N.J. Admin. Code § 7:27C-10.1
The Department will award CO[2] offset allowances to sponsors of CO[2] emissions offset projects that have reduced or avoided atmospheric loading of CO, CO[2] equivalent, or sequestered carbon as demonstrated in accordance with the applicable provisions of this subchapter. The requirements of this subchapter are designed to ensure that CO[2] offset allowances awarded represent CO-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 at N.J.A.C. 7:27C-6.9(a)3, any CO[2] Budget source may use CO[2] offset allowances for compliance purposes.
N.J. Admin. Code § 7:27C-10.1