Current through Register 2024 Notice Reg. No. 38, September 20, 2024
(a) An ARB offset credit issued pursuant to
the Program for Recognition of Early Action Offset Credits may be invalidated
pursuant to section
95985 as follows:
(1) An ARB offset credit issued to a
non-sequestration project or an urban forest project, or a U.S. forest offset
project issued on or after July 1, 2014, may be invalidated pursuant to
sections 95985(a) through
(h) and section
95985(j) and as
follows:
(A) If an Offset Project Operator or
Authorized Project Designee was issued offset credits pursuant to the Program
for Recognition of Early Action Offset Credits and the party identified in
section 95985(e)(2) is no
longer in business pursuant to section
95101(h)(2), the
provisions in sections
95985(h)(1)(C)1.
through 3. and sections
95985(h)(2)(B)1.
through 3. still apply to the Offset Project Operator; or
(B) If the holder of early action offset
credits was issued ARB offset credits pursuant to the Program for Recognition
of Early Action Offset Credits and the party identified in section
95985(e)(2) is no
longer in business pursuant to section
95101(h)(2), the
provisions in sections
95985(h)(1)(C)1.
through 3. and sections
95985(h)(2)(B)1.
through 3. apply to the holder that was issued ARB offset credits pursuant to
the Program for Recognition of Early Action Offset Credits and not the Offset
Project Operator.
(2) An
ARB offset credit issued to a U.S. forest offset project on or prior to July 1,
2014, may be invalidated pursuant to sections
95985(a) through
(g) and sections
95985(i) and
(j).
(3) For an early action offset project
developed under one of the quantification methodologies in the Program for
Recognition of Early Action Offset Credits the invalidation timeframe will
remain at eight years, unless one of the following applies and are met to
reduce the invalidation timeframe to three years:
(A) If an Offset Project Operator or
Authorized Project Designee transitions an early action offset project to a
Compliance Offset Protocol pursuant to the Program for Recognition of Early
Action Offset Credits:
1. An ARB-accredited
verification body must verify a subsequent Offset Project Data Report generated
under a Compliance Offset Protocol. The verification must meet the requirements
pursuant to sections
95985(b)(1)(B)1.,
(b)(1)(B)2., and (b)(1)(B)4.b.
2.
The ARB-accredited verification body must be a different verification body than
the one that conducted any regulatory verification services of the early action
offset project pursuant to the Program for Recognition of Early Action Offset
Credits or that verified the early action offset project under the Early Action
Offset Program, and must meet the requirements for conflict of interest
pursuant to section
95979 and for the rotation of
verification bodies pursuant to section
95977.1(a);
and
3. If the requirements in
sections 95990(a)(3)(A) through
(a)(3)(A)2. are met, the invalidation
timeframe would be as specified in section
95985(b)(1)(B)3.b.;
or
(B) If an Offset
Project Operator or Authorized Project Designee does not transition an early
action offset project to a Compliance Offset Protocol pursuant to the Program
for Recognition of Early Action Offset Credits, or the Offset Project Operator
or Authorized Project Designee chooses to reduce the invalidation timeframe
prior to the verification of a subsequent Offset Project Data Report being
verified pursuant to the Program for Recognition of Early Action Offset Credits
above:
1. An ARB-accredited verification body
must conduct full offset verification services pursuant to sections
95977.1 and
95978, except for section
95977.1(b)(3)(M),
based on the original data report and/or reporting information submitted to the
Early Action Offset Program for the original offset verification conducted
under the Early Action Offset Program for the applicable early action reporting
period. Although the requirements in section
95977.1(b)(3)(M)
do not need to be met under this section, any misreporting, discrepancies, and
omissions found during the full offset verification services must be included
in the offset material misstatement calculation performed pursuant to section
95977.1(b)(3)(Q).
The full offset verification services must be in addition to any regulatory
verification services conducted for the early action offset project pursuant to
the Program for Recognition of Early Action Offset Credits. The verification
body must submit the verification materials pursuant to section
95985(b)(1)(A)2.a.
and the Offset Project Registry, and ARB must review the verification materials
pursuant to sections
95985(b)(1)(A)2.b.
through d.;
2. The ARB-accredited
verification body must meet the requirements for conflict of interest pursuant
to section
95979 and rotation of verification
bodies pursuant to section
95977.1(a) and be
a different verification body than the one that conducted any regulatory
verification services of the applicable early action reporting period for the
early action offset project pursuant to the Program for Recognition of Early
Action Offset Credits or that verified the applicable early action reporting
period for the early action offset project under the Early Action Offset
Program; and
3. The new
ARB-accredited verification body must complete the full offset verification
services by submitting an Offset Verification Statement, pursuant to section
95977.1(b)(3)(R)1.,
within a maximum of three years following the issuance of ARB offset credits
for the early action reporting period as a result of the regulatory
verification services performed pursuant to the Program for Recognition of
Early Action Offset Credits, and the Offset Project Operator or Authorized
Project Designee must receive a Positive or Qualified Positive Offset
Verification Statement from the new verification body for the same early action
reporting period. The full offset verification services must include a site
visit to the offset project location and any other sites as specified in the
applicable early action quantification methodology. The site visit must be
performed only once for all qualifying early action reporting
periods.
4. If the requirements of
sections 95990(a)(3)(B) through
(a)(3)(B)3. are met, the invalidation
timeframe would be as specified in section
95985(b)(1)(A)3.b.
(4) For an early action offset project
developed under the quantification methodology in the Program for Recognition
of Early Action Offset Credits, the invalidation timeframe will remain at eight
years, unless the following criteria are met to reduce the invalidation
timeframe to three years:
(A) An
ARB-accredited verification body must conduct full offset verification services
pursuant to sections
95977.1 and
95978, except for section
95977.1(b)(3)(M),
based on the original data report and/or reporting information submitted to the
Early Action Offset Program for the original offset verification conducted
under the Early Action Offset Program for the applicable early action reporting
period. Although the requirements in section
95977.1(b)(3)(M)
do not need to be met under this section, any misreporting, discrepancies, and
omissions found during the full offset verification services must be included
in the offset material misstatement calculation performed pursuant to section
95977.1(b)(3)(Q).
The full offset verification services must be in addition to any regulatory
verification services conducted for the early action offset project pursuant to
the Program for Recognition of Early Action Offset Credits. The verfication
body must submit the verification materials pursuant to section
95985(b)(1)(A)2.a.
and the Offset Project Registry and ARB must review the verification materials
pursuant to sections
95985(b)(1)(A)2.b.
through d.;
(B) The ARB-accredited
verification body must meet the requirements for conflict of interest pursuant
to section
95979 and the rotation of
verification bodies pursuant to section
95977.1(a) and be
a different verification body than the one that conducted any regulatory
verification services of the applicable early action reporting period for the
early action offset project pursuant to the Program for Recognition of Early
Action Offset Credits or that verified the applicable early action reporting
period for the early action offset project under the Early Action Offset
Program; and
(C) The new
ARB-accredited verification body must complete the full offset verification
services by submitting an Offset Verification Statement, pursuant to section
95977.1(b)(3)(R)1.,
within a maximum of three years following the issuance of ARB offset credits
for the early action reporting period as a result of the regulatory
verification services performed pursuant to the Program for Recognition of
Early Action Offset Credits and the Offset Project Operator or Authorized
Project Designee must receive a Positive or Qualified Positive Offset
Verification Statement from the new verification body for the same early action
reporting period. The full offset verification services must include a site
visit to the offset project location and any other sites as specified in the
applicable early action quantification methodology. The site visit must only be
performed once for all qualifying early action reporting periods.
(D) If the requirements of sections
95990(a)(4) through
(a)(4)(C) are met the invalidation timeframe
would be as specified in section
95985(b)(1)(A)3.b.
1. New
subarticle 14 (sections
95990-95995) and section filed
12-13-2011; operative 1-1-2012 pursuant to Government Code section
11343.4
(Register 2011, No. 50).
2. Change without regulatory effect
repealing subsection (c)(5)(E) and amending subsections (f)(3) and
(l)(1)(A)-(B) filed 2-15-2012 pursuant to section
100, title 1, California Code of
Regulations (Register 2012, No. 7).
3. Amendment filed 6-26-2014;
operative 7-1-2014 pursuant to Government Code section
11343.4(b)(3)
(Register 2014, No. 26).
4. Amendment of subsections (c)(5)(D),
(i)(1)(D)2., (i)(1)(D)2.a.-b., (i)(1)(D)3.a.-b., (i)(1)(D)4.-5.,
(i)(1)(H)-(i)(1)(H)1., (k)(1)(A) and (k)(1)(C)-(E) filed 12-31-2014; operative
1-1-2015 pursuant to Government Code section
11343.4(b)(3)
(Register 2015, No. 1).
5. Amendment of subsections (c)(1) and
(c)(3)(B), new subsection (c)(3)(C), amendment of subsections (c)(5)(F)-(G),
new subsections (c)(5)(H)-(c)(5)(H)2., amendment of subsection (i)(1)(F)2. and
(i)(1)(G), new subsections (i)(1)(H)-(i)(1)(H)2., subsection relettering,
amendment of subsections (k)(1) and (k)(1)(E)-(F), new subsections (k)(1)(G)
and (k)(3)(D) and amendment of subsection (k)(5) filed 10-20-2015; operative
11-1-2015 pursuant to Government Code section
11343.4(b)(3)
(Register 2015, No. 43).
6. Amendment filed 9-18-2017; operative
10-1-2017 pursuant to Government Code section
11343.4(b)(3)
(Register 2017, No. 38).
7. Amendment of subsections (a)(3)(A)2. and
3., (a)(3)(B)1.-3. and (a)(4)(A)-(C) filed 3-29-2019; operative 3-29-2019
pursuant to Government Code section
11343.4(b)(3)
(Register 2019, No. 13).
Note: Authority cited: Sections
38510,
38560,
38562,
38570,
38571,
38580,
39600
and
39601,
Health and Safety Code. Reference: Sections
38530,
38560.5,
38564,
38565,
38570
and
39600,
Health and Safety Code.
