Cal. Code Regs. Tit. 17, § 95990 - Recognition of Early Action Offset Credits

(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.

Notes

Cal. Code Regs. Tit. 17, § 95990

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.

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).