Current through Register Vol. 56, No. 18, September 16, 2024
(a) The project sponsor shall establish a general account under N.J.A.C. 7:27C-6.2(b).
(b) All submissions to the Department required for the award of CO[2] offset allowances under this subchapter shall be from the CO[2] authorized account representative for the general account of the relevant project sponsor.
(c) A consistency application for an offset project shall be submitted, in a format prescribed by the Department, and consistent with the requirements of this section, by the following deadlines:
1. For a forest offset project, by the date that is one year after the offset project is commenced, except as described in N.J.A.C. 7:27C-10.6(o); and
2. For an offset project other than a forest offset project, by the date that is six months after the offset project is commenced.
(d) The Department will deny any consistency application that fails to meet the deadlines of (c) above.
(e) A consistency application for an offset project shall include:
1. The project sponsor's name, address, e-mail address, telephone number, facsimile transmission number, and account number;
2. The offset project description, as required by the relevant provisions of N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
3. A demonstration that the offset project meets all applicable requirements of this subchapter or, in the case of an offset project located in a state or United States jurisdiction that is not a participating state, a demonstration that the offset project meets all applicable requirements of the cooperating regulatory agency in the state or United States jurisdiction where the offset project is located;
4. The emissions baseline determination as required by the relevant provisions of N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
5. An explanation of how the projected reduction or avoidance of atmospheric loading of CO[2] or CO[2] equivalent or the sequestration of carbon is to be quantified, monitored, and verified as required by the relevant provisions of N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
6. A completed consistency application agreement signed by the project sponsor that reads as follows: "I, the undersigned project sponsor (name) recognize and accept that the application for, and the receipt of, CO[2] offset allowances under the CO[2] Budget Trading Program is predicated on the project sponsor following all the requirements of N.J.A.C. 7:27C-10. I, the undersigned project sponsor, hereby certify that I hold the legal rights to the offset project or have been granted the right to act on behalf of a party that holds the legal rights to the offset project. I understand that eligibility for the award of CO[2] offset allowances under N.J.A.C. 7:27C-10is contingent on meeting the requirements of N.J.A.C. 7:27C-10. I authorize the Department to audit this offset project for purposes of verifying that the offset project, including the monitoring and verification plan, has been implemented as described in this application. I understand that this right to audit includes the right to enter the physical location of the offset project. With regard to any legal dispute under this subchapter, I submit to the jurisdiction of the State of New Jersey and all such disputes will be subject to applicable New Jersey law.";
7. A statement and certification report signed by the project sponsor certifying that all offset projects for which the sponsor has received COoffset allowances under this subchapter (or similar provisions in the rules of other participating states), under the sponsor's ownership or control (or under the ownership or control of any entity that controls, is controlled by, or has common control with the sponsor) are in compliance with all applicable requirements of the CO[2] Budget Trading Program in all participating states;
8. A verification report and certification signed by an accredited independent verifier indicating that he or she has reviewed the entire application and evaluated the following in relation to the applicable requirements of this subchapter and any applicable guidance issued by the Department:
i. The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable requirements of N.J.A.C. 7:27C-10.3, 10.5, 10.6, and 10.7;
ii. The adequacy and validity of information supplied by the project sponsor to demonstrate baseline emissions pursuant to the applicable requirements at N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
iii. The adequacy of the monitoring and verification plan submitted pursuant to the applicable requirements at N.J.A.C. 7:27C-10.5, 10.6, and 10.7; and
iv. Such other evaluations and statements as the Department may require in order to fully review whether the offset project meets the applicable requirements of N.J.A.C. 7:27C-10; and
9. Disclosure of any voluntary or mandatory programs, other than the COBudget Trading Program, pursuant to which greenhouse gas emissions data related to the offset project has been or will be reported.
(f) The Department will not accept as submitted, a consistency application for an offset project if a consistency application has already been submitted for the same project, or any portion of the same project, in another participating state, unless the consistency application was rejected by the participating state solely because more of the CO[2] equivalent emissions reduction or carbon sequestration resulting from the offset project is projected to occur in New Jersey than in any other participating state.
(g) Within 30 days following the receipt of the consistency application, the Department will notify the project sponsor whether the consistency application is complete. A complete consistency application is one that is in a form prescribed by the Department and is determined by the Department to contain all applicable information and documentation required by this subchapter. In NO[x] event will a completeness determination prevent the Department from requesting additional information in order to enable the Department to make a consistency determination under (h) below.
(h) Within 90 days of making the completeness determination under (g) above, the Department will issue a determination as to whether the offset project is consistent with the requirements of N.J.A.C. 7:27C-10.3 and this section and the requirements of the applicable offset project standards of N.J.A.C. 7:27C-10.5, 10.6, and 10.7. For any offset project found to be consistent with these requirements, the Department will issue a consistency determination to the project sponsor. For any offset project found to lack consistency with these requirements, the Department will inform the project sponsor of the offset project's deficiencies.
