§ 145.397. Award and recordation of CO₂ offset allowances.

 (a)  Award of CO₂ offset allowances. Following the issuance of a consistency determination under §  145.394(e)(2) (relating to application process) and the approval of a monitoring and verification report under the provisions of subsection (f), the Department will award one CO₂ offset allowance for each ton of demonstrated reduction in CO₂ or CO₂e emissions or sequestration of CO₂.

 (b)  Recordation of CO₂ offset allowances. After CO₂ offset allowances are awarded under subsection (a), the Department will record the CO₂ offset allowances in the project sponsor’s general account.

 (c)  Deadlines for submittal of monitoring and verification reports.

   (1)  For an offset project undertaken prior to April 23, 2022, the project sponsor shall submit the monitoring and verification report covering the pre-2022 period by October 20, 2022.

   (2)  For an offset project undertaken on or after April 23, 2022, the project sponsor shall submit the monitoring and verification report within 6 months following the completion of the last calendar year during which the offset project achieved CO₂e reductions or sequestration of CO₂ for which the project sponsor seeks the award of CO₂ offset allowances.

 (d)  Contents of monitoring and verification reports. For an offset project, the monitoring and verification report must include the following:

   (1)  The project sponsor’s name, address, e-mail address, telephone number, facsimile transmission number and account number.

   (2)  The CO₂ emissions reduction or CO₂ sequestration determination as required by the relevant provisions of §  145.395 (relating to CO₂ emissions offset project standards), including a demonstration that the project sponsor complied with the required quantification, monitoring and verification procedures under §  145.395, as well as those outlined in the consistency application approved under §  145.394(e)(2).

   (3)  A signed certification statement that reads ‘‘The undersigned project sponsor hereby confirms and attests that the offset project upon which this monitoring and verification report is based is in full compliance with all of the requirements of § §  145.391—145.397. The project sponsor holds the legal rights to the offset project or has been granted the right to act on behalf of a party that holds the legal rights to the offset project. I understand that eligibility for the award of CO₂ offset allowances under § §  145.391—145.397 is contingent on meeting the requirements of § §  145.391—145.397. I authorize the Department or its agent to audit this offset project for purposes of verifying that the offset project, including the monitoring and verification plan, has been implemented as described in the consistency application that was the subject of a consistency determination by the Department. I understand that this right to audit shall include the right to enter the physical location of the offset project and to make available to the Department or its agent any and all documentation relating to the offset project at the Department’s request. I submit to the legal jurisdiction of the Commonwealth of Pennsylvania.’’

   (4)  A certification signed by the project sponsor certifying that all offset projects for which the sponsor has received CO₂ offset allowances under this subchapter or similar provisions in the rules of other participating states, under the sponsor’s ownership or control or under the ownership or control of any entity which controls, is controlled by, or has common control with the sponsor are in compliance with all applicable requirements of the CO₂ Budget Trading Program in all participating states.

   (5)  A verification report and certification statement signed by an independent verifier accredited under §  145.396 (relating to accreditation of independent verifiers) that documents that the independent verifier has reviewed the monitoring and verification report and evaluated the following in relation to the applicable requirements at §  145.395, and any applicable guidance issued by the Department:

     (i)   The adequacy and validity of information supplied by the project sponsor to determine CO₂ emissions reductions or CO₂ sequestration under the applicable requirements at §  145.395.

     (ii)   The adequacy and consistency of methods used to quantify, monitor and verify CO₂ emissions reductions and CO₂ sequestration in accordance with the applicable requirements at §  145.395 and as outlined in the consistency application approved under §  145.394(e)(2).

     (iii)   The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements under §  145.395.

     (iv)   Other evaluations and verification reviews as may be required by the Department.

   (6)  Disclosure of any voluntary or mandatory programs, other than the CO₂ Budget Trading Program, to which greenhouse gas emissions data related to the offset project has been or will be reported.

 (e)  Prohibition against filing monitoring and verification reports in more than one participating state. The Department will only accept a monitoring and verification report for an offset project that has received a consistency determination under §  145.394(e)(2) and will not accept a monitoring and verification report for an offset project that has received a consistency determination in other participating states.

 (f)  Department action on monitoring and verification reports.

   (1)  A complete monitoring and verification report is one that is in an approved form and is determined by the Department to be complete for the purpose of commencing review of the monitoring and verification report. In no event shall a completeness determination prevent the Department from requesting additional information needed by the Department to approve or deny a monitoring and verification report.

   (2)  Within 45 days following receipt of a complete report, the Department will approve or deny a complete monitoring and verification report, in a format approved by the Department, filed with the Department under subsections (c) and (d).

Cross References

   This section cited in 25 Pa. Code §  145.302 (relating to definitions); 25 Pa. Code §  145.306 (relating to standard requirements); 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 §  145.395 (relating to CO₂ emissions offset project standards); and 25 Pa. Code §  145.396 (relating to accreditation of independent verifiers).

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