Source: http://www.dec.ny.gov/regs/47190.html
Timestamp: 2014-09-21 00:04:39
Document Index: 738029535

Matched Legal Cases: ['art 242', 'art 242', '§242', '§242', '§242', '§242', 'art 242', 'art 242', 'art 242', '§242', 'art 60', 'art 303', 'art 1', '§242', '§242', 'art 242', 'art 242', 'art 242']

Subpart 242-10: CO2 Emissions Offset Projects - NYS Dept. of Environmental Conservation
Home » Regulations and Enforcement » Regulations » Chapter III- Air Resources » Subpart 242-10: CO2 Emissions Offset Projects
242-10.1 CO2 emissions offset purpose
242-10.2 CO2 emissions offset definitions
242-10.3 General requirements
242-10.4 Application process
242-10.5 CO2 emissions offset project standards
242-10.6 Accreditation of independent verifiers
242-10.7 Award of CO2 offset allowances
§242-10.1 CO2 emissions offset purpose
The department will provide for the award of CO2 offset allowances to sponsors of CO2 emissions offset projects that have reduced or avoided atmospheric loading of CO2, CO2 equivalent or sequestered carbon as demonstrated in accordance with the applicable provisions of this Subpart. The requirements of this Subpart seek to ensure that CO2 offset allowances awarded represent CO2 equivalent emission reductions or carbon sequestration that are real, additional, verifiable, enforceable, and permanent within the framework of a standards-based approach. Subject to the relevant compliance deduction limitations of section 242-6.5(a)(3) of this Part, CO2 offset allowances may be used by any CO2 budget source for compliance purposes.
§242-10.2 CO2 emissions offset definitions
(a) Anaerobic digester. A device that promotes the decomposition of organic material to simple organics and gaseous biogas products, usually accomplished by means of controlling temperature and volume, and including a methane recovery system.
(b) Anaerobic digestion. The degradation of organic material including manure brought about through the microorganisms in the absence of elemental oxygen.
(c) Anaerobic storage. Storage of organic material in an oxygen-free environment, or under oxygen-free conditions, including but not limited to, holding tanks, ponds, and lagoons.
(d) ANSI. American National Standards Institute.
(e) ASHRAE. American Society of Heating, Refrigerating and Air-Conditioner Engineers.
(f) Biogas. Gas resulting from the decomposition of organic matter under anaerobic conditions. The principle constituents are methane and carbon dioxide.
(g) Boiler (commercial). A self contained, low-pressure appliance for supplying steam or hot water to a commercial building.
(h) Boiler (residential). A self contained, low-pressure appliance for supplying steam or hot water to a residential building.
(i) Building envelope. The elements of a building that separate conditioned space from unconditioned space, or that enclose semi-heated space, through which thermal energy may be transferred to or from the exterior, unconditioned space, or conditioned space. Includes all elements that separate the interior of a building from the outdoor environment, including walls, windows, foundation, basement slab, ceiling, roof, and insulation.
(j) CO2e. CO2e means carbon dioxide equivalent.
(k) Commercial building. A building to which the provisions of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) - 2013 (see Table 1, section 200.9 of this Title) apply, which includes buildings except low-rise residential buildings. Low-rise residential buildings include single family homes, multifamily structures of three stories or fewer above grade, and manufactured homes (modular and mobile).
(l) Conflict of interest. A situation that may arise with respect to an individual in relation to any specific project sponsor, CO2 emissions offset project or category of offset projects, such that the individual's other activities or relationships with other persons or organizations render or may render the individual incapable of providing an impartial certification opinion, or otherwise compromise the individual's objectivity in performing certification functions.
(m) Condensing mode. The design and operation of furnaces or boilers in a mode that leads to the production of condensate in flue gases.
(n) Cooperating regulatory agency. A regulatory agency in a state or United States jurisdiction that is not a participating state that has entered into a memorandum of understanding with the appropriate regulatory agencies of all participating states to carry out certain obligations relative to CO2 emissions offset projects in that state or United States jurisdiction, including but not limited to the obligation to perform audits of offset project sites, and report violations of this Subpart.
(o) Energy conservation measure (ECM) or energy efficiency measure (EEM). A set of activities designed to increase the energy efficiency of a building or improve the management of energy demand. An ECM/EEM may involve one or more of the following: physical changes to facility equipment, modifications to a building, revisions to operating and maintenance procedures, software changes, or new means of training or managing users of the building or operations and maintenance staff.
(p) Energy performance. A measure of the relative energy efficiency of a building, building equipment, or building components, as measured by the amount of energy required to provide building services. For building equipment and components, a relative measure of the impact of equipment or components on building energy usage.
(q) Energy services. Provision of useful services to building occupants, such as heating and hot water, cooling, and lighting.
(r) Forested condition. Land shall be deemed to be in a forested condition if it is:
(1) at least 1.0 acre in size and 120.0 feet wide measured stem-to-stem from the outer-most edge. Forested strips must be 120.0 feet wide for a continuous length of at least 363.0 feet in order to meet the acre threshold; and
(2) meets at least one of the two following stocking criteria:
(i) the condition is at least 10 percent stocked by trees of any size or has been at least 10 percent stocked in the past, and the condition is not subject to non-forest use(s) that prevent normal tree regeneration and succession such as regular mowing, intensive grazing, or recreation activities; or
(ii) in several western woodland species where stocking cannot be determined, the condition has at least five percent crown cover by trees of any size, or has had at least five percent cover in the past, and the condition is not subject to non-forest use that prevents normal regeneration and succession such as regular mowing, chaining, or recreation activities.
(s) Furnace (residential). A self-contained, indirect-fired appliance that supplies heated air to a residential building through ducts to conditioned spaces and that has a heat input rate of less than 225,000 Btu/hr. May apply to a furnace that meets the above heat input rate criteria and is installed in a commercial building.
(t) HVAC system. The system or systems that provide, either collectively or individually, heating, ventilation, or air conditioning to a building, including the equipment, distribution network, and terminals.
(u) IESNA. Illuminating Engineering Society of North America.
(v) Independent verifier. An individual that has been approved by the department or its agent to conduct verification activities.
(w) Market penetration rate. A measure of the diffusion of a technology, product, or practice in a defined market, as represented by the percentage of annual sales for a product or practice, or as a percentage of the existing installed stock for a product or category of products, or as the percentage of existing installed stock that utilizes a practice. The department may determine an appropriate market definition and market penetration metric for a category of technology, product or practice, and may issue guidance specifying the technologies, products or practices that meet a specified market penetration rate.
(x) Non-census water. Streams, sloughs, estuaries, and canals more than 120 feet and less than 1/8 of a mile wide. Lakes, reservoirs, and ponds one (1) to 40 acres in size.
(y) Non-forested condition. Land that does not meet the definition of "forested condition." Non-forested land includes areas used for crops, improved pasture, residential areas, city parks, improved roads of any width and adjoining rights-of-way, power line clearings of any width, and non-census water. If intermingled in forest areas, unimproved roads and non-forest strips must be more than 120.0 feet wide, and clearings more than one acre in size, to qualify as non-forest land.
(z) Offset project. An offset project includes all equipment, materials, items, or actions directly related to the reduction of CO2 equivalent emissions or the sequestration of carbon specified in a consistency application submitted pursuant to section 242-10.4 of this Subpart. Equipment, materials, items, or actions unrelated to an offset project reduction of CO2 equivalent emissions or the sequestration of carbon, but occurring at a location where an offset project occurs, shall not be considered part of an offset project, unless specified at section 242-10.5 of this Subpart.
(aa) On-site combustion. The combustion of fossil fuel at a building to provide building services, such as heating, hot water, or electricity.
(ab) Passive solar. A combination of building design features and building components that utilize solar energy to reduce or eliminate the need for mechanical heating and cooling and daytime artificial lighting.
(ac) Permanently retired. A greenhouse gas allowance or credit has been "permanently retired" if it has been placed in a retirement account controlled by the jurisdiction that generated the allowance or credit, or has been placed in an allowance retirement account controlled by the department, or is otherwise determined by the department to have been rendered unusable.
(ad) Project commencement. For an offset project involving physical construction, other work at an offset project site, or installation of equipment or materials, the date of the beginning of such activity. For an offset project that involves the implementation of a management activity or protocol, the date on which such activity is first implemented or such protocol first utilized.
(ae) Regional-type anaerobic digester. An anaerobic digester using feedstock from more than one agricultural operation, or importing feedstock from more than one agricultural operation. Also commonly referred to as a "community digester" or "centralized digester."
(af) Renewable portfolio standard. A statutory or regulatory requirement that a load-serving entity provide a certain portion of the electricity it supplies to its customers from renewable energy sources, or any other statutory or regulatory requirement that a certain portion of electricity supplied to the electricity grid be generated from renewable energy sources.
(ag) Residential building. A low-rise residential building to which the provisions of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) - 2013 (see Table 1, section 200.9 of this Title) do not apply. Includes single family homes, multifamily structures of three stories or fewer above grade, and manufactured homes (modular and mobile).
(ah) RESNET. Residential Energy Services Network.
(ai) SF6-containing operating equipment. Any equipment used for the transmission and distribution of electricity that contains SF6.
(aj) System benefit fund. Any fund collected directly from retail electricity or natural gas ratepayers.
(ak) Total solids. Total solids are the total of all solids in a sample. They include the total suspended solids, total dissolved solids, and volatile suspended solids.
(al) Transmission and/or distribution entity. The assets and equipment used to transmit and distribute electricity from an electric generator to the electrical load of a customer. Includes all related assets and equipment located within the service territory of the entity, defined as the service territory of a load-serving entity specified by the applicable state department.
(am) Verification. The determination by an independent verifier that certain parts of a CO2 emissions offset project consistency application and/or measurement, monitoring or verification report conform to the requirements of this Subpart.
(an) Volatile solids. The fraction of total solids that is comprised primarily of organic matter.
(ao) Whole-building energy performance. The overall energy performance of a building, taking into account the integrated impact on energy usage of all building components and systems.
(ap) Whole-building retrofit. Any building project that involves the replacement of more than one building system, or set of building components, and also requires a building permit.
(aq) Zero net energy building. A building designed to produce as much energy, using renewable energy sources, as the building is projected to use, as measured on an annual basis.
§242-10.3 General requirements
(a) Eligible CO2 emissions offset projects. To qualify for the award CO2 offset allowances offset projects shall satisfy all the applicable requirements of this Subpart.
(1) Offset project types. The following types of offset projects are eligible for the award of CO2 offset allowances:
(i) landfill methane capture and destruction;
(ii) reduction in emissions of sulfur hexafluoride (SF6);
(iii) sequestration of carbon due to afforestation;
(iv) reduction or avoidance of CO2 emissions from natural gas, oil, or propane end-use combustion due to end-use energy efficiency; and
(v) avoided methane emissions from agricultural manure management operations.
(2) Offset project locations. To qualify for the award of CO2 allowances under this Subpart, eligible offset projects may be located in any of the following locations:
(i) in New York State;
(ii) projects located (in whole or in part) in one or more participating states are not eligible for CO2 offset allowances under this Subpart unless more of the CO2 equivalent emissions reduction or carbon sequestration due to the offset project is projected to occur in New York than in any other participating state; and
(iii) in any state or other United States jurisdiction in which a cooperating regulatory agency has entered into a memorandum of understanding with the department and the appropriate regulatory agencies of all participating states to carry out certain obligations relative to CO2 emissions offset projects in that state or U.S. jurisdiction, including but not limited to the obligation to perform audits of offset project sites, and report violations of this Subpart.
(b) Project sponsor. Any person may act as the sponsor of an eligible CO2 emissions offset project, provided that person meets the requirements at section 242-10.4 of this Subpart.
(c) General additionality requirements. Except as provided with respect to specific offset project standards in section 242-10.5 of this Subpart, the following general requirements shall apply.
(1) CO2 offset allowances shall not be awarded to an offset project that is required pursuant to any local, State or Federal law, regulation, or administrative or judicial order. If an offset project receives a consistency determination under section 242-10.4 of this Subpart and is later required by local, State or Federal law, regulation, or administrative or judicial order, then the offset project shall remain eligible for the award of CO2 offset allowances until the end of its current allocation period but its eligibility shall not be extended for an additional allocation period.
(2) CO2 offset allowances shall not be awarded to an offset project that includes an electric generation component, unless the project sponsor transfers legal rights to any and all attribute credits (other than the CO2 offset allowances awarded under section 242-10.7 of this Subpart) generated from the operation of the offset project that may be used for compliance with a renewable portfolio standard or other regulatory requirement, to the department or its agent.
(3) CO2 offset allowances shall not be awarded to an offset project that receives funding or other incentives from any system benefit fund, or funds or other incentives provided through the energy efficiency and clean energy technology account allocation required pursuant to section 242-5.3(a) of this Part.
(4) CO2 offset allowances shall not be awarded to an offset project that is awarded credits or allowances under any other mandatory or voluntary greenhouse gas program.
(d) Maximum allocation periods for CO2 emissions offset projects.
(1) Maximum allocation periods. Except as provided in paragraph (2) of this subdivision, the department may award CO2 offset allowances under section 242-10.7 of this Subpart for an initial 10-year allocation period. At the end of the initial 10-year allocation period, the department may award CO2 offset allowances for a second 10-year allocation period, provided the offset sponsor has submitted a consistency application pursuant to section 242-10.4 of this Subpart prior to the expiration of the initial allocation period, and the department has issued a consistency determination pursuant to section 242-10.4(e)(2) of this Subpart.
(2) Maximum afforestation allocation period. The department may award CO2 offset allowances under section 242-10.7 of this Subpart for any afforestation offset project for an initial 20-year allocation period. At the end of the initial 20-year allocation period, the department may award CO2 offset allowances for a second 20-year allocation period, provided the offset sponsor has submitted a consistency application for the afforestation offset project pursuant to section 242-10.4 of this Subpart prior to the expiration of the initial allocation period, and the department has issued a consistency determination pursuant to section 242-10.4(e)(2) of this Subpart. At the end of the second 20-year allocation period, the department may award CO2 offset allowances for a third 20-year allocation period, provided the offset sponsor has submitted a consistency application for the afforestation offset project pursuant to section 242-10.4 of this Subpart prior to the expiration of the second allocation period, and the department has issued a consistency determination pursuant to section 242-10.4(e)(2) of this Part. In no event may an afforestation offset project be awarded CO2 offset allowances for more than a total of 60 allocation years.
(e) Offset project audit. Project sponsors shall provide, in writing, an access agreement to the department granting the department or its agent access to the physical location of the offset project to inspect for compliance with this Subpart. For offset projects located in any state or other U.S. jurisdiction that is not a participating state, project sponsors shall also provide, in writing, an access agreement to the department granting the cooperating department with access to the physical location of the offset project to inspect for compliance with this Subpart.
(f) Ineligibility due to noncompliance. If at any time the department determines that a project sponsor has not complied with the requirements of this Subpart, then the department may revoke and retire any and all CO2 offset allowances in the project sponsor's account. If at any time the department determines that an offset project does not comply with the requirements of this Subpart, then the department may revoke any approvals it has issued relative to that offset project.
§242-10.4 Application process
(a) Establishment of general account. The sponsor of an offset project must establish a general account under section 242-6.2(b) of this Part. All submissions to the department required for the award of CO2 offset allowances under this Subpart must be from the CO2 authorized account representative for the general account of the sponsor of the relevant offset project or, herein referred to as "project sponsor."
(b) Consistency application deadlines.
(1) The consistency application must be submitted by the date that is six months after the offset project is commenced.
(2) Any consistency application that fails to meet the deadlines of this subdivision will result in the denial of the consistency application and the continued ineligibility of the subject offset project.
(c) Consistency application contents.
(1) For an offset project, the consistency application must include the following information.
(i) The project's sponsor's name, address, e-mail address, telephone number and account number.
(ii) The offset project description as required by the relevant provisions of section 242-10.5 of this Subpart.
(iii) A demonstration that the offset project meets all applicable requirements set forth in this Subpart.
(iv) The emissions baseline determination as required by the relevant provisions of section 242-10.5 of this Subpart.
(v) An explanation of how the projected reduction or avoidance of atmospheric loading of CO2 or CO2 equivalent or the sequestration of carbon is to be quantified, monitored, and verified as required by the relevant provisions of section 242-10.5 of this Subpart.
(vi) A completed consistency application agreement that reads as follows: "The undersigned project sponsor recognizes and accepts that the application for, and the receipt of, CO2 offset allowances under the CO2 Budget Trading Program is predicated on the project sponsor following all the requirements of Subpart 242-10. The undersigned 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 CO2 offset allowances under Subpart 242-10 is contingent on meeting the requirements of Subpart 242-10. I authorize the department or its agent 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 shall include the right to enter the physical location of the offset project. I submit to the legal jurisdiction of New York State."
(vii) A statement and certification report signed by the offset project sponsor certifying that all offset projects for which the sponsor has received CO2 offset allowances under this Subpart (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 which controls, is controlled by, or has common control with the sponsor) are in compliance with all applicable requirements of the CO2 Budget Trading Program in all participating states.
(viii) A verification report and certification statement signed by an independent verifier accredited pursuant to section 242-10.6 of this Subpart that expresses that the independent verifier has reviewed the entire application and evaluated the following in relation to the applicable requirements at sections 242-10.3 and 242-10.5 of this Subpart, and any applicable guidance issued by the department.
(a) The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements of sections 242-10.3 and 242-10.5 of this Subpart.
(b) The adequacy and validity of information supplied by the project sponsor to demonstrate baseline emissions pursuant to the applicable requirements at section 242-10.5 of this Subpart.
(c) The adequacy of the monitoring and verification plan submitted pursuant to the applicable requirements at section 242-10.5 of this Subpart.
(d) Such other evaluations and statements as may be required by the department.
(ix) Disclosure of any voluntary or mandatory programs, other than the CO2 Budget Trading Program, to which greenhouse gas emissions data related to the offset project has been, or will be reported.
(x) For offset projects 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 department in the state or United States jurisdiction where the offset project is located.
(2) Consistency applications shall be submitted in a format approved by the department.
(d) Prohibition against filing consistency applications in more than one participating state.
Consistency applications may not be submitted to the department 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 because more of the CO2 equivalent emissions reduction or carbon sequestration due to the offset project is projected to occur in New York than in any other participating state.
(e) Department action on consistency applications.
(1) Completeness determination. Within 30 days following receipt of the consistency application filed pursuant to subdivision (b) of this section, the department will notify the project sponsor whether the consistency application is complete. A complete consistency application is one that is in an approved form and is determined by the department to be complete for the purpose of commencing review of the consistency application. In no event shall a completeness determination prevent the department from requesting additional information in order to enable the department to make a consistency determination under paragraph (2) of this subdivision.
(2) Consistency determination. Within 90 days of making the completeness determination under paragraph (1) of this subdivision, the department will issue a determination as to whether the offset project is consistent with the requirements of this section and section 242-10.3 of this Subpart and the requirements of the applicable offset project standard of section 242-10.5 of this Subpart. For any offset project found to lack consistency with these requirements, the department will inform the project sponsor of the offset project's deficiencies.
§242-10.5 CO2 emissions offset project standards
(a) Landfill methane capture and destruction. In order to qualify for the award of CO2 offset allowances under this Subpart, offset projects that capture and destroy methane from landfills shall meet the requirements of this subdivision and all applicable requirements of this Subpart.
(1) Eligibility. Eligible offset projects shall occur at landfills that are not subject to the New Source Performance Standards (NSPS) for municipal solid waste landfills, 40 CFR part 60, subpart Cc and subpart WWW (see Table 1, section 200.9 of this Title).
(2) Offset project description. The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of paragraph (1) of this subdivision. The project narrative shall include the following information.
(i) owner and operator of the offset project;
(ii) location and specifications of the landfill where the offset project will occur, including waste in place;
(iii) owner and operator of the landfill where the offset project will occur; and
(iv) specifications of the equipment to be installed and a technical schematic of the offset project.
(3) Emissions baseline determination. The emissions baseline shall represent the potential fugitive landfill emissions of CH4 (in tons of CO2e), as represented by the CH4 collected and metered for thermal destruction as part of the offset project, and calculated in accordance with this paragraph.
Emissions (tons CO2e) = (V × M × (1-OX) × GWP)/2000
V = Volume of CH4 collected (ft3)
M = Mass of CH4 per cubic foot (0.04246 lbs/ft3 default value at 1 atmosphere and 20° C)
OX = Oxidation factor (0.10), representing estimated portion of collected CH4 that would have eventually oxidized to CO2 if not collected
GWP = CO2e global warming potential of CH4 (25)
(4) Calculating emissions reductions. Emissions reductions shall be determined based on potential fugitive CH4 emissions that would have occurred at the landfill if metered CH4 collected from the landfill for thermal destruction as part of the offset project was not collected and destroyed. CO2e emissions reductions shall be calculated as follows:
Emissions Reductions (tons CO2e) = (V × M × (1 - OX) × Cef × GWP)/2000
Cef = Combustion efficiency of methane control technology (0.98)
(5) Monitoring and verification requirements. Offset projects shall employ a landfill gas collection system that provides continuous metering and data computation of landfill gas volumetric flow rate and CH4 concentration. Annual monitoring and verification reports shall include monthly volumetric flow rate and CH4 concentration data, including documentation that the CH4 was actually supplied to the combustion source. Monitoring and verification is also subject to the following requirements.
(i) The project sponsor shall submit a monitoring and verification plan as part of the consistency application that includes a quality assurance and quality control program associated with equipment used to determine landfill gas volumetric flow rate and CH4 composition. The monitoring and verification plan shall also include provisions for ensuring that measuring and monitoring equipment is maintained, operated, and calibrated based on manufacturer recommendations, as well as provisions for the retention of maintenance records for audit purposes. The monitoring and verification plan shall be certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart.
(ii) The project sponsor shall annually verify landfill gas CH4 composition through landfill gas sampling and independent laboratory analysis using applicable U.S. Environmental Protection Agency laboratory test methods.
(b) Reduction in emissions of sulfur hexafluoride (SF6). In order to qualify for the award of CO2 offset allowances under this Subpart, offset projects that prevent emissions of sulfur hexafluoride to the atmosphere from equipment in the electricity transmission and distribution sector, through capture and storage, recycling, or destruction, shall meet the requirements of this subdivision and all applicable requirements of this Subpart.
(i) Eligible offset projects shall consist of incremental actions beyond those taken during the baseline year to achieve a reduction in SF6 emissions relative to the baseline year. Eligible actions may include an expansion of existing actions. The identified actions to be taken shall be consistent with the guidance provided in High-voltage switchgear and controlgear - Part 303: Use and handling of sulfur hexafluoride (SF6) (IEC/TR 62271-303 ed1.0) (2008) and Electric Power Institute (EPRI), "SF6 Management for Substations" (1020014, 2010) (see Table 1, section 200.9 of this Title).
(ii) Except as provided in subparagraph (iii) of this paragraph, eligible offset projects shall have an SF6 entity-wide emissions rate for the baseline year that is less than the applicable emissions rate in Table 1. The entity-wide SF6 emissions rate shall be calculated as follows:
SF6 Emissions Rate (%) = (Total SF6 Emissions for Reporting Year)/ (Total SF6 Nameplate Capacity at End of Reporting Year)
SF6 Nameplate Capacity refers to all SF6-containing equipment owned and/or operated by the entity, at full and proper SF6 charge of the equipment rather than the actual charge of the equipment (which may reflect leakage).
SF6 Emissions Rate Performance Standards
A. Emission Regions
B. Emissions Rate Performance Standards
a Based on weighted average 2004 emissions rates for U.S. EPA SF6 partnership utilities in each region. If the weighted average emissions rate in a region is higher than the national weighted average, the default performance standard is the national weighted average emissions rate.
(iii) An SF6 offset project shall be eligible even if the SF6 entity-wide emissions rate in the baseline year exceeds the applicable rate in subparagraph (ii) of this paragraph, provided that the project sponsor demonstrates and the department determines that the project is being implemented at a transmission and/or distribution entity serving a predominantly urban service territory and that at least two of the following factors prevent optimal management of SF6.
(a) The entity is comprised of older than average installed transmission and distribution equipment in relation to the national average age of equipment.
(b) A majority of the entity's electricity load is served by equipment that is located underground, and poor accessibility of such underground equipment precludes management of SF6 emissions through regular ongoing maintenance.
(c) The inability to take a substantial portion of equipment out of service, as such activity would impair system reliability.
(d) Required equipment purpose or design for a substantial portion of entity transmission and distribution equipment results in inherently leak-prone equipment.
(2) Offset project description. The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of paragraph (1) of this subdivision. The offset project narrative shall include the following information:
(i) description of the transmission and/or distribution entity suitable in detail to specify the service territory served by the entity; and
(ii) owner and operator of the transmission and/or distribution entity.
(3) Emissions baseline determination. If the consistency application is filed after January 1, 2009, baseline SF6 emissions shall be determined based on annual entity-wide reporting of SF6 emissions for the calendar year immediately preceding the calendar year in which the consistency application is filed (designated the baseline year). The reporting entity shall systematically track and account for all entity-wide uses of SF6 in order to determine entity-wide emissions of SF6. The scope of such tracking and accounting shall include all electric transmission and distribution assets and all SF6-containing and SF6-handling equipment owned and/or operated by the reporting entity.
(i) Emissions shall be determined based on the following mass balance method:
SF6 Emissions (lbs.) = (SF6 Change in Inventory) + (SF6 Purchases and Acquisitions) - (SF6 Sales and Disbursements) - (Change in Total SF6 Nameplate Capacity of Equipment)
Change in Inventory is the difference between the quantity of SF6 gas in storage at the beginning of the reporting year and the quantity in storage at the end of the reporting year. The term quantity in storage includes all SF6 gas contained in cylinders (such as 115-pound storage cylinders), gas carts, and other storage containers. It does not refer to SF6 gas held in SF6-using operating equipment. The change in inventory will be negative if the quantity of SF6 gas in storage increases over the course of the year.
Purchases and Acquisitions of SF6 is the sum of all the SF6 gas acquired from other parties during the reporting year, as contained in storage containers or SF6-using operating equipment.
Sales and disbursements of SF6 is the sum of all the SF6 gas sold or otherwise disbursed to other parties during the reporting year, as contained in storage containers and SF6-using operating equipment.
Change in Total SF6 Nameplate Capacity of Equipment is the net change in the total volume of SF6-containing operating equipment during the reporting year. The net change in nameplate capacity is equal to new equipment nameplate capacity, minus retired equipment nameplate capacity. This quantity will be negative if the retired equipment has a total nameplate capacity larger than the total nameplate capacity of the new equipment. Total nameplate capacity refers to the full and proper SF6 charge of the equipment rather than to the actual charge, which may reflect leakage.
(ii) Emissions shall be calculated as follows:
Emissions (tons CO2e) = [(Viby - Viey) + (PApsd + PAe + PArre) - (SDop + SDrs + SDdf + SDsor) - (CNPne - CNPrse)] × GWP/2000
where (all SF6 values in lbs.):
Viby = SF6 inventory in cylinders, gas carts, and other storage containers (not SF6-containing operating equipment) at the beginning of the reporting year
Viey = SF6 inventory in cylinders, gas carts, and other storage containers (not SF6-containing operating equipment) at the end of the reporting year
PApsd = SF6 purchased from suppliers or distributors in cylinders
PAe = SF6 provided by equipment manufacturers with or inside SF6-containing operating equipment
PArre = SF6 returned to the reporting entity after off-site recycling
SDop = Sales of SF6 to other parties, including gas left in SF6-containing operating equipment that is sold
SDrs = Returns of SF6 to supplier (producer or distributor)
SDdf = SF6 sent to destruction facilities
SDsor = SF6 sent off-site for recycling
CNPne = Total SF6 nameplate capacity of new SF6-containing operating equipment at proper full charge
CNPrse = Total SF6 nameplate capacity of retired or sold SF6-containing operating equipment at proper full charge
GWP = CO2e global warming potential of SF6 (22,800)
(iii) As part of the consistency application required pursuant to section 242-10.4(b) and (c) of this Subpart and in annual monitoring and verification reports required pursuant to section 242-10.7(b) and (c) of this Subpart, the project sponsor shall provide the documentation required at subparagraphs (5)(i) through (iii) of this subdivision to support emissions calculations.
(4) Calculating emissions reductions. Emissions reductions shall represent the annual entity-wide emissions reductions of SF6 for the reporting entity, relative to emissions in the baseline year. Emissions reductions shall be determined as follows, using the quantification method outlined in subparagraph (3)(ii) of this subdivision to determine emissions in both the baseline year and reporting year(s):
Emissions Reduction (tons CO2e) = (Total Pounds of SF6 Emissions in Baseline Reporting Year) - (Total Pounds of SF6 Emissions in Reporting Year) × GWP/2000
(5) Monitoring and verification requirements. The annual monitoring and verification report shall include supporting material detailing the calculations and data used to determine SF6 emissions reductions, and shall also provide the following documentation.
(i) The project sponsor shall identify a facility(ies) managed by the entity from which all SF6 gas is procured and disbursed and maintain an entity-wide log of all SF6 gas procurements and disbursals. The entity-wide log shall include the weight of each cylinder transported before shipment from the facility(ies) and the weight of each cylinder after return to the facility(ies). A specific cylinder log shall also be maintained for each cylinder that is used to fill equipment with SF6 or reclaim SF6 from equipment. The cylinder log shall be retained with the cylinder and indicate the location and specific identifying information of the equipment being filled, or from which SF6 is reclaimed, and the weight of the cylinder before and after this activity. The cylinder log shall be returned with the cylinder to the facility when the activity is complete or the cylinder is empty.
(ii) A current entity-wide inventory of all SF6-containing operating equipment and all other SF6-related items, including cylinders, gas carts, and other storage containers used by the entity. The inventory shall be certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart.
(iii) The project sponsor shall provide a monitoring and verification plan as part of the consistency application, which shall include an SF6 inventory management and auditing protocol and a process for quality assurance and quality control of inventory data. The monitoring and verification plan shall be certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart.
(c) Sequestration of carbon due to afforestation. To qualify for the award of CO2 offset allowances under this Subpart, offset projects that sequester carbon through the conversion of land from a non-forested to forested condition shall meet the requirements of this subdivision and all other applicable requirements of this Subpart.
(i) Eligible offset projects shall occur on land that has been in a non-forested state for at least 10 years preceding the commencement of the offset project.
(ii) Eligible offset projects shall be managed in accordance with widely accepted environmentally sustainable forestry practices and designed to promote the restoration of native forests by using mainly native species and avoiding the introduction of invasive non-native species. If commercial timber harvest activities are to occur, certification must be obtained, prior to any harvest activities at the site, through the Forest Stewardship Council (FSC), Sustainable Forestry Institute (SFI), American Tree Farm System (ATFS), or such other similar organizations as may be approved by the department.
(i) owner of the land within the offset project boundary;
(ii) detailed map of the land within the offset project boundary and areas adjacent to the offset project boundary;
(iii) a copy of the permanent conservation easement required pursuant to paragraph (6) of this subdivision;
(iv) for offset projects located in a state or United States jurisdiction that is not a participating state, a written legal opinion from an attorney licensed to practice in the state where the offset project is located, or from the cooperating department, confirming the enforceability of the permanent conservation easement; and
(v) plant species to be planted or established via natural regeneration, and a forest management plan consistent with the requirements at subparagraph (1)(ii) of this subdivision.
(3) Carbon sequestration baseline determination. The existing sequestered carbon within the offset project boundary shall be calculated prior to commencement of the offset project. The carbon sequestration baseline shall be determined based on a sum of measurements, made no more than 12 months prior to offset project commencement, of the carbon content of the following carbon pools.
(i) Carbon content shall be calculated for the following required carbon pools:
(a) live above-ground tree biomass;
(b) live below-ground tree biomass;
(c) soil carbon; and
(d) dead organic matter, coarse woody debris, unless the baseline measurement for this carbon pool is at or near zero, in which case measurement of this carbon pool during the allocation period is optional.
(ii) Carbon content may be calculated for the following optional carbon pools:
(a) live above-ground non-tree biomass; and
(b) dead organic matter, forest floor.
(iii) Carbon content shall be calculated individually for each carbon pool within the offset project boundary.
(iv) To increase the accuracy of measurement and verification, the area within the offset project boundary shall be divided into sub-populations that form relatively homogenous units. When defining sub-populations, the project sponsor shall consider vegetation and tree species (including existing vegetation and trees and those to be utilized as part of the offset project activity) and site factors (soil type, elevation, slope, age class, and other factors as warranted).
(v) Calculation of sequestered carbon for each carbon pool in each reporting sub-population shall be based on the following:
CO2 tons = [(A × C/ha)(44/12)] / 0.9072
A = Area in hectares within each reporting sub-population
C = Carbon content (metric tons of carbon for each carbon pool)
C/ha = Mean carbon content per hectare for each carbon pool
(vi) Total carbon contained within the offset project boundary (represented in CO2 tons, calculated pursuant to subparagraph [v] of this paragraph) shall be calculated as follows:
TCpb = TClatb + TClbtb + TCs [+ TClantb + TCdoff + TCdocwd]
TCpb = Total carbon content within the offset project boundary (sum of carbon content of all carbon pools in all reporting sub-populations)
TClatb = Sum of carbon content of live above-ground tree biomass in all reporting sub-populations
TClbtb = Sum of carbon content of live below-ground tree biomass in all reporting sub-populations
TCs = Sum of carbon content of soil carbon in all reporting sub-populations
TClantb [option] = Sum of carbon content of live above-ground non-tree biomass in all reporting sub-populations
TCdoff [option] = Sum of carbon content of dead organic matter, forest floor in all reporting sub-populations
TCdocwd [mandatory/option, as applicable pursuant to clause (i)(d) of this paragraph] = Sum of carbon content of dead organic matter, coarse woody debris in all reporting sub-populations
(vii) Each individual carbon pool to be measured must be directly measured using a measurement protocol and sample size that achieves a demonstrated quantified accuracy for the combined carbon pool measurement such that there is 95 percent confidence that the resulting reported value is within 10 percent of the true mean. Measurement and sampling practices shall meet the following requirements.
(a) An adequate sample size that meets the requirements of subparagraph (vii) of this paragraph shall be determined for each sub-population.
(b) The minimum number of required sampling plots for each sub-population shall be determined based on the following:
n = (s × 1.960)/(mean × re)2
n = required number of sample plots for each reporting sub-population
mean = mean reported carbon content for the sample population
re = level of sampling error (0.08) to assure a total maximum error of 10 percent for the 95 percent confidence interval, which assumes total error due to measurement error of 0.02
(viii) Direct measurement procedures shall be consistent with current forestry good practice and the guidance contained in U.S. Department of Energy, Technical Guidelines Voluntary Reporting of Greenhouse Gases (1605(b)) Program; Chapter 1, Part 1 Forestry Emissions (January 2007) (see Table 1, section 200.9 of this Title).
(4) Calculating carbon sequestered. Carbon sequestration shall be determined using a base year approach, where the amount of carbon sequestered is measured as a net increase in carbon relative to the base year measurement. Carbon sequestration shall be the amount of net additional carbon sequestered during each reporting period, based upon aggregate carbon uptake and carbon emissions for the sum of carbon pools, relative to the baseline carbon content or the carbon content as of the previous reporting period (if above the baseline carbon content), as applicable. CO2 offset allowances shall be issued based on the amount of net additional carbon sequestered within the offset project boundary during each reporting period, as represented in tons of CO2. Sequestered carbon shall be calculated using a stock-change approach as follows:
NCSt = It - It-1
NCSt = Net carbon sequestered in reporting period t
It = Inventory of carbon stock for all carbon pools in all reporting sub-populations within the offset project boundary in reporting period t
It-1 = Inventory of carbon stock for all carbon pools in all reporting sub-populations within the offset project boundary in the reporting period immediately preceding reporting period t
(i) Except as provided in clause (3)(i)(d) of this subdivision, each of the carbon pools that were measured as part of the baseline determination must be re-measured using the same methodology, and to the same or better quantified precision consistent with the requirements of subparagraphs (3)(vii) and (viii) of this subdivision, as that used for the baseline determination.
(ii) The net change in each carbon pool's carbon stock in each reporting sub-population is calculated by subtracting the baseline carbon stock (or carbon stock at the previous monitoring, if above the baseline carbon content) from the carbon stock at the time of the current monitoring. Determination of carbon stock shall be in accordance with the formulas and procedures in paragraph (3) of this subdivision.
(iii) Net carbon stock change for the offset project is the sum of the net changes in the carbon stock of all applicable pools in all reporting sub-populations within the offset project boundary, less 10 percent to account for potential losses of sequestered carbon. This 10-percent discount shall not be required, provided the project sponsor retains long-term insurance, approved by the department, that guarantees replacement of any lost sequestered carbon for which CO2 offset allowances were awarded pursuant to section 242-10.7(a)(1) of this Subpart.
(5) Monitoring and verification requirements. Total carbon stock within the offset project boundary shall be calculated not less than every five years. Monitoring and verification is subject to the following requirements.
(i) Monitoring and verification reports shall include data from direct measurement of carbon content for all plots used to determine baseline and reporting period carbon content.
(ii) The consistency application shall include a monitoring and verification plan certified by the department or an independent verifier accredited pursuant to section 242-10.6 of this Subpart. The monitoring and verification plan shall include the following:
(a) Direct carbon measurement procedures consistent with the requirements at subparagraph (3)(viii) of this subdivision.
(b) The designation of sub-populations pursuant to subparagraph (3)(iv) of this subdivision. The determination of the minimum number of sampling plots pursuant to subparagraph (3)(vii) of this subdivision.
(c) If commercial timber harvest activities have occurred or will occur, an assessment of management practices to ensure that the offset project has been or will be managed in accordance with environmentally sustainable forestry practices consistent with the FSC, SFI, ATFS, or such other similar organizations as may be approved by the department.
(6) Carbon sequestration permanence. The offset project shall meet the following requirements to address permanence of sequestered carbon.
(i) The project sponsor shall place the land within the offset project boundary under a legally binding permanent conservation easement, approved by the department that requires the land to be maintained in a forested state in perpetuity.
(ii) The conservation easement shall include a requirement that the carbon density within the offset project boundary be maintained at long-term levels at or above that achieved as of the end of the CO2 offset crediting period pursuant to section 242-10.3(e)(2) of this Subpart.
(iii) The conservation easement shall require that the land be managed in accordance with environmentally sustainable forestry practices.
(d) Reduction or avoidance of CO2 emissions from natural gas, oil, or propane end-use combustion due to end-use energy efficiency. To qualify for the award of CO2 offset allowances under this Subpart, offset projects that reduce CO2 emissions by reducing on-site combustion of natural gas, oil, or propane for end-use in an existing or new commercial or residential building by improving the energy efficiency of fuel usage and/or the energy-efficient delivery of energy services shall meet the requirements of this subdivision and all applicable requirements of this Subpart. Eligible new buildings are limited to new buildings that are designed to replace an existing building on the offset project site, or new buildings designed to be zero net energy buildings.
(i) Eligible offset projects shall reduce CO2 emissions through one or more of the following energy conservation measures (ECMs):
(a) improvements in the energy efficiency of combustion equipment that provides space heating and hot water, including a reduction in fossil fuel consumption through the use of solar and geothermal energy;
(b) improvements in the efficiency of heating distribution systems, including proper sizing and commissioning of heating systems;
(c) installation or improvement of energy management systems;
(d) improvement in the efficiency of hot water distribution systems and reduction in demand for hot water;
(e) measures that improve the thermal performance of the building envelope and/or reduce building envelope air leakage;
(f) measures that improve the passive solar performance of buildings and utilization of active heating systems using renewable energy; and
(g) fuel switching to a less carbon-intensive fuel for use in combustion systems, including the use of liquid or gaseous eligible biomass, provided that conversions to electricity are not eligible.
(ii) Performance standards.
(a) All end-use energy efficiency offset projects. All offset projects under this subdivision shall meet the applicable performance criteria set forth in this clause.
(1) Installation best practice. Any combustion equipment and related air handling equipment (HVAC systems) installed as part of an offset project shall be sized and installed in accordance with the applicable requirements and specifications outlined in this subclause.
(i) Commercial HVAC systems shall meet the applicable sizing and installation requirements of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition)-2013: Energy Standard for Buildings Except Low-Rise Residential Buildings and ANSI/ASHRAE Standard 62.1-2013: Ventilation for Acceptable Indoor Air Quality (see Table 1, section 200.9 of this Title).
(ii) Residential HVAC systems shall meet the applicable sizing specifications of Air Conditioner Contractors of America (ACCA) Manual J: Residential Load Calculation (Eighth Edition-Full), and the applicable installation specifications of ANSI/ACCA 5 QI - 2010 "HVAC Quality Installation Specification," (see Table 1, section 200.9 of this Title).
(2) Whole-building energy performance. Eligible new buildings or whole-building retrofits that are part of an offset project shall meet the requirements of this subclause.
(i) Commercial buildings shall exceed the energy performance requirements of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition)-2013: Energy Standard for Buildings Except Low-Rise Residential Buildings (see Table 1, section 200.9 of this Title) by 30 percent, with the exception of multi-family residential buildings classified as commercial by ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition)-2013 (see Table 1, section 200.9 of this Title), which shall exceed these energy performance requirements by 20 percent.
(ii) Residential buildings shall exceed the energy performance requirements of the 2012 International Energy Conservation Code Supplement (see Table 1, section 200.9 of this Title) by 30 percent.
(b) Maximum market penetration rate for offset projects commenced on or after January 1, 2009. For offset projects initiated on or after January 1, 2009, the project sponsor shall demonstrate, to the satisfaction of the department, that the energy conservation measures implemented as part of the offset project have a market penetration rate of less than five percent.
(i) location and specifications of the building(s) where the offset project actions will occur;
(ii) owner and operator of the building(s);
(iii) the parties implementing the offset project, including lead contractor(s), subcontractors, and consulting firms;
(iv) specifications of equipment and materials to be installed as part of the offset project; and
(v) building plans and offset project technical schematics, as applicable.
(3) Emissions baseline determination. The emissions baseline shall be determined in accordance with the requirements of this paragraph, based on energy usage (MMBtu) by fuel type for each energy conservation measure, derived using historic fuel use data from the most recent calendar year for which data is available, and multiplied by an emissions factor and oxidation factor for each respective fuel in Table 2 below.
(lbs. CO2/MMBtu)
(i) Isolation of applicable energy conservation measure baseline. The baseline energy usage of the application to be targeted by the energy conservation measure shall be isolated in a manner consistent with the guidance at paragraph (5) of this subdivision.
(ii) Annual baseline energy usage shall be determined as follows:
Energy Usage (MMBtu) = BEUAECM × A
BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) attributable to the application(s) to be targeted by the energy conservation measure(s). If applicable building codes or equipment standards require that equipment or materials installed as part of the offset project meet certain minimum energy performance requirements, baseline energy usage for the application shall assume that equipment or materials are installed that meet such minimum requirements. For offset projects that replace existing combustion equipment, the assumed minimum energy performance required by applicable building codes or equipment standards shall be that which applies to new equipment that uses the same fuel type as the equipment being replaced. Baseline energy usage shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision.
A = Adjustments to account for differing conditions during the two time periods (pre-installation and post-installation), such as weather, building occupancy, and changes in building use or function. Adjustments shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision.
(iii) Annual baseline emissions shall be determined as follows:
BEUi = Annual baseline energy usage for fuel type i (MMBtu) demonstrated pursuant to the requirements at subparagraphs (5)(i) through (iv) of this subdivision.
EFi = Emissions factor (lbs. CO2/MMBtu) for fuel type i listed at paragraph (3), Table 2 of this subdivision.
OFi = Oxidation factor for fuel type i listed at paragraph (3), Table 2 of this subdivision.
(4) Calculating emissions reductions. Emissions reductions shall be determined based upon annual energy savings by fuel type (MMBtu) for each energy conservation measure, multiplied by the emissions factor and oxidation factor for the respective fuel type at paragraph (3), Table 2 of this subdivision.
(i) Annual energy savings shall be determined as follows:
Energy Savings (MMBtu) = (BEUAECM × A) - (PIEUECM × A)
BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) calculated pursuant to subparagraphs (5)(i) through (iv) of this subdivision.
PIEUECM = Annual post-installation energy use by fuel type (MMBtu) attributable to the energy conservation measure. Post-installation energy usage shall be determined in accordance with the applicable requirements at subparagraphs (5)(i) through (iv) of this subdivision.
A = Adjustments to account for any differing conditions during the two time periods (pre-installation and post-installation), such as weather, building occupancy, and changes in building use or function. Adjustments shall be determined in accordance with the applicable requirements at paragraph (5) of this subdivision.
(ii) Annual emissions reductions shall be determined as follows:
ESi = Energy savings for fuel type i (MMBtu) demonstrated pursuant to the requirements at paragraph (5) of this subdivision.
(5) Monitoring and verification requirements. As part of the consistency application, the project sponsor shall provide a monitoring and verification plan certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart. Annual monitoring and verification reports shall be certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart. Independent verifiers must conduct a site audit when reviewing the first monitoring and verification report submitted by the project sponsor, except for offset projects that save less than 1,500 MMBtu per year. For offset projects that save less than 1,500 MMBtu per year, the project sponsor must provide the independent verifier with equipment specifications and copies of equipment invoices and other relevant offset project-related invoices. All offset project documentation, including the consistency application and monitoring and verification reports, shall be signed by a professional engineer, identified by license number. Monitoring and verification shall also meet the following requirements.
(i) General energy measurement and verification requirements. Monitoring and verification of energy usage shall be demonstrated through a documented process consistent with the following protocols and procedures, as applicable.
(a) For existing commercial buildings, determination of baseline energy usage shall be consistent with the International Performance Measurement & Verification Protocol, Volume I: Concepts and Options for Determining Energy and Water Savings (IPMVP), "Option B. Retrofit Isolation" and "Option D. Calibrated Simulation." (see Table 1, section 200.9 of this Title) If a building project involves only energy conservation measures implemented as part of a CO2 emissions offset project, a process consistent with IPMVP "Option C. Whole Facility" may be used, as applicable. Application of the IPMVP general guidance shall be consistent with the applicable detailed specifications in ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings (see Table 1, section 200.9 of this Title).
(b) For new commercial buildings, determination of baseline energy usage shall be consistent with the International Performance Measurement & Verification Protocol, Volume III: Concepts and Practices for Determining Energy Savings in New Construction (IPMVP), "Option D. Calibrated Simulation." (see Table 1, section 200.9 of this Title) Application of the IPMVP general guidance shall be consistent with the applicable detailed specifications in ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings (see Table 1, section 200.9 of this Title).
(c) For existing and new residential buildings, determination of baseline energy usage shall be consistent with the requirements of the RESNET National Energy Rating Technical Standards and National Home Energy Rating Technical Guidelines, 2013 (chapter 3 and appendix A of 2013 Mortgage Industry National Home Energy Rating System Standards) (see Table 1, section 200.9 of this Title).
(ii) Isolation of applicable energy conservation measure. In calculating both baseline energy usage and energy savings, the applicant shall isolate the impact of each eligible energy conservation measure (ECM), either through direct metering or energy simulation modeling. For offset projects with multiple ECMs, and where individual ECMs can affect the performance of others, the sum of energy savings due to individual ECMs shall be adjusted to account for the interaction of ECMs. For commercial buildings, this process shall be consistent with the requirements of ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) -2013: Energy Standard for Buildings Except Low-Rise Residential Buildings (see Table 1, section 200.9 of this Title). For residential buildings, this process shall be consistent with the requirements of the RESNET National Energy Rating Technical Standards and National Home Energy Rating Technical Guidelines, 2013 (chapter 3 and Appendix A of 2013 Mortgage Industry National Home Energy Rating System Standards) (see Table 1, section 200.9 of this Title).
(a) Reductions in energy usage due to the energy conservation measure shall be based upon actual energy usage data. Energy simulation modeling shall only be used to determine the relative percentage contribution to total fuel usage (for each respective fuel type) of the application targeted by the energy conservation measure.
(iii) Calculation of energy savings. Annual energy savings are to be determined based on the following:
BEUAECM = Annual pre-installation baseline energy use by fuel type (MMBtu) attributable to the application(s) to be targeted by the energy conservation measure(s), based upon annual fuel usage data for the most recent calendar year for which data is available. For new buildings, baseline energy use for a reference building equivalent in basic configuration, orientation, and location to the building in which the eligible energy conservation measure(s) is implemented shall be determined according to ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings and ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) - 2013, Section 11 and Appendix G (see Table 1, section 200.9 of this Title). Where energy simulation modeling is used to evaluate an existing building, modeling shall be conducted in accordance with ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) - 2013, Section 11 and Appendix G (see Table 1, section 200.9 of this Title). For existing and new residential buildings, energy simulation modeling shall be conducted in accordance with the requirements of the RESNET National Energy Rating Technical Standards and National Home Energy Rating Technical Guidelines, 2013 (Chapter 3 and Appendix A of 2013 Mortgage Industry National Home Energy Rating System Standards) (see Table 1, section 200.9 of this Title).
PIEUECM = Annual post-installation energy use by fuel type (MMBtu) attributable to the energy conservation measure, to be verified based on annual energy usage after installation of the energy conservation measure(s), consistent with the requirements of ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings. Where energy simulation modeling is used to evaluate a new or existing building, modeling shall be conducted in accordance with ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition)-2013, Section 11 and Appendix G (see Table 1, section 200.9 of this Title). For existing and new residential buildings, energy simulation modeling shall be consistent with the requirements of the RESNET National Energy Rating Technical Standards and National Home Energy Rating Technical Guidelines, 2013 (Chapter 3 and Appendix A of 2013 Mortgage Industry National Home Energy Rating System Standards) (see Table 1, section 200.9 of this Title).
A = Adjustments to account for any differing conditions during the two time periods (pre-installation and post-installation), such as weather (weather normalized energy usage based on heating and cooling degree days), building occupancy, and changes in building use or function. For commercial buildings, adjustments shall be consistent with the specifications of ASHRAE Guideline 14-2002, Measurement of Energy and Demand Savings, and ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) - 2013, Section 11 and Appendix G (see Table 1, section 200.9 of this Title). For residential buildings, adjustments shall be consistent with the specifications of the RESNET National Energy Rating Technical Standards and National Home Energy Rating Technical Guidelines, 2013 (Chapter 3 and Appendix A of 2013 Mortgage Industry National Home Energy Rating System Standards) (see Table 1, section 200.9 of this Title).
(iv) Provision for sampling of multiple like offset projects in residential buildings. Offset projects that implement similar measures in multiple residential buildings may employ representative sampling of buildings to determine aggregate baseline energy usage and energy savings. Sampling protocols shall employ sound statistical methods such that there is 95 percent confidence that the reported value is within 10 percent of the true mean. Any sampling plan shall be certified by an independent verifier, accredited pursuant to section 242-10.6 of this Subpart.
(e) Avoided methane emissions from agricultural manure management operations. To qualify for the award of CO2 offset allowances under this Subpart, offset projects that capture and destroy methane from animal manure and organic food waste using anaerobic digesters shall meet the requirements of this subdivision and all applicable requirements of this Subpart.
(i) Eligible offset projects shall consist of the destruction of that portion of methane generated by an anaerobic digester that would have been generated in the absence of the offset project through the uncontrolled anaerobic storage of manure or organic food waste.
(ii) Eligible offset projects shall employ only manure-based anaerobic digester systems using livestock manure as the majority of digester feedstock, defined as more than 50 percent of the mass input into the digester on an annual basis. Organic food waste used by an anaerobic digester shall only be that which would have been stored in anaerobic conditions in the absence of the offset project.
(iii) The provisions of section 242-10.3(c)(2) and (3) of this Subpart shall not apply to agricultural manure management offset projects provided either of the following requirements are met.
(a) The offset project is located in a state that has a market penetration rate for anaerobic digester projects of five percent or less. The market penetration determination shall utilize the most recent market data available at the time of submission of the consistency application pursuant to section 242-10.4 of this Subpart and shall be determined as follows:
MP (%) = MGAD / MGSTATE
MGAD = Average annual manure generation for the number of dairy cows and swine serving all anaerobic digester projects in the applicable state at the time of submission of a consistency application pursuant to section 242-10.4 of this Subpart.
MGSTATE = average annual manure production of all dairy cows and swine in the state at the time of submission of a consistency application pursuant to section 242-10.4 of this Subpart.
(b) The offset project is located at a farm with 4,000 or less head of dairy cows, or a farm with equivalent animal units, assuming an average live weight for dairy cows (lbs/cow) of 1,400 lbs., or, if the project is a regional-type digester, total annual manure input to the digester is designed to be less than the average annual manure produced by a farm with 4,000 or less head of dairy cows, or a farm with equivalent animal units, assuming an average live weight for dairy cows (lbs/cow) of 1,400 lbs.
(ii) location and specifications of the facility where the offset project will occur;
(iii) owner and operator of the facility where the offset project will occur;
(iv) specifications of the equipment to be installed and a technical schematic of the offset project; and
(v) location and specifications of the facilities from which anaerobic digester influent will be received, if different from the facility where the offset project will occur.
(3) Emissions baseline determination. The emissions baseline shall represent the potential emissions of the CH4 that would have been produced in a baseline scenario under uncontrolled anaerobic storage conditions and released directly to the atmosphere in the absence of the offset project.
(i) Baseline CH4 emissions shall be calculated as follows:
CO2e (tons) = (Vm × M)/2000 × GWP
CO2e = Potential CO2e emissions due to calculated CH4 production under site-specific anaerobic storage and weather conditions
Vm = Volume of CH4 produced each month from degradation of volatile solids in a baseline uncontrolled anaerobic storage scenario under site-specific storage and weather conditions for the facility at which the manure or organic food waste is generated (ft3)
M = Mass of CH4 per cubic foot (0.04246 lb/ft3 default value at one atmosphere and 20°C)
GWP = Global warming potential of CH4 (25)
(ii) The estimated amount of volatile solids degraded each month under the uncontrolled anaerobic storage baseline scenario (kg) shall be calculated as follows:
VSdeg = VSavail × f
VS = volatile solids as determined from the equation:
VS = Mm × TS% × VS%
Mm = mass of manure or organic food waste produced per month (kg)
TS% = concentration (percent) of total solids in manure or organic food waste as determined through EPA 160.3 testing method (U.S.EPA Method Number 160.3, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020)) (see Table 1, section 200.9 of this Title)
VS% = concentration (percent) of volatile solids in total solids as determined through EPA 160.4 testing method (U.S.EPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020)) (see Table 1, section 200.9 of this Title)
VSavail = volatile solids available for degradation in manure or organic food waste storage each month as determined from the equation:
VSavail = VSp + ½ VSin - VSout
VSp = volatile solids present in manure or organic food waste storage at beginning of month (left over from previous month) (kg)
VSin = volatile solids added to manure or organic food waste storage during the course of the month (kg). The factor of 1/2 is multiplied by this number to represent the average mass of volatile solids available for degradation for the entire duration of the month.
VSout = volatile solids removed from the manure or organic food waste storage for land application or export (assumed value based on standard farm practice)
f = van't Hoff-Arrhenius factor for the specific month as determined using the equation below. Using a base temperature of 30° C, the equation is as follows:
f = exp{[E(T2 - T1)]/[(GC × T1 × T2)]}
f = conversion efficiency of VS to CH4 per month
E = activation energy constant (15,175 cal/mol)
T2 = average monthly ambient temperature for facility where manure or organic food waste is generated (converted from ° Celsius to ° Kelvin) as determined from the nearest National Weather Service certified weather station (if reported temperature ° C > 5° C; if reported temperature °C < 5° C, then F = 0.104)
T1 = 303.16 (30° C converted to °K)
GC = ideal gas constant (1.987 cal/K mol)
(iii) The volume of CH4 produced (ft3) from degradation of volatile solids shall be calculated as follows:
Vm = (VSdeg × Bo) × 35.3147
Vm = volume of CH4 (ft3)
VSdeg = volatile solids degraded (kg)
Bo = manure or organic food waste type-specific maximum methane generation constant (m3 CH4/kg VS degraded). For dairy cow manure, Bo = 0.24 m3 CH4/kg VS degraded. The methane generation constant for other types of manure shall be those cited at U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2010, Annex 3, Table A-191 (U.S. EPA, April 15, 2012) (see Table 1, section 200.9 of this Title), unless the project sponsor proposes an alternate methane generation constant. If the project sponsor proposes to use a methane generation constant other than the ones found in the above-cited reference, the project sponsor must provide justification and documentation to the department.
(4) Calculating emissions reductions. Emissions reductions shall be determined based on the potential emissions (in tons of CO2e) of the CH4 that would have been produced in the absence of the offset project under a baseline scenario that represents uncontrolled anaerobic storage conditions, as calculated pursuant to subparagraphs (3)(i) through (iii) of this subdivision, and released directly to the atmosphere. Emissions reductions may not exceed the potential emissions of the anaerobic digester, as represented by the annual volume of CH4 produced by the anaerobic digester, as monitored pursuant to paragraph (5) of this subdivision. If the project is a regional-type digester, CO2 emissions due to transportation of manure and organic food waste from the site where the manure and organic food waste was generated to the anaerobic digester shall be subtracted from the emissions reduction calculated pursuant to subparagraphs (3)(i) through (iii) of this subdivision. Transport CO2 emissions shall be determined through one of the following methods.
(i) Documentation of transport fuel use for all shipments of manure and organic food waste from off-site to the anaerobic digester during each reporting year and a log of transport miles for each shipment. CO2 emissions shall be determined through the application of an emissions factor for the fuel type used. If this option is chosen, the following emissions factors shall be applied as appropriate.
(a) Diesel fuel: 22.912 lbs. CO2/gallon.
(b) Gasoline: 19.878 lbs. CO2/gallon.
(c) Other fuel: submitted emissions factor approved by the department.
(ii) Documentation of total tons of manure and organic food waste transported from off-site for input into the anaerobic digester during each reporting year, as monitored pursuant to subparagraph (5)(i) of this subdivision, and a log of transport miles and fuel type used for each shipment. CO2 emissions shall be determined through the application of a ton-mile transport emission factor for the fuel type used. If this option is chosen, the following emissions factors shall be applied as appropriate for each ton of manure delivered, and multiplied by the number of miles transported.
(a) Diesel fuel: 0.131 lbs. CO2 per ton-mile.
(b) Gasoline: 0.133 lbs. CO2 per ton-mile.
(5) Monitoring and verification requirements. Offset projects shall employ a system that provides metering of biogas volumetric flow rate and determination of CH4 concentration. Annual monitoring and verification reports shall include monthly biogas volumetric flow rate and CH4 concentration determination. Monitoring and verification shall also meet the following requirements.
(i) If the offset project is a regional-type digester, manure and organic food waste from each distinct source supplying to the anaerobic digester shall be sampled monthly to determine the amount of volatile solids present. Any emissions reduction will be calculated according to mass of manure and organic food waste (kg) being digested and percentage of volatile solids present before digestion, consistent with the requirements at paragraph (3) of this subdivision and subparagraph (iii) of this paragraph, and apportioned accordingly among sources. The project sponsor shall provide supporting material and receipts tracking the monthly receipt of manure and organic food waste (kg) used to supply the anaerobic digester from each supplier.
(ii) If the offset project includes the digestion of organic food waste eligible pursuant to subparagraph (1)(ii) of this subdivision, organic food waste shall be sampled monthly to determine the amount of volatile solids present before digestion, consistent with the requirements at paragraph (3) of this subdivision and subparagraph (iii) of this paragraph, and apportioned accordingly.
(iii) The project sponsor shall submit a monitoring and verification plan as part of the consistency application that includes a quality assurance and quality control program associated with equipment used to determine biogas volumetric flow rate and CH4 composition. The monitoring and verification plan shall be specified in accordance with the applicable monitoring requirements listed in Table 3 below. The monitoring and verification plan shall also include provisions for ensuring that measuring and monitoring equipment is maintained, operated, and calibrated based on manufacturer's recommendations, as well as provisions for the retention of maintenance records for audit purposes. The monitoring and verification plan shall be certified by an independent verifier accredited pursuant to section 242-10.6 of this Subpart.
Input Monitoring Requirements
Influent flow (mass) into the digester
Kilograms (kg) per month (wet weight)
Monthly total into the digester
a) Recorded weight
b) Digester influent pump flow
c) Livestock population and application of American Society of Agricultural and Biological Engineers (ASABE) standard (ASAE D384.2, March 2005) (see Table 1, section 200.9 of this Title)
Influent total solids concentration (TS)
Percent (of sample)
Monthly, depending upon recorded variations
U.S. EPA Method Number 160.3, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020) (see Table 1, section 200.9 of this Title)
Influent volatile solids (VS) concentration
Percent (of TS)
USEPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020) (see Table 1, section 200.9 of this Title)
Average monthly ambient temperature
Monthly (based on farm averages)
Closest National Weather Service-certified weather station
(iv) The project sponsor shall verify biogas CH4 composition quarterly through gas sampling and third party laboratory analysis using applicable U.S. EPA test methods.
§242-10.6 Accreditation of independent verifiers
(a) Standards for accreditation. Independent verifiers may be accredited by the department to provide verification services as required of project sponsors under this Subpart, provided that independent verifiers meet all of the requirements of this section.
(1) Verifier minimum requirements. Each accredited independent verifier shall demonstrate knowledge of the following topics:
(i) utilizing engineering principles;
(ii) quantifying greenhouse gas emissions;
(iii) developing and evaluating air emissions inventories:
(iv) auditing and accounting principles;
(vi) the requirements of this Subpart and other applicable requirements of this Part; and
(vii) such other qualifications as may be required by the department to provide competent verification services as required for individual offset categories specified at section 242-10.5 of this Subpart.
(2) Organizational qualifications. Accredited independent verifiers shall demonstrate that they meet the following requirements:
(i) verifiers shall have no direct or indirect financial relationship, beyond a contract for provision of verification services, with any offset project developer or project sponsor;
(ii) verifiers shall employ staff with professional licenses, knowledge, and experience appropriate to the specific category(ies) of offset projects at section 242-10.5 of this Subpart that they seek to verify;
(iii) verifiers shall hold a minimum of one million U.S. dollars of professional liability insurance. If the insurance is in the name of a related entity, the verifier shall disclose the financial relationship between the verifier and the related entity, and provide documentation supporting the description of the relationship; and
(iv) verifiers shall demonstrate that they have implemented an adequate management protocol to identify potential conflicts of interest with regard to an offset project, offset project developer, or project sponsor, or any other party with a direct or indirect financial interest in an offset project that is seeking or has been granted approval of a consistency application pursuant to section 242-10.4(e) of this Subpart, and remedy any such conflicts of interest prior to providing verification services.
(3) Pre-qualification of verifiers. The department may require prospective verifiers to successfully complete a training course, workshop, or test developed by the department or its agent, prior to submitting an application for accreditation.
(b) Application for accreditation. An application for accreditation shall not contain any proprietary information, and shall include the following:
(1) the applicant's name, address, e-mail address, and telephone number;
(2) documentation that the applicant has at least two years of experience in each of the knowledge areas specified at subparagraphs (a)(1)(i) through (v) of this section, and as may be required pursuant to subparagraph (a)(1)(vii) of this section;
(3) documentation that the applicant has successfully completed the requirements at paragraph (a)(3) of this section, as applicable;
(4) a sample of at least one work product that provides supporting evidence that the applicant meets the requirements at paragraphs (a)(1) and (2) of this section. The work product shall have been produced, in whole or part, by the applicant and shall consist of a final report or other material provided to a client under contract in previous work. For a work product that was jointly produced by the applicant and another entity, the role of the applicant in the work product shall be clearly explained;
(5) documentation that the applicant holds professional liability insurance as required pursuant to subparagraph (a)(2)(iii) of this section.
(6) documentation that the applicant has implemented an adequate management protocol to address and remedy any conflict of interest issues that may arise, as required pursuant to subparagraph (a)(2)(iv) of this section.
(c) Department action on applications for accreditation. The department shall approve or deny a complete application for accreditation within 45 days after submission. Upon approval of an application for accreditation, the independent verifier shall be accredited for a period of three years from the date of application approval.
(d) Reciprocity. Independent verifiers accredited in other participating states may be deemed to be accredited in New York State, at the discretion of the department.
(e) Conduct of accredited verifiers.
(1) Prior to engaging in verification services for an offset project sponsor, the accredited verifier shall disclose all relevant information to the department to allow for an evaluation of potential conflict of interest with respect to an offset project, offset project developer, or project sponsor. The accredited verifier shall disclose information concerning its ownership, past and current clients, related entities, as well as any other facts or circumstances that have the potential to create a conflict of interest.
(2) Accredited verifiers shall have an ongoing obligation to disclose to the department any facts or circumstances that may give rise to a conflict of interest with respect to an offset project, offset project developer, or project sponsor.
(3) The department may reject a verification report and certification statement from an accredited verifier, submitted as part of a consistency application required pursuant to section 242-10.4(b) of this Subpart or submitted as part of a monitoring and verification report submitted pursuant to section 242-10.7(b) of this Subpart, if the department determines that the accredited verifier has a conflict of interest related to the offset project, offset project developer, or project sponsor.
(4) The department may revoke the accreditation of a verifier at any time given cause, for the following:
(i) failure to fully disclose any issues that may lead to a conflict of interest situation with respect to an offset project, offset project developer, or project sponsor;
(ii) the verifier is no longer qualified due to changes in staffing or other criteria;
(iii) negligence or neglect of responsibilities pursuant to the requirements of this Subpart; and
(iv) intentional misrepresentation of data or other intentional fraud.
§242-10.7 Award of CO2 offset allowances
(a) Quantities of CO2 offset allowances that may be awarded, and subsequently recorded.
(1) Award of CO2 offset allowances for CO2 emissions offset projects. Following the issuance of a consistency determination under section 242-10.4(e)(2) of this Subpart and the approval of a monitoring and verification report under the provisions of subdivision (e) of this section, the department will award one CO2 offset allowance for each ton of demonstrated reduction in CO2 or CO2 equivalent emissions or sequestration of CO2.
(2) Recordation of CO2 offset allowances. After CO2 offset allowances are awarded under paragraph (1) of this subdivision, the department shall record such CO2 offset allowances in the project sponsor's general account.
(b) Deadlines for submittal of monitoring and verification reports.
(1) For CO2 emissions offset projects undertaken prior to January 1, 2009, the project sponsor must submit the monitoring and verification report covering the pre-2009 period by June 30, 2009.
(2) For CO2 emissions offset projects undertaken on or after January 1, 2009, the monitoring and verification report must be submitted within six months following the completion of the last calendar year during which the offset project achieved CO2 equivalent reductions or sequestration of CO2 for which the project sponsor seeks the award of CO2 offset allowances.
(c) Contents of monitoring and verification reports. For an offset project, the monitoring and verification report must include the following information.
(1) The project's sponsor's name, address, e-mail address, telephone number and account number.
(2) The CO2 emissions reduction or CO2 sequestration determination as required by the relevant provisions of section 242-10.5 of this Subpart, including a demonstration that the project sponsor complied with the required quantification, monitoring, and verification procedures under section 242-10.5 of this Subart, as well as those outlined in the consistency application approved pursuant to section 242-10.4(e)(2) of this Subpart.
(3) A signed statement 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 Subpart 242-10. 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 CO2 offset allowances under Subpart 242-10 is contingent on meeting the requirements of Subpart 242-10. I authorize the department or its agent 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 or its agent, any and all documentation relating to the offset project at the department's request. I submit to the legal jurisdiction of New York State."
(4) A certification signed by the offset project sponsor certifying that all offset projects for which the sponsor has received offset allowances under this Subpart (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 which controls, is controlled by, or has common control with the sponsor) are in compliance with all applicable requirements of the CO2 Budget Trading Program in all participating states.
(5) A verification report and certification statement signed by an independent verifier accredited pursuant to section 242-10.6 of this Subpart that documents that the independent verifier has reviewed the monitoring and verification report and evaluated the following in relation to the applicable requirements at section 242-10.5 of this Subpart, and any applicable guidance issued by the department.
(i) The adequacy and validity of information supplied by the project sponsor to determine CO2 emissions reductions or CO2 sequestration pursuant to the applicable requirements at section 242-10.5 of this Subpart.
(ii) The adequacy and consistency of methods used to quantify, monitor, and verify CO2 emissions reductions and CO2 sequestration in accordance with the applicable requirements at section 242-10.5 of this Subpart and as outlined in the consistency application approved pursuant to section 242-10.4(e)(2) of this Subpart.
(iii) Such other evaluations and verification reviews as may be required by the department. The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements of section 242-10.5 of this Subpart.
(6) Disclosure of any voluntary or mandatory programs, other than the CO2 Budget Trading Program, to which greenhouse gas emissions data related to the offset project has been, or will be reported.
(7) For offset projects 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 department in the state or United States jurisdiction where the offset project is located.
(d) Prohibition against filing monitoring and verification reports in more than one participating state. Monitoring and verification reports may only be filed under this section for projects that have received consistency determinations under section 242-10.4(e)(2) of this Subpart. Monitoring and verification reports may not be filed under this section for projects that have received consistency determinations in other participating states.
(e) Department action on monitoring and verification reports. The department will approve or deny a complete monitoring and verification report within 45 days following receipt of a complete report. A complete monitoring and verification report is one that is in a format approved by the department and is determined to be complete for the purposes of commencing review of the monitoring and verification report. In no event shall a completeness determination prevent the department from requesting additional information in order to enable the department to approve or deny a monitoring and verification report filed under this section.