This page last reviewed November 17, 2014

Allocation to Refineries


Information on the development of the refinery allocation methodology can be found in Appendix A to Second 15-Day Cap-and-Trade Regulatory Text: Refinery Allocation Methodology.

First Compliance Period

The allowance allocation methodology for petroleum refineries is different than for other sectors with product-based allocation in the first compliance period.  In November of 2012 and 2013, a total amount of vintage 2013 and vintage 2014 allowances, respectively, were allocated to the refining sector based on the total sector production of primary refinery products pursuant to section 95870(e) of the Cap-and-Trade Regulation.  This sector allocation was then distributed among individual refineries following the methods specified in section 95891(d) of the Cap-and-Trade Regulation.  

Details of the allowance allocation calculations for petroleum refineries in the first compliance period are provided in the Vintage 2013/2014 Allowance Allocation to Petroleum Refineries Document.

Second and Third Compliance Periods

In the second and third compliance periods, beginning with vintage 2015 allowance allocation in October 2014, a product-based allocation approach is used for refineries.  Under this approach, allowance allocation to each refinery is calculated using the “complexity weighted barrel” (CWB) benchmark and refinery-reported CWB product data.  

For questions or comments, please contact Mark Sippola at (916) 323-1095.