Washington Administrative Code › Title 173 - Ecology, Department of (See also Titles 197, 317, 372, and 508) › Chapter 173-446 - Climate Commitment Act program rule › OFFSETS › Section 173-446-580 - Invalidation of ecology offset credits

Current through Register Vol. 24-14, July 15, 2024
(1) An ecology offset
				credit issued under this chapter will remain valid unless invalidated pursuant
				to this section.
(2) Time frame for
				invalidation. If a determination is made pursuant to subsection (6) of this
				section, ecology may invalidate an ecology offset credit pursuant to this
				section within the following time frame:
(a)
				Within eight years of issuance of an ecology offset credit, as that corresponds
				to the end of the reporting period for which the ecology offset credit is
				issued, if the ecology offset credit is issued pursuant to WAC 173-446-555,
				except as provided in (b) and (c) of this subsection.
(b) The eight-year time frame set forth in
				(a) of this subsection does not apply if one of the following requirements is
				met:
(i) The offset project operator or
				authorized project designee for an offset project developed under the
				applicable compliance offset protocol does all of the following:
(A) Engages a different verification body
				that has not verified the offset project data report for the issuance of
				ecology offset credits, and meets the requirements for conflict of interest in
				WAC 173-446-545 and rotation of verification services in WAC 173-446-535(1)
				through (3), to conduct a second independent offset verification, except for
				offset project data report modifications, for the same offset project data
				report. Although the requirements for offset project data report modifications
				do not need to be met under this subsection, any misreporting, discrepancies,
				or omissions identified during the independent offset verification must be
				included in the offset material misstatement calculation prepared under WAC
				173-446-535(4)(d)(xv). If minor correctable errors that do not result in an
				offset material misstatement are identified during the independent offset
				verification 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;
(B) The second
				independent offset verification must be completed within three years of
				ecology's issuance of the ecology offset credits through the submittal of an
				offset verification statement, 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.
(I) If the offset project
				is listed with an offset project registry, the verification body must submit
				the detailed verification report and offset verification statement from the
				second independent offset verification to the offset project registry and
				ecology.
(II) The offset project
				registry must review the offset verification documents and submit a report to
				ecology 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.
(III) 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.
(IV) The offset project
				registry has an additional 15 business days to submit its report to ecology.
				Ecology 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 time frame will be reduced. During its review, ecology may request
				additional information, clarifications, and revisions to the materials, if
				necessary.
(C) If the
				requirements in (b)(i)(A) and (B) of this subsection are met, the ecology
				offset credits issued under the offset project data report may only be subject
				to invalidation within three years of the date that corresponds to the end of
				the reporting period for which the ecology offset credits were issued, if the
				ecology offset credits were issued pursuant to WAC 173-446-555.
(ii) The offset project operator
				or authorized project designee for an offset project does all of the following:
(A) Engages a different verification body
				than the one which conducted the most recent verification, and that meets the
				requirements for conflict of interest in WAC 173-446-545 and rotation of
				verification services in WAC 173-446-535(1) through (3), to verify a subsequent
				offset project data report; and
(B)
				The verification conducted by the new verification body for the subsequent
				offset project data report under this subsection in order to reduce the
				invalidation time frame of any ecology offset credits is completed through the
				submittal of an offset verification statement within, at a maximum, three years
				from the date that ecology offset credits were issued for the reporting period.
				The verification of the subsequent offset project data report must result in a
				positive or qualified positive offset verification statement from the new
				verification body.
(C) If the
				requirements in (b)(ii)(A) and (B) of this subsection are met, the ecology
				offset credits issued for no more than three reporting periods prior to the
				reporting period for which the subsequent offset project data report was
				verified by a new verification body may only be subject to invalidation within
				three years of the date that corresponds to the end of the reporting period for
				which the ecology offset credits were issued.
(c) If an offset project developed under one
				of the compliance offset protocols is in the last reporting period of a
				crediting period, and will not have a renewed crediting period, the
				invalidation time frame for up to the last three reporting periods may be
				reduced from eight years to three years if the following requirements are met
				for the last offset project data report of the crediting period:
(i) The offset project operator or authorized
				project designee engages a different verification body that has not verified
				the offset project data reports and that meets the requirements for conflict of
				interest in WAC 173-446-545 and rotation of verification services in WAC
				173-446-535(1) through (3), to conduct a second independent offset
				verification, except for offset project data report modifications, for the last
				offset project data report of the crediting period. Although the requirements
				for offset project data report modifications do not need to be met under this
				subsection, any misreporting, discrepancies, and omissions identified during
				the independent offset verification must be included in the offset material
				misstatement calculation prepared under WAC 173-446-535(4)(d)(xv);
				and
(ii) The second independent
				offset verification must be completed within three years of ecology's issuance
				of the ecology offset credits through the submittal of an offset verification
				statement, 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 last offset project data report.
(iii) 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
				independent offset verification to the offset project registry and
				ecology.
(iv) The offset project
				registry must review the offset verification documents and submit a report to
				ecology 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 the offset project operator or
				authorized project designee, if applicable, and may request clarifications and
				revisions to the materials, if necessary.
(v) The offset project registry has 45
				calendar days to review the offset verification information after complete and
				accurate verification documents are received from the verification
				body.
(vi) The offset project
				registry has an additional 15 business days to submit its report to ecology.
				Ecology will review the offset project registry's report and make a
				determination based on the report and all the information submitted by the
				verification body and offset project operator or authorized project designee,
				if applicable, and may request additional information, clarifications, and
				revisions to the materials, if necessary.