disclosure.

(7) An application, supporting documents, and all other relevant data or

calculation or other documentation must be submitted electronically via

the AFP unless the Executive Officer has approved or requested another

format.

(d) Application Approval Process. The Executive Officer must approve an

application before the CCS project can generate credits under the LCFS

regulation.

(1) After receipt of an application designated by the applicant as ready for

formal evaluation, the Executive Officer will advise the applicant in writing

either that:

(A) The application is complete, or

(B) The application is incomplete, in which case the Executive Officer

will identify which requirements have not been met. The applicant

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§ 95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration. 189

may submit additional information within 30 days to correct

deficiencies identified by the Executive Officer, otherwise, the

application will be rejected.

(2) After accepting an application as complete, the Executive Officer will post

the application on the LCFS web site. Public comments will be accepted

for 10 calendar days following the date on which the application was

posted. Only comments related to potential factual or methodological

errors may be considered. The Executive Officer will forward to the

applicant all comments identifying potential factual or methodological

errors. Within 30 business days, the applicant must either submit

revisions to its application to the Executive Officer, or submit a detailed

written response to the Executive Officer explaining why no revisions are

necessary.

(3) If the Executive Officer finds that an application meets the requirements

set forth in section 95490(b), the Executive Officer will take final action to

approve the CCS project. The Executive Officer may prescribe

conditions of approval that contain special limitations, recordkeeping and

reporting requirements, and operational conditions that the Executive

Officer determines should apply to the project. If the Executive Officer

finds that an application does not meet the requirements of section

95490(b), the application will not be approved, the applicant will be notified

in writing, and the basis for the disapproval will be identified.

(e) Reporting. Each CCS project operator must submit to the Executive Officer the

net amount of annual sequestered CO

and meet the reporting requirements in

accordance with the CCS Protocol.

(f) Credit Review and Issuance. Credits for direct air capture projects may be

generated quarterly or annually, at the discretion of the credit generating party.

(1) Upon the completion of reporting period in which a positive or qualified

positive verification statement for the applicable Project Reports per

section 95500(e) is received, the Executive Officer will determine the

number of credits to be issued to the applicants. An adverse verification

statement would result in no credit issuance and Executive Officer

investigation.

(g) Recordkeeping. Pursuant to section 95491.1 and the CCS Protocol, each

applicant that receives approval as a CCS credit generator must maintain

records for the CCS project, including records necessary to verify permanent

sequestration. At a minimum, the following records must be kept:

(1) The quarterly volume of alternative fuel, petroleum fuel, crude oil/natural

gas produced and delivered to California;

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§ 95490. Provisions for Fuels Produced Using Carbon Capture and Sequestration. 190

(2) Energy use and chemical use data for the carbon capture facility and CO

injection facility;

(3) The Accounting Protocol and Permanence Protocol documents; and

(4) Any additional records that the Executive Officer requires to be kept in

pursuant to section 95490(d)(3).

(h) CO

Leakage and Credit Invalidation.

(1) Credits for verified greenhouse gas emission reductions can be

invalidated if the sequestered CO

associated with them is released or

otherwise leaked to the atmosphere.

(2) The number of invalidated credits is equal to the quantity of CO

released

or leaked from the sequestration zone (





), which must be

determined in accordance with the CCS Protocol.

(3) Prior to 50 years post-injection:

(A) The Executive Officer may retire credits from the buffer account, up

to and including the project’s total contribution, to count toward the

number of invalidated credits.

(B) The project operator must retire credits for any balance after retiring

credits pursuant to 95490(h)(3)(A).

equivalent to remaining outstanding balance after retiring credits

pursuant to 95490(h)(3)(A) and (B).

(4) After 50 years post-injection:

(A) The project operator is no longer responsible to make up any

credits found to be invalid due to leakage.

(B) The Executive Officer may retire credits from the buffer account to

cover any credits found to be invalid due to leakage.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

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§ 95491. Fuel Transactions and Compliance Reporting. 191

§ 95491. Fuel Transactions and Compliance Reporting.

A fuel reporting entity must submit to the Executive Officer Quarterly Fuel Transactions

Reports and Annual Compliance Reports, as specified in this section.

(a) Online Reporting. The annual compliance and quarterly fuel transactions

reports must be submitted using the LRT-CBTS. Prior to use, a fuel reporting

entity must first register in the LRT-CBTS pursuant to section 95483.2.

The fuel reporting entity is solely responsible for ensuring that the Executive

Officer receives its quarterly fuel transactions reports and annual compliance

reports by the deadlines specified in this section. The Executive Officer shall

not be responsible for failure of electronically submitted reports to be transmitted

to the Executive Officer. The reports must contain a statement attesting to the

report’s accuracy and validity. The Executive Officer shall not deem an

electronically submitted report to be valid unless the report is accompanied by a

digital signature that meets the requirements of California Code of Regulations,

title 2, sections 22000 et seq.

(b) Reporting Frequency and Deadlines.

(1) Quarterly Fuel Transactions Data: The data for the quarterly fuel

transactions report for each fuel type must be uploaded in the LRT-CBTS

within the first 45 days after the end of the quarter. During the

subsequent 45 days, fuel reporting entities shall use the reconciliation

tools provided in the LRT-CBTS and in conjunction with business partners

to complete any necessary report corrections, if applicable.

(2) Quarterly Fuel Transactions Reports. Unless expressly provided

elsewhere in this subarticle, quarterly fuel transactions reports must be

submitted in LRT-CBTS by:

June 30

– for the first calendar quarter covering January through

March;

September 30

– for the second calendar quarter covering April

through June;

December 31

– for the third calendar quarter covering July

through September; and

March 31

– for the fourth calendar quarter of the prior year

covering October through December.

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§ 95491. Fuel Transactions and Compliance Reporting. 192

(3) Annual Compliance Reports. An annual compliance report for the prior

calendar year must be submitted in LRT-CBTS by April 30

of each year.

each of its transportation fuels, a fuel reporting entity must submit a quarterly fuel

transactions report that contains the information specified below and summarized

in Table 11:

(1) All applicable transaction types listed for each fuel type in 95491(d) below

and defined in section 95481 must be included in each quarterly fuel

transactions report.

(2) Information that must be reported are as follows: Organization FEIN,

Reporting Period (year and quarter), FPC, Fuel Amount, Transaction

Type, Transaction Date, Business Partner (if applicable), Aggregated

Transaction Indicator, Fuel Application, Production Company ID and

Facility ID (if applicable).

(d) Specific Reporting Requirements for Quarterly Fuel Transactions Reports. In

addition to all requirements specified in section 95491(c), for each of its

transportation fuels, a fuel reporting entity must submit a quarterly fuel

transactions report that contains the information specified below and summarized

in Table 11:

(1) Specific Quarterly Reporting Parameters for Liquid Fuels including

Gasoline, Diesel, Diesel Fuel Blends, Alternative Fuels, and Alternative

Jet Fuel.

(A) The applicable transaction types, defined in section 95481, are as

follows: Production in California, Production for Import, Import,

Purchased with Obligation, Purchased without Obligation, Sold with

Obligation, Sold without Obligation, Export, Loss of Inventory, Gain

of Inventory, and Not Used for Transportation. The transaction

type “Production for Import” is to be reported by out-of-state

producers who choose to be the first fuel reporting entity for fuel

imported into California. The transaction type “Import” is to be

reported by non-producers who choose to be the first fuel reporting

entity for out-of-state fuel imported into California. The following

information are to be reported:

1. Production Company ID and Facility ID for each blendstock.

CARBOB and diesel fuel are exempt from this requirement.

2. The certified fuel pathway code (FPC) of each blendstock.

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§ 95491. Fuel Transactions and Compliance Reporting. 193

3. The volume (in gal) of each blendstock per reporting period.

For purposes of this provision only, except as provided in

subsection 4. below, the fuel reporting entity may report the

total volume of each blendstock aggregated for each distinct

carbon intensity value (e.g., X gallons of blendstock with A

gCO

e/MJ, Y gallons of blendstock with B gCO

e/MJ).

4. A producer of CARBOB, gasoline, or diesel fuel must report,

for each of its refineries, the MCON or other crude oil name

designation, volume (in gal), and Country (or State) of origin

for each crude supplied to the refinery during the quarter.

(B) Temperature Correction. All liquid fuel volumes reported in the

LRT-CBTS must be adjusted to standard temperature conditions of

60°F as follows:

1. For ethanol, the following formula must be used:



,

= 

,

× (0.0006301 ×  + 1.0378)

where:



,

is the standardized volume of ethanol at 60°F, in gallons;



,

is the actual volume of ethanol, in gallons; and

 is the actual temperature of the batch, in °F.

2. For biodiesel, one of the following two methodologies must

be used:

a. 

,

= 

,

× (0.00045767 ×  + 1.02746025)

where:



,

is the standardized volume of biodiesel at 60°F,

in gallons;



,

is the actual volume of biodiesel, in gallons; and

 is the actual temperature of the batch, in °F.

b. The standardized volume of biodiesel at 60°F, in

gallons, as calculated from the use of the American

Petroleum Institute Refined Products Table 6B, as

referenced in ASTM D1250-08 (Reapproved 2013),

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§ 95491. Fuel Transactions and Compliance Reporting. 194

which is incorporated herein by reference, or by

comparable means that can be demonstrated to a

verifier or the Executive Officer to be consistent with

these standard methods.

3. For other liquid fuels, the volume correction to standard

conditions must be calculated by the methods described in

the American Petroleum Institute (API) Manual of Petroleum

Measurement Standards Chapter 11 – Physical Properties

Data (May 2004), the ASTM Standard Guide for Use of the

Petroleum Measurement Tables, ASTM D1250-08

(Reapproved 2013), or the API Technical Data Book –

Petroleum Refining Chapter 6 – Density (Sixth Edition, April

1997), all three of which are incorporated herein by

reference, or by comparable means that can be

demonstrated to a verifier or the Executive Officer to be

consistent with these standard methods.

facility simultaneously processes multiple feedstocks, the producer

or fuel reporting entity must associate each portion of the total fuel

produced with processed feedstock during each reporting period

(calendar quarter). Feedstock quantities must not be counted

more than once for any fuel produced. The fuel reporting entity

must use one of the following methods to allocate feedstock to the

quantities of produced fuel reported under each certified FPC.

1. The quantity of fuel reported for a fuel pathway code must be

determined using the following method:

a. 

 



= 

 

× 

 



where:



 



is the quantity of produced fuel with a fuel

pathway i at a production facility during reporting

period n;



 

is the facility’s average production yield

for all feedstocks as determined during pathway

certification; and



 



is the quantity of feedstock counted as

processed for a fuel pathway i at a production facility

during reporting period n and the quantity of feedstock

inventory associated with the fuel pathway i must be

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§ 95491. Fuel Transactions and Compliance Reporting. 195

greater than or equal to zero at the end of each

reporting period.

b. If the actual quantity of fuel produced during a

reporting period is greater than the quantity calculated

using a. above, and all feedstocks in inventory and

received by the production facility during the reporting

period were included in the fuel pathway application,

the excess fuel must be reported under a fuel

pathway with the highest CI among all pathways

certified for the fuel production facility.

2. Paragraph 1. above notwithstanding, a different allocation

methodology may be used with the Executive Officer

approval. The methodology must be submitted to the

Executive Officer at the time of fuel pathway application and

be included in the monitoring plan for verifier’s review.

3. Facilities with multiple certified fuel pathways that do not use

feedstock inventory accounting must include chemical

analysis data supporting the calculated yield (i.e. the

converted fraction of measured feedstock) in annual Fuel

Pathway Reports. The producer or fuel reporting entity

must use the yield calculated from the most recent prior

analysis to determine the quantities of fuel to allocate to

each FPC.

(D) Exports. If fuel reported in the LRT-CBTS is subsequently

exported out of California, the export must be reported in the LRT-

CBTS by the entity responsible for reporting export as described in

subsection 95483(a).

1. Reporting Fuel Blends. When reporting export of fuel

blends, the amount of each blendstock shall be reported in

the LRT-CBTS. If the accurate blend percentage of each

blendstock is not known then default blend percentage

values provided on the LCFS web site shall be used for

reporting the exports. Default blend percentage values are

based on prior year average values.

2. Substitute Pathways. When an FPC is not available for

reporting a fuel in the LRT-CBTS, a fuel reporting entity must

use the Substitute pathway corresponding to its fuel type,

pursuant to section 95488.9(d).

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§ 95491. Fuel Transactions and Compliance Reporting. 196

(2) Specific Quarterly Reporting Parameters for Natural Gas (including CNG,

LNG, and L-CNG). For each fueling facility to which CNG, LNG, and L-

CNG, is supplied as a transportation fuel:

(A) The quantity of fuel dispensed must be reported per FSE, as set

forth in section 95483.2(b), with a certified FPC and with

transaction type “NGV Fueling.” For CNG and L-CNG, the

quantity of fuel dispensed (in Therms at Higher Heating Value

(HHV)) per reporting period separately for all light/medium-duty

vehicles (LDV & MDV), for heavy-duty vehicles with compression

ignition engines (HDV-CIE), and for heavy-duty vehicles with spark

ignition engines (HDV-SIE). For LNG, the volume of fuel

dispensed (in gal) per reporting period separately for all LDV/MDV,

for HDV-CIE, and for HDV-SIE.

(B) For Bio-CNG, Bio-LNG, and Bio-L-CNG: Biomethane production

Company ID and Facility ID.

transportation purpose through the FSE during the reporting period.

(D) When the vehicle application is unknown, for the purpose of

reporting, a fueling event of less than 3,500 MJ (30 gasoline gallon

equivalents) of fuel dispensed must be reported as NGV Fueling of

LDV/MDV. A fueling event of 3,500 MJ or more must be reported

as NGV Fueling of HDV.

(3) Specific Quarterly Reporting Parameters for Electricity used as a

Transportation Fuel.

(A) For Non-Metered Residential EV charging.

1. Within the first 45 days after the end of the quarter, the EDU

must provide the Executive Officer Daily Average EV

Electricity Use data for the calculation of credits for non-

metered charging from the prior quarter. The Executive

Officer shall use the method set forth in subsection

95486.1(c)(1), to calculate any credits generated for the

quarter and place them into the EDU’s LRT-CBTS account;

and

2. The LSE must use all credit proceeds to benefit current or

future EV drivers in California;

3. The LSE must educate the public and customers on the

benefits of EV transportation (including environmental

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§ 95491. Fuel Transactions and Compliance Reporting. 197

benefits and costs of EV charging, or total cost of ownership,

as compared to gasoline);

4. The LSE must provide rate options that encourage off-peak

charging and minimize adverse impacts to the electrical grid;

5. The LSE must include, in the Annual Compliance Report, the

following supplemental information: an itemized summary

of efforts to meet requirements 1. through 3. above and

costs associated with meeting the requirements. Investor-

owned utilities must also provide an unredacted copy of the

annual implementation report required under Order 4 of

Public Utilities Commission of California (PUC) Decision

14-12-083, or any successor PUC Decisions.

6. For claiming incremental credit for non-metered residential

charging, the LSE must be able to provide, upon request of

the Executive Officer: the VIN for each electric vehicle

claimed and evidence of EV vehicle registration and low-

carbon electricity supply at the same location.

7. A non-LSE credit generator must use credit proceeds to

benefit EV drivers and their customers, and educate them

about the benefits of EV transportation (including

environmental benefits and costs of EV charging, or total

cost of ownership, as compared to gasoline). The credit

generator must include, in their Annual Compliance Report,

an itemized summary of efforts and costs associated with

meeting these requirements.

(B) For Metered Residential EV charging.

1. For generating base credits, the quantity of electricity (in

kWh) used for residential EV charging must be reported per

FSE, as set forth in section 95483.2(b), using the Lookup

Table pathway for California Average Grid Electricity and

with transaction type “EV Charging – Grid.”

2. For generating incremental credit for low-CI electricity, the

quantity of electricity (in kWh) used for residential EV

charging must be reported per FSE, as set forth in section

95483.2(b), using a certified FPC and with transaction type

“EV Charging – Non-Grid”, and the following requirements

must be met:

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§ 95491. Fuel Transactions and Compliance Reporting. 198

a. The reporting entity must be able to provide to the

Executive Officer records, upon request,

demonstrating that the low-CI electricity is supplied

(including through book-and-claim accounting) to the

same residences where the EV charging is taking

place and during the period for which incremental

credits are generated, and that any renewable energy

certificates associated with the low-CI electricity were

retired in the WREGIS for the purpose of LCFS credit

generation;

b. Records must be provided to the Executive Officer,

upon request, demonstrating an EV is owned or

leased by an individual dwelling at the claimed

residence; and

c. Only a single entity can generate incremental credits

using a low-CI pathway for the same FSE. If two or

more entities report for the same FSE to generate

incremental credits, no incremental credits will be

issued for that FSE.

3. For generating incremental credit for smart charging, the

quantity of electricity (in kWh) used for residential EV

charging must be reported per FSE, as set forth in section

95483.2(b), using the smart charging pathway CI values and

with transaction type “EV Charging – Smart Charging”, and

the following requirements must be met:

a. The quantity of electricity used for each hourly

window, as per Table 7-2 in section 95488.5(f), must

be reported;

b. The reporting entity must be able to provide

documentation showing the quantity of electricity used

during a reporting period broken down by hourly

windows upon request by the Executive Officer;

c. Only a single entity can generate incremental credits

for smart charging for the same FSE; and

d. Records must be provided to the Executive Officer,

upon request, demonstrating the FSE was enrolled in

a Time-of-Use rate plan during the reporting period, if

offered by the LSE.

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§ 95491. Fuel Transactions and Compliance Reporting. 199

1. For generating credit using grid electricity, the quantity of

electricity (in kWh) used for EV charging must be reported

per FSE, as set forth in section 95483.2(b), using the

Lookup Table pathway for California Average Grid Electricity

and with transaction type “EV Charging – Grid.”

2. For generating credit using any low-CI electricity, the

quantity of electricity (in kWh) used for EV charging must be

reported per FSE, as set forth in section 95483.2(b), using a

certified FPC and with transaction type “EV Charging – Non-

Grid”, and the following requirements must be met:

a. The reporting entity must be able to provide to the

Executive Officer records, upon request,

demonstrating that the low-CI electricity is supplied

(including through book-and-claim accounting) to the

FSE during the period for which incremental credits

are generated, and that any renewable energy

certificates associated with the low-CI electricity were

retired in the WREGIS for the purpose of LCFS credit

generation.

3. For generating credit for smart charging, the quantity of

electricity (in kWh) used for EV charging must be reported

per FSE, as set forth in section 95483.2(b), using the smart

charging pathway CI values and with transaction type “EV

Charging – Smart Charging”, and the following requirements

must be met:

a. The quantity of electricity used for each hourly

window, as per Table 7-2 in section 95488.5(f), must

be reported;

b. The reporting entity must be able to provide

documentation showing the quantity of electricity used

during a reporting period broken down by hourly

windows upon request by the Executive Officer; and

c. Records must be provided to the Executive Officer,

upon request, demonstrating the FSE was enrolled in

a Time-of-Use rate plan during the reporting period, if

offered by the LSE.

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§ 95491. Fuel Transactions and Compliance Reporting. 200

(D) For Fixed Guideway Systems. The quantity of electricity used for

transit propulsion (in kWh) must be reported per FSE with a

certified FPC and with transaction type “Fixed Guideway Electricity

Fueling.” FSE ID is assigned by system during the registration as

specified in section 95843.2(b)(8).

(E) For Electric Forklifts. The quantity of electricity used (in kWh)

must be reported per FSE with a certified FPC and with transaction

type “EV Forklifts Fueling.” The quantity of electricity used in

electric forklifts may be determined as follows:

1. Quantity of electricity used during a reporting period, as

measured per FSE, as set forth in section 95483.2(b), and

with transaction type “Forklift Electricity Fueling”, in the case

of an electric forklift fleet owner or its designee generating

credits; or

2. Quantity of electricity estimated using CARB approved

methodology. The reporting entity must provide the number

of electric forklifts in the fleet for generating credits; or

3. When electric forklift credits are claimed by an EDU, CARB

staff will calculate the quantity of electricity supplied to

electric forklifts in the EDUs service territory during a

reporting period for the generation of credits. This reporting

parameter is exempt from the quarterly reporting deadlines

set forth in section 95491(b).

(F) For Electric Transport Refrigeration Unit. The quantity of

electricity (in kWh) dispensed must be reported per FSE, as set

forth in section 95483.2(b), with a certified FPC and with

transaction type “eTRU Fueling.”

(G) Electric Cargo Handling Equipment. The quantity of electricity (in

kWh) dispensed must be reported per FSE, as set forth in section

95483.2(b), with a certified FPC and with transaction type “eCHE

Fueling.”

(H) Electric Power for Ocean-going Vessel. The quantity of electricity

(in kWh) dispensed must be reported per FSE, as set forth in

section 95483.2(b), with a certified FPC and with transaction type

“eOGV Fueling.”

(I) Other Electric Transportation Applications. The quantity of

electricity (in kWh) dispensed must be reported per FSE with a

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§ 95491. Fuel Transactions and Compliance Reporting. 201

certified FPC and with transaction type made available by

Executive Officer pursuant to section 95488.7.

(4) Specific Quarterly Reporting Parameters for Hydrogen Used as a

Transportation Fuel.

(A) The quantity (in kg) of hydrogen fuel dispensed per FSE, as set

forth in section 95483.2(b), with a certified FPC and with

transaction type “FCV Fueling” by vehicle weight category: LDV &

MDV and HDV.

(B) For hydrogen fuel cell forklifts, the amount of hydrogen fuel

dispensed (in kg) per FSE with a certified FPC and with transaction

type “Forklift Hydrogen Fueling.”

(D) For hydrogen reported with a pathway that claims carbon intensity

reductions for shifts in time of electricity use for electrolytic

hydrogen production, the quantity of electricity (in kWh) used to

produce hydrogen for each hourly window must be reported with

transaction type “FCV Fueling – Smart Electrolysis” and the

following requirements must be met:

a. The quantity of electricity used for each hourly window, as

per Table 7-2 in section 95488.5(f), must be reported; and

b. The reporting entity must provide documentation showing

the quantity of electricity used during a reporting period

broken down by hourly windows, upon request by the

Executive Officer.

(5) Specific Quarterly Reporting Parameters for Propane.

(A) The quantity (in gal) of propane dispensed per FSE, as set forth in

section 95483.2(b), with a certified FPC and with transaction type

“Propane Fueling.”

(B) For renewable propane, the Production Company ID and Facility

ID.

(e) Reporting Requirements for Annual Compliance Reports. A fuel reporting entity

and project operators must submit an annual compliance report that aggregates

the quarterly fuel transactions reports and provides the additional information set

forth below:

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§ 95491. Fuel Transactions and Compliance Reporting. 202

(1) LRT-CBTS generates an annual summary, for each fuel reporting entity

and project operator, that includes the following:

(A) The total credits and deficits generated by the fuel reporting entity

and project operator in the compliance period, calculated in the

LRT-CBTS as per sections 95486.1 and 95489;

(B) Any credits carried over from the previous compliance period;

(D) The total credits acquired from another entity;

(E) The total credits sold or otherwise transferred;

(F) The total credits retired within the LCFS to meet compliance

obligation per section 95485; and

(G) Total credits acquired from or pledged for sale into the CCM, if

applicable;

(H) Total credits purchased as carryback credits; and

(I) Any credits on administrative hold.

(2) A producer of CARBOB, gasoline, or diesel fuel must report, for each of its

refineries, the MCON or other crude oil name designation, amount (in gal),

and Country (or State) of origin for each crude supplied to the refinery

during the annual compliance period.

(3) All pending credit transfers initiated during a compliance period must be

completed prior to submittal of the annual compliance report, if possible.

If there is still a pending outgoing credit transfer, the credits will be taken

from the account of the Seller that initiated the transfer and the annual

compliance report will reflect the adjusted credit balance. If there is a

pending incoming credit transfer, the Buyer’s annual report will not reflect

the balance until the transfer is completed. Upon completion, the annual

compliance report must be reopened and resubmitted with the adjusted

credit balance.

(4) Attestations Regarding Environmental Attributes for Biomethane. Entities

reporting bio-CNG, bio-LNG, and bio-L-CNG must submit the

environmental attribute attestation pursuant to section 95488.8(i)(2)(C)

along with the annual compliance report in the LRT-CBTS.

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§ 95491. Fuel Transactions and Compliance Reporting. 203

(f) Significant Figures. A regulated entity must report the following quantities as

specified below:

(1) Carbon intensity, expressed to the same number of significant figures as

shown in Tables 7-1, and 9;

(2) Credits or deficits, expressed to the nearest whole metric ton CO

equivalent;

(3) Fuel amounts in units specified in sections 95491(d) and (e), expressed

to the nearest whole unit applicable for that quantity; and

(4) Any other quantity must be expressed to the nearest whole unit applicable

for that quantity.

(g) A fuel reporting entity must maintain a non-negative value for Total Obligated

Amount and Total Amount, as defined in section 95481, for each FPC as

summed across all quarterly data in the LRT-CBTS.

(h) Correcting a Previously Submitted Report. Upon discovery of an error, a fuel

reporting entity may request to have previously submitted quarterly reports for

the current compliance periods reopened for corrective edits and resubmittal by

submitting a Correction Request Form online in the LRT-CBTS. The fuel

reporting entity is required to provide justification for the report corrections and

indicate the specific corrections to be made to the report. Pursuant to section

95486(a)(2), no credits may be claimed, and no deficits may be eliminated,

retroactively for a quarter for which the quarterly reporting deadline has passed.

Each submitted request is subject to Executive Officer review and approval.

Permission to correct a report does not preclude enforcement based on

misreporting.

Table 11. Summary Checklist of Quarterly and Annual Reporting Requirements.

Parameters to Report

Gasoline & Diesel

Fuel Blends

Natural

Gas &

Propane

Electricity

Hydrogen

Neat Ethanol,

Biomass-Based

Diesel Fuels,

Alternative Jet Fuel

& Other Alternative

Fuels

For Quarterly Reporting

Organization FEIN

x x x x x

Reporting Period (year & quarter)

x x x x x

Fuel Pathway Code

x x x x x

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§ 95491. Fuel Transactions and Compliance Reporting. 204

Parameters to Report

Gasoline & Diesel

Fuel Blends

Natural

Gas &

Propane

Electricity

Hydrogen

Neat Ethanol,

Biomass-Based

Diesel Fuels,

Alternative Jet Fuel

& Other Alternative

Fuels

Transaction Type

x x x x x

Transaction Date x x x x x

siness Partner (if applicable) x x x

Production Company ID and

Facility ID

x** x** n/a x x**

Fueling Supply Equipment ID

n/a x x x n/a

Vehicle Identifier (if applicable)

n/a n/a x n/a n/a

Aggregated Transaction

Indicator (T/F)

x x n/a x x

Fuel Application

Amount of each gasoline and

diesel blendstock

x n/a n/a n/a n/a

Amount of each fuel used as

gasoline or diesel replacement

n/a x x x x

Amount of each fuel used as a jet

fuel replacement

n/a n/a n/a n/a x

MCON or other crude oil name

signation, volume (in gal), and

country (or state) of origin for each

crude supplied to the refinery

x n/a n/a n/a n/a

For Annual Reporting (in addition to the items above)

***Credits and Deficits generated

per year (MT)

x x x x x

***Credits/deficits carried over

from the previous year (MT), if any

x x x x x

***Credits acquired from another

entity (MT), if any

x x x x x

***Credits sold to another entity

(MT), if any

x x x x x

***Credits pledged for sale into

CCM (MT), if any

x x x x x

***Credits retired within LCFS (MT)

to meet compliance obligation , if

any

x x x x x

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§ 95491. Fuel Transactions and Compliance Reporting. 205

Parameters to Report

Gasoline & Diesel

Fuel Blends

Natural

Gas &

Propane

Electricity

Hydrogen

Neat Ethanol,

Biomass-Based

Diesel Fuels,

Alternative Jet Fuel

& Other Alternative

Fuels

MCON or other crude oil name

designation, volume (in gal), and

country (or state) of origin for each

crude supplied to the refinery

x n/a n/a n/a n/a

* Same as Title Transfer Date; For Aggregated Transactions enter the last day of the reporting period.

** Does not apply to CARBOB, Diesel Fuel, Fossil Propane, or Fossil NG.

*** Value will be calculated, stored and displayed in the LRT-CBTS.

Table 12. Annual Compliance Calendar.

February 14

Upload all Q4 fuel transactions data in the LRT-CBTS and begin any

needed reconciliation with business partners; Electrical Distribution

Utility (EDU) that has opted into LCFS provide the data relevant to the

calculation of base credits for non-metered EV charging for the prior

quarter

March 31

Submit final Q4 fuel transactions report; Submit Q4 Crude Oil Reports

(MCON Reports)

March 31

Annual Fuel Pathway Reports are due to the Executive Officer

First Monday

of April

Call for credits to be pledged into the Credit Clearance Market (CCM);

the new maximum price for credits is published

April 30

Submit final Annual Compliance Report for preceding year; demonstrate

compliance; voluntary pledge of credits for sale into CCM

April 30

Compliance Plan Implementation Report due if entity has an Approved

Compliance Plan

April 30

Annual Crude Oil Reports (MCON Reports) are due to the Executive

Officer

May 15

Upload all Q1 fuel transactions data in the LRT-CBTS and begin any

needed reconciliation with business partners; EDU that has opted into

LCFS provide the data relevant to the calculation of base credits for non-

metered EV charging for the prior quarter

May 15

Executive Officer announces whether CCM will occur

June 1

Executive Officer posts list of CCM buyers and sellers

June 1

CCM for prior compliance year, if one occurs, opens and remains in

effect until it closes on August 30

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§ 95491. Fuel Transactions and Compliance Reporting. 206

June 1

New maximum credit price for all LCFS credit transactions goes into

effect

June 30

Submit final Q1 fuel transactions report; Submit Q1 Crude Oil Reports

(MCON Reports)

August 14

Upload all Q2 fuel transactions data in the LRT-CBTS and begin any

needed reconciliation with business partners; EDU that has opted into

LCFS provide the data relevant to the calculation of base credits for non-

metered EV charging for the prior quarter

August 30

CCM for prior compliance year closes

August 31

Entities that bought and sold credits in the CCM submit amended

Annual Compliance Report

August 31

Entities that participated in two consecutive CCMs submit a Compliance

Plan

August 31

Verification Statements for Fuel Pathway Reports, Quarterly Fuel

Transactions Reports, and Quarterly and Annual Crude Oil Reports are

due to the Executive Officer

September 30

Submit final Q2 fuel transactions report; Submit Q2 Crude Oil Reports

(MCON Reports)

November 14

Upload all Q3 fuel transactions data in the LRT-CBTS and begin any

needed reconciliation with business partners; EDU that has opted into

LCFS provide the data relevant to the calculation of base credits for non-

metered EV charging for the prior quarter

December 31

Submit final Q3 fuel transactions report; Submit Q3 Crude Oil Reports

(MCON Reports)

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95491.1. Recordkeeping and Auditing.

(a) Record Retention. Any record required to be maintained under this subarticle

shall be retained for ten years. All data and calculations submitted by a

regulated entity for demonstrating compliance, or generating credits or deficits

are subject to inspection by the Executive Officer or a verification body

accredited by the Executive Officer pursuant to section 95502, and must be

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§ 95491.1. Recordkeeping and Auditing. 207

made available within 20 days upon request of the Executive Officer.

(1) Record Retention for Fuel Reporting Entities. Fuel reporting entities must

maintain all records and calculations relied upon for data reported in the

LRT-CBTS. These records include, but are not limited to:

(A) Product transfer documents;

(B) Copies of all data reports submitted to the Executive Officer;

(D) Records used for each credit transaction;

(E) Records related to FSE registration, including but not limited to

copies of monthly utility bills, Bills of Lading, Division of

Measurement Standards’ certificates, and any other document

used as a proof at the time of FSE registration pursuant to this

subarticle;

(F) Chain of custody evidence for produced fuel imported into

California;

(G) Attestations regarding environmental attributes associated with

book-and-claim accounting for biomethane pursuant to

95488.8(i)(2)(C); and

(H) Records used for compliance or credit and deficit calculations.

(2) Record Retention for Fuel Pathway Holders and Applicants. Fuel

pathway holders and applicants must maintain all records relied upon in

producing fuel pathway applications and annual Fuel Pathway Reports.

The retained documents, including CI input source data and supplemental

documentation, must be sufficient to allow for verification of each CI

calculation. These records include but are not limited to:

(A) The quantity of fuel produced and subsequently sold in California

under the certified fuel pathway. Sales invoices, contracts, and

bills of lading for those fuel sales shall be retained.

(B) The quantity of feedstocks purchased to produce the fuel specified

in subsection (A) above. Invoices from the sellers and purchase

contracts shall be retained. Records to support material balance

and energy balance calculations for facilities processing multiple

feedstocks.

covered in subsection (A) above. All invoices for the purchase of

process fuel, and all receipts for the sale of the fuel pathway

applicant’s finished fuel shall be maintained.

(D) Copies of the federal RFS Third Party Engineering Review Report,

if required pursuant to 40 CFR 80.1450.

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§ 95491.1. Recordkeeping and Auditing. 208

(E) The quantity of all products co-produced with the fuel covered by

certified LCFS pathway. Copies of invoices, contracts, and bills of

lading covering those sales shall be retained. In addition, copies

of the federal RFS Fuel Producer Co-products Report shall be

retained, if applicable. If the amount of co-product produced

exceeds the amount sold by five percent or more, full

documentation of the fate of the unsold fractions shall be

maintained.

(F) Evidence demonstrating chain of custody from the point of origin

along the supply chain to the fuel production facility is required for

any feedstock defined as a specified source feedstock pursuant to

section 95488.8(g). A copy of the federal RFS separated food

waste plan required pursuant to 40 CFR 80.1450(b)(1)(vii)(B), if

applicable.

(G) Any additional records that the Executive Officer requests during

pathway certification, and records that demonstrate compliance

with all special limitations and operating conditions issued at the

time of certification.

(H) Attestations regarding environmental attributes associated with

book-and-claim accounting for biomethane pursuant to

95488.8(i)(2)(C).

(3) Record Retention for Verification Bodies. The verification body providing

verification services pursuant to this subarticle must retain the following:

(A) The sampling plan in paper, electronic, or other format for a period

of no less than ten years following the submission of each

validation or verification statement. The sampling plan must be

made available to the Executive Officer upon request.

(B) All material received, reviewed, or generated to render a validation

or verification statement for an entity required to validate and verify

under LCFS. The documentation must allow for a transparent

review of how a verification reached its conclusion in the validation

or verification statement, including independent review.

(b) Documenting Fuel Transfers Reported in the LRT-CBTS. A product transfer

document provided by a fuel reporting entity pursuant to section 95483(a) must

prominently state the information specified below.

(1) For transfers where an LCFS obligation to act as a credit or deficit

generator is being passed to the recipient:

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§ 95491.1. Recordkeeping and Auditing. 209

(A) Transferor Company Name, Address and Contact

Information;

(B) Recipient Company Name, Address and Contact

Information;

(D) Fuel Pathway Code (FPC) and Carbon Intensity (CI);

(E) Fuel Quantity and Units;

(F) A statement identifying whether the LCFS obligation to act

as a credit or deficit generator is passed to the recipient; and

(G) Fuel Production Company ID and Facility ID as registered

with RFS program or LCFS program. This does not apply

to CARBOB, Diesel Fuel or Fossil NG.

(2) For transfers where the LCFS obligation to act as a credit or deficit

generator was retained by the transferor, the following is to be

provided to the recipient and passed along to any subsequent

owner or supplier:

(A) All information identified in subsection 95491.1(b)(1) above

as items (A) through (G);

(B) The following notice reading as follows:

“This transportation fuel has been reported to the CARB

LCFS Program by <Insert name of Fuel Reporting Entity

holding LCFS obligation to act as a credit or deficit

generator> for intended use in California. If you export this

fuel from California you must report to the CARB LCFS

Program (www.arb.ca.gov/lcfsrt). Contact the CARB LCFS

Administrator for assistance with reporting exported amounts

(lrt[email protected]a.gov).”

responsible for obtaining a validation or verification statement under this

subarticle must complete and retain for review by a verifier, or the Executive

Officer, a written Monitoring Plan. Entities also reporting pursuant to MRR may

use a single monitoring plan for both programs, so long as all of the following

elements are included and clearly identified:

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§ 95491.1. Recordkeeping and Auditing. 210

(1) The monitoring plan must contain the following general items and

associated references to more detailed information:

(A) Information to allow CARB and the verification team to

develop a general understanding of boundaries and

operations relevant to the entity, facility, or project, including

participation in other markets and other third-party audit

programs;

(B) Reference to management policies or practices applicable to

reporting pursuant to this subarticle, including

recordkeeping;

necessary data for reporting pursuant to this subarticle,

including identification of changes made after

January 1, 2019;

(D) Explanations and queries of source data to compile

summary reports of intermediate and final data necessary for

reporting pursuant to this subarticle;

(E) Reference to one or more simplified block diagrams that

provide a clear visual representation of the relative locations

and positions of measurement devices and sampling

locations, as applicable, required for calculating reported

data (e.g., temperature, total pressure, LHV or HHV, fuel

consumption); the diagram(s) must include storage tanks for

raw material, intermediate products, and finished products,

fuel sources, combustion units, and production processes,

as applicable;

(F) Clear identification of all measurement devices supplying

data necessary for reporting pursuant to this subarticle,

including identification of low flow cutoffs as applicable, with

descriptions of how data from measurement devices are

incorporated into the submitted report;

(G) Descriptions of measurement devices used to report LCFS

data and how acceptable accuracy is demonstrated, e.g.,

installation, maintenance, and calibration method and

frequency for internal meters or how the criteria in MRR

section 95103(k)(7) are met to demonstrate meters are

financial transaction meters such that the accuracy is

acceptable; this provision does not apply to data reported in

the LRT-CBTS for generating credits for EV charging;

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§ 95491.1. Recordkeeping and Auditing. 211

(H) Description of the procedures and methods that are used for

quality assurance, maintenance, and repair of all continuous

monitoring systems, flow meters, and other instrumentation

used to provide data for LCFS reports;

(I) Original equipment manufacturer (OEM) documentation or

other documentation that identifies instrument accuracy and

required maintenance and calibration requirements for all

measurement devices used to collect necessary data for

reporting pursuant to this subarticle;

(J) The dates of measurement device calibration or inspection,

and the dates of the next required calibration or inspection;

(K) Requests for postponement of calibrations or inspections

of internal meters and subsequent approvals by the

Executive Officer. The entity must demonstrate that the

accuracy of the measured data will be maintained

pursuant to the measurement accuracy requirements of

95488.8(j);

(L) A listing of the equation(s) used to calculate flows in

mass, volume, or energy units of measurement, and

equations from which any non-measured parameters are

obtained, including meter software, and a description of

the calculation of weighted average transport distance;

(M) Identification of job titles and training practices for

key personnel involved in LCFS data acquisition,

monitoring, reporting, and report attestation,

including reference to documented training

procedures and training materials;

(N) Records of corrective and subsequent preventative actions

taken to address verifier and CARB findings of past

nonconformance and material misstatements;

(O) Log of modifications to fuel pathway report conducted after

attestation in response to review by third-party verifier or

CARB staff;

(P) Written description of an internal audit program that

includes data report review and documents ongoing efforts

to improve the entity’s LCFS reporting practices and

procedures, if such an internal audit program exists; and

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§ 95491.1. Recordkeeping and Auditing. 212

(Q) Methodology used to allocate the produced fuel quantity to

each certified FPC.

(2) The monitoring plan must also include the following elements

specific to fuel pathway carbon intensity calculations and

produced quantities of fuels per FPC, as applicable:

(A) Explanation of the processes and methods used to collect

necessary data for fuel pathway application and Fuel

Pathway Reports and all site-specific CA-GREET3.0

inputs, as well as references to source data;

(B) Description of steps taken and calculations made to

aggregate data into reporting categories, for example

aggregation of quarterly fuel transactions per FPC;

using a method prescribed/suggested by CARB. If

using a CARB suggested methodology, the methodology

should be referenced;

(D) Methodologies for testing conformance to specifications for

feedstocks and produced fuels, particularly describing

physical testing standards and processes;

(E) Description of procedure taken to ensure measurement

devices are performing in accordance with the

measurement accuracy requirements of 95488.8(j);

(F) Methodology for monitoring and calculating weighted

average feedstock transport distance and modes, including

the specific documentation records that will be collected

and retained on an ongoing basis;

(G) Methodology for monitoring and calculating fuel transport

distance and modes, including the specific documentation

records that will be collected and retained on an ongoing

basis;

(H) References to contracts and accounting records that

confirm fuel quantities were delivered into California for

transportation use in CI determination, and confirm

feedstock and finished fuel transportation distance;

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§ 95491.1. Recordkeeping and Auditing. 213

(I) All documentation required pursuant to 95488.8(g)(1)(B) for

specified source feedstocks, defined in 95488.8(g)(1)(A);

(3) The monitoring plan must also include the following elements

specific to quarterly fuel transactions reports for importers,

exporters and producers of alternative fuels, gasoline and diesel,

as well as quarterly reports of crude oil information, as applicable:

(A) Documentation that can be used to justify transaction types

reported for fuel in the LRT-CBTS must be referenced in the

monitoring plan. This can pertain to the production amount,

sale/purchase agreements and final fuel dispensing records.

(d) Verification Outcomes. Each entity responsible for obtaining a validation or

verification statement under this subarticle must obtain third-party verification

services from a verification body that meets the requirements specified in

section 95502. A positive or qualified positive verification statement for the

previous calendar year must be submitted to the Executive Officer by the

verification body by August 31 in order to maintain a valid fuel pathway code for

use in reporting fuel transactions for credit generation. An adverse transactions

verification statement would result in Executive Officer investigation and possible

enforcement action.

(e) Access to Records. Pursuant to H&S section 41510, the Executive Officer has

the right of entry to any premises used, leased, or controlled by a regulated entity

in order to inspect and copy records relevant to the determination of compliance.

Scheduling of access shall be arranged in advance where feasible and must not

unreasonably disturb normal operations, provided, however that access shall not

be unreasonably delayed.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95492. Enforcement Protocols.

Notwithstanding any provision of this subarticle, the Executive Officer may enter into an

enforceable written protocol with any person to identify conditions under which the

person may lawfully meet the recordkeeping, reporting, or demonstration of

requirements under this subarticle. The Executive Officer may only enter into such a

protocol if he or she reasonably determines that the provisions in the protocol are

necessary under the circumstances and at least as effective as the applicable

provisions of this subsection. Any such protocol shall include the person’s agreement

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§ 95492. Enforcement Protocols. 214

to be bound by the terms of the protocol(s).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95493. Jurisdiction.

(a) The following persons are subject to the jurisdiction of the State of California,

including the administrative authority of CARB and the jurisdiction of the Superior

Courts of the State of California, irrespective of whether the person has

registered as a fuel reporting entity in the LRT-CBTS: (1) any person who,

pursuant to section 95483 or 95483.1, is the fuel reporting entity; (2) any person

to whom the obligation to generate credits or deficits has been transferred

directly or indirectly (including the reporting party); (3) any verifier; (4) any project

operator; and (5) any fuel pathway or project applicant.

(b) Any of the following actions shall conclusively establish a person’s consent to be

subject to the jurisdiction of the State of California, including the administrative

authority of CARB and the jurisdiction of the Superior Courts of the State of

California:

(1) Opting in pursuant to section 95483.1;

(2) Receipt of compensation of any kind, including sales proceeds and

commissions, from any transfers of a LCFS credit made pursuant to this

subarticle; or

(3) Submittal of information to the Executive Officer pursuant to this

subarticle.

(4) Registration in the LRT-CBTS as a broker pursuant to section 95483.2(b).

(5) Verification of reports submitted pursuant to this subarticle.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018

Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510,

39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 3951 and 43000, Health and Safety

Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass’n v. Orange County Air

Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

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§ 95494. Violations. 215

§ 95494. Violations.

(a) CARB may seek penalties and injunctive relief for any violation of this subarticle

pursuant to Health and Safety Code section 38580 and Chapter 1.5 of Part 5 of

Division 26. Penalties may be assessed for each day of any violation of this

subarticle. Violations shall be subject to all other penalties and remedies

permitted under State law. In determining any penalty amount, CARB shall

consider all relevant circumstances, including the criteria in Health and Safety

Code section 43031.

(b) Each day or portion thereof that any report required by this subarticle remains

unsubmitted, incomplete, or inaccurate constitutes a separate violation. For

purposes of this subsection, “report” means any submittal to the Executive

Officer or made in the LRT-CBTS, including any information submitted in

response to an Executive Officer request for additional or clarifying information.

over as permitted by section 95485 constitutes a separate day of violation,

subject to a penalty not to exceed $1000 per deficit.

NOTE: Authority cited: Sections 38510, 38560, 38560.5, 38571, 38580, 39600, 39601, and 43018 Health

and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v. Orange County Air Pollution

Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515,

39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, 43000, 43025, 43026, 43027, 43028,

43029, 43030 and 43031, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95495. Authority to Suspend, Revoke, Modify, or Invalidate.

(a) If the Executive Officer determines that any basis for invalidation set forth in

subsection (b)(1) below occurred, in addition to taking any enforcement action,

he or she may: suspend, restrict, modify, or revoke an LRT-CBTS account;

modify or delete a Certified CI; restrict, suspend, or invalidate credits; or

recalculate the deficits in an LRT-CBTS account. For purposes of this section,

“Certified CI” includes any determination relating to carbon intensity made

pursuant to sections 95488 through 95488.10, or relating to a credit-generating

activity approved under section 95489.

(b) Determination that a Credit, Deficit Calculation, or Certified CI is Invalid.

(1) Basis for Invalidating. The Executive Officer may modify or delete a

Certified CI and invalidate credits or recalculate deficits based on any of

the following:

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§ 95495. Authority to Suspend, Revoke, Modify, or Invalidate. 216

(A) Any of the information used to generate or support the Certified CI

was incorrect for reasons including the omission of material

information or changes to the process following submission;

(B) Any material information submitted in connection with any Certified

CI or credit transaction was incorrect;

in a manner that varies in any way from the methods set forth in

any corresponding pathway application documents submitted

pursuant to sections 95488 through 95488.10;

(D) Fuel transaction or other data reported into LRT-CBTS and used in

calculating credits and deficits was incorrect or omitted material

information;

(E) Credits or deficits were generated or transferred in violation of any

provision of this subarticle or in violation of other laws, statutes or

regulations;

(F) A person obligated to provide records under this subarticle refused

to provide such records or failed to produce them within the

required time; and

(G) The sequestered CO

associated with credits generated for verified

greenhouse gas emission reductions by a CCS project was

released or otherwise leaked to the atmosphere.

(H) For purposes of this section, “material information” means:

1. Information that would affect by any amount the Executive

Officer’s determination of a carbon intensity score,

expressed on a gCO

e/MJ basis to two decimal places, or

2. Information that would affect by any whole integer the

number of credits or deficits generated under sections

95486, 95486.1, 95486.2, 95489, or resulting from any

transaction or other activity reported in the LRT-CBTS.

(2) Notice. Upon making an initial determination that a credit (other than a

provisional credit), deficit calculation, or Certified CI (other than a

provisionally-certified CI) may be subject to modification, deletion,

recalculation, or invalidation under subsection (b)(1), above, the Executive

Officer will notify all potentially affected parties, including those who hold

or generate credits or deficits based on a Certified CI that may be invalid,

and may notify any linked program. The notice shall state the reason for

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§ 95495. Authority to Suspend, Revoke, Modify, or Invalidate. 217

the initial determination, and may be distributed using the LRT-CBTS.

Any party receiving such notice may submit, within 20 days, any

information that it wants the Executive Officer to consider. The Executive

Officer may request information or documentation from any party likely to

have information or records relevant to the validity of a credit, deficit

calculation, or Certified CI. Within 20 days of any such request, a

regulated entity shall make records and personnel available to assist the

Executive Officer in determining the validity of the credit, deficit

calculation, or Certified CI.

(3) Interim Account Suspension. When the Executive Officer makes an

initial determination pursuant to the preceding subsection, the Executive

Officer may immediately take steps to suspend an account or a Certified

CI as needed to prevent additional accrual of credits or deficits under the

Certified CI and to prevent transfer of potentially invalid credits or deficits.

Suspension of an account may include locking an account within the

LRT-CBTS to prevent credit transfers or report alteration.

(4) Final Determination. Within 50 days after making an initial determination

under sections 95495(b)(1) and (2), above, the Executive Officer shall

make a final determination based on available information whether, in his

or her judgment, any of the bases listed in subsection (b)(1) exists, and

notify affected parties and any linked program. If the final determination

invalidates credits or deficit calculations, the corresponding credits and

deficits will be added to or subtracted from the appropriate LRT-CBTS

accounts. Where such action creates a deficit in a past compliance

period, the deficit holder has 60 days from the date of the final

determination to purchase sufficient credits to eliminate the entire deficit.

A return to compliance does not preclude further enforcement actions.

(5) Adjustment of Invalidated Credits or Miscalculated Deficits. The

Executive Officer will seek the following options to address any invalid

credits or miscalculated deficits in the program:

(A) First, the Executive Officer may remove the invalid credits from, or

add miscalculated deficits to, the account of the credit or deficit

generator, or other entity deemed responsible for the invalidation or

miscalculation in the final determination pursuant to section 95486.

The entity is responsible for returning its account to compliance.

(B) Next, the Executive Officer may choose to retire credits from the

Buffer Account to address invalidated credits or uncovered deficits.

Executive Officer may remove remaining invalid credits from an

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§ 95495. Authority to Suspend, Revoke, Modify, or Invalidate. 218

entity’s account that holds or previously held invalid credits. The

entity is responsible for returning its account to compliance.

(D) The Executive Officer will not remove invalid credits from entities

that purchased those credits in the Credit Clearance Market,

pursuant to section 95485(c).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95496. [Reserved].

§ 95497. Severability.

Each provision of this subarticle shall be deemed severable, and in the event that any

provision in this subarticle is held to be invalid, the remainder of this subarticle shall

continue in effect.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95498. [Reserved].

§ 95499. [Reserved].

§ 95500. Requirements for Validation of Fuel Pathway Applications; and

Verification of Annual Fuel Pathway Reports, Quarterly Fuel Transactions

Reports, Crude Oil Quarterly and Annual Volumes Reports, Project Reports, and

Low-Complexity/Low-Energy-Use Refinery Reports.

(a) Validation of Fuel Pathway Applications (CIs).

(1) Applicability. The following entities must obtain the services of a

verification body accredited by the Executive Officer for purposes of

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

219

conducting verification services, including required site visit(s), for each

fuel pathway application submitted under this subarticle.

(A) Fuel pathway applicants supplying site-specific CI data for the fuel

pathway application, as specified in sections 95488.5 through

95488.8.

(B) Specified source feedstock suppliers and other entities with

site-specific CI data who apply for separate Executive Officer

recognition as a joint applicant and elect to be responsible for

separate validation and verification as specified in section

95488(b).

(b) Verification of Annual Fuel Pathway Report (CIs).

(1) Applicability. The following entities must obtain the services of a

verification body accredited by the Executive Officer for purposes of

conducting verification services, including required site visit(s), for each

Fuel Pathway Report submitted under this subarticle.

(A) Holders of certified fuel pathways who supplied site-specific CI data

for pathway certification and are required to update site-specific CI

data on an annual basis, as specified in this subarticle, are

responsible for annual verification of their Fuel Pathway Report.

(B) Specified source feedstock suppliers and other entities with

site-specific CI data who apply for separate Executive Officer

recognition as a joint applicant and elect to be responsible for

separate validation and verification as specified in section

95488(b).

(2) Verification Schedule. Entities required to contract for verification of Fuel

Pathway Reports (CI) must ensure a fuel pathway verification statement

for each Fuel Pathway Report is submitted to the Executive Officer

according to the following schedule.

(A) Annual Verification. Verification statements are due to the

Executive Officer by August 31 of the year the annual Fuel Pathway

Report is submitted, beginning in 2021 for 2020 data, unless

eligible to defer verification, as specified in section 95500(b)(2)(B).

(B) Deferred Verification. Fuel pathway holders producing alternative

fuels may defer verification of their annual Fuel Pathway Reports

for each production facility up to two years if the quantity of fuel

produced at the production facility and reported by any entity does

not result in 6,000 or more credits and 6,000 or more deficits

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

220

generated in LRT-CBTS during the prior calendar year and does

not include a fuel pathway with biomethane supplied using book-

and-claim accounting pursuant to section 95488.8(i)(2).

The verification body must submit fuel pathway verification

statements to the Executive Officer for all prior unverified reports on

August 31 of the year verification is required for the production

facility.

contract for verification services attests that the data submitted to

the Executive Officer is true, complete, and accurate by certifying

under penalty of perjury under the laws of the State of California.

“Quarterly review” for purposes of this subarticle means a review

process conducted by the verification team after quarterly data is

submitted and before annual data is submitted and verified.

Quarterly review does not supersede the requirements for the

verification team to consider all quarterly data submitted during

annual verification. Quarterly review is optional for annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, and Crude

Oil Quarterly and Annual Volumes Reports. Quarterly review must

conform to the requirements for verification services in section

95501. A verification statement and verification report are not

submitted after quarterly review.

Quarterly review of operational CI data may only be included as

part of annual verification services if the fuel pathway holder

submits quarterly data to the Executive Officer. Quarterly review

may only be conducted after the fuel pathway holder submits the

report and attests that the statements and information submitted

are true, accurate, and complete.

(1) Applicability. Entities submitting Quarterly Fuel Transactions Reports

under this subarticle that include the following transaction types must

obtain the services of a verification body accredited by the Executive

Officer for purposes of conducting verification services, including required

site visit(s). The scope of verification services would be limited to the

following transaction types, including associated corrections submitted in

annual reports under this subarticle.

(A) For all liquid fuels:

1. Production in California;

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

221

2. Production for Import;

3. Import;

4. Export;

5. Gain of Inventory;

6. Loss of Inventory; and

7. Not Used for Transportation.

(B) NGV Fueling;

(D) FCV Fueling for hydrogen produced from biomethane supplied

using book-and-claim accounting pursuant to section 95488.8(i)(2).

(2) Verification Schedule. Entities responsible for verification of Quarterly

Fuel Transactions Reports must ensure a transactions data verification

statement is submitted to the Executive Officer according to the following

schedule.

(A) Annual Verification. The entity required to contract for verification

of Quarterly Fuel Transactions Reports must ensure a transactions

verification statement is submitted annually by August 31,

beginning in 2021 for 2020 data, to the Executive Officer for the

prior calendar year of data unless specified otherwise in sections

95500(c)(2)(B) or 95500(c)(2)(C).

Quarterly review of a Quarterly Fuel Transactions Report may only

be included as part of annual verification services after the entity

submits the report and attests that the statements and information

submitted are true, accurate, and complete.

(B) Deferred Verification. Fuel pathway holders producing alternative

fuels may defer annual verification of their Quarterly Fuel

Transactions Reports for each production facility up to two years if

the quantity of fuel produced at the production facility and reported

by any entity does not result in 6,000 or more credits and 6,000 or

more deficits generated in LRT-CBTS during the prior calendar

year.

Fuel reporting entities only reporting alternative fuel quantities using

Lookup Table Pathways may defer annual verification of their

Quarterly Fuel Transactions Reports up to two years if they do not

generate 6,000 or more credits and 6,000 or more deficits in LRT-

CBTS during the prior calendar year.

Any fuel quantity reported under a pathway with biomethane

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

222

supplied using book-and-claim accounting pursuant to section

95488.8(i)(2) is not eligible for deferred verification.

The verification body must submit transactions verification

statements to the Executive Officer for all prior unverified reports on

August 31 of the year verification is required for the production

facility.

Entities reporting fuel transactions as Export, Gain of Inventory,

Loss of Inventory, and Not Used for Transportation, which do not

result in 6,000 or more credits and 6,000 or more deficits generated

in LRT-CBTS in a calendar year are exempt from verification of the

Quarterly Fuel Transactions Reports for that calendar year if all the

following conditions are met:

1. The entity did not report any liquid fuel using the transaction

types: Production in California, Production for Import, or

Import; and

2. The entity did not report any transactions specified in section

95500(c)(1)(B) or 95500(c)(1)(C).

(d) Verification of Crude Oil Quarterly and Annual Volumes Reports.

(1) Applicability. Entities submitting crude oil volume data must obtain the

services of a verification body accredited by the Executive Officer for

purposes of conducting verification services, including required site

visit(s), for Crude Oil Quarterly and Annual Volumes Reports submitted

under this subarticle.

(2) Verification Schedule. Entities required to contract for verification of

Crude Oil Quarterly and Annual Volumes Reports must ensure a crude oil

volume verification statement for the prior calendar year of data is

submitted to the Executive Officer annually by August 31

, beginning in

2021 for 2020 data.

Quarterly review of a Crude Oil Quarterly Volumes Report may only be

conducted as part of annual verification services after the entity submits

the quarterly report and attests that the statements and information

submitted are true, accurate, and complete.

(e) Verification of Project Reports.

(1) Applicability. The following entities must obtain the services of a

verification body accredited by the Executive Officer for purposes of

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

223

conducting verification services, including required site visit(s), for Project

Reports submitted under this subarticle:

(A) Project operators and joint applicants for refinery investment project

reports;

(B) Project operators and joint applicants for innovative crude project

reports;

project reports; and

(D) Project operators and joint applicants for direct air capture project

reports.

(2) Verification Schedule. Entities submitting Project Reports may elect to

conduct quarterly or annual verification. Entities must determine before

the initial verification of a Project Report whether to conduct quarterly or

annual verification. If an entity elects to conduct quarterly verification, it

may only switch to annual verification at the beginning of a calendar year.

Entities electing quarterly verification must ensure each quarterly project

data verification statement is submitted to the Executive Officer within five

months of the Quarterly Project Report deadline beginning with 2020 data.

Entities electing annual verification must ensure annual project data

verification statements are submitted to the Executive Officer by August

31,

2021 for submittal of 2020 data, and annually thereafter.

(f) Verification of Low-Complexity/Low-Energy-Use Refinery Reports.

(1) Applicability. Entities submitting Low-Complexity/Low-Energy-Use

refinery data must obtain the services of a verification body accredited by

the Executive Officer for purposes of conducting verification services,

including required site visit(s), for Low-Complexity/Low-Energy-Use

Refinery Reports submitted under this subarticle.

(2) Verification Schedule. The verification body must submit an annual

verification statement to the Executive Officer for the prior calendar year

by August 31, beginning in 2021 for 2020 data.

(g) Verification Body and Individual Verifier Rotation Requirements. An entity that

is required to contract for validation or verification must not use the same

verification body or individual verifier(s) to perform validation and verification

services under this subarticle for a period of more than six consecutive years,

beginning January 1, 2020.

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§ 95500. Requirements for Validation of Fuel Pathway Applications; and Verification of Annual Fuel

Pathway Reports, Quarterly Fuel Transactions Reports, Crude Oil Quarterly and Annual Volumes

Reports, Project Reports, and Low-Complexity/Low-Energy-Use Refinery Reports.

224

The six-year period begins on the execution date of the entity’s first contract for

any validation or verification under this subarticle and ends on the date the final

verification statement is submitted. The six-year limit does not reset upon a

change in ownership or operational control of the entity required to contract for

validation or verification services.

If the entity is required or elects to contract with another verification body or

verifier(s), the entity may re-engage the previous verification body or verifier(s)

only after three years, except in the case of a set-aside of a validation or

verification statement as specified in section 95501. An entity required to

contract for validation or verification services must, in time for the next

verification, replace a verification body that has a suspended or revoked

Executive Order pursuant to MRR section 95132(d), and included by reference in

section 95502(a).

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95501. Requirements for Validation and Verification Services.

Validation and verification services must be performed by verification bodies accredited

by the Executive Officer; in addition, such services must meet the following

requirements (the general term “verification services” includes validation services for

fuel pathway applications unless otherwise provided):

(a) Notice of Verification Services. The verification body must submit a notice of

validation or verification services to the Executive Officer.

For verification bodies, the notice must be submitted to the Executive Officer

after the Executive Officer has provided a determination that the potential for a

conflict of interest is acceptable, as specified in section 95503(e), and that

verification services may proceed. The verification body may begin services for

the entity required to contract for verification services after the notice is received

by the Executive Officer, but the verification body must allow a minimum of 14

calendar days advance notice of the site visit unless an earlier date is approved

by the Executive Officer in writing. In the event that the conflict of interest

statement and the notice of verification services are submitted together, services

cannot begin until ten calendar days after the Executive Officer has deemed

acceptable the potential for conflict of interest as specified in 95503(e).

The verifier’s notice must include all the following information:

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§ 95501. Requirements for Validation and Verification Services. 225

(1) A list of personnel who will be designated to provide verification services

as a verification team, including the names of each designated employee,

the lead verifier, and all subcontractors, and a description of the roles and

responsibilities each team member will have. The independent reviewer

must also be listed separately.

(2) Documentation that the verification team has the skills required to provide

verification services for the entity required to contract for verification

services and type of application or report. The notice must include a

demonstration that the verification team includes at least one member with

specified competency that is not also the independent reviewer, when

required below:

(A) Specified competency as evidenced by experience in alternative

fuel production technology and process engineering when providing

validation services for fuel pathway applications or verification

services for Fuel Pathway Reports;

(B) Specified competency as evidenced by accreditation by the

Executive Officer as an oil and gas systems specialist pursuant to

MRR when providing verification services for Quarterly Fuels

Transactions Reports submitted by producers and importers of

gasoline or diesel, Crude Oil Quarterly and Annual Volumes

Reports, and Project Reports as listed in section 95500.

(3) General information on the entity required to contract for verifications,

including:

(A) The entity’s name and the facilities and other locations that will be

subject to verification services, and the contact, address,

telephone number and e-mail address for the entity required to

contract for verification services;

(B) The LCFS ID(s) for the entity required to contract for verification

services;

with physical address and contact information;

(D) A brief description of expected verification services to be

performed, including expected completion date, and whether

quarterly review is planned in the context of an annual verification

requirement.

(4) If any of the information under sections 95501(a)(1) or 95501(a)(2)

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§ 95501. Requirements for Validation and Verification Services. 226

changes after the notice is submitted to the Executive Officer, the

verification body must notify the Executive Officer as soon as the change

is made and submit an updated notice of verification services.

The verification body must also submit an updated conflict of interest self-

evaluation form with an updated notice of verification services as soon as

the change is made. The conflict of interest must be reevaluated

pursuant to section 95503(e) and the Executive Officer must approve any

changes in writing.

(b) Verification services must include, but are not limited to, the following:

(1) Validation or Verification Plan. The verification team must develop a

validation or verification plan based on the following:

(A) Information from the fuel pathway applicant, pathway holder, or

reporting entity. Such information must include all the following:

1. Information to allow the verification team to develop an

understanding of facility or entity boundaries, operations,

accounting practices, type of LCFS report(s) the entity is

responsible for, LCFS regulatory sections they are subject

to, other renewable or low carbon fuels markets they

participate in, and other mandatory or voluntary auditing

programs they are subject to, as applicable;

2. Organizational chart and list of key personnel involved in

developing applications and reports submitted to the

Executive Officer, as specified in section 95500, and their

qualifications, including training;

3. Description of the specific methodologies used to quantify

and report data, as required in this subarticle, which are

needed to develop the validation or verification plan,

including but not limited to calibration procedures and logs

for measurement devices capturing site-specific data;

4. Information about the data management systems and

accounting procedures used to capture and track data for

fuel pathway application and each type of report as needed

to develop the validation or verification plan;

5. Information about the entities in the supply chain upstream

and downstream of the fuel producer that contribute to site-

specific CI data, including a list of feedstock suppliers and

contact names with physical addresses;

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§ 95501. Requirements for Validation and Verification Services. 227

6. Evidence demonstrating that any joint applicants are being

separately verified and thus are outside the scope of the

instant verification services being provided by the verification

body; and

7. Previous LCFS validation and verification reports, as

applicable, and other audit reports including reports from

production or management system certifications and internal

audits.

(B) Timing of verification services. Such information must include:

1. Dates of proposed meetings and interviews with personnel

of the entity required to contract for verification services ;

2. Dates of proposed site visits;

3. Types of proposed document and data reviews and, if

applicable, how quarterly review is planned in the context of

an annual verification requirement;

4. Expected date for completing validation or verification

services.

(2) Planning Meetings with the Entity Required to contract for Verification

Services. The verification team must discuss with the entity contracting

for verification services the scope of the verification services and request

any information and documents needed for the verification services. The

verification team must create a draft sampling plan and verification plan

prior to the site visit. The verification team must also review the

documents provided, and plan and conduct a review of original documents

and supporting data for the verification services specified in section

95501.

(3) Site Visits. At least one lead LCFS verifier accredited by the Executive

Officer on the verification team must, in addition to one visit to validate an

application, annually visit each facility; and, if different from the fuel

production facility, the central records location for which the records

supporting an application or report subject to verification are submitted.

Site visits, included voluntarily as part of a quarterly review, may not

substitute for the required site visit for annual verification services, which

must occur after all LCFS data for the prior calendar year has been

submitted to the Executive Officer and attested to.

(A) During site visits, the verification team member(s) must carry out

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§ 95501. Requirements for Validation and Verification Services. 228

tasks that, in the professional judgment of the team, are necessary,

including the following:

1. Review supporting evidence used to develop reports listed in

section 95500 submitted to the Executive Officer;

2. Interview key personnel, such as process engineers,

metering experts, accounting personnel, and project

operators, as well as staff involved in compiling data and

preparing the LCFS reports;

3. Review and understand the data management systems and

accounting practices used by the entity to acquire, process,

track, and report LCFS data. The verification team

member(s) must evaluate the uncertainty and effectiveness

of these systems;

4. Directly observe production equipment, confirming diagrams

for processes, piping, and instrumentation; measurement

system equipment; and accounting systems for data types

determined in the sampling plan to be high risk;

5. Assess conformance with measurement accuracy

requirements specified in this subarticle for measurement

devices that do not meet criteria for financial transactions

meters, assess the reasonableness of temporary

measurement methods, assess conformance with the

monitoring plan, and assess conformance with data capture

requirements specified in this subarticle, if applicable.

6. Review financial transactions to confirm complete and

accurate reporting.

(4) Sampling Plan. As part of validating fuel pathway applications and

verifying LCFS reports the verification team must develop a sampling plan

that meets the following requirements:

(A) The verification team must develop a sampling plan based on a

strategic analysis developed from document reviews and interviews

to assess the likely nature, scale and complexity of the verification

services for the entity required to contract for verification services

and type of report. The analysis must include a review of: the

inputs for the development of the submitted applications and

reports specified in section 95500; the rigor and appropriateness of

data management systems; and the coordination within the

responsible entity’s organization to manage the operation and

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§ 95501. Requirements for Validation and Verification Services. 229

maintenance of equipment and systems used to complete

applications and reports.

(B) The sampling plan must include a ranking of data sources by

relative contribution to the data type to be assessed for material

misstatement and a ranking of data sources with the largest

calculation uncertainty, including risk of incomplete reporting, based

on type of report or application.

uncertainty risk assessment in the following areas as applicable in

this subarticle:

1. Data acquisition equipment;

2. Data sampling and frequency;

3. Data processing and tracking;

4. Tracking of fuel transportation into California to include

modes of transportation and distances traveled, as

applicable;

5. CI calculations, as applicable;

6. Fuel pathway code (FPC) allocation methodology, as

applicable;

7. Management policies or practices in developing LCFS

reports.

(D) After completing the analysis required by sections 95501(b)(4)(A)

through (C) above, the verification team must include in the

sampling plan a list which includes the following:

1. Data sources that will be targeted for document reviews,

data checks as specified in 95501(b)(5), and an explanation

of why they were chosen;

2. Methods used to conduct data checks for each data type;

3. A summary of the information analyzed in the data checks

and document reviews conducted for each data type.

The sampling plan list must be updated and finalized prior to the

completion of verification services. The final sampling plan must

describe in detail how the identified risks were addressed during

the verification. When quarterly reviews are conducted as part of

annual verification services, the final sampling plan must describe

in detail how the risks and issues identified for the annual data set

were addressed during each quarterly review and final annual

verification.

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§ 95501. Requirements for Validation and Verification Services. 230

(E) Specified Source Feedstocks. Specified source feedstocks

included in fuel pathway applications and reports that require third-

party verification must be included in the scope of verification

services. When a fuel pathway does not require third-party

validation or verification, e.g., Lookup Table pathways including

hydrogen (gaseous and liquefied) from central SMR of biomethane,

specified source feedstocks must be included in the scope of

verification of the Quarterly Fuel Transactions Reports. The

verification team must use professional judgment and include in its

risk assessment and sampling plan its analysis of the need for a

desk review or site visit for verification of any entity in the feedstock

chain of custody. This analysis must include an evaluation of the

need to trace feedstock through feedstock suppliers, including

aggregators, storage or pretreatment facilities, and traders or

brokers, to the point of origin as required in section 95488.8(g). If

an error is detected during data checks of records maintained by

the entity required to contract for verification services, the

verification team must update its risk assessment and sampling

plan to assure specified source feedstock characterization and

quantities to the point of origin.

(F) The verification team must revise the sampling plan to describe

tasks completed by the verification team as information becomes

available and potential issues emerge with material misstatement

or nonconformance with the requirements of this subarticle.

(G) The verification body must retain the sampling plan in paper or

electronic format (which includes digital media) for a period of no

less than ten years following the submission of each validation or

verification statement. The sampling plan must be made available

to the Executive Officer upon request.

(H) The verification body must retain all material received, reviewed, or

generated to render a validation or verification statement for the

entity required to contract for verification services for a period of no

less than ten years. The documentation must allow for a

transparent review of how a verification body reached its conclusion

in the validation or verification statement, including independent

review.

(5) Data Checks. To determine the reliability of the submitted data, the

verification team must conduct data checks. Such data checks must

focus on the most uncertain data and on data with the largest

contributions to greenhouse gas emissions (including life cycle

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§ 95501. Requirements for Validation and Verification Services. 231

greenhouse gas emissions) and greenhouse gas emission reductions.

The selection of data checks must meet all the following criteria:

(A) The verification team must use data checks to ensure that the

appropriate methodologies have been applied for the data

submitted in applications and reports required in this subarticle;

(B) The verification team must choose data checks to ensure the

accuracy of the data submitted in applications and reports required

in this subarticle;

relative contribution to greenhouse gas emissions or reductions and

the associated risks of contributing to material misstatement or

nonconformance, as indicated in the sampling plan;

(D) The verification team must use professional judgment in

establishing the extent of data checks for each data type, as

indicated in the sampling plan, which are needed for the team to

conclude with reasonable assurance whether the data type

specified for the application or report is free of material

misstatement. At a minimum, the data checks selected by the

verification team must include the following:

1. Tracing data in the application or report to its origin;

2. Reviewing the procedure for data compilation and collection;

3. Recalculating intermediate and final data to check original

calculations;

4. Reviewing calculation methodologies used by the entity

required to contract for verification services for conformance

with this subarticle; and

5. Reviewing meter and analytical instrumentation

measurement accuracy and calibration for consistency with

the requirements of this subarticle.

(E) The verification team is responsible for determining via data checks

whether there is reasonable assurance that the application or report

conforms to the requirements of this subarticle.

(F) The verification team must compare its own calculated results with

the submitted data in order to confirm the extent and impact of any

omissions and errors. Any discrepancies must be investigated.

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§ 95501. Requirements for Validation and Verification Services. 232

The comparison of data checks must also include a narrative to

indicate which data were checked, the quantity of data evaluated

for each data type, the percentage of reported source data covered

by the data checks, and any separate discrepancies that were

identified in the application or report.

(6) Application and Report Modifications. As a result of data checks by the

verification team and prior to completion of a validation or verification

statement, the entity required to contract for verification services must fix

all correctable errors that affect the data submitted in the application or

reports specified in section 95500 and submit a revised application or

report to the Executive Officer. Failure to do so before completion of

verification services will result in an adverse verification statement.

Failure to fix misreported data that do not affect credit or deficit

calculations represents a nonconformance with this subarticle but does

not, absent other errors, result in an adverse validation or verification

statement.

The verification team must use professional judgment in identifying

correctable errors as defined in section 95481(a), including determining

whether differences are not errors but result from truncation or rounding or

averaging.

The verification team must document the source of any difference

identified, including whether the difference results in a correctable error or

on the other hand, was the result of truncation, rounding, or averaging.

(7) Findings. To verify that the application or report is free of material

misstatements, the verification team shall make its own calculation of the

specified data types reported by substituting the checked data from

95501(b)(5). The verification team must determine whether there is

reasonable assurance that the application or report does not contain a

material misstatement, as defined for each application or report type in

section 95481, and calculated pursuant to section 95501(b)(9) through

(11), using the units required by the applicable parts of this subarticle. To

assess conformance with this subarticle, the verification team must review

the methods and factors used to develop the application or report for

adherence to the requirements of this subarticle and identify whether other

requirements of this subarticle are met.

(8) Log of Issues. The verification team must keep a log that documents any

issues identified in the course of verification services that may affect

determinations of material misstatement and nonconformance, whether

identified by the verifier, the entity required to contract for verification

services, or the Executive Officer, regarding the original or subsequent

application or report versions. The issues log must identify the regulatory

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§ 95501. Requirements for Validation and Verification Services. 233

section related to the nonconformance or potential nonconformance, if

applicable, and indicate if the issues were corrected by the entity required

to contract for verification services prior to completing the verification

services. Any other concerns that the verification team has with the

preparation of the application or report must be documented in the issues

log and communicated to the entity required to contract for verification

services during the course of the verification services. The log of issues

must indicate whether each issue has a potential bearing on material

misstatement, nonconformance, or both and whether an adverse

verification statement may result if not addressed. If quarterly review is

conducted before an annual verification, any issues identified must be

formalized pursuant to this subsection in the log of issues during the

quarterly review. The log of issues for the annual verification must

include the cumulative record of issues from all quarterly reviews, as well

as the annual verification.

(9) Material Misstatement Assessments for Fuel Pathways and Quarterly Fuel

Transactions. Assessments of material misstatement are conducted

separately on each calculated operational CI value and each quarterly fuel

transaction quantity per FPC (expressed in units from the applicable

sections of this subarticle). Material misstatement assessments are not

conducted for quarterly review.

(A) Operational CI. In assessing whether a fuel pathway application

or fuel pathway report contains a material misstatement, as defined

in section 95481(a), the verification team must populate a

controlled version of the Simplified CI Calculator for Tier 1

pathways, or CARB-approved CA-GREET3.0 for Tier 2 pathways,

and determine whether any reported operational CI value contains

a material misstatement using the following equations for relative

error threshold and absolute error threshold. The following

calculations of relative error threshold, absolute error threshold, and

percent error must be included in the final verification report

pursuant to section 95501(c)(3)(A)8.

Each fuel pathway CI is subject to data checks in section

95501(b)(5) and must be assessed separately for material

misstatement. One or more material misstatements results in a

finding of material misstatement for the fuel pathway application or

for the fuel pathway report.

 

(



)



  

|    |

 100%

  

(



)

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§ 95501. Requirements for Validation and Verification Services. 234

=    

0.05  |     |

   ()

=    2 2/

where:

“  ” means the absolute value result of the reported

operational CI minus the verifier’s calculation of CI. The verifier’s

calculation of CI is based on site-specific data inputs modified to

include discrepancies, omissions, and misreporting found during

the course of verification services;

“” means any differences between the reported

site-specific CI inputs and the verifier’s calculated site-specific CI

inputs subject to data checks in section 95501(b)(5);

“” means any site-specific CI inputs or associated source

data the verifier concludes must be part of the fuel pathway

application or fuel pathway report, but were not included;

“” means duplicate, incomplete or other CI input data

the verifier concludes should, or should not, be part of the fuel

pathway application or fuel pathway report; and

“|     |” means the absolute value of

the operational CI submitted in the fuel pathway application or fuel

pathway report.

(B) Quarterly Fuel Transaction Quantities per FPC. In assessing

whether a quarterly fuel transaction report contains a material

misstatement, as defined in section 95481(a), the verification team

must determine whether any quarterly fuel transaction quantity per

FPC specified in section 95500(c)(1) contains a material

misstatement using the following equation. The reported quarterly

fuel transaction quantity for an FPC contains a material

misstatement if the 5 percent error threshold is exceeded. The

following calculation of percent error must be included in the final

verification report pursuant to section 95501(c)(3)(A)8.

Each aggregated quarterly fuel quantity per FPC is subject to data

checks in section 95501(b)(5) and must be assessed separately for

material misstatement. One or more material misstatements

results in a finding of material misstatement for the verification

period.

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§ 95501. Requirements for Validation and Verification Services. 235

 

(

  

)



[

, , 

]

      

 100%

where:

“” means any differences between the fuel quantity

for the FPC reported in the Quarterly Fuel Transactions Report and

the verifier’s calculation of fuel quantity subject to data checks in

section 95501(b)(5);

“” means any fuel quantity the verifier concludes must be

part of the Quarterly Fuel Transactions Report, but was not

included;

“” means duplicate, incomplete or other fuel quantity

data the verifier concludes should, or should not, be part of the

Quarterly Fuel Transactions Report; and

“      ”

means the total of all reported fuel quantities for each FPC for each

transaction type specified in section 95500(c)(1) for each quarter

for which the verifier is conducting a material misstatement

assessment.

correctly substituted missing data to be accurate, regardless of the

amount of missing data.

(10) Material Misstatement Assessment for Project Reports (Project-based

Crediting).

(A) Verification services, including assessment of material

misstatement, are conducted separately for each Project Report.

In assessing whether a Project Report contains a material

misstatement, as defined in section 95481(a), the verification team

must determine whether the greenhouse gas reductions quantified

and reported in the Project Report contain a material misstatement

using the following equation.

Any discrepancies, omissions, or misreporting found by the

verification team must include the positive or negative impact on

the total reported greenhouse gas emission reductions when

entered in the material misstatement equation. The reported

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§ 95501. Requirements for Validation and Verification Services. 236

project data contain a material misstatement if the 5 percent error

threshold is exceeded. The following calculation of percent error

must be included in the final verification report pursuant to section

95501(c)(3)(A)8.

 

(

 

)



[

, , 

]

   

 100%

where:

“” means any differences between the reported

greenhouse gas emissions reductions in the Project Report and the

verifier’s calculated value based on data checks required in section

95501(b)(5);

“” means any greenhouse gas emissions, excluding any

greenhouse gas reductions, the verifier concludes must be part of

the Project Report, but were not included;

“” means duplicate, incomplete or other greenhouse

gas emissions or reductions data the verifier concludes should, or

should not, be part of the Project Report;

“   ” means the total of all

greenhouse gas emissions reductions reported in the Project

Report for which the verifier is conducting a material misstatement

assessment.

(B) When evaluating material misstatement, verifiers must deem

correctly substituted missing data to be accurate, regardless of the

amount of missing data.

(11) Material Misstatement Assessment for Low-Complexity/Low-Energy-Use

Refinery Reports.

(A) Verifications and assessments of material misstatement are

conducted separately for volumes of CARBOB produced from

crude oil and for volumes of diesel produced from crude oil for the

calendar year. In assessing whether a Low-Complexity/Low-

Energy-Use Refinery Report contains a material misstatement, as

defined in section 95481(a), the verification team must determine

whether the Low-Complexity/Low-Energy-Use refinery data

specified in this subarticle contains a material misstatement using

the following equation.

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§ 95501. Requirements for Validation and Verification Services. 237

Any discrepancies, omissions, or misreporting found by the

verification team must include the positive or negative impact on

the total CARBOB or diesel volume produced from crude oil when

entered in the material misstatement equation. The reported

refinery data contain a material misstatement if the 5 percent error

threshold is exceeded. The following calculation of percent error

must be included in the final verification report pursuant to section

95501(c)(3)(A)8.

 

(

      

)



[

, , 

]

       

 100%

where:

“” means any differences between the sum of the

quarterly volumes of CARBOB or diesel produced from crude oil

reported in the Low-Complexity/Low-Energy-Use Refinery Report

and the verifier’s calculation based on data checks in section

95501(b)(5);

“” means any volume of CARBOB or diesel produced

from crude oil or associated source data the verifier concludes must

be part of the Low-Complexity/Low-Energy-Use Refinery Report,

but was not included;

“” means duplicate, incomplete or other refinery data

the verifier concludes should, or should not, be part of the Low-

Complexity/Low-Energy-Use Refinery Report;

“       ” means

the sum of the quarterly volumes of CARBOB or diesel produced

from crude oil in a calendar year reported in the Low-

Complexity/Low-Energy-Use Refinery Report for which the verifier

is conducting a material misstatement assessment.

“     ” and

“     ” are separately

subject to data checks in section 95501(b)(5) and must be

assessed separately for material misstatement. One or more

material misstatements results in a finding of material misstatement

for the Low-Complexity/Low-Energy-Use Refinery Report.

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§ 95501. Requirements for Validation and Verification Services. 238

(B) When evaluating material misstatement, verifiers must deem

correctly substituted missing data to be accurate, regardless of the

amount of missing data.

(12) Crude Oil Quarterly and Annual Volumes Reports. Material misstatement

assessment does not apply to data submitted in crude oil quarterly and

annual volumes reports, but the data must be assessed for reasonable

assurance of conformance with this subarticle.

(13) Review of Missing Data Substitution. If a source selected for a data

check was affected by a loss of data used for the reported data in the

application or report, pursuant to this subarticle:

(A) The verification team must confirm that the reported data were

calculated using:

1. the applicable missing data procedures, or

2. a reasonable temporary method, or

3. an Executive Officer approved alternate method.

(B) The verifier must note the date, time and source of any missing

data substitutions discovered during the course of verification in the

validation or verification report.

(1) Validation or Verification Statement. Upon completion of the verification

services specified in section 95500, the verification body must complete a

validation or verification statement, and provide its statement to the entity

required to contract for verification services and Executive Officer by the

applicable verification deadline specified in section 95500. Before the

validation or verification statement is completed, the verification services

and findings of the verification team must be independently reviewed by

an employee of the verification body who is an accredited lead verifier not

involved in verification services for the entity required to contract for

verification services during that application period or reporting period.

(2) Independent Review. The independent reviewer must serve as a final

check on the verification team’s work to identify any significant concerns,

including:

(A) Errors in planning,

(B) Errors in data sampling, and

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§ 95501. Requirements for Validation and Verification Services. 239

draft validation or verification statement.

The independent reviewer must maintain independence from the

verification services by not making specific recommendations about how

the verification services should be conducted. The independent reviewer

will review documents applicable to the services provided, and identify any

failure to comply with requirements of this subarticle or with the verification

body’s internal policies and procedures for providing verification services.

The independent reviewer must concur with the verification findings before

the validation or verification statement is issued.

(3) Completion of Findings and Validation or Verification Report and

Statement. The verification body is required to provide each entity

required to contract for verification services with the following:

(A) A detailed validation or verification report, which must at a minimum

include:

1. A detailed description of the facility or entity including all data

sources and boundaries;

2. A detailed description of the data management system and

accounting procedures;

3. A detailed description of entities in the supply chain

contributing CI parameters;

4. The validation or verification plan;

5. The detailed comparison of the data checks conducted

during verification services;

6. The log of issues identified in the course of verification

services and their resolution;

7. Any qualifying comments on findings during verification

services;

8. Findings of omissions, discrepancies, and misreporting and

the material misstatement calculations required in section

95501(b)(9) through (11).

(B) The validation or verification report must be submitted to the entity

required to contract for verification services at the same time as or

before the final validation or verification statement is submitted to

the Executive Officer. The detailed validation or verification report

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§ 95501. Requirements for Validation and Verification Services. 240

must be made available to the Executive Officer upon request.

required to contract for verification services explaining its findings,

and notify the entity required to contract for verification services of

any unresolved issues noted in the issues log before the validation

or verification statement is finalized.

(D) The verification body must provide the validation or verification

statement to the entity required to contract for verification services

and the Executive Officer, attesting whether the verification body

has found the submitted application or report to be free of material

misstatement, and whether the application or report is in

conformance with the requirements of this subarticle. For every

qualified positive validation or verification statement, the verification

body must explain the nonconformances contained within the

application or report, and must cite the section(s) in this subarticle

that corresponds to the nonconformance and why the

nonconformances do not result in a material misstatement. For

every adverse validation or verification statement, the verification

body must explain all nonconformances or material misstatements

leading to the adverse validation or verification statement and must

cite the sections in this subarticle that correspond to the

nonconformance and material misstatements.

(E) The lead verifier on the verification team must attest that the

verification team has carried out all verification services as required

by this subarticle. The lead verifier who has conducted the

independent review of verification services and findings must attest

to his or her independent review on behalf of the verification body

and his or her concurrence with the findings.

1. The lead verifier must attest in the validation or verification

statement, in writing, to the Executive Officer as follows:

“I certify under penalty of perjury under the laws of the State

of California that the verification team has carried out all

validation or verification services as required by this

subarticle.”

2. The lead verifier who has conducted the independent review

of verification services and findings must attest in the

validation or verification statement, in writing, to the

Executive Officer as follows:

“I certify under penalty of perjury under the laws of the State

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§ 95501. Requirements for Validation and Verification Services. 241

of California that I have conducted an independent review of

the validation or verification services and findings on behalf

of the verification body as required by this subarticle and that

the findings are true, accurate, and complete.”

(4) Adverse validation or verification statement and petition process. Prior to

the verification body providing an adverse validation or verification

statement for the application or report to the Executive Officer, the

verification body must notify the entity required to contract for verification

services and the entity required to contract for verification services must

be provided at least 14 calendar days to modify the application or report(s)

to correct any material misstatement or nonconformances found by the

verification team. The verification body must provide notice to the

Executive Officer of the potential for an adverse validation or verification

statement at the same time it notifies the entity required to contract for

verification services, and include a current issues log. The modified

application or report and validation or verification statement must be

submitted to the Executive Officer before the verification deadline, even if

the entity required to contract for verification services makes a request to

the Executive Officer as provided below in section 95501(c)(4)(A).

(A) If the entity required to contract for verification services and the

verification body cannot reach agreement on modifications to the

data that result in a positive validation or verification statement, the

responsible entity may, before the validation or verification deadline

and before the validation or verification statement is submitted,

petition the Executive Officer to make a final decision as to the

verifiability of the submitted application or report. At the same time

that the entity required to contract for verification services petitions

the Executive Officer, the entity required to contract for verification

services must submit all information it believes is necessary for the

Executive Officer to make a final decision.

(B) The Executive Officer shall make a final decision no later than

October 31

following the submission of a petition pursuant to

section 95501(c)(4)(A). If at any point the Executive Officer

requests information from the verification body, or the entity

required to contract for verification services, the information must

be submitted to the Executive Officer within ten calendar days.

The Executive Officer will notify the entity required to contract for

verification services and the verification body of its determination.

(d) Validated Applications and Verified Reports Considered Final by the Executive

Officer. Upon provision of a validation or verification statement to the Executive

Officer, the reported data is deemed final by the Executive Officer. No changes

may be made to the application or report as submitted to the Executive Officer,

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§ 95501. Requirements for Validation and Verification Services. 242

and all verification requirements of this subarticle shall be considered complete

except in the circumstance specified in section 95501(e).

(e) Set Aside of Validation or Verification Statement. If the Executive Officer finds a

high level of conflict of interest existed between a verification body and a

reporting entity, an error is identified, or an application or report that received a

positive or qualified positive verification statement fails an audit by the Executive

Officer, the Executive Officer may set aside the positive or qualified positive

verification statement issued by the verification body, and require the reporting

entity to have the report re-verified by a different verification body within 90

calendar days. In instances where an error to a report is identified and

determined by the Executive Officer to not affect the final value submitted in the

application or report, the change may be made without a set aside of the positive

or qualified positive verification statement.

(f) Executive Officer Audits and Data Requests to the Entity Required to Contract for

Verification Services. Upon request by the Executive Officer, the entity required

to contract for verification services must provide the data used to generate the

application or report including all data available to a verifier in the conduct of

validation or verification services, within 14 calendar days. Upon written

notification by the Executive Officer, the entity required to contract for verification

services must make available for an Executive Officer audit itself, its personnel,

and other entities in its feedstock and finished fuel supply chain, as applicable.

(g) Executive Officer Audits and Data Requests to the Verification Body. Upon

request by the Executive Officer, the verification body must provide the Executive

Officer the validation or verification report given to the entity required to contract

for verification services, as well as the sampling plan, contracts for verification

services, and any other supporting documents and calculations, within 14

calendar days. Upon written notification by the Executive Officer, the

verification body must make itself and its personnel available for an Executive

Officer audit.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

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§95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers. 243

§ 95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and

Verifiers.

(a) Verification bodies, lead verifiers, and non-lead verifiers that will provide

verification services (including validation services) under this subarticle must

become accredited through fulfilling the accreditation requirements set forth in

MRR sections 95132(b) through (e), with the exception of subsections

95132(b)(1)(G), 95132(b)(2), 95132(b)(3), 95132(b)(5), and 95132(e)(1).

MRR text is as referred to, except as otherwise specifically provided:

(1) Wherever “section 95102(a)” is referenced, “section 95481” must be

substituted. Wherever “section 95132(b)(2) is referenced, “section

95502(c)” must be substituted. Wherever “section 95133” is referenced,

“section 95503” must be substituted.

(2) Whenever “Performance Review” is referenced, the definition in 95481(a)

of this subarticle must be substituted.

(b) The Executive Officer may issue accreditation to verification bodies, lead

verifiers, and non-lead verifiers that meet the requirements specified in this

section.

(1) Verification Body Accreditation Application. In addition to the requirements

specified in MRR section 95132(b)(1), the applicant must submit the

following to the Executive Officer:

(A) Documentation that the proposed verification body has procedures and

policies to support staff technical training as it relates to validation or

verification. This training must include CARB’s verifier training curriculum

and be provided by a verification body or verification body applicant to its

employees and subcontractors that participate on verification teams.

Participation of individual verifiers, including verifiers that are not acting as

lead verifiers, must be documented.

(B) The verification body’s templates for risk assessment, sampling,

and log of issues for the entity types and report types the

verification body intends to verify, as specified in section 95500.

the verification body accreditation application and therefore the

Executive Officer must be notified of any such changes.

(2) Verifier Accreditation Application. To apply for accreditation as a lead

verifier, the applicant must submit documentation to the Executive Officer

that provides the evidence that the applicant meets the criteria in sections

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§95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers. 244

95502(c)(1) though (6). To apply for accreditation as a non-lead verifier,

the applicant must submit documentation to the Executive Officer that

provides the evidence that the applicant meets the criteria in sections

95502(c)(1) through (2).

be employed by, or contracted with, a verification body accredited by the

Executive Officer and submit evidence to demonstrate that competency

requirements are met.

(1) Verifiers must provide evidence demonstrating the minimum educational

background required to act as a verifier for CARB. Minimum educational

background means that the applicant has either:

(A) A bachelor’s level college degree or equivalent in engineering,

science, technology, business, statistics, mathematics,

environmental policy, economics, or financial auditing; or

(B) Evidence demonstrating the completion of significant and relevant

work experience or other personal development activities that have

provided the applicant with the communication, technical, and

analytical skills necessary to conduct verification.

(2) Verifiers must provide evidence demonstrating sufficient workplace

experience to act as a verifier, including evidence that the applicant

verifier has a minimum of two years of full-time work experience in a

professional role involved in emissions data management, emissions

technology, emissions inventories, environmental auditing, financial

auditing, life cycle analysis, transportation fuel production, or other

technical skills necessary to conduct verification.

(3) To act as a lead verifier, in addition to the qualifications in sections

95502(c)(1) and (2), one of the following qualifications must be met:

(A) The verifier must have participated within the previous two years as

part of the verification team in at least three completed LCFS

validations or verifications under the supervision of a lead verifier

accredited under this subarticle by the Executive Officer;

(B) The verifier must be accredited as a lead verifier under MRR or the

Cap-and-Trade Regulation by the Executive Officer;

attestation engagement services team for the U.S. EPA Renewable

Fuel Standard (RFS) program within the previous two years or

currently be acting as a team lead;

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§95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers. 245

(D) The verifier must have experience acting as the lead on a Quality

Assurance Program (QAP) services team for the U.S. EPA RFS

program within the previous two years or currently be acting as a

team lead;

(E) The verifier must have experience acting as a the lead on a biofuels

certification audit within the previous two years or currently be

acting as a lead under one of the following international certification

systems: International Sustainability and Carbon Certification

(ISCC), Roundtable on Sustainable Biomaterials (RSB), or

Bonsucro; or

(F) The verifier must have worked as a project manager or lead person

for no less than four years, of which two may be graduate level

work:

1. In the development of greenhouse gas or other air emissions

inventories; or,

2. As a lead environmental data or financial auditor.

(G) Candidates meeting one of the lead verifier qualifications in

sections 95502(c)(3)(A) through (E) must complete training specific

to the LCFS program to become a lead verifier under this

subarticle.

Candidates applying under section 95502(c)(3)(F) for accreditation

as a lead verifier under this subarticle must take the CARB-

approved comprehensive general verification training and

examination in addition to the training specific to the LCFS

program.

(4) To become accredited as a lead verifier for validation of fuel pathway

applications (CI) or verification of Fuel Pathway Reports (CI) as specified

in section 95500(a) and 95500(b), in addition to the qualifications in

sections 95502(c)(1) through (3), the verifier must have experience in

alternative fuel production technology and process engineering.

(5) To become and remain accredited as a lead verifier for verification of

Quarterly Fuel Transactions Reports submitted by producers and

importers of gasoline or diesel, Low-Complexity/Low-Energy-Use Refinery

Report, Crude Oil Quarterly and Annual Volume Reports, and Project

Reports as specified in section 95500, in addition to the qualifications in

sections 95502(c)(1) through (3), the verifier must be accredited as an oil

and gas systems specialist pursuant to MRR section 95131(a)(2).

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§95502. Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers. 246

(6) Nothing in this section shall be construed as preventing the Executive

Officer from requesting additional information or documentation from a

verifier or affiliated verification body to demonstrate that the verifier meets

the competency requirements set forth here, or from seeking additional

information from other persons or entities regarding the verifier’s fitness

for qualification.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).

§ 95503. Conflict of Interest Requirements for Verification Bodies and Verifiers

(a) Applicability of Conflict of Interest Provisions. The conflict of interest provisions

of this section shall apply to verification bodies and lead verifiers, including

independent reviewers, accredited by the Executive Officer to perform LCFS

validation and verification services for responsible entities and must apply to all

verification team members.

Any individual person or company that is hired by the entity required to contract

with a verification body on behalf of the entity required to contract for verification

services is also subject to the conflict of interest assessment in this subarticle.

In such instances, the verification body must assess the potential conflict of

interest between itself and the contracting entity as well as between itself and the

responsible entity, and must also address the potential conflict of interest

between the contracting entity and the responsible entity, including a written

assessment provided and signed by the contracting entity.

(1) “Member” for the purposes of this section means any employee or

subcontractor of the verification body or its related entities.

(2) “Related Entity” for the purposes of this section means any direct parent

company, direct subsidiary, or sister company.

(3) “Lookback Period” for the purposes of this section means to disclose

services provided and assess potential for conflicts of interest beginning

five years preceding the start of verification services.

(4) Emerging conflicts of interest must also be monitored. The monitoring

period for determining emerging conflicts of interest is during the period

verification services are offered and one year after verification services are

completed.

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 247

(b) Disclosure of Services with High Potential for Conflict of Interest. If any of the

following occurred during the lookback period, the activity or activities must be

disclosed to the Executive Officer with a description of actions the verification

body has taken to avoid, neutralize, or mitigate any ongoing potential for conflict

of interest.

The potential for a conflict of interest must be deemed high if any of the following

occurred during the lookback period. If the Executive Officer determines the

verification body or its related entities or any member of the verification team

meets the criteria specified in section 95503(b), the Executive Officer shall find a

high potential conflict of interest with the following exceptions:

Prior to August 31, 2023, the Executive Officer shall deem the following services

to be medium potential for conflict of interest and allow verification services to

proceed when the verification body or its related entities or a member of the

verification team has provided the services listed in sections 95503(b)(2)(A), (B),

(C), (E), (G), (H), (I), or (N) within the five year lookback period, provided that the

potential conflict of interest is mitigated by meeting the minimum mitigation plan

requirements in section 95503(d)(1). On and after August 31, 2023, if any of the

situations or services listed in section 95503(b) occurred during the five year

lookback period by a verification body and its related entities or a verification

team member, verification services may not proceed and rotation is required.

(1) Organizational High Potential Conflict of Interest Conditions. The

verification body and responsible entity share any management staff or

board of directors membership, or any of the senior management staff of

the responsible entity have been employed by the verification body, or

vice versa; or

(2) Organizational and Individual High Potential Conflict of Interest

Conditions. Any employee of the verification body, or any employee of a

related entity, or a subcontractor who is a member of the verification team

has provided to the responsible entity any of the following services:

(A) Designing, developing, implementing, reviewing, or maintaining an

information or data management system for data submitted

pursuant to this subarticle or MRR unless the review was part of

providing independent quality assurance audit services, attestation

engagement services, providing validation or verification services

pursuant to the U.S. EPA RFS or the EU RED, or third-party

engineering reports pursuant to the U.S. EPA RFS;

(B) Developing CI or fuel transaction data or other greenhouse

gas-related engineering analysis that includes facility-specific

information;

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 248

services in the development and construction of a fuel production

facility; or energy efficiency, renewable power, or other projects

which explicitly identify greenhouse gas reductions as a benefit;

(D) Designing, developing, implementing, conducting an internal audit,

consulting, or maintaining a greenhouse gas emissions reduction or

greenhouse gas removal offset project as defined in the Cap-and-

Trade Regulation and reported to the Executive Officer, or a project

to receive LCFS project-based credits;

(E) Preparing or producing LCFS fuel pathway application or LCFS

reporting manuals, handbooks, or procedures specifically for the

responsible entity;

(F) Directly managing any health, environment or safety functions for

the responsible entity;

(G) Any service related to development of information systems, or

consulting on the development of environmental management

systems is considered high conflict of interest except for systems

that will not be part of the validation or verification process and

except for accounting software systems;

(H) Verification services that are not conducted in accordance with, or

equivalent to, section 95503 requirements, unless the systems and

data reviewed during those services, as well as the result of those

services, will not be part of the verification process;

(I) Reporting pursuant to this subarticle, or uploading data for the

Executive Officer, on behalf of the entity required to contract for

verification services;

(J) Owning, buying, selling, trading, or retiring LCFS credits, RINs, or

credits in any carbon market;

(K) Dealing in or being a promoter of credits on behalf of the

responsible entity;

(L) Appraisal services of carbon or greenhouse gas liabilities or assets;

(M) Brokering in, advising on, or assisting in any way in carbon or

greenhouse gas-related markets;

(N) Bookkeeping and other non-attest services related to accounting

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 249

records or financial statements, excluding services and results of

those services that will not be part of the validation or verification

process;

(O) Appraisal and valuation services, both tangible and intangible;

(P) Any actuarially oriented advisory service involving the

determination of amounts recorded in financial statements and

related accounts;

(Q) Any internal audit service that has been outsourced by the entity

required to contract for verification services that relates to the

entity’s internal accounting controls, financial systems or financial

statements, unless the result of those services will not be part of

the verification or validation process;

(R) Fairness opinions and contribution-in-kind reports in which the

verification or validation body has provided its opinion on the

adequacy of consideration in a transaction, unless the resulting

services will not be part of the verification or validation process;

(S) Acting as a broker-dealer (registered or unregistered), promoter or

underwriter on behalf of the responsible entity;

(T) Any legal services;

(U) Expert services to the entity required to contract for verification

services, a trade or membership group to which the entity required

to contract for verification services belongs, or a legal

representative for the purpose of advocating the entity’s interests in

litigation or in a regulatory or administrative proceeding or

investigation.

(3) Prohibition on Monetary or Non-Monetary Incentives. The potential for

conflict of interest shall be disclosed and deemed to be high when any

member of the verification body provides any type of monetary or non-

monetary incentive to an entity required to contract for verification services

to secure a validation or verification services contract.

The potential for conflict of interest shall be deemed to be high when any

member of the entity required to contract for verification services provides

any type of monetary or non-monetary incentive to a member of the

verification body to influence validation or verification documentation or

findings.

(4) Potential for High Conflict of Interest if Rotation Limit Exceeded. The

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 250

potential for a conflict of interest shall also be disclosed and deemed to be

high where any member of the verification body or verification team has

provided verification services for the entity required to contract for

verification services except within the time periods in which the entity

required to contract for verification services is allowed to use the same

verification body or team members as specified in section 95500(g).

to be low where the following conditions are met:

(1) No potential for a high conflict of interest is found pursuant to section

95503(b); and

(2) Any services provided by any member of the verification body or

verification team to the entity required to contract for verification, within the

look-back period specified in section 95503(a)(3), are valued at less than

20 percent of the fee for the proposed verification services. Any

verification conducted in accordance with, or substantially equivalent to,

section 95503 provided by the verification body or verification team

outside the jurisdiction of the Executive Officer is excluded from this

financial assessment, but must be disclosed to the Executive Officer in

accordance with section 95503(e).

(3) Non-CARB verification services are excluded from categories of risk if

those services are conducted in accordance with, or substantially

equivalent to, section 95503, including, but not limited to, auditing services

provided under the U.S. EPA RFS (QAP services, attest engagement

services, third-party engineering reports), third-party certification of

environmental management systems under ISO 14001, energy

management systems under 50001 standards, or certification systems

recognized by other governmental agencies, including the European

Commission. Verification services provided under MRR or the Cap-and-

Trade Regulation are also excluded from categories of risk for potential

conflict of interest.

(d) Medium Conflict of Interest. The potential for a conflict of interest shall be

deemed to be medium where the potential for a conflict of interest is not deemed

to be either high or low as specified in sections 95503(b) and 95503(c). The

potential for conflict of interest will also be deemed to be medium where there are

any instances of personal or familial relationships between the members of the

verification body and management or members of the entity required to contract

for verification services.

(1) If a verification body identifies a medium potential for conflict of interest

and intends to provide verification services for the entity required to

contract for verification services, the verification body shall submit, in

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 251

addition to the submittal requirements specified in section 95503(e), a plan

to avoid, neutralize, or mitigate the potential conflict of interest situation.

At a minimum, the conflict of interest mitigation plan shall include:

(A) A demonstration that any individuals with potential conflicts have

been removed and insulated from the project.

(B) An explanation of any changes to the organizational structure or

verification body to remove the potential conflict of interest. A

demonstration that any unit with potential conflicts has been

divested or moved into an independent entity or any subcontractor

with potential conflicts has been removed.

for potential conflict of interest.

(2) The Executive Officer shall evaluate the conflict of interest mitigation plan

and determine whether verification services may proceed pursuant to

section 95503(e).

(e) Conflict of Interest Submittal Requirements for Accredited Verification Bodies.

Verification bodies accredited by the Executive Officer to perform validation or

verification services must adhere to the conflict of interest submittal,

determinations, and monitoring requirements in MRR section 95133(e) through

(g), except section 95133(f)(2) and (3).

Except as otherwise specifically provided:

(1) Wherever the term “reporting entity” is used, the term “entity required to

contract for validation or verification services” shall be substituted;

(2) Whenever the term “emissions data report” is used, the term “applications

or reports specified in section 95500 of this subarticle” shall be

substituted;

(3) Whenever the term “verification services” is used, the term “verification or

validation services” shall be substituted;

(4) Wherever “section 95133(a)-(d)” referenced, “section 95503(a)-(d)” shall

be substituted; and

(5) When potential for a conflict of interest is deemed to be low, as specified

in section 95503(c), the verification body must submit its self-assessment

to the Executive Officer, except the Executive Officer authorization to

perform verification services as specified in MRR sections 95133(e)(1)

and 95133(f)(3) is not required prior to performing LCFS verification

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§95503. Conflict of Interest Requirements for Verification Bodies and Verifiers 252

services.

NOTE: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510,

41511, and 43018 Health and Safety Code; 42 U.S.C. section 7545, and Western Oil and Gas Ass’n v.

Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference:

Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516,

41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and

Western Oil and Gas Ass’n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr.

249 (1975).