§ 145.395. CO₂ emissions offset project standards.

 (a)  Landfill methane capture and destruction. To qualify for the award of CO₂ offset allowances under § §  145.391—145.397 (relating to CO₂ emissions offset projects), an offset project that captures and destroys methane from a landfill shall meet the requirements of this subsection and all other applicable requirements of § §  145.391—145.397.

   (1)  Eligibility. An offset project shall occur at a landfill that is not subject to the New Source Performance Standards for municipal solid waste landfills, 40 CFR Part 60, Subpart Cc and Subpart WWW (relating to emission guidelines and compliance times for municipal solid waste landfills; and standards of performance for municipal solid waste landfills that commenced construction, reconstruction, or modification on or after May 30, 1991, but before July 18, 2014).

   (2)  Offset project description. 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 paragraph (1). The project narrative shall include the following:

     (i)   Identification of the owner or operator of the offset project.

     (ii)   Location and specifications of the landfill where the offset project will occur, including waste in place.

     (iii)   Identification of the owner or operator of the landfill where the offset project will occur.

     (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 as follows:

   Emissions (tons CO₂e) = (V x M x (1 - OX) x GWP)/2000

 Where:

   V = Volume of CH₄ collected (ft³).

   M = Mass of CH₄ per cubic foot (0.04246 lbs/ft³ default value at 1 atmosphere, 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 (28).

   (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 (tons CO₂e) = (V x M x (1 - OX) x _Cef x GWP)/2000

 Where:

   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.

   Cef = Combustion efficiency of methane control technology (0.98).

   GWP = CO₂e global warming potential of CH₄ (28).

   (5)  Monitoring and verification requirements. An offset project 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:

     (i)   As part of the consistency application, the project sponsor shall submit a monitoring and verification plan 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 under §  145.396 (relating to accreditation of independent verifiers).

     (ii)   The project sponsor shall annually verify landfill gas CH₄ composition through landfill gas sampling and independent laboratory analysis using applicable EPA laboratory test methods.

 (b)  Sequestration of carbon due to reforestation, improved forest management or avoided conversion. To qualify for the award of CO₂ offset allowances under § §  145.391—145.397, an offset project that involves reforestation, improved forest management, or avoided conversion shall meet all requirements of this subsection and the forest offset protocol, and all other applicable requirements of § §  145.391—145.397.

   (1)  Eligibility. A forest offset project shall satisfy all eligibility requirements of the forest offset protocol and this subsection.

   (2)  Offset project description. 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 paragraph (1). 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.

   (3)  Carbon sequestration baseline determination. 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.

   (4)  Calculating carbon sequestered. 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.

   (5)  Monitoring and verification requirements. Monitoring and verification are subject to the following:

     (i)   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.

     (ii)   The consistency application shall include a monitoring and verification plan certified by an independent verifier accredited under §  145.396 and shall consist of a forest carbon inventory program, as required by section 8.1 of the forest offset protocol.

     (iii)   Monitoring and verification reports shall be submitted not less than every 6 years, except that the first monitoring and verification report for reforestation projects must be submitted within 12 years of project commencement.

   (6)  Forest Offset Project Data Reports. 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 and there must be no gaps in reporting once the first reporting period has commenced.

   (7)  Conversion. Prior to the award of CO₂ offset allowances under §  145.397 (relating to award and recordation of CO₂ offset allowances), or to any surrender of allowances under §  145.395(b)(8)(ii)(C) (relating to CO₂ emissions offset project standards), any quantity expressed in metric tons, or metric tons of CO₂e, shall be converted to tons using the conversion factor specified in §  145.302 (relating to definitions).

   (8)  Carbon sequestration permanence. The project sponsor shall meet the following requirements to address reversals of sequestered carbon.

     (i)   Unintentional reversals. The project sponsor shall address an unintentional reversal of sequestered carbon as follows:

       (A)   Notify the Department of the reversal and provide an explanation for the nature of the unintentional reversal within 30 calendar days of its discovery.

       (B)   Submit to the Department a verified estimate of current carbon stocks within the offset project boundary within 1 year of the discovery of the unintentional reversal.

     (ii)   Intentional reversals. The project sponsor shall address an intentional reversal of sequestered carbon as follows:

       (A)   Notify the Department in writing of the intentional reversal and provide a written description and explanation of the intentional reversal within 30 calendar days of the intentional reversal.

       (B)   Submit to the Department a verified estimate of current carbon stocks within the offset project boundary within 1 year of the occurrence of an intentional reversal.

       (C)   If an intentional reversal occurs, and CO₂ offset allowances have been awarded to the offset project, the forest owner must surrender to the Department or its agent for retirement a quantity of CO₂ allowances corresponding to the quantity of CO₂e tons reversed within 6 months of notification by the Department.

         (I)   The Department will provide notification after the project sponsor has submitted a verified estimate of carbon stocks to the Department, or if the project sponsor fails to submit verified estimate of carbon stocks after 1 year has elapsed since the occurrence of the intentional reversal.

         (II)   If the forest owner does not surrender valid CO₂ allowances to the Department within 6 months of notification by the Department, the forest owner will be subject to enforcement action and each CO₂e ton of carbon sequestration intentionally reversed will constitute a separate violation of this subchapter and the act.

       (D)   Project Termination Requirements.

         (I)   The project sponsor must surrender to the Department or its agent for retirement a quantity of CO₂ allowances in the amount calculated under project termination provisions in the forest offset protocol within 6 months of project termination.

         (II)   If the project sponsor does not surrender to the Department or its agent a quantity of CO₂ allowances in the amount calculated under project termination provisions in the forest offset protocol within 6 months of project termination, the project sponsor will be subject to enforcement action and each CO₂ offset allowance not surrendered will constitute a separate violation of this subchapter and the act.

     (iii)   Disposition of Forest Sequestration Projects After a Reversal. The Department will terminate a forest offset project if a reversal lowers the forest offset project’s actual standing live carbon stocks below its project baseline standing live carbon stocks.

   (9)  Timing of forest offset projects. The Department may award CO₂ offset allowances under §  145.397 only for forest offset projects that are initially commenced on or after January 1, 2014.

   (10)  Projects that Have Been Awarded Credits by a Voluntary Greenhouse Gas Reduction Program. The provisions of § §  145.393(c)(4) and 145.394(b)(2) (relating to general requirements; and application process) shall not apply to forest projects that have been awarded credits under a voluntary greenhouse gas reduction program. For those projects, the number of CO₂ offset allowances will be calculated under the requirements of this subsection, without regard to quantity of credits that were awarded to the project under the voluntary program, provided that the project satisfies the following:

     (i)   Other general requirements of § §  145.391—145.397, including all specific requirements of this subsection, for all reporting periods for which the project has been awarded credits under a voluntary greenhouse gas program and also intends to be awarded CO₂ offset allowances under §  145.397.

     (ii)   At the time of submittal of the consistency application for the project, the project sponsor 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 CO₂ offset allowances under §  145.397. Forest offset data reports and monitoring and verification reports must meet all requirements of paragraphs (5) and (6).

     (iii)   The voluntary greenhouse gas program has published information to allow the Department to verify the information included in the consistency application and the consistency application includes information sufficient to allow the Department to determine the following:

       (A)   The offset project has met all legal and contractual requirements to allow it to terminate its relationship with the voluntary greenhouse gas program and the termination has been completed.

       (B)   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 CO₂ offset allowances under §  145.397, and the credits were cancelled or retired for the sole purpose of allowing the project to be awarded CO₂ offset allowances under §  145.397.

 (c)  Avoided methane emissions from agricultural manure management operations. To qualify for the award of CO₂ offset allowances under § §  145.391—145.397, an offset project that captures and destroys methane from animal manure and organic food waste using anaerobic digesters shall meet the requirements of this subsection and all other applicable requirements of § §  145.391—145.397.

   (1)  Eligibility. To be eligible for CO₂ offset allowances, an offset project under this subsection shall:

     (i)   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)   Employ only manure-based anaerobic digester systems using livestock manure as the majority of digester feedstock, defined as more than 50% 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.

   (2)  Exceptions to the general requirements. The provisions of §  145.393(c)(2) and (3) shall not apply to an agricultural manure management offset project that meets the following:

     (i)   The offset project is located in a participating state that has a market penetration rate for anaerobic digester projects of 5% or less. The market penetration determination shall utilize the most recent market data available at the time of submission of the consistency application under §  145.394 and shall be determined as follows:

     MP (%) = MG_AD / MG_STATE

 Where:

   MG_AD = 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 under §  145.394.

   MG_STATE = Average annual manure production of all dairy cows and swine in the participating state at the time of submission of a consistency application under §  145.394.

     (ii)   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 in pounds per cow of 1,400 pounds, or, if the project is a regional-type anaerobic 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 in pounds per cow of 1,400 pounds.

   (3)  Offset project description. 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 paragraph (1). The offset project narrative shall include the following:

     (i)   Identification of the owner or operator of the offset project.

     (ii)   Location and specifications of the facility where the offset project will occur.

     (iii)   Identification of the owner or 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.

     (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.

   (4)  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:

     E_b = (V_m x M)/2000 x GWP

 Where:

   E_b = Potential CO₂e emissions due to calculated CH₄ production under site-specific anaerobic storage and weather conditions (tons).

   V_m = Volume of CH₄ produced each month from decomposition 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 (28).

     (ii)   The estimated amount of volatile solids decomposed each month under the uncontrolled anaerobic storage baseline scenario in kilograms (kg) shall be calculated as follows:

       VS_dec = VS_avail x f

 Where:

   VS = Volatile solids as determined from the equation:

   VS = M_m x TS% x VS%

 Where:

   M_m = Mass of manure or organic food waste produced per month (kg).

   TS% = Concentration (%) of total solids in manure or organic food waste as determined through EPA 160.3 testing method (EPA Method Number 160.3, Methods for the Chemical Analysis of Water and Wastes (EPA/600/4-79/020)).

   VS% = Concentration (%) of volatile solids in total solids as determined through EPA 160.4 testing method (EPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (EPA/600/4-79/020)).

   VS_avail = Volatile solids available for decomposition in manure or organic food waste storage each month as determined from the equation:

   VS_avail = VS_p + 1/2 VS_in - VS_out

 Where:

   VS_p = Volatile solids present in manure or organic food waste storage at beginning of month (left over from previous month) (kg).

   VS_in = 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 decomposition for the entire duration of the month.

   VS_out = 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 x T₁ x T₂)]}

 Where:

   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 degrees Celsius to degrees 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 = 303.15 (30°C converted to °K).

   GC = Ideal gas constant (1.987 cal/K mol).

     (iii)   The volume of CH₄ produced in cubic feet (ft³) from decomposition of volatile solids shall be calculated as follows:

     V_m = (VS_dec x B_o) x 35.3147

 Where:

   V_m = Volume of CH₄ (ft³).

   VS_dec = Volatile solids decomposed (kg).

   B_o = Manure or organic food waste type-specific maximum methane generation constant (m³ CH₄/kg VS decomposed). For dairy cow manure, B_o = 0.24 m³ CH₄/kg VS decomposed. The methane generation constant for other types of manure shall be those cited at the EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990—2010, Annex 3, Table A 180 (EPA, February 2017), unless the project sponsor proposes an alternate methane generation constant and that alternate is approved by the Department. If the project sponsor proposes to use a methane generation constant other than the ones found in the previously-cited reference, the project sponsor must provide justification and documentation to the Department.

   (5)  Calculating emissions reductions. Emissions reductions shall be calculated as follows:

   ER_t = E_b - E_p

 Where:

   ER_t = CO₂e emissions reductions due to project activities (tons).

   E_b = Potential CO₂e emissions due to calculated CH₄ production under site-specific anaerobic storage and weather conditions (tons).

   E_p = CO₂e emissions due to project activities additional to baseline (tons), including manure transportation, flaring, venting and effluent management.

   (6)  Transport CO₂ emissions. 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 under paragraph (5). 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 calculated under paragraph (4)(i)—(iii). 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. Off-site is defined as a location that is not contiguous with the property where the anaerobic digester is located. 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 under paragraph (7)(i), 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 lb. CO₂ per ton-mile.

       (B)   Gasoline: 0.133 lb. CO₂ per ton-mile.

       (C)   Other fuel: submitted emissions factor approved by the Department.

   (7)  Monitoring and verification requirements. An offset project 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:

     (i)   If the offset project is a regional-type anaerobic 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 in kilograms (kg) being digested and percentage of volatile solids present before anaerobic digestion, consistent with the requirements under subparagraph (iii) and paragraph (4) and apportioned accordingly among sources. The project sponsor shall provide supporting material and receipts tracking the monthly receipt of manure and organic food waste in kilograms (kg) used to supply the anaerobic digester from each supplier.

     (ii)   If the offset project includes the anaerobic digestion of organic food waste eligible under paragraph (1)(ii), organic food waste shall be sampled monthly to determine the amount of volatile solids present before anaerobic digestion, consistent with the requirements under subparagraph (iii) and paragraph (4), 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. 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 under §  145.396.

Table 3. Monitoring requirements

Parameter	Measurement Unit	Frequency of Sampling	Sampling Methods
Influent flow (mass) into the digester	Kilograms (kg) per month (wet mass)	Monthly total into the digester	In descending order of preference: 1) Recorded mass 2) Digester influent pump flow 3) Livestock population and application of American Society of Agricultural and Biological Engineers (ASABE) standard (ASAE D384.2, March 2005)
Influent total solids concentration (TS)	Percent (of sample)	Monthly, depending upon recorded variations	EPA Method Number 160.3, Methods for the Chemical Analysis of Water and Wastes (EPA/600/4-79/020)
Influent volatile solids (VS) concentration	Percent (of TS)	Monthly, depending upon recorded variations	EPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (EPA/600/4-79/020)
Average monthly ambient temperature	Temperature °C	Monthly (based on farm averages)	Closest National Weather Service—certified weather station
Volume of biogas produced by digester	Standard cubic feet (scf)	Continuous, totalized monthly	Flow meter
Methane composition of biogas produced by digester	Percent (of sample)	Quarterly	Bag sampling and third party laboratory analysis using applicable EPA test methods

Cross References

   This section cited in 25 Pa. Code §  145.302 (relating to definitions); 25 Pa. Code §  145.391 (relating to purpose); 25 Pa. Code §  145.392 (relating to definitions); 25 Pa. Code §  145.393 (relating to general requirements); 25 Pa. Code §  145.394 (relating to application process); 25 Pa. Code §  145.396 (relating to accreditation of independent verifiers); and 25 Pa. Code §  145.397 (relating to award and recordation of CO₂ offset allowances).

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