Current through Register Vol. 56, No. 24, December 18, 2024
(a) Following the issuance of a consistency
determination under N.J.A.C. 7:27C- 10.4(i) and the submission and approval of
a monitoring and verification report under the provisions of (g) and (h) below,
the Department will award one CO[2] offset allowance for each ton of
demonstrated reduction in COor CO[2] -equivalent emissions or sequestration of
CO, which it will record in the project sponsor's general account. If an
allowance is represented in metric tons, the Department will award 1.1023 tons
for every metric ton and will round down the total CO[2] offset allowances
awarded to the nearest whole ton.
(b) For CO[2] emissions offset projects
undertaken prior to January 1, 2020, the project sponsor shall submit a
monitoring and verification report covering the pre-2020 period by June 30,
2020.
(c) For CO[2] emissions
offset projects undertaken on or after January 1, 2020, the project sponsor
shall submit a monitoring and verification report within six months following
the completion of the last calendar year during which the offset project
achieved CO-equivalent emissions reductions or sequestration of CO[2] for which
the project sponsor seeks the award of CO[2] offset allowances.
(d) For an offset project, a monitoring and
verification report shall be submitted in a form prescribed by the Department
and shall include:
1. The project sponsor's
name, address, e-mail address, telephone number, facsimile transmission number,
and account number;
2. The CO[2]
emissions reduction or CO[2] sequestration determination as required by the
relevant provisions of N.J.A.C. 7:27C-10.5, 10.6, and 10.7, including a
demonstration that the project sponsor complied with the required
quantification, monitoring, and verification procedures under this subchapter,
as well as those outlined in the consistency application approved pursuant to
N.J.A.C. 7:27C-10.4(i);
3. A signed
certification statement by the project sponsor that reads "The undersigned
project sponsor hereby confirms and attests that the offset project upon which
this monitoring and verification report is based is in full compliance with all
of the requirements of this subchapter. The project sponsor holds the legal
rights to the offset project or has 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 this subchapter. 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 the consistency application that was the subject of
a consistency determination by the Department. I understand that this right to
audit shall include the right to enter the physical location of the offset
project and to make available to the Department any and all documentation
relating to the offset project at the Department's request. I submit to the
legal jurisdiction of the State of New Jersey.";
4. A certification signed by the project
sponsor certifying that all offset projects for which the project sponsor has
received CO[2] offset allowances under this subchapter (or corresponding
provisions in the rules of other participating states), under the project
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;
5. A
verification report and certification signed by an accredited independent
verifier that documents that he or she has reviewed the monitoring and
verification report and evaluated the following in relation to the applicable
requirements at N.J.A.C. 7:27C-10.5, 10.6, and 10.7, and any applicable
guidance issued by the Department:
i. The
adequacy and validity of information supplied by the project sponsor to
determine CO[2] emissions reductions or CO[2] sequestration pursuant to the
applicable requirements at N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
ii. The adequacy and consistency of methods
used to quantify, monitor, and verify CO[2] emissions reductions and CO[2]
sequestration in accordance with the applicable requirements at N.J.A.C.
7:27C-10.5, 10.6, and 10.7 and as outlined in the consistency application
approved pursuant to N.J.A.C. 7:27C-10.4(i);
iii. The adequacy and validity of information
supplied by the project sponsor to demonstrate that the offset project meets
the applicable eligibility requirements of N.J.A.C. 7:27C-10.5, 10.6, and 10.7;
and
iv. Such other evaluations and
verification reviews as the Department may require;
6. Disclosure of any voluntary or mandatory
programs, other than the COBudget Trading Program, to which greenhouse gas
emissions data related to the offset project has been, or will be, reported;
and
7. For an offset project
located in a state or United States jurisdiction that is not a participating
state, a demonstration that the project sponsor has complied with all
requirements of the cooperating regulatory agency in the state or United States
jurisdiction where the offset project is located.
(e) Following the receipt of a monitoring and
verification report pursuant to (c) or (d) above, the Department will determine
whether the report is complete for the purposes of commencing review. A
complete monitoring and verification report is one that is in an approved form
and the Department has determined to be complete for the purpose of commencing
its review. In NO[x] event shall a completeness determination prevent the
Department from requesting additional information needed by the Department to
approve or deny the submitted monitoring and verification report.
(f) The Department will only accept a
monitoring and verification report for an offset project for which the
Department has issued a consistency determination pursuant to N.J.A.C. 7:27C-
10.4(i) and will not accept a monitoring and verification report for an offset
project for which another participating state has issued a consistency
determination.
(g) The Department
will approve or deny a complete monitoring and verification report, in a format
approved by the Department and filed with the Department pursuant to (b), (c),
(d), and (f) above, within 45 days following receipt of a complete
report.
