N.J. Admin. Code § 7:27C-10.8

Current through Register Vol. 56, No. 24, December 18, 2024

Section 7:27C-10.8 - Award and recording of CO[2] offset allowances

(a) To be accredited by the Department to provide verification services as required of project sponsors under this subchapter, an independent verifier shall demonstrate knowledge of:

1. Utilization of engineering principles;

2. Quantification of greenhouse gas emissions;

3. Development and evaluation of air emissions inventories;

4. Auditing and accounting principles;

5. Information management systems;

6. The requirements of this subchapter and other applicable requirements of this chapter; and

7. The data collection, quantification, monitoring, and verification requirements for the individual offset categories specified at N.J.A.C. 7:27C-10.5, 10.6, and 10.7.

(b) In addition to the knowledge requirements of (a) above, to be accredited by the Department to provide verification services as required of project sponsors under this subchapter, an independent verifier shall demonstrate:

1. That there is NO[x] direct or indirect financial relationship, beyond a contract for provision of verification services, between the independent verifier or his or her employees and any offset project developer or project sponsor;

2. That the independent verifier employs staff with professional licenses, knowledge, and experience appropriate to the specific category or categories of offset projects at N.J.A.C. 7:27C-10.5, 10.6, and 10.7 to be verified;

3. Coverage of a minimum of $ 1,000,000 of professional liability insurance. If the insurance is in the name of a related entity, the independent verifier shall disclose the financial relationship between the independent verifier and the related entity, and provide documentation supporting the description of the relationship;

4. Implementation of 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 N.J.A.C. 7:27C-10.4(e), and remedy any such conflicts of interest prior to providing verification services; and

5. Prior to submitting an application for accreditation, successfully complete any training course, workshop, or test developed by the Department to ensure that an independent verifier has sufficient demonstrated knowledge pursuant to (a) above to provide verification services under this subchapter.

(c) An application for accreditation shall not contain any proprietary information, but shall include the following:

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

2. Documentation that the applicant has at least two years of experience in each of the knowledge areas at (a) above;

3. A sample of at least one work product that provides supporting evidence that the applicant meets the requirements at (a) and (b) above. The work product shall have been produced, in whole or in 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;

4. Documentation that the applicant holds professional liability insurance as required pursuant to (b)4 above; and 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 (b)5 above.

(d) The Department will approve or deny a complete application for accreditation within 45 days after submission. Accreditation of an independent verifier is for a period of three years from the date of application approval.

(e) The Department will accept the accreditation of an independent verifier who is accredited in another participating state where the Department has determined that the accreditation requirements of the other participating state are substantially equivalent to the requirements of this section.

(f) Prior to engaging in verification services for a project sponsor, an accredited independent 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 independent 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.

(g) An accredited independent verifier 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.

(h) The Department may reject a verification report and certification from an accredited independent verifier, submitted as part of a consistency application required pursuant to N.J.A.C. 7:27C-10.4 or submitted as part of a monitoring and verification report submitted pursuant to N.J.A.C. 7:27C-10.9, if the Department determines that the accredited independent verifier has a conflict of interest related to the offset project, offset project developer, or project sponsor.

(i) The Department may revoke the accreditation of an accredited independent verifier at any time, for any of the following:

1. Failure by the accredited independent verifier 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;

2. A change in staffing or other criteria, SO[2] that the accredited independent verifier is NO[x] longer qualified;

3. Negligence or neglect of responsibilities by the accredited independent verifier pursuant to the requirements of this subchapter; or

4. Intentional misrepresentation of data or other fraud by the accredited independent verifier.

N.J. Admin. Code § 7:27C-10.8

Adopted by 51 N.J.R. 992(a), effective 6/17/2019