7 Del. Admin. Code § 1147-10.0

Current through Register Vol. 28, No. 7, January 1, 2025

Section 1147-10.0 - CO[2] Emissions Offset Projects

10.1 Purpose

The Department will provide for the award of CO₂ offset allowances to sponsors of CO₂ emissions offset projects that have reduced or avoided atmospheric loading of CO₂, CO₂ equivalent or sequestered carbon as demonstrated in accordance with the applicable provisions. The requirements seek to ensure that CO₂ offset allowances awarded represent CO₂ equivalent emission reductions or carbon sequestration that are real, additional, verifiable, enforceable, and permanent within the framework of a standards-based approach. Subject to the relevant compliance deduction limitations of subsection 6.5.1.3, CO₂ offset allowances may be used by any CO₂ budget source for compliance purposes.

10.2 RESERVED

10.3 General requirements

10.3.1Eligible CO₂ emissions offset projects. To qualify for the award of CO₂ offset allowances, offset projects shall satisfy all the applicable requirements of Section 10.0.

10.3.1.1Offset project types. The following types of offset projects are eligible for the award of CO₂ offset allowances.

10.3.1.1.1 Landfill methane capture and destruction;

10.3.1.1.2 Sequestration of carbon due to reforestation, improved forest management, or avoided conversion;

10.3.1.1.3 Avoided methane emissions from agricultural manure management operations.

10.3.1.2Offset project locations.

10.3.1.2.1 To qualify for the award of CO₂ allowances under Section 10.0, eligible offset projects may be located in any of the following locations:

10.3.1.2.1.1 In the State of Delaware

10.3.1.2.1.2 In any state or United States jurisdiction in which a cooperating regulatory agency has entered into a memorandum of understanding with the appropriate regulatory agencies of all participating states to carry out certain obligations relative to CO₂ emissions offset projects in that state or U.S. jurisdiction, including but not limited to the obligation to perform audits of offset project sites, and report violations of Section 10.0.

10.3.1.2.2 Projects located (in whole or in part) in one or more participating states are not eligible for CO₂ offset allowances under Section 10.0 unless more of the CO₂ equivalent emissions reduction or carbon sequestration due to the offset project is projected to occur in the State of Delaware than in any other participating state.

10.3.2Project sponsor. Any person may act as the sponsor of an eligible CO₂ emissions offset project or CO₂ emissions credit retirement, provided that person meets the requirements at subsection 10.4.

10.3.3General additionality requirements. Except as provided with respect to specific offset project standards in subsection 10.5, the following general requirements shall apply.

10.3.3.1 CO₂ offset allowances shall not be awarded to an offset project or CO₂ emissions credit retirement that is required pursuant to any local, state or federal law, regulation, or administrative or judicial order. If an offset project receives a consistency determination under subsection 10.4 and is later required by local, state or federal law, regulation, or administrative or judicial order, then the offset project shall remain eligible for the award of CO₂ offset allowances until the end of its current allocation period but its eligibility shall not be extended for an additional allocation period.

10.3.3.2 CO₂ offset allowances shall not be awarded to an offset project that includes an electric generation component, unless the project sponsor transfers legal rights to any and all attribute credits (other than the CO₂ offset allowances awarded under subsection 10.7) generated from the operation of the offset project that may be used for compliance with a renewable portfolio standard or other regulatory requirement, to the Department or its agent.

10.3.3.3 CO₂ offset allowances shall not be awarded to an offset project that receives funding or other incentives from any system benefit fund, or funds or other incentives provided through the consumer benefit or strategic energy purpose allocation required pursuant to subsection 5.3.2.

10.3.3.4 CO₂ offset allowances shall not be awarded to an offset project or CO₂ emissions credit retirement that is awarded credits or allowances under any other mandatory or voluntary greenhouse gas program, except as described in subsection 10.5.2.10.

10.3.4 Maximum allocation periods for CO₂ emissions offset projects.

10.3.4.1Maximum allocation periods. Except as provided in subsection 10.3.5.2, the Department may award CO₂ offset allowances under subsection 10.7 for an initial 10-year allocation period. At the end of the initial 10-year allocation period, the Department may award CO₂ offset allowances for a second 10-year allocation period, provided the offset sponsor has submitted a consistency application pursuant to subsection 10.4 prior to the expiration of the initial allocation period, and the Department has issued a consistency determination pursuant to subsection 10.4.5.2.

10.3.4.2Maximum allocation period for involving reforestation, improved forest management, or avoided conversion. The Department may award CO₂ offset allowances under subsection 10.7 for any involving reforestation, improved forest management, or avoided conversion offset project for an initial 20-year allocation period. At the end of the initial 25-year allocation period, or any subsequent crediting period the Department may award CO₂ offset allowances for a second 25-year allocation period, provided the offset sponsor has submitted a consistency application for the offset project pursuant to subsection 10.4 prior to the expiration of the initial allocation period, and the Department has issued a consistency determination pursuant to subsection 10.4.5.2.

10.3.5Offset project audit. Project sponsors shall provide, in writing, an access agreement to the Department granting the Department or its agent access to the physical location of the offset project to inspect for compliance with this regulation. For offset projects located in any state or other U.S. jurisdiction that is not a participating state, project sponsors shall also provide, in writing, an access agreement to the Department granting the cooperating regulatory agency with access to the physical location of the offset project to inspect for compliance with this regulation.

10.3.6Ineligibility due to noncompliance.

10.3.6.1 If at any time the Department determines that a project sponsor has not complied with the requirements, then the Department may revoke and retire any and all CO₂ offset allowances in the project sponsor's account.

10.3.6.2 If at any time the Department determines that an offset project does not comply with the requirements, then the Department may revoke any approvals it has issued relative to an offset project.

10.4 Application process

10.4.1Establishment of general account. The sponsor of an offset project must establish a general account under subsection 6.2.2. All submissions to the Department required for the award of CO₂ offset allowances under this regulation must be from the CO₂ authorized account representative for the general account of the sponsor of the relevant offset project herein referred to as "project sponsor."

10.4.2Consistency application deadlines.

10.4.2.1 For offset projects not involving reforestation, improved forest management, or avoided conversion the consistency application must be submitted by the date that is 6 months after the offset project is commenced.

10.4.2.2 For offset projects involving reforestation, improved forest management, or avoided conversion the consistency application must be submitted by the date that is one year after the offset project is commenced, except for as described in subsection 10.5.3.9.

10.4.2.3 Any consistency application that fails to meet the deadlines will result in the denial of the consistency application and the continued ineligibility of the subject offset project.

10.4.3Consistency application contents.

10.4.3.1 For an offset project, the consistency application must include the following information.

10.4.3.1.1 The project's sponsor's name, address, e-mail address, telephone number, facsimile transmission number, and account number.

10.4.3.1.2 The offset project description as required by the relevant provisions of subsection 10.5.

10.4.3.1.3 A demonstration that the offset project meets all applicable requirements set forth in this regulation.

10.4.3.1.4 The emissions baseline determination as required by the relevant provisions of subsection 10.5.

10.4.3.1.5 An explanation of how the projected reduction or avoidance of atmospheric loading of CO₂ or CO₂ equivalent or the sequestration of carbon is to be quantified, monitored, and verified as required by the relevant provisions of subsection 10.5.

10.4.3.1.6 A completed consistency application agreement that reads as follows:

"The undersigned project sponsor recognizes and accepts that the application for, and the receipt of, CO₂ offset allowances under the CO₂ Budget Trading Program is predicated on the project sponsor following all the requirements of Section 10.0. The undersigned 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 Section 10.0 is contingent on meeting the requirements of Section 10.0. 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 this application. I understand that this right to audit shall include the right to enter the physical location of the offset project. I submit to the legal jurisdiction of the State of Delaware."

10.4.3.1.7 A statement and certification report signed by the offset project sponsor certifying that all offset projects for which the sponsor has received CO₂ offset allowances under this regulation (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.

10.4.3.1.8 A verification report and certification statement signed by an independent verifier accredited pursuant to subsection 10.6 that expresses that the independent verifier has reviewed the entire application and evaluated the following in relation to the applicable requirements of subsections 10.3 and 10.5, and any applicable guidance issued by the Department.

10.4.3.1.8.1 The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements of subsections 10.3 and 10.5.

10.4.3.1.8.2 The adequacy and validity of information supplied by the project sponsor to demonstrate baseline emissions pursuant to the applicable requirements of subsection 10.5.

10.4.3.1.8.3 The adequacy of the monitoring and verification plan submitted pursuant to the applicable requirements of subsection 10.5.

10.4.3.1.8.4 Such other evaluations and statements as may be required by the Department.

10.4.3.1.9 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.

10.4.3.1.10 For offset projects located in a state or United States jurisdiction that is not a participating state, a demonstration that the project sponsor has complied with all requirements of the cooperating regulatory agency in the state or United States jurisdiction where the offset project is located.

10.4.3.2 Consistency applications shall be submitted in a format approved by the Department.

10.4.4 Consistency applications may not be submitted to the Department if a consistency application has already been submitted for the same project, or any portion of the same project, in another participating state, unless the consistency application was rejected by another participating state solely because more of the CO₂ equivalent emissions reduction or carbon sequestration due to the offset project is projected to occur in the State of Delaware than in any other participating state.

10.4.5Department action on consistency applications.

10.4.5.1Completeness determination. Within 30 days following receipt of the consistency application filed pursuant to subsection 10.4.2, the Department will notify the project sponsor whether the consistency application is complete. A complete consistency application 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 consistency application. In no event shall a completeness determination prevent the Department from requesting additional information in order to enable the Department to make a consistency determination under subsection 10.4.5.2.

10.4.5.2Consistency determination. Within 90 days of making the completeness determination under subsection 10.4.5.1, the Department will issue a determination as to whether the offset project is consistent with the requirements of subsections 10.3 and 10.4 and the requirements of the applicable offset project standard of subsection 10.5. For any offset project found to lack consistency with these requirements, the Department will inform the project sponsor of the offset project's deficiencies.

10.5 CO₂ emissions offset project standards

10.5.1Landfill methane capture and destruction. To qualify for the award of CO₂ offset allowances under Section 10.0, offset projects that capture and destroy methane from landfills shall meet the requirements of subsection 10.5.1 and all other applicable requirements of Section 10.0.

10.5.1.1Eligibility. Eligible offset projects shall occur at landfills that are not subject to the New Source Performance Standards (NSPS) for municipal solid waste landfills, 40 CFR 60, Section Cc and Section WWW.

10.5.1.2Offset project description. The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of subsection 10.5.1.1. The project narrative shall include the following information.

10.5.1.2.1 Owner and operator of the offset project;

10.5.1.2.2 Location and specifications of the landfill where the offset project will occur, including waste in place;

10.5.1.2.3 Owner and operator of the landfill where the offset project will occur; and

10.5.1.2.4 Specifications of the equipment to be installed and a technical schematic of the offset project.

10.5.1.3Emissions baseline determination. The emissions baseline shall represent the potential fugitive landfill emissions of CH₄ (in tons of CO₂ e), as represented by the CH₄ collected and metered for thermal destruction as part of the offset project, and calculated in accordance with this paragraph.

Emissions (tons CO₂ e) = (V x M x (1-OX) x GWP)/2000

Where:

V = Volume of CH₄ collected (ft³)

M = Mass of CH₄ per cubic foot (0.04246 lbs/ft³ default value at 1 atmosphere and 20° C)

OX = Oxidation factor (0.10), representing estimated portion of collected CH₄ that would have eventually oxidized to CO₂ if not collected

GWP = CO₂ e global warming potential of CH₄ (28)

10.5.1.4Calculating emissions reductions. Emissions reductions shall be determined based on potential fugitive CH₄ emissions that would have occurred at the landfill if metered CH₄ collected from the landfill for thermal destruction as part of the offset project was not collected and destroyed. CO₂ e emissions reductions shall be calculated as follows:

Emissions Reductions (tons CO₂ e) = (V x M x (1 - OX) x C_ef x GWP)/2000

Where:

V = Volume of CH₄ collected (ft ³)

M = Mass of CH₄ per cubic foot (0.04246 lbs/ft³ default value at 1 atmosphere and 20° C)

OX = Oxidation factor (0.10), representing estimated portion of collected CH₄ that would have eventually oxidized to CO₂ if not collected

C_ef = Combustion efficiency of methane control technology (0.98)

GWP = CO₂ e global warming potential of CH₄ (28)

10.5.1.5Monitoring and verification requirements. Offset projects shall employ a landfill gas collection system that provides continuous metering and data computation of landfill gas volumetric flow rate and CH₄ concentration. Annual monitoring and verification reports shall include monthly volumetric flow rate and CH₄ concentration data, including documentation that the CH₄ was actually supplied to the combustion source. Monitoring and verification is also subject to the following requirements.

10.5.1.5.1 The project sponsor shall submit a monitoring and verification plan as part of the consistency application that includes a quality assurance and quality control program associated with equipment used to determine landfill gas volumetric flow rate and CH₄ composition. The monitoring and verification plan shall also include provisions for ensuring that measuring and monitoring equipment is maintained, operated, and calibrated based on manufacturer recommendations, as well as provisions for the retention of maintenance records for audit purposes. The monitoring and verification plan shall be certified by an independent verifier accredited pursuant to subsection 10.6.

10.5.1.5.2 The project sponsor shall annually verify landfill gas CH₄ composition through landfill gas sampling and independent laboratory analysis using applicable U.S. Environmental Protection Agency laboratory test methods.

10.5.2 RESERVED

10.5.3Sequestration of carbon due to reforestation, improved forest management, or avoided conversion. To qualify for the award of CO₂ offset allowances under Section 10.0, offset projects that involve reforestation, improved forest management, or avoided conversion shall meet all requirements of subsection 10.5.3 and the forest offset protocol and all other applicable requirements of Section 10.0.

10.5.3.1Eligibility. Eligible forest offset projects shall satisfy all eligibility requirements of the forest offset protocol and subsection 10.5.3.

10.5.3.2Offset project description. The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of subsection 10.5.3.1. The offset project narrative shall include the information identified in subsections 8.1 and 9.1 of the forest offset protocol, and any other information deemed necessary by the Department.

10.5.3.3Carbon sequestration baseline determination. Baseline onsite carbon stocks shall be determined as required by subsections 6.1.1, 6.1.2, 6.2.1, 6.2.2, 6.2.3, 6.3.1, and 6.3.2 of the forest offset protocol, as applicable.

10.5.3.4 Calculating carbon sequestered. Net GHG reductions and GHG removal enhancements shall be calculated as required by Section 6.0 of the forest offset protocol. The project's risk reversal rating shall be calculated using the forest offset protocol Determination of a Forest Project's Reversal Risk Rating assessment worksheet.

10.5.3.5Monitoring and verification requirements. Monitoring and verification is subject to the following requirements.

10.5.3.5.1 Monitoring and verification reports shall include all forest offset project data reports submitted to the Department, including any additional data required by subsection 9.2.2 of the forest offset protocol.

10.5.3.5.2 The consistency application shall include a monitoring and verification plan certified by an independent verifier accredited pursuant to subsection 10.6. The monitoring and verification plan shall consist of a forest carbon inventory program, as required by subsection 8.1 of the forest offset protocol.

10.5.3.5.3 Monitoring and verification reports shall be submitted not less than every six years, except that the first monitoring and verification report for reforestation projects must be submitted within twelve years of project commencement

10.5.3.6 Forest Offset Project Data Reports A project sponsor shall submit a forest offset Project data report to the Department for each reporting period. Each forest offset project data report must cover a single reporting period. Reporting periods must be contiguous; there must be no gaps in reporting once the first reporting period has commenced.

10.5.3.7 Prior to the award of CO₂ offset allowances pursuant to subsection 10.7, or to any transfer allowances pursuant to subsection 10.5.3.8, any quantity expressed in metric tons, or metric tons of CO₂ equivalent, shall be converted to tons using the conversion factor specified in subsection 1.2.

10.5.3.8Carbon sequestration permanence. The offset project shall meet the following requirements to address reversal of sequestered carbon.

10.5.3.8.1 Unintentional reversals. Requirements for unintentional reversals are as follows:

10.5.3.8.1.1 The project sponsor must notify the Department of the reversal and provide an explanation for the nature of the unintentional reversal within 30 calendar days of its discovery; and

10.5.3.8.1.2 The project sponsor must submit to the Department a verified estimate of current carbon stocks within the offset project boundary within one year of the discovery of the unintentional reversal.

10.5.3.8.2 Intentional Reversals. Requirements for intentional reversals are as follows:

10.5.3.8.2.1 If an intentional reversal occurs, the project sponsor shall, within 30 calendar days of the intentional reversal:

10.5.3.8.2.1.1 Provide notice, in writing, to Department of the intentional reversal; and

10.5.3.8.2.1.2 Provide a written description and explanation of the intentional reversal to the Department.

10.5.3.8.2.2 Within one year of the occurrence of an intentional reversal, the project sponsor shall submit to the Department a verified estimate of current carbon stocks within the offset project boundary.

10.5.3.8.2.3 If an intentional reversal occurs, and CO₂ offset allowances have been awarded to the offset project, to the offset project, the forest owner must transfer to the forest offset retirement account a quantity of CO₂ allowances corresponding to the number of metric tons of CO₂ equivalent reversed within six months of notification by the Department.

10.5.3.8.2.3.1 Notification by the Department will occur after the verified estimate of carbon stocks has been submitted to the Department, or after one year has elapsed since the occurrence of the reversal if the project sponsor fails to submit the verified estimate of carbon stocks.

10.5.3.8.2.3.2 If the forest owner does not surrender valid CO₂ allowances to the Department within six months of notification by the Department, the Forest owner will be subject to enforcement action and each CO₂ equivalent ton of carbon sequestration reversed will constitute a separate violation and applicable state law.

10.5.3.8.3 Project Termination. Requirements for project termination are as follows:

10.5.3.8.3.1 The project sponsor must surrender to the Department or its agent for retirement a quantity of CO₂ Allowances in the amount calculated pursuant to project termination provisions in the forest offset protocol within six months of project termination.

10.5.3.8.3.2 If the project sponsor does not surrender to the Department or its agent a quantity of CO₂ Allowances in the amount calculated pursuant to project termination provisions in the forest offset protocol within six months of project termination, they will be subject to enforcement action and each CO2 offset allowance not surrendered will constitute a separate violation of this section and applicable state law.

10.5.3.8.4 Disposition of Forest Sequestration Projects after a Reversal. If a reversal lowers the forest offset project's actual standing live carbon stocks below its project baseline standing live carbon stocks, the forest offset project will be terminated by the Department.

10.5.3.9 Timing of forest offset projects. The Department may award CO₂ offset allowances under subsection 10.7 only for forest offset projects that are initially commenced on or after January 1, 2014.

10.5.3.10 Projects that Have Been Awarded Credits by a Voluntary Greenhouse Gas Reduction Program. The provisions of subsections 10.3.3.4 and 10.4.3.2 shall not apply to forest projects that have been awarded credits under a voluntary greenhouse gas reduction program provided that the following conditions are satisfied. For such projects, the number of CO₂ Offset Allowances will be calculated pursuant to the requirements of subsection 10.5.3, without regard to quantity of credits that were awarded to the project under the voluntary program.

10.5.3.10.1 The project satisfies all other general requirements of Section 10.0, including all specific requirements of subsection 10.5.3, for all reporting periods for which the project has been awarded credits under a voluntary greenhouse gas program and also intends to be awarded CO₂ offset allowances pursuant to subsection 10.7.

10.5.3.10.2 At the time of submittal of the consistency application for the project, the project submits forest offset data reports and a monitoring and verification report covering all reporting periods for which the project has been awarded credits under a voluntary greenhouse gas program and also intends to be awarded CO2 offset allowances pursuant to subsection 10.7. Forest offset data reports and monitoring and verification reports must meet all requirements of subsections 10.5.3.5 and 10.5.3.6.

10.5.3.10.3 The consistency application includes information sufficient to allow the Department to make the following determinations, and the voluntary greenhouse gas program has published information on its website to allow the Department to verify the information included in the consistency application.

10.5.3.10.3.1 The offset project has met all legal and contractual requirements to allow it to terminate its relationship with the voluntary greenhouse gas program, and such termination has been completed.

10.5.3.10.3.2 The project sponsor or voluntary greenhouse gas program has canceled or retired all credits that were awarded for carbon sequestration that occurred during the time periods for which the project intends to be awarded CO₂ offset allowances pursuant to subsection 10.7, and such credits were canceled or required for the sole purpose of allowing the project to be awarded CO₂ offset allowances pursuant to subsection 10.7.

10.5.4.1.2.1.1.1 Commercial HVAC systems shall meet the applicable sizing and installation requirements of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition)-2010: Energy Standard for Buildings Except Low-Rise Residential Buildings; ANSI/ASHRAE Standard 62.2010: Ventilation for Acceptable Indoor Air Quality.

10.5.4.1.2.1.1.2 Residential HVAC systems shall meet the applicable sizing specifications of Air Conditioner Contractors of America (ACCA) Manual J: Residential Load Calculation (Eight Edition-Full), and the applicable installation specifications ANSI/ACCA 5 QI-2007) "HVAC Quality Installation Specification".

10.5.4.1.2.1.2.1 Commercial buildings shall exceed the energy performance requirements of ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) 2010: Energy Standard for Buildings Except Low-Rise Residential Buildings by 30%, with the exception of multi-family residential buildings classified as commercial by ANSI/ASHRAE/IESNA Standard 90.1 (SI Edition) 2010, which shall exceed these energy performance requirements by 20%.

10.5.4.1.2.1.2.2 Residential buildings shall exceed the energy performance requirements of the 2012 International Energy Conservation Code Supplement by 30%.

10.5.4 RESERVED

10.5.5Avoided methane emissions from agricultural manure management operations. To qualify for the award of CO₂ offset allowances under Section 10.0, offset projects that capture and destroy methane from animal manure and organic food waste using anaerobic digesters shall meet the requirements of subsection 10.5.5 and all other applicable requirements of Section 10.0.

10.5.5.1Eligibility.

10.5.5.1.1 Eligible offset projects shall consist of the destruction of that portion of methane generated by an anaerobic digester that would have been generated in the absece of the offset project through the uncontrolled anaerobic storage of manure or organic food waste.

10.5.5.1.2 Eligible offset projects shall employ only manure-based anaerobic digester systems using livestock manure as the majority of digester feedstock, defined as more than 50% of the mass input into the digester on an annual basis. Organic food waste used by an anaerobic digester shall only be that which would have been stored in anaerobic conditions in the absence of the offset project.

10.5.5.1.3 The provisions of subsections 10.3.4.2 and 10.3.4.3 shall not apply to agricultural manure management offset projects provided either of the following requirements are met.

10.5.5.1.3.1 The offset project is located in a state that has a market penetration rate (MP (%)) for anaerobic digester projects of 5% or less. The market penetration determination shall utilize the most recent market data available at the time of submission of the consistency application pursuant to subsection 10.4 and shall be determined as follows:

MP (%) = MG_AD / MG_STATE

Where:

MG_AD = Average annual manure generation for the number of dairy cows and swine serving all anaerobic digester projects in the applicable state at the time of submission of a consistency application pursuant to subsection 10.4.

MG_STATE = average annual manure production of all dairy cows and swine in the state at the time of submission of a consistency application pursuant to subsection 10.4.

10.5.5.1.3.2 The offset project is located at a farm with 4,000 or less head of dairy cows, or a farm with equivalent animal units, assuming an average live weight for dairy cows (lbs./cow) of 1,400 lbs., or, if the project is a regional-type digester, total annual manure input to the digester is designed to be less than the average annual manure produced by a farm with 4,000 or less head of dairy cows, or a farm with equivalent animal units, assuming an average live weight for dairy cows (lbs./cow) of 1,400 lbs.

10.5.5.2Offset project description. The offset project sponsor shall provide a detailed narrative of the offset project actions to be taken, including documentation that the offset project meets the eligibility requirements of subsection 10.5.5.1. The offset project narrative shall include the following information.

10.5.5.2.1 Owner and operator of the offset project;

10.5.5.2.2 Location and specifications of the facility where the offset project will occur;

10.5.5.2.3 Owner and operator of the facility where the offset project will occur;

10.5.5.2.4 Specifications of the equipment to be installed and a technical schematic of the offset project; and

10.5.5.2.5 Location and specifications of the facilities from which anaerobic digester influent will be received, if different from the facility where the offset project will occur.

10.5.5.3Emissions baseline determination. The emissions baseline shall represent the potential emissions of the CH₄ that would have been produced in a baseline scenario under uncontrolled anaerobic storage conditions and released directly to the atmosphere in the absence of the offset project.

10.5.5.3.1 Baseline CH₄ emissions shall be calculated as follows:

E_b = (V_m x M)/2000 x GWP

Where:

E_b = Potential CO₂ e emissions due to calculated CH₄ production under site-specific anaerobic storage and weather conditions (tons);

V_m = Volume of CH₄ produced each month from decomposition of volatile solids in a baseline uncontrolled anaerobic storage scenario under site-specific storage and weather conditions for the facility at which the manure or organic food waste is generated (ft³)

M = Mass of CH₄ per cubic foot (0.04246 lb/ft³ default value at one atmosphere and 20°C)

GWP = Global warming potential of CH₄ (28)

10.5.5.3.2 The estimated amount of volatile solids decomposed (VS_dec) each month under the uncontrolled anaerobic storage baseline scenario (kg) shall be calculated as follows:

VS_dec = VS_avail x f

Where:

VS = volatile solids as determined from the equation:

VS = M_m x TS_% x VS_%

where:

M_m = mass of manure or organic food waste produced per month (kg)

TS_% = concentration (percent) of total solids in manure or organic food waste as determined through I-3750, "Solids, residue on evaporation at 105 degrees C, total, gravimetric," Methods for the Determination of Inorganic Substances in Water and Fluvial Sediments, Techniques of Water-Resources Investigations of the United States Geological Survey, Book 5, Chapter A1. Edited by Marvin J. Fishman and Linda C. Friedman.

VS_% = concentration (percent) of volatile solids in total solids as determined through EPA 160.4 testing method (U.S.EPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020))

VS_avail = volatile solids available for decomposition in manure or organic food waste storage each month as determined from the equation:

VS_avail = VS_p + 1/2 VS_in - VS_out

Where:

VS_p = volatile solids present in manure or organic food waste storage at beginning of month (left over from previous month) (kg)

VS_in = volatile solids added to manure or organic food waste storage during the course of the month (kg). The factor of 1/2 is multiplied by this number to represent the average mass of volatile solids available for decomposition for the entire duration of the month.

VS_out = volatile solids removed from the manure or organic food waste storage for land application or export (assumed value based on standard farm practice)

f = van't Hoff-Arrhenius factor for the specific month as determined using the equation below. Using a base temperature of 30°C, the equation is as follows:

f = exp{[E(T₂ - T₁)]/[(GC x T₁ x T₂)]}

Where:

f = conversion efficiency of VS to CH₄ per month

E = activation energy constant (15,175 cal/mol)

T₂ = average monthly ambient temperature for facility where manure or organic food waste is generated (converted from ° Celsius to ° Kelvin) as determined from the nearest National Weather Service certified weather station (if reported temperature ° C > 5° C; if reported temperature ° C < 5° C, then F = 0.104)

T₁ = 303.15 (30° C converted to °K)

GC = ideal gas constant (1.987 cal/K mol)

10.5.5.3.3 The volume of CH₄ produced (ft³) from decomposition of volatile solids shall be calculated as follows:

V_m = (VS_dec x B_o) x 35.3147

Where:

V_m = volume of CH₄ (ft³)

VS_dec = volatile solids decomposed (kg)

B_o = manure or organic food waste type-specific maximum methane generation constant (m³ CH₄ /kg VS decomposed). For dairy cow manure, B_o = 0.24 m³ CH₄ /kg VS decomposed. The methane generation constant for other types of manure shall be those cited at U.S. EPA, Inventory of U.S. Greenhouse Gas Emissions and Sinks: 1990-2010, Annex 3.10, Table 180 (U.S. Environmental Protection Agency, February 2017), unless the project sponsor proposes an alternate methane generation constant and that alternate is approved by the Department. If the project sponsor proposes to use a methane generation constant other than the ones found in the above-cited reference, the project sponsor must provide justification and documentation to the Department.

10.5.5.4Calculating emissions reductions. Emissions reductions shall be calculated as follows:

ER_t = E_b - E_p

where:

ER_t = CO₂ e emissions reductions due to project activities (tons);

E_b = Potential CO₂ e emissions due to calculated CH₄ production under site-specific anaerobic storage and weather conditions (tons);

E_p = CO₂ e emissions due to project activities additional to baseline (tons), including, but not limited to, manure transportation, flaring, venting, and effluent management.

Emissions reductions may not exceed the potential emissions of the anaerobic digester, as represented by the annual volume of CH4 produced by the anaerobic digester, as monitored pursuant to subsection 10.5.5.5. If the project is a regional-type digester, CO2 emissions due to transportation of manure and organic food waste from the site where the manure and organic food waste was generated to the anaerobic digester shall be subtracted from the emissions reduction calculated pursuant to subsections 10.5.5.3.1 through 10.5.5.3.3. Transport CO2 emissions shall be determined through one of the following methods.

10.5.5.4.1 Documentation of transport fuel use for all shipments of manure and organic food waste from off-site to the anaerobic digester during each reporting year and a log of transport miles for each shipment. Off-site is defined as a location that is not contiguous with the property where the anaerobic digester is located. CO₂ emissions shall be determined through the application of an emissions factor for the fuel type used. If this option is chosen, the following emissions factors shall be applied as appropriate.

10.5.5.4.1.1 Diesel fuel: 22.912 lbs. CO₂ /gallon.

10.5.5.4.1.2 Gasoline: 19.878 lbs. CO₂ /gallon.

10.5.5.4.1.3 Other fuel: submitted emissions factor approved by the Department.

10.5.5.4.2 Documentation of total tons of manure and organic food waste transported from off-site for input into the anaerobic digester during each reporting year, as monitored pursuant to subsection 10.5.5.5.1, and a log of transport miles and fuel type used for each shipment. CO₂ emissions shall be determined through the application of a ton-mile transport emission factor for the fuel type used. If this option is chosen, the following emissions factors shall be applied as appropriate for each ton of manure delivered, and multiplied by the number of miles transported.

10.5.5.4.2.1 Diesel fuel: 0.131 lbs. CO₂ per ton-mile.

10.5.5.4.2.2 Gasoline: 0.133 lbs. CO₂ per ton-mile.

10.5.5.4.2.3 Other fuel: submitted emissions factor approved by the Department.

10.5.5.5Monitoring and verification requirements. Offset projects shall employ a system that provides metering of biogas volumetric flow rate and determination of CH₄ concentration. Annual monitoring and verification reports shall include monthly biogas volumetric flow rate and CH₄ concentration determination. Monitoring and verification shall also meet the following requirements.

10.5.5.5.1 If the offset project is a regional-type digester, manure and organic food waste from each distinct source supplying to the anaerobic digester shall be sampled monthly to determine the amount of volatile solids present. Any emissions reduction will be calculated according to mass of manure and organic food waste (kg) being digested and percentage of volatile solids present before digestion, consistent with the requirements at subsections 10.5.5.3 and 10.5.5.5.3, and apportioned accordingly among sources. The project sponsor shall provide supporting material and receipts tracking the monthly receipt of manure and organic food waste (kg) used to supply the anaerobic digester from each supplier.

10.5.5.5.2 If the offset project includes the digestion of organic food waste eligible pursuant to subsection 10.5.5.1.2, organic food waste shall be sampled monthly to determine the amount of volatile solids present before digestion, consistent with the requirements at subsections 10.5.5.3 and 10.5.5.5.3, and apportioned accordingly.

10.5.5.5.3 The project sponsor shall submit a monitoring and verification plan as part of the consistency application that includes a quality assurance and quality control program associated with equipment used to determine biogas volumetric flow rate and CH₄ composition. The monitoring and verification plan shall be specified in accordance with the applicable monitoring requirements listed in Table 8. The monitoring and verification plan shall also include provisions for ensuring that measuring and monitoring equipment is maintained, operated, and calibrated based on manufacturer's recommendations, as well as provisions for the retention of maintenance records for audit purposes. The monitoring and verification plan shall be certified by an independent verifier accredited pursuant to subsection 10.6.

Table 8. Monitoring Requirements

Parameter	Measurement Unit	Frequency of Sampling	Sampling Method(s)
Influent flow (mass) into the digester	Kilograms (kg) per month (wet mass)	Monthly total into the digester	a) Recorded mass b) Digester influent pump flow c) Livestock population and application of American Society of Agricultural and Biological Engineers (ASABE) standard (ASAE D384.2, March 2005)
Influent total solids concentration (TS)	Percent (of sample)	Monthly, depending upon recorded variations	U.S. EPA Method Number 160.3, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020)
Influent volatile solids (VS) concentration	Percent (of TS)	Monthly, depending upon recorded variations	USEPA Method Number 160.4, Methods for the Chemical Analysis of Water and Wastes (MCAWW) (EPA/600/4-79/020)
Average monthly ambient temperature	Temperature °C	Monthly (based on farm averages)	Closest National Weather Service-certified weather station
Volume of biogas produced by digester	Standard cubic feet (scf)	Continuous, totalized monthly	Flow meter
Methane composition of biogas produced by digester	Percent (of sample)	Quarterly	Bag sampling and third party laboratory analysis using applicable U.S. EPA test methods

10.6 Accreditation of independent verifiers

10.6.1Standards for accreditation. Independent verifiers may be accredited by the Department to provide verification services as required of project sponsors under this Regulation, provided that independent verifiers meet all of the requirements.

10.6.1.1Verifier minimum requirements. Each accredited independent verifier shall demonstrate knowledge of the following topics:

10.6.1.1.1 Utilizing engineering principles;

10.6.1.1.2 Quantifying greenhouse gas emissions;

10.6.1.1.3 Developing and evaluating air emissions inventories:

10.6.1.1.4 Auditing and accounting principles;

10.6.1.1.5 Knowledge of information management systems;

10.6.1.1.6 Knowledge of the requirements and other applicable requirements; and

10.6.1.1.7 Such other qualifications as may be required by the Department to provide competent verification services as required for individual offset categories specified at subsection 10.5.

10.6.1.2Organizational qualifications. Accredited independent verifiers shall demonstrate that they meet the following requirements:

10.6.1.2.1 Verifiers shall have no direct or indirect financial relationship, beyond a contract for provision of verification services, with any offset project developer or project sponsor;

10.6.1.2.2 verifiers shall employ staff with professional licenses, knowledge, and experience appropriate to the specific category(ies) of offset projects at subsection 10.5 that they seek to verify;

10.6.1.2.3 Verifiers shall hold a minimum of one million U.S. dollars of professional liability insurance. If the insurance is in the name of a related entity, the verifier shall disclose the financial relationship between the verifier and the related entity, and provide documentation supporting the description of the relationship; and

10.6.1.2.4 verifiers shall demonstrate that they have implemented an adequate management protocol to identify potential conflicts of interest with regard to an offset project, offset project developer, or project sponsor, or any other party with a direct or indirect financial interest in an offset project that is seeking or has been granted approval of a consistency application pursuant to subsection 10.4.5, and remedy any such conflicts of interest prior to providing verification services.

10.6.1.3Pre-qualification of verifiers. The Department may require prospective verifiers to successfully complete a training course, workshop, or test developed by the Department or its agent, prior to submitting an application for accreditation.

10.6.2Application for accreditation. An application for accreditation shall not contain any proprietary information, and shall include the following:

10.6.2.1 The applicant's name, address, e-mail address, telephone number, and facsimile transmission number;

10.6.2.1.1 Documentation that the applicant has at least two years of experience in each of the knowledge areas specified at subsections 10.6.1.1.1 through 10.6.1.1.5, and as may be required pursuant to subsection 10.6.1.1.7;

10.6.2.1.2 Documentation that the applicant has successfully completed the requirements at subsection 10.6.1.3, as applicable;

10.6.2.1.3 A sample of at least one work product that provides supporting evidence that the applicant meets the requirements at subsections 10.6.1.1 and 10.6.1.2. The work product shall have been produced, in whole or part, by the applicant and shall consist of a final report or other material provided to a client under contract in previous work. For a work product that was jointly produced by the applicant and another entity, the role of the applicant in the work product shall be clearly explained;

10.6.2.1.4 Documentation that the applicant holds professional liability insurance as required pursuant to subsection 10.6.1.2.3.

10.6.2.1.5 Documentation that the applicant has implemented an adequate management protocol to address and remedy any conflict of interest issues that may arise, as required pursuant to subsection 10.6.1.2.4.

10.6.3Department action on applications for accreditation. The Department shall approve or deny a complete application for accreditation within 45 days after submission. Upon approval of an application for accreditation, the independent verifier shall be accredited for a period of three years from the date of application approval.

10.6.4Reciprocity. Independent verifiers accredited in other participating states may be deemed to be accredited in the State of Delaware, at the discretion of the Department.

10.6.5Conduct of accredited verifiers.

10.6.5.1 Prior to engaging in verification services for an offset project sponsor, the accredited verifier shall disclose all relevant information to the department to allow for an evaluation of potential conflict of interest with respect to an offset project, offset project developer, or project sponsor. The accredited verifier shall disclose information concerning its ownership, past and current clients, related entities, as well as any other facts or circumstances that have the potential to create a conflict of interest.

10.6.5.2 Accredited verifiers shall have an ongoing obligation to disclose to the Department any facts or circumstances that may give rise to a conflict of interest with respect to an offset project, offset project developer, or project sponsor.

10.6.5.3 The Department may reject a verification report and certification statement from an accredited verifier, submitted as part of a consistency application required pursuant to subsection 10.4.2 or submitted as part of a monitoring and verification report submitted pursuant to subsection 10.7.2, if the Department determines that the accredited verifier has a conflict of interest related to the offset project, offset project developer, or project sponsor.

10.6.5.4 The Department may revoke the accreditation of a verifier at any time given cause, for the following:

10.6.5.4.1 Failure to fully disclose any issues that may lead to a conflict of interest situation with respect to an offset project, offset project developer, or project sponsor;

10.6.5.4.2 The verifier is no longer qualified due to changes in staffing or other criteria;

10.6.5.4.3 Negligence or neglect of responsibilities pursuant to the requirements; and

10.6.5.4.4 Intentional misrepresentation of data or other intentional fraud.

10.7 Award and Recordation of CO₂ offset allowances.

10.7.1Quantities of CO₂ offset allowances awarded, and subsequently recorded.

10.7.1.1 Award of CO₂ offset allowances.

10.7.1.1.1CO₂ emissions offset projects. Following the issuance of a consistency determination under subsection 10.4.5.2 and the approval of a monitoring and verification report under the provisions of subsection 10.7.5, the Department will award one CO₂ offset allowance for each ton of demonstrated reduction in CO₂ or CO₂ equivalent emissions or sequestration of CO₂.

10.7.1.2 Recordation of CO₂ offset allowances. After CO₂ offset allowances are awarded under subsection 10.7.1.1, the Department shall record such CO₂ offset allowances in the project sponsor's general account.

10.7.2Deadlines for submittal of monitoring and verification reports.

10.7.2.1 For CO₂ emissions offset projects undertaken prior to January 1, 2009, the project sponsor must submit the monitoring and verification report covering the pre-2009 period by June 30, 2009.

10.7.2.2 For CO₂ emissions offset projects undertaken on or after January 1, 2009, the monitoring and verification report must be submitted within 6 months following the completion of the last calendar year during which the offset project achieved CO₂ equivalent reductions or sequestration of CO₂ for which the project sponsor seeks the award of CO₂ offset allowances.

10.7.3Contents of monitoring and verification reports. For an offset project, the monitoring and verification report must include the following information.

10.7.3.1 The project's sponsor's name, address, e-mail address, telephone number, facsimile transmission number, and account number.

10.7.3.2 The CO₂ emissions reduction or CO₂ sequestration determination as required by the relevant provisions of subsection 10.5 of this regulation, including a demonstration that the project sponsor complied with the required quantification, monitoring, and verification procedures under subsection 10.5, as well as those outlined in the consistency application approved pursuant to subsection 10.4.5.2.

10.7.3.3 A signed 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 the CO₂ Budget Trading Program. 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 the CO₂ Budget Trading Program is contingent on meeting the requirements of the CO₂ Budget Trading Program. 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 State of Delaware."

10.7.3.4 A certification signed by the offset project sponsor certifying that all offset projects for which the sponsor has received offset allowances under this Regulation (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.

10.7.3.5 A verification report and certification statement signed by an independent verifier accredited pursuant to subsection 10.6 that documents that the independent verifier has reviewed the monitoring and verification report and evaluated the following in relation to the applicable requirements of subsection 10.5, and any applicable guidance issued by the Department.

10.7.3.5.1 The adequacy and validity of information supplied by the project sponsor to determine CO₂ emissions reductions or CO₂ sequestration pursuant to the applicable requirements of subsection 10.5.

10.7.3.5.2 The adequacy and consistency of methods used to quantify, monitor, and verify CO₂ emissions reductions and CO₂ sequestration in accordance with the applicable requirements of subsection 10.5 of this regulation and as outlined in the consistency application approved pursuant to subsection 10.4.5.2.

10.7.3.5.3 Such other evaluations and verification reviews as may be required by the Department. The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements of subsection 10.5.

10.7.3.6 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.

10.7.3.7 For offset projects located in a state or United States jurisdiction that is not a participating state, a demonstration that the project sponsor has complied with all requirements of the cooperating regulatory agency in the state or United States jurisdiction where the offset project is located.

10.7.4 Prohibition against filing monitoring and verification reports in more than one participating state. Monitoring and verification reports may only be filed under subsection 10.7 for projects that have received consistency determinations under subsection 10.4.5.2 Monitoring and Verification reports may not be filed under subsection 10.7 for projects that have received consistency determinations in other participating states.

10.7.5Department action on monitoring and verification reports. The Department will approve or deny a complete monitoring and verification report, in a format approved by the Department, filed with the Department pursuant to subsection 10.7.4, within 45 days following receipt of a complete report. 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 in order to enable the Department to approve or deny a monitoring and verification report submitted in a format approved by the Department, and filed under subsection 10.7.

12/11/18

7 Del. Admin. Code § 1147-10.0

17 DE Reg. 644 (12/1/2013)
22 DE Reg. 511 (12/1/2018) (Final)