Comment Log Display

First Environment offers the following comments regarding proposed
revisions to the Cap and Trade regulation.

Proposed revision to the regulation:
95977.1(b)(3)(R)8 –
If ARB or the Offset Project Registry determines that the detailed
verification report required pursuant to 95977.1(b)(3)(R)4.a. does
not contain sufficient information to substantiate the attestations
in the Offset Verification Statement, then the verification body
must submit a revised verification report and a revised Offset
Verification Statement to ARB or the Offset Project Registry within
15 calendar days.

Comment:
The language “does not contain sufficient information to
substantiate the attestations in the Offset Verification Statement”
is vague and does not provide an objective basis for the Offset
Project Registry (or verification bodies) to determine whether the
verification report meets the requirements of 95977.1(b)(3)(R)4a. 
To ensure consistency across Offset Project Registries and between
verification bodies, the regulation should state the specific
criteria that a verification report must meet or refer back to
95977.1(b)(3)(R)4a for the requirements that the report must
address to be considered in conformance with the regulation.

Proposed revision to the regulation:
95977.1(b)(3)(R) –
Offset verification services are not complete until ARB offset
credits are issued for the GHG emission reductions and GHG removal
enhancements reported in an Offset Project Data.

Comment:
While verification bodies may anticipate questions and comments
from ARB or the OPR after submittal of the verification report and
statement, the regulation should not define the period between this
submission and issuance of ARB offset credits to be part of
“verification services.”  Consistent with international best
practices in financial auditing, third party audit services must
have a defined scope including specific starting and ending dates
during which the assessment of evidence was performed. To avoid
unnecessary uncertainty regarding the scope of the verification
process, verification services should be considered complete after
the submission of the report and statement to the OPR. This
proposed revision should be removed and the regulation can continue
to rely on the existing text at 95977.1(b)(3)(S), which states that
verification requirements are considered to be met when ARB Offsets
are issued.