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This page last reviewed February 17, 2012
Compliance Offset Program
Background
The cap-and-trade program includes a compliance offset program. ARB offset credits are greenhouse gas (GHG) emission reductions or sequestered carbon that meet regulatory criteria and may be used by an entity to meet up to eight percent of its triennial compliance obligation under the cap-and-trade program. Each ARB offset credit is equal to 1 metric ton of carbon dioxide equivalent (MTCO2e) and can only be generated through implementation of an offset project for which ARB has adopted a compliance offset protocol.
Subarticle 13 of the cap-and-trade regulation provides the legal requirements for compliance offset protocols, implementation and verification of offset projects, and issuance of ARB offset credits. Once an ARB offset credit is issued, it may be traded just like an allowance in the cap-and-trade program.
Compliance Offset Protocols
ARB has adopted four compliance offset protocols that may be used to generate ARB offset credits.
Additional compliance offset protocols will be considered as part of future rulemaking activities.
Offset Project Registries
The cap-and-trade regulation allows ARB to approve Offset Project Registries to help administer parts of the compliance offset program. The Offset Project Registries must meet specific regulatory criteria to be approved under the regulation and will help facilitate the listing, reporting, and verification of offset projects developed using the compliance offset protocols. Registry offset credits cannot be used in the cap-and-trade program. They must be converted to ARB offset credits to be eligible for use in the cap-and-trade program. Please see the Instructional Guidance Document (coming soon!) for the regulation for more details.
Requests for Proposal (RFPs):
There are currently no approved Offset Project Registries.
This page will be updated to list Offset Project Registries that have been approved under the regulation.
Offset Verification
The cap-and-trade regulation requires the third-party verification of all GHG emission reductions or sequestered carbon before any ARB offset credits may be issued. Only ARB accredited offset verification bodies and offset verifiers may provide offset verification services under the compliance offset program. More information about offset verification may be found on the Offset Verification page (coming soon!).
Requests for Proposal (RFPs):
ARB will be training and accrediting offset verifiers as part of program implementation in early 2012. There are currently no ARB- accredited offset verification bodies or offset verifiers.
Early Action Offset Credits
The cap-and-trade regulation allows for the transition of eligible existing offset credits developed under selected voluntary offset protocols to ARB early action offset credits for use in the cap-and-trade program. Additional information about early action offset credits will get posted on the Early Action Offset Credit page (coming soon!) at a later date.
