N.J. Admin. Code § 7:27C-10.6

Current through Register Vol. 56, No. 23, December 2, 2024

Section 7:27C-10.6 - CO[2] emissions offset project standards - sequestration of carbon due to reforestation, improved forest management, or avoided conversion

(a) To qualify for the award of COoffset allowances, in addition to satisfying the other applicable requirements of this subchapter, a forest offset project shall meet the requirements of (b) through (p) below, and the forest offset protocol.

(b) The 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 the forest offset protocol and this subchapter. The offset project description must include all information identified in sections 8.1 and 9.1 of the forest offset protocol, and any other information deemed necessary by the Department in order to determine eligibility.

(c) Baseline onsite carbon stocks shall be determined as required by sections 6.1.1, 6.1.2, 6.2.1, 6.2.2, 6.2.3, 6.3.1, and 6.3.2 of the forest offset protocol, as applicable.

(d) Net greenhouse gas reductions and greenhouse gas removal enhancements shall be calculated as required by section 6 of the forest offset protocol. The project's risk reversal rating shall be calculated using the forest offset protocol Determination of a Forest Project's Reversal Risk Rating assessment worksheet.

(e) Monitoring and verification is subject to the following requirements:

1. Monitoring and verification reports shall include all forest offset project data reports submitted to the Department, including any additional data required by section 9.2.2 of the forest offset protocol;

2. The monitoring and verification plan included in the consistency application shall consist of a forest carbon inventory program, as required by section 8.1 of the forest offset protocol; and

3. Monitoring and verification reports shall be submitted not less frequently than once every six years, except that the first monitoring and verification report for reforestation projects must be submitted within 12 years of project commencement.

(f) A project sponsor shall submit a forest offset project data report to the Department for each reporting period. Each forest offset project data report must cover a single reporting period. Reporting periods must be contiguous; there must be NO[x] gaps in reporting once the first reporting period has commenced.

(g) Prior to the award of CO[2] offset allowances pursuant to N.J.A.C. 7:27C-10.9, or to any surrender of allowances pursuant to (j) and (m) below, any quantity expressed in metric tons, or metric tons of CO[2] equivalent, shall be converted to tons using the conversion factor specified in the definition of "ton" or "tonnage" and as further specified at N.J.A.C. 7:27C-1.4(d).

(h) The project sponsor shall address an unintentional reversal of sequestered carbon as follows:

1. Notify the Department of the unintentional reversal and provide an explanation for the nature of the unintentional reversal within 30 calendar days of its discovery; and

2. Submit to the Department a verified estimate of current carbon stocks within the offset project boundary within one year of the discovery of the unintentional reversal.

(i) The project sponsor shall address an intentional reversal of sequestered carbon as follows:

1. Notify the Department in writing of the intentional reversal and provide a written description and explanation of the intentional reversal within 30 days of the intentional reversal; and

2. Submit to the Department a verified estimate of current carbon stocks within the offset project boundary within one year of the occurrence of the intentional reversal.

(j) If an intentional reversal occurs, and CO[2] offset allowances have been awarded to the offset project, the forest owner shall surrender to the Department for retirement, a quantity of CO[2] allowances corresponding to the quantity of CO[2] equivalent tons reversed within six months of notification by the Department.

(k) The Department will provide notification pursuant to (i) above, after the project sponsor has submitted a verified estimate of carbon stocks to the Department, or, if the project sponsor fails to submit the verified estimate of carbon stocks, after one year has elapsed since the intentional reversal occurred.

(l) If the forest owner does not surrender valid CO[2] allowances to the Department within six months of notification by the Department pursuant to (i) above, the forest owner will be subject to enforcement action pursuant to N.J.A.C. 7:27A-3.10(u) and each CO[2] equivalent ton of carbon sequestration intentionally reversed will constitute a separate violation of this subchapter and applicable State law.

(m) Requirements for project termination are as follows:

1. The project sponsor shall surrender to the Department for retirement a quantity of CO[2] allowances in the amount calculated pursuant to project termination provisions in the forest offset protocol within six months of project termination; and

2. Failure to surrender CO[2] allowances to the Department as provided at (m)1 above will subject the project sponsor to enforcement action pursuant to N.J.A.C. 7:27A-3.10(u), and each CO[2] offset allowance not surrendered will constitute a separate violation of this subchapter and applicable State law.

(n) The Department will terminate a forest offset project if a reversal lowers a forest offset project's actual standing live carbon stocks below its project baseline standing live carbon stocks.

(o) Only those forest offset projects that are initially commenced on or after January 1, 2014, are eligible for an award of CO[2] offset allowances under this section.

(p) The provisions of NJ.A.C. 7:27C-10.3(d)4 and 10.4(c)1 do not apply to forest projects that have been awarded credits under a voluntary greenhouse gas reduction program. For such projects, the number of CO[2] offset allowances will be calculated pursuant to the requirements of this section, without regard to the quantity of credits that were awarded to the project under the voluntary program, provided that the following conditions are satisfied:

1. The project satisfies all other general requirements of this subchapter, including all specific requirements of this section, for all reporting periods for which the project has been awarded credits under a voluntary greenhouse gas program and also intends to be awarded CO[2] offset allowances pursuant to N.J.A.C. 7:27C-10.9;

2. At the time of submittal of the consistency application for the project, the project submits forest offset data reports and a monitoring and verification report covering all reporting periods for which the project has been awarded credits under a voluntary greenhouse gas program and also intends to be awarded CO[2] offset allowances pursuant to N.J.A.C. 7:27C-10.9. Forest offset data reports and monitoring and verification reports must meet all requirements of (e) and (f) above;

3. The consistency application includes information sufficient to allow the Department to make the following determinations, and the voluntary greenhouse gas program has published information on its website to allow the Department to verify the information included in the consistency application:

i. The offset project has met all legal and contractual requirements to allow it to terminate its relationship with the voluntary greenhouse gas program, and such termination has been completed; and

ii. The project sponsor or voluntary greenhouse gas program has cancelled or retired all credits that were awarded for carbon sequestration that occurred during the time periods for which the project intends to be awarded CO[2] offset allowances pursuant to N.J.A.C. 7:27C-10.9, and such credits were cancelled or retired for the sole purpose of allowing the project to be awarded CO[2] offset allowances pursuant to N.J.A.C. 7:27C-10.9.

N.J. Admin. Code § 7:27C-10.6

Adopted by 51 N.J.R. 992(a), effective 6/17/2019