Current through Register Vol. 56, No. 18, September 16, 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.
