Section 95986 - Executive Officer Approval Requirements for Offset Project Registries(a) The approval requirements specified in this subarticle apply to all Offset Project Registries that will operate to provide registry services under this article.(b) The Executive Officer may approve Offset Project Registries that meet and maintain the requirements specified in this section.(1) Offset Project Registry Approval Application. To apply for approval as an Offset Project Registry, the applicant shall submit the following information to the Executive Officer: (B) Name of president or chief executive officer;(C) List of all board members, if applicable;(D) Addresses of offices located in the United States;(E) Documentation that the applicant carries at least five million U.S. dollars of professional liability insurance; and(F) List of any judicial proceedings and administrative actions filed against the applicant within the previous five years, with a detailed explanation as to the nature of the proceedings.(2) The applicant must submit, in writing, the procedures to screen and address internal conflicts of interest. The applicant must provide the following information to the Executive Officer:(A) A staff, management, and board member conflict of interest policy where there are clear criteria for what constitutes a conflict of interest. The policy must: 1. Identify specific activities and limits on monetary and non-monetary gifts staff, management, or board members must not conduct or accept to meet the Offset Project Registry's internal policies of conflict of interest policy, or alternatively provide a comprehensive policy on the applicant's requirements for the reporting of any and all conflicts based on internal policies that guard against conflict of interest; and2. Include a requirement for annual disclosure by each staff, management, or board member of any items or instances that are covered by the applicant's conflict of interest policy on an ongoing basis or for the previous calendar year.3. The applicant must have appropriate conflict of interest and confidentiality requirements in place for any of its contractors;(B) List of all service types provided by the applicant;(C) The industrial sectors the applicant serves;(D) Locations where services are provided; and(E) A detailed organizational chart that includes the applicant and any parent, subsidiary, and affiliate companies.(F) If the applicant under section 95986 is going to designate a subdivision of its organization to provide registry services, then the prohibition in section 95986(c)(1) on serving as an offset project consultant shall apply at the subdivision level and the applicant must provide the following general information for its self: 1. General types of services; and2. General locations where services are provided.(3) The applicant has the following capabilities for registration and tracking of registry offset credits issued under this article: (A) A comprehensive registration requirement for all registry participants;(B) Tracking ownership and transactions of all registry offset credits it issues at all times; and(C) Possesses a permanent repository of ownership information on all transactions involving all registry offset credits it issues under this article from the time they are issued to the time they are retired or cancelled.(c) The applicant's primary business must be operating an Offset Project Registry for voluntary or regulatory purposes and meet the following business requirements: (1) The applicant may not act as an Offset Project Operator, Authorized Project Designee, or offset project consultant for offset projects registered or listed on its own Offset Project Registry and developed using a Compliance Offset Protocol once approved as an Offset Project Registry. The applicant must annually disclose to ARB any non-offset project related consulting services it provides to an Offset Project Operator or Authorized Project Designee who lists a project using a Compliance Offset Project with the applicant as part of the information included in the annual report required in section 95987(j);(2) The applicant may not act as a verification body or provide offset verification services pursuant to sections 95977.1 and 95977.2 once approved as an Offset Project Registry;(3) If the applicant designates a subdivision of its organization to provide registry services, the applicant may not be an Offset Project Operator or Authorized Project Designee for offset projects listed at the subdivision's registry, act as a verification body, or be a covered entity or opt-in covered entity;(4) The applicant must demonstrate experience in the continuous operation of a registry serving an Environmentally-focused Market for a minimum of two years in a regulatory and/or voluntary market. For the purposes of this section, an "Environmentally-focused Market" means a market that includes the trading of carbon-emissions based commodities. In the context of Air Quality Management Districts or Air Pollution Control Districts, "Environmentally-focused Market" includes a market for air emission reduction credits; and(5) The applicant's primary incorporation or other business formation and primary place of business, or the primary place of business of the designated subdivision, if the applicant designates a subdivision to provide registry services pursuant to this section, must be in the United States of America.(d) The Offset Project Registry must continue to maintain the professional liability insurance required in section 95986(b) while it provides registry services to Offset Project Operators or Authorized Project Designees who are implementing offset projects using Compliance Offset Protocols.(e) If any information submitted pursuant to sections 95986(b) through (d) changes after the approval of an Offset Project Registry, the Offset Project Registry must notify the Executive Officer within 30 calendar days and provide updated information consistent with that required in sections 95986(b) through (d).(f) The Offset Project Registry must attest, in writing, to ARB as follows:(1) "As the authorized representative for this Offset Project Registry, I understand that the Offset Project Registry is voluntarily participating in the California Cap-and-Trade Program under title 17, article 5, and the Offset Project Registry is now subject to all regulatory requirements and enforcement mechanisms of this program.";(2) "All information generated and submitted to ARB by the Offset Project Registry related to an offset project that uses a Compliance Offset Protocol will be true, accurate, and complete.";(3) "All information provided to ARB as part of an ARB audit of the Offset Project Registry will be true, accurate, and complete.";(4) "All registry services provided will be in accordance with the requirements of section 95987.";(5) "The Offset Project Registry is committed to participating in all ARB training related to ARB's compliance offset program or Compliance Offset Protocols."; and(6) The authorized representative of the Offset Project Registry must attest in writing, to ARB: "I certify under penalty of perjury under the laws of the State of California I have authority to represent the Offset Project Registry and all information provided as part of this application is true, accurate, and complete.".(g) At least two of the management staff at the Offset Project Registry must take ARB provided training on ARB's compliance offset program and pass an examination upon completion of training.(h) The Offset Project Registry must have staff members who have collectively completed ARB training and passed an examination upon completion of training in all Compliance Offset Protocols.(i) The Offset Project Registry must have at least two years of demonstrated experience in, and requirements for, direct staff oversight and review of offset projects, project listing, offset verification, and registry offset credit issuance.(j) ARB Approval. (1) Within 60 calendar days of receiving an application for approval as an Offset Project Registry and completion by all management staff of the training required in section 95986(g), the Executive Officer will inform the applicant in writing either that the application is complete or that additional specific information is required to make the application complete.(2) The applicant may be allowed to submit additional supporting documentation before a decision is made by the Executive Officer.(3) Within 60 calendar days following completion of the application process, the Executive Officer shall approve an Offset Project Registry if evidence of qualification submitted by the applicant has been found to meet the requirements of section 95986 and issue an Executive Order to that effect.(4) The Executive Officer and the applicant may mutually agree, in writing, to longer time periods than those specified in subsections 95986(j)(1) and 95986(j)(3).(5) The Executive Officer approval for an Offset Project Registry is valid for a period of 10 years, whereupon the applicant may re-apply. At the time of re-application, the Offset Project Registry must:(A) Demonstrate it consistently met all of the requirements in section 95986;(B) Pass a performance review, which, at a minimum shows the Offset Project Registry consistently: 1. Demonstrates knowledge of the ARB compliance offset program and Compliance Offset Protocols;2. Meets all regulatory deadlines; and3. Provides registry services in accordance with the requirements of this article; and(C) Not have been subject to enforcement action under this article.(k) Modification, Suspension, and Revocation of an Executive Order Approving an Offset Project Registry. The Executive Officer may review, and, for good cause, modify, suspend, or revoke an Executive Order providing approval to an Offset Project Registry. (1) During revocation proceedings, the Offset Project Registry may not continue to provide registry services for ARB.(2) Within five working days of suspension or revocation of approval, an Offset Project Registry must notify all Offset Project Operators or Authorized Project Designees for whom it is providing registry services, or has provided registry services within the past 12 months, of its suspension or revocation of approval.(3) An Offset Project Operator or Authorized Project Designee who has been notified by an Offset Project Registry of a suspended or revoked approval must re-submit its offset project information with a new Offset Project Registry or ARB. An offset project listed at ARB or a new Offset Project Registry will continue to operate under its originally approved crediting period, provided that ARB may extend the crediting period or the relevant deadline in section 95977(d) for one year if ARB determines that such extension is necessary to provide time for re-submission of information to the new Offset Project Registry or ARB.(m) If the applicant under section 95986 is going to designate a subdivision of its organization to provide registry services, all the requirements of section 95986 may be applied at the designated subdivision level.(n) An approved Offset Project Registry must make itself and its personnel available for an ARB audit.Cal. Code Regs. Tit. 17, § 95986
1. New section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Change without regulatory effect amending subsection (g)(4) filed 2-15-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 7).
3. Amendment filed 6-26-2014; operative 7-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26). Note: Authority cited: Sections 38510, 38560, 38562, 38570, 38571, 38580, 39600 and 39601, Health and Safety Code. Reference: Sections 38530, 38560.5, 38564, 38565, 38570 and 39600, Health and Safety Code.
1. New section filed 12-13-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
2. Change without regulatory effect amending subsection (g)(4) filed 2-15-2012 pursuant to section 100, title 1, California Code of Regulations (Register 2012, No. 7).
3. Amendment filed 6-26-2014; operative 7/1/2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 26).