13 February 2015
The compliance offset program serves as an important cost
containment feature of the Cap-and-Trade Program. The
Cap-and-Trade Regulation (Regulation) requires projects to be in
regulatory conformance prior to the issuance of compliance offset
credits. And, the Regulation allows ARB to investigate and
invalidate any issued compliance offset credits that were
generated if the offset project activity and implementation of
the offset project was not in accordance with local, state, or
national environmental and health and safety regulations during
the reporting period for which the ARB offset credit was issued.
The guidance document provides additional clarity on the role of
verifiers reviewing projects for regulatory conformance and
additional clarity on the scope of project activities that would
be included in any potential invalidation investigation. ARB
will also provide further offset protocol-specific clarifications
as part of its existing process to update and publicly post FAQs
for the offset program.
Read more at CA ARB.