California Code of Regulations
Title 17 - Public Health
Division 3 - Air Resources
Chapter 1 - Air Resources Board
Subchapter 10 - Climate Change
Article 5 - California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms
Subarticle 13 - ARB Offset Credits and Registry Offset Credits
Section 95989 - Direct Environmental Benefits in the State

(a) Offset projects using a protocol listed in section 95973(a)(2)(C) that are located within, or that avoid GHG emissions within, the State of California are considered to provide direct environmental benefits in the State.

(b) Any project located outside the State of California may submit the following information to ARB to enable a determination of whether the project provides direct environmental benefits in the State. Such determination must be based on a showing that the offset project or offset project type provides for the reduction or avoidance of emissions of any air pollutant that is not credited pursuant to the applicable Compliance Offset Protocol in the State or a reduction or avoidance of any pollutant that is not credited pursuant to the applicable Compliance Offset Protocol that could have an adverse impact on waters of the State.

(c) New offset projects. In order to be eligible to demonstrate that an offset project located outside the State of California provides direct environmental benefits in the State, the Offset Project Operator or Authorized Project Designee shall submit all relevant materials listed in this section along with the first reporting period Offset Project Data Report as specified in section 95976(d).

(d) Existing offset projects. For offset projects located outside the State of California which have already received ARB offset credits that would like to demonstrate that they provide direct environmental benefits in the State, the Offset Project Operator, Authorized Project Designee, or holder of the offset credits must submit all relevant materials listed in this section to ARB no later than December 31, 2021, to ensure that projects recognized as providing direct environmental benefits in the state can be identified prior to any surrender of compliance instruments in November 2022 to meet a compliance obligation for 2021 emissions.