This section sets forth a compliance option to provide a regulated entity a way to incorporate an innovative concept to reduce emissions from sources in and around the regulated port or marine terminal at a level equivalent or greater to what would be achieved by reducing emissions from vessels under sections 93130.7 and 93130.9 of this Control Measure.
As set forth in this section, one or more innovative concepts can be implemented as a compliance pathway for meeting the requirements of this Control Measure, provided the innovative concepts result in emission reductions of PM 2.5, NOx, and ROG that are at least equivalent to the emission reductions that would have occurred using a CAECS.
(a) General requirements for using an innovative concept compliance option.(1) Applicants seeking approval of an innovative concept must submit their applications to the Executive Officer on or before the following dates in Table 5 for each vessel category: Table 5: Innovative Concept Application Due Date
| Vessel Type | Due Date |
| Container/ Reefer | December 1, 2021 |
| Passenger | December 1, 2021 |
| Ro-ro | December 1, 2021 |
| LA/LB Tankers | December 1, 2021 |
| Other Tankers | December 1, 2021 |
(2) The proposed innovative concept must reduce NOx, PM 2.5, and ROG emissions equivalent to or greater than the level that would have been achieved by the Control Measure, while not increasing GHG. Emission reductions are verified each year through annual reporting in section 93130.17(d) of this Control Measure.(3) The proposed innovative concept must achieve emissions reductions of NOx, PM 2.5, and ROG that, as of the date the compliance period begins, are early or in excess of: (1) any other state, federal or international rule, regulation, statute, or any other legal requirement (including any requirement under a Memorandum of Understanding with a government entity), that is in effect, has been approved, or has been noticed; or(2) of an emission reduction strategy identified in an AB 617 Community Emissions Reduction Program that has been approved by CARB's Governing Board.(4) The proposed innovative concept must achieve reductions in and around the California port or marine terminal at which the vessel visits take place for which the innovative concept is used. The reductions must be at the same port or marine terminal, within adjacent communities, or overwater within three nautical miles of the port or marine terminal.(5) The proposed innovative concept must not increase emissions at other ports or marine terminals.(6) The proposed innovative concept must achieve emissions reductions that exceed any reductions otherwise required by law, regulation, or legally binding mandate, and that exceed any reductions that would otherwise occur in a conservative business-as-usual scenario. For purposes of this section, "business as usual" means the set of conditions reasonably expected to occur within the relevant area in the absence of the incentive provided by the innovative concept provisions of this Control Measure, taking into account all current laws and regulations, as well as current economic and technological trends. The proposed innovative concept must achieve reductions that are real, quantifiable, verifiable, and enforceable where:(A) "Real" means that reductions result from a demonstrable action or set of actions, and are quantified using appropriate, accurate, and conservative methodologies that account for all emissions within the innovative concept;(B) "Quantifiable" means the ability to accurately measure and calculate reductions relative to a project baseline in a reliable and replicable manner for all emissions within the innovative concept;(C) "Verifiable" means that any emission assertions are well documented and transparent such that it lends itself to an objective review; and(D) "Enforceable" means the authority for CARB to hold a particular party or parties liable and to take appropriate action if any of the provisions of this article are violated.(7) No innovative concept shall have a compliance period greater than five years. If any law, regulation, or legally binding mandate (including any requirement under a Memorandum of Understanding with a government entity) requiring emission reductions comes into effect, is approved, or is noticed, which would affect the innovative concept, during an innovative concept's compliance period, then the innovative concept may continue to claim those emission reductions for the remainder of the compliance period, but the innovative concept may not be renewed for another compliance period. If an innovative concept has not been approved prior to the law, regulation, or legally binding mandate (including any requirement under a Memorandum of Understanding with a government entity) going into effect, or being approved, or being noticed, or the law, regulation, or legally binding mandate goes into effect before the innovative concept's compliance period renews, then only emission reductions that are in excess of what is required to comply with those laws, regulations, and/or legally binding mandates may be attributed toward the innovative concept. Upon completion of a compliance period, the Executive Officer may approve another compliance period of up to five years and the approved innovative concept shall continue to be effective provided the following requirements are met: (A) The applicant provides an updated application to the Executive Officer at least 180 calendar days prior to the end of the first compliance period;(B) The updated application shall address all items from section 93130.17(b)(1) and also clearly show that compliance with this subsection will continue for the next compliance period; and(C) The Executive Officer approves the updated application for an additional compliance period.(8) No innovative concept shall be extended for another compliance period if: (A) The Executive Officer concludes that any of the circumstances listed in subsection 93130.17(f)(1) of this Control Measure are present; or the applicant elects to cancel an approved innovative concept. If this occurs, vessel operators and terminal operators that had intended to use the canceled innovative concept shall comply with the provisions of this Control Measure, including the emission limits in sections 93130.7 and 93130.9 of this Control Measure. An innovative concept that is canceled prior to the end of its approved compliance period shall have its compliance period adjusted to end at the effective date of cancellation.(9) Visits made under an innovative concept are not counted toward a fleet's VIEs or terminal operator's TIEs in section 93130.11 of this Control Measure, and are ineligible for using the remediation fund provisions in section 93130.15 of this Control Measure.(10) Reductions can be used toward compliance as specified in this section only in the calendar year in which they are achieved or the following calendar year.(11) Early reductions achieved through an innovative concept that occur before a vessel or terminal's first compliance period can be used towards compliance during the first compliance period of up to five years. However, early reductions are only applicable for the initial compliance period, and will expire when the initial compliance period ends.(12) No innovative concept shall be partially or fully funded with a public incentive program.(13) Any person complying with this Control Measure using an approved innovative concept shall maintain records in a manner and form as specified by the Executive Officer in the approved innovative concept. Required records include, but are not limited to, information on fuel usage, routes, port calls, maintenance procedures, and emissions test results. Such records and reports shall be retained for a period of not less than five years and shall be submitted to the Executive Officer in the manner specified in the approved innovative concept and upon request by the Executive Officer, either within 10 calendar days or by a later date approved by the Executive Officer on a case-by-case basis.(14) No person shall comply with this section by operating under an innovative concept unless the applicant has first been notified in writing by the Executive Officer that the innovative concept application has been approved. Prior to such approval, vessel operators and terminal operators intending to use the innovative concept shall comply with the provisions of this section, including the emission limits in sections 93130.7 and 93130.9 of this Control Measure;(15) The innovative concept must be implementable within the timeframe needed to be used for compliance with this Control Measure, including any time needed for environmental review (if applicable); and(16) No person shall comply with this section by operating under an innovative concept that has been revoked as provided in section 93130.17(f) of this Control Measure.(b) Application and approval process.(1) Applications for innovative concepts shall contain, at a minimum, the following information: (A) Company name, address, and contact information;(B) Description of proposal including an overview of the source and scope of emission reductions, and a project site plan and location map;(C) Estimate of the vessel emissions planned to be covered under the innovative concept for each pollutant NOx, PM 2.5, and ROG by multiplying the emission factor for a pollutant found in section 93130.5(d) of this Control Measure by the expected number of vessel visits, average visit duration, and expected power used during an average visit;(D) The proposed recordkeeping, reporting, monitoring, and testing procedures that the applicant plans to use to demonstrate reductions;(E) A Memorandum of Understanding or similar agreement between the applicant, any funding partners (if more than one entity is providing funding), owners and operators of controlled equipment for the innovative concept that shows agreement regarding the innovative concept's scope and requirements for using the innovative concept in compliance with this Control Measure. The Memorandum of Understanding or similar agreement must be approved by the Executive Officer and must be in place prior to the start date of the innovative concept compliance period;(F) The proposed length of time during which the innovative concept would be used (up to five years, as specified in subsection 93130.17(a)(8) of this Control Measure), as well as the number and duration of any anticipated time extension requests as set forth in that same subsection;(G) A summary of all governmental approvals necessary to enable development of the innovative concept;(H) A discussion regarding any environmental review requirements that may apply to the proposed innovative concept, including identification of which agency would serve as the lead agency for environmental review purposes; and(I) Any information necessary to demonstrate that the proposed innovative concept meets all eligibility and applicability requirements in subsection 93130.17(a).(2) Applications will be published on CARB's website, and made available for 45 calendar days for public comment. After the public comment period, applicants shall submit to CARB a response to all public comments within 45 calendar days so the response can be posted with the application.(3) CARB Review and Approval. Once CARB posts the response, CARB shall evaluate the innovative concept to determine if:(A) The concept meets all eligibility and applicability requirements in subsection 93130.17(a);(B) The applicant provides enough information to estimate emission reductions;(C) The applicant provides a strategy to accurately record, report, monitor, and test for emission reductions;(D) The applicant responded fully to all public comments;(E) The applicant has demonstrated that the concept will be implementable within the timeframe needed to be used for compliance with this Control Measure, including any time needed for environmental review (if applicable); and(F) All required environmental review (if applicable), including any review required under the California Environmental Quality Act, has been completed for the proposed innovative concept. i. The determination as to which agency serves as the lead agency for purposes of the California Environmental Quality Act shall be made as specified in sections 15050 et seq. of title 14 of the California Code of Regulations.ii. If CARB is not the lead agency for purposes of conducting environmental review on a proposed innovative concept, the applicant must provide final, legally adequate environmental analysis documentation to CARB before the Executive Officer will approve the innovative concept for use in complying with this Control Measure. If no environmental review is determined to be required by a local lead agency, the applicant must submit documentation explaining why environmental review is not required, to the Executive Officer's satisfaction. The Executive Officer may deny, in whole or in part, an innovative concept application if, for any reason, the Executive Officer determines the innovative concept or the lead agency has not satisfied its environmental review requirements.iii. If CARB is the lead agency for purposes of conducting environmental review on a proposed innovative concept, then the applicant shall provide any additional documentation as needed to complete any environmental review CARB deems necessary. CARB's review and approval of an innovative concept is not a land use approval; CARB lacks authority to either permit or deny an applicant from moving forward with the activity underlying a proposed innovative concept. CARB's authority in reviewing an innovative concept proposal is limited to determining whether a proposed innovative concept is eligible for use in complying with this Control Measure. The Executive Officer may deny, in whole or in part, an innovative concept application if necessary to avoid any significant environmental impact, or for any other reason set forth in this section.iv. Environmental Review Costs and Fees. If environmental review is required in connection with a proposed innovative concept and CARB incurs costs in preparing such environmental review, CARB may charge and collect a reasonable fee from innovative project applicants to recover those costs as set forth in section 21089 of the Public Resources Code.(4) If an application is approved, the Executive Officer will notify the applicant of approval to use the innovative concept for compliance with this Control Measure and will publish the approval in an Executive Order, along with the application. The Executive Officer's approval of an application is not a local land use approval. All innovative concepts must fully comply with all applicable laws, ordinances, regulations and standards, including by obtaining any permits or approvals necessary to undertake the activities constituting the Innovative Concept, and complying with all environmental review requirements associated with such activities.(5) If an application is incomplete, the Executive Officer will notify the applicant of the deficiency. Applications will be denied after 30 calendar days unless the applicant corrects and resubmits the application for a new evaluation per section 93130.17(b)(3) of this Control Measure.(c) Reporting visit information. (1) All vessel operators and terminal operators using an approved innovative concept to comply with this Control Measure shall report all vessel visit activity as specified in sections 93130.7 and 93130.9, respectively.(d) Annual reporting. By February 1 of each year, an innovative concept applicant shall report its use of an innovative concept for the prior calendar year to CARB, as set forth in the subsections below. The report shall include a list of each pollutant in section 93130.17(a)(2) from vessel visits that used the innovative concept to comply with the Control Measure, and a list of the reductions for each pollutant achieved through the innovative concept to comply with the Control Measure. The emission reductions of each pollutant achieved by the innovative concept must be equal to or exceed the emissions of each pollutant from the cumulative vessel visits.
(1) Listing of visits and emissions from ocean-going vessels that used the innovative concepts to comply with the Control Measure.(A) The applicant shall determine the total amount of emissions from all vessel visits that used an innovative concept toward compliance.(B) Emissions are determined by using the total fuel used reported for each vessel visit at berth in section 93130.7(e)(4)(N) of this Control Measure in kg multiplied by the factor (1 kWh / 0.270 kg MGO) multiplied by the anticipated emissions reductions rate for each pollutant of NOx, PM 2.5, and ROG. The anticipated emission reductions rate for each pollutant is the difference between the default emission rate and the achieved emission rate found in section 93130.5(d)(1) and (2) of this Control Measure.(C) If an innovative concept affects the amount of fuel used on a vessel's visit, then the applicant must instead provide the total power consumed at berth by the vessel as a basis to estimated baseline emissions of the vessel. In this case, baseline emissions are determined as the total power consumed at berth multiplied by the anticipated emissions reductions rate for each pollutant of NOx, PM 2.5, and ROG. The anticipated emission reductions rate for each pollutant is the difference between the default emission rate and the achieved emission rate found in section 93130.5(d)(1) and (2) of this Control Measure.(2) Listing of emissions reductions that were achieved with the innovative concept to offset ocean-going vessel emissions. Applicants shall calculate innovative concept reductions for each pollutant using the methodology described in the application per section 93130.17(b)(1)(D) of this Control Measure.
(e) Submissions. Applications and reports for innovative concepts shall be submitted to CARB according to section 93130.19 of this Control Measure.
(f) Revocation or modification of approved innovative concepts. (1) The Executive Officer may revoke or modify an approved innovative concept Executive Order if the Executive Officer concludes:(A) The innovative concept application provisions in this Control Measure or Executive Order are not met;(B) The approved innovative concept no longer meets the criteria or requirements for an innovative concept;(C) The applicant can no longer comply with the requirements of the approved innovative concept in its current form; or(D) The approved innovative concept becomes no longer capable of being used for compliance with this Control Measure, for any reason, including due to failure to meet any eligibility or applicability requirement in subsection 93130.17(a), or if any review or implementation related circumstances might delay the innovative concept such that it is no longer useful as a compliance pathway.(2) CARB will provide 30 calendar days notice to the innovative concept holder of the revocation or modification.(3) CARB's determination is final and not subject to review.(4) Public notification of a revocation or modification of an approved innovative concept shall be made available on CARB's website.(g) Responsibility to ensure compliance. If a proposed innovative concept is not approved, or if an innovative concept is not ultimately implemented in a manner enabling it to be used as a pathway for compliance with this Control Measure, then the otherwise-applicable provisions of this Control Measure shall prevail. Any entity failing to comply with this Control Measure is in violation of this Control Measure, as set forth in 93130.20 of this Control Measure.
Cal. Code Regs. Tit. 17, § 93130.17
1. New section filed 12-30-2020; operative 1-1-2021 (Register 2021, No. 1). (Transmission and filing deadlines specified in Government Code sections 11346.4(b) and 11349.3(a), respectively, extended 60 calendar pursuant to Executive Order N-40-20.) Note: Authority cited: Sections 38560, 38562, 39600, 39601, 39658, 39659, 39666, 43013 and 41511, Health and Safety Code. Reference: Sections 38510, 38530, 38562, 38566, 38580, 39600, 39650, 39658, 39659, 39666, 41510 and 41511, Health and Safety Code.
1. New section filed 12-30-2020; operative 1/1/2021 (Register 2021, No. 1). (Transmission and filing deadlines specified in Government Code sections 11346.4(b) and 11349.3(a), respectively, extended 60 calendar pursuant to Executive Order N-40-20.)