Covered Entity

Covered Entity

An entity within California that has one or more of the processes or operations and has a compliance obligation as specified in subarticle 7 of California’s Cap and Trade Regulation; and that has emitted, produced, imported, manufactured, or delivered in 2008 or any subsequent year more than the applicable greenhouse gas threshold level specified in section 95812 (a) of the rule.[1]  Currently covered entities include major greenhouse gas emitting sources such as electricity generation (including imports) and large stationary sources (e.g., refineries, cement production facilities, oil and gas production facilities, glass manufacturing facilities, and food processing plants. Covered entities that emit 25,000 MTCO2e or more per year will have compliance obligations under California’s Cap-and-Trade regulation.[2]Sources: [1] California Code of Regulations, Title 17, § 95802 Definitions, Item (62), p.10. [2] Cap and Trade Regulation Instructional Guidance, Chapter 2: Is My Company Subject to the Cap-and-Trade Regulation?, California Air Resources Board, September 2012.