ARB Compliance Offset Protocols
The Air Resources Board (ARB) has adopted four Compliance Offset Protocols that may be used to generate Registry Offset Credits (ROCs). Registry Offset Credits are eligible to be transitioned to ARB as ARB Offset Credits. Only ARB can issue ARB Offset Credits.
Submitting a Compliance Offset Project
Section 95975 of the Cap-and-Trade Regulation specifies the requirements for listing offset projects using ARB Compliance Offset Protocols. Offset Project Operators/Authorized Project Designees can submit a compliance offset project by submitting the Offset Project Listing Information to the Climate Action Reserve. The Reserve Administrator will pre-screen the Offset Project Listing Information for “completeness.” Eligible projects will be listed on the Reserve as “Proposed Projects.”
- Open an account with the Reserve
- Register with ARB
- Create a new project in the Reserve system
- Complete the “Project Setup” page
- From the Manage Projects area, click “Upload Documents”
- Follow the directions to upload the Offset Project Listing Information form, required attestations and the Designation of Authorized Project Designee form (optional)
- Pay the submission fee for your project
- The system will invoice you once your documents have been uploaded and the project has been submitted
- Your submitted project will be reviewed and you will receive one of the following notifications:
- Your project has been accepted and the project will be listed as a “Proposed Project” (initial crediting period) or “Proposed Renewal” (renewed crediting period)
- Your Offset Project Listing Information is incomplete
- The offset project is not accepted for listing
Timing for Submitting a Compliance Offset Project for Listing
A new offset project with an Offset Project Commencement date that occurs after December 31, 2006 can be submitted for listing at any time. There is no requirement in the Regulation that requires a project be submitted within a certain amount of time after the Offset Project Commencement date. However, it should be noted that the maximum initial reporting period is 24 months. Offset credits will only be issued for the 24 months prior to submission of the Offset Project Data Report. Projects that are submitted for an Initial Crediting Period must be submitted for listing no later than the date at which the first Offset Project Data Report is submitted. Offset Project Data Reports must be submitted within 24 months of listing. Projects submitted for a Renewed Crediting Period must submit the project for listing no earlier than 18 months and no later than nine months before the conclusion of the initial crediting period.
ARB has developed forms for use in the Compliance Offset Program. These forms may be used by program participants for submitting information related to listing, reporting, verification and issuance of ARB Offset Credits. These forms can be found on the Reserve website and ARB’s website at Compliance Offset Program Forms web page.
Designation of Authorized Project Designee
Section 95974 of the Cap-and-Trade Regulation allows the Offset Project Operator to authorize another entity to act on its behalf. The Designation of Authorized Project Designee form can be used to grant this authorization in accordance with Section 95974 of the Cap-and-Trade Regulation. This form should be emailed to the Reserve at the time of project listing. An Offset Project Operator can only make changes to this form once within each calendar year.
Offset Project Listing Forms
Section 95975 of the Cap-and-Trade Regulation requires that certain information be submitted to an Offset Project Registry in order to list an offset project using a Compliance Offset Protocol. These Offset Project Listing forms can be submitted to the Reserve to list an offset project.
- Ozone Depleting Substances
- Urban Forest (forthcoming)
Offset Project Data Reports
Section 95976(d) of the Cap-and-Trade Regulation details the offset project reporting requirements. The Offset Project Data Report is the report prepared by the Offset Project Operator/Authorized Project Designee each year that provides the information and documentation required by the Cap-and-Trade Regulation and Compliance Offset Protocol. This report must be submitted within four months of the end of each reporting period. These forms can be used to comply with this requirement.
- Ozone Depleting Substances
- Urban Forest (forthcoming)
The following documents are required at different phases of the verification process.
|Notice of Offset Verification Services||Per Section 95977.1(b)(1) of the Cap-and-Trade Regulation, the verification body must submit Notice of Offset Verification Services to ARB and an Offset Project Registry. This form can be used to comply with this requirement. The verification body should submit this form to ARB and the Reserve 10 business days prior to beginning any offset verification services.|
|Evaluation of Conflict Of Interest for Offset Projects||Per Section 95979 of the Cap-and-Trade Regulation, before providing any offset verification services, the verification body must submit to the Offset Project Operator/Authorized Project Designee and the Offset Project Registry a conflict of interest self-evaluation. This form can be used to comply with this requirement. It should be submitted to the Reserve prior to verification activities commencing.|
|Offset Verification Statement||Per Section 95977.1(b)(3)(R) of the Cap-and-Trade Regulation, a verification body is required to issue an Offset Verification Statement for any Offset Project Data Report for which it has provided offset verification services. This form can be used to comply with this requirement.|
Process for Issuance of Registry Offset Credits
As an Offset Project Registry (OPR), the Climate Action Reserve will issue Registry Offset Credits (ROCs) to projects using the ARB Compliance Offset Protocols. Registry Offset Credits are not compliance instruments in the California Cap-and-Trade Program and are only considered to be eligible credits that can be transitioned to ARB as ARB Offset Credits.
The steps to receiving Registry Offset Credits from the Reserve are as follows:
- List the offset project with the Reserve
- Achieve a Positive Offset Verification Statement or a Qualified Positive Offset Verification Statement by an ARB-accredited verification body and meet all deadlines specified in the Regulation (e.g. submission of Offset Project Data Report, completion of verification)
- The project successfully passes review by the Reserve; the Reserve’s review ensures that a project meets the requirements of the Regulation
- The Reserve makes a determination to issue Registry Offset Credits
Process for Converting Registry Offset Credits to ARB Offset Credits
Once Registry Offset Credits are issued, the Offset Project Operator/Authorized Project Designee has the option to have these credits issued as ARB Offset Credits. The steps to be issued ARB Offset Credits are:
- The Offset Project Operator/Authorized Project Designee must submit reporting and verification documentation information to ARB. The Request for Issuance of ARB Offset Credits form can be used to facilitate this process. The information includes:
a. Offset Project Operator/Authorized Project Designee attestations required per Sections 95975(c)(1) through 95975(c)(3) and per Sections 95981(d)(1) through 95981(d)(3) of the Regulation
b. Offset project listing information that was submitted to the Reserve
c. Offset Project Data Reports submitted to the Reserve (original and final)
d. The Offset Verification Statement
e. The verification body and lead verifier attestations required per Sections 95977.1(b)(3)(R)(4.)(b.), 95977.1(b)(3)(R)(4.)(e.) and 95977.1(b)(3)(R)(4.)(f.) of the Regulation
- ARB will make a determination within 45 days to issue ARB Offset Credits. ARB will notify the Reserve to cancel out the specified Registry Offset Credits it intends to issue as ARB Offset Credits.
- The Reserve will cancel the Registry Offset Credits within 10 business days and notify ARB of the cancellation immediately.
- When the Reserve has notified ARB that the credits have been cancelled, ARB will issue the ARB Offset Credits in the Compliance Instrument Tracking System Service (CITSS) within 15 calendar days.
- Within 15 days of issuance of ARB Offset Credits, ARB will notify the Offset Project Operator, Authorized Project Designee and any other designated third party of the issuance.
- ARB will transfer the ARB Offset Credits into the appropriate holding accounts within 15 working days of the notification.
Process for Transferring Projects to the Compliance Offset Protocols
Early action projects are eligible to transition to an ARB Compliance Offset Protocol in order to generate ARB Offset Credits. Early action projects must transition to the Compliance Offset Protocols by February 28, 2015. To transition, the project must be listed with an Offset Project Registry under a Compliance Offset Protocol by February 28, 2015. The early action project is eligible to generate Early Action Offset Credits for greenhouse gas reductions or removal enhancements achieved through 2014, but the project must be reporting under the Compliance Offset Protocol by January 1, 2015.