California Code of Regulations › Title 17 - Public Health › Division 3 - Air Resources › Chapter 1 - Air Resources Board › Subchapter 10 - Climate Change › Article 5 - California Cap on Greenhouse Gas Emissions and Market-Based Compliance Mechanisms › Subarticle 13 - ARB Offset Credits and Registry Offset Credits › Section 95985 - Invalidation of ARB Offset Credits

Current through Register 2024 Notice Reg. No. 28, July 12, 2024
(a) An ARB offset credit issued under this
						article will remain valid unless invalidated pursuant to this
						section.
(b) Timeframe for
						Invalidation. ARB may invalidate an ARB offset credit pursuant to this section
						within the following timeframe if a determination is made pursuant to section
						95985(f):
(1) Within eight years of issuance of an ARB
						offset credit, if the ARB offset credit is issued for early action pursuant to
						the Program for Recognition of Early Action Offset Credits, or within eight
						years of the date that corresponds to the end of the Reporting Period for which
						the ARB offset credit is issued, if the ARB offset credit is issued pursuant to
						section 95981.1, unless one of the
						following requirements is met:
(A) The Offset
						Project Operator or Authorized Project Designee for an offset project developed
						under the Compliance Offset Protocol in section
						95973(a)(2)(C)1.
						or an early action quantification methodology approved pursuant to the Program
						for Recognition of Early Action Offset Credits for the same project type, does
						all of the following:
1. Has a different
						verification body that has not verified the Offset Project Data Report for the
						issuance of ARB offset credits, and meets the requirements for conflict of
						interest pursuant to section
						95979 and rotation of verification
						bodies pursuant to section
						95977.1(a),
						conduct a second independent regulatory verification pursuant to sections
						95977 through
						95978, except for section
						95977.1(b)(3)(M),
						for the same Offset Project Data Report, or as provided in sections
						95990(a)(3)(B) and
						(a)(4) for projects developed under an
						approved early action quantification methodology. Although the requirements in
						section 95977.1(b)(3)(M)
						do not need to be met under this section, any misreporting, discrepancies, and
						omissions found during the full offset verification services must be included
						in the offset material misstatement calculation performed pursuant to section
						95977.1(b)(3)(Q).
						If minor correctible errors that do not result in an offset material
						misstatement are found during the full offset verification services and the
						verification body does not identify any other nonconformance that would result
						in an adverse Offset Verification Statement, the verification body must issue a
						Qualified Positive Offset Verification Statement and identify the correctable
						errors on the Offset Verification Statement;
2. The second regulatory verification must be
						completed within three years of the issuance of the ARB offset credits through
						the submittal of an Offset Verification Statement pursuant to section
						95977.1(b)(3)(R)1.,
						and the Offset Project Operator or Authorized Project Designee must receive a
						Positive or Qualified Positive Offset Verification Statement from the new
						verification body for the same Offset Project Data Report, or as provided in
						section 95990(a)(3)(B) and
						(a)(4) for projects developed under an
						approved early action quantification methodology.
a. If the offset project is listed with an
						Offset Project Registry, the verification body must submit the detailed
						verification report and Offset Verification Statement for the second regulatory
						verification to the Offset Project Registry and ARB.
b. The Offset Project Registry must review
						the offset verification documents pursuant to section
						95987(e)(1)(E)
						and submit a report to ARB that includes the details and findings of the Offset
						Project Registry's review. During its review, the Offset Project Registry may
						request additional information from the verification body and Offset Project
						Operator or Authorized Project Designee, if applicable, and may request
						clarifications and revisions to the materials, if necessary.
c. The Offset Project Registry has 45
						calendar days to review the offset verification information once complete and
						accurate verification documents are received from the verification
						body.
d. The Offset Project
						Registry has an additional 15 working days to submit its report to ARB. ARB
						will review the Offset Project Registry report and determine based on the
						report and all the information submitted by the verification body and Offset
						Project Operator or Authorized Project Designee, if applicable, if the
						invalidation timeframe will be reduced. During its review, ARB may request
						additional information, clarifications, and revisions to the materials, if
						necessary.
3. If the
						requirements in sections
						95985(b)(1)(A)1.
						and 2. are met, the ARB offset credits issued under the Offset Project Data
						Report may only be subject to invalidation according to the following
						timeframes:
a. Within three years of the date
						that corresponds to the end of the Reporting Period for which the ARB offset
						credits are issued, if the ARB offset credits are issued pursuant to section
						95981; and
b. Within three years of the date for which
						ARB offset credits are issued, if the ARB offset credits are issued pursuant to
						the Program for Recognition of Early Action Offset Credits;
						or