N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 242-10.4

Current through Register Vol. 46, No. 45, November 2, 2024

Section 242-10.4 - Application process

(a) 'Establishment of general account'. The sponsor of an offset project must establish a general account under section 242-6.2(b) of this Part. All submissions to the department required for the award of CO₂ offset allowances under this Subpart 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."

(b) 'Consistency application deadlines'.

(1) For offset projects the consistency application must be submitted by the date that is six months after the offset project is commenced.

(2) Any consistency application that fails to meet the deadlines of this subdivision will result in the denial of the consistency application and the continued ineligibility of the subject offset project.

(c) 'Consistency application contents'.

(1) For an offset project, the consistency application must include the following information.

(i) The project's sponsor's name, address, e-mail address, telephone number and account number.

(ii) The offset project description as required by the relevant provisions of section 242-10.5 of this Subpart.

(iii) A demonstration that the offset project meets all applicable requirements set forth in this Subpart.

(iv) The emissions baseline determination as required by the relevant provisions of section 242-10.5 of this Subpart.

(v) 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 section 242-10.5 of this Subpart.

(vi) 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 Subpart 242-10. 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 Subpart 242-10 is contingent on meeting the requirements of Subpart 242-10. 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 New York State."

(vii) 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 Subpart (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.

(viii) A verification report and certification statement signed by an independent verifier accredited pursuant to section 242-10.6 of this Subpart that expresses that the independent verifier has reviewed the entire application and evaluated the following in relation to the applicable requirements at sections 242-10.3 and 242-10.5 of this Subpart, and any applicable guidance issued by the department.

(a) The adequacy and validity of information supplied by the project sponsor to demonstrate that the offset project meets the applicable eligibility requirements of sections 242-10.3 and 242-10.5 of this Subpart.

(b) The adequacy and validity of information supplied by the project sponsor to demonstrate baseline emissions pursuant to the applicable requirements at section 242-10.5 of this Subpart.

(c) The adequacy of the monitoring and verification plan submitted pursuant to the applicable requirements at section 242-10.5 of this Subpart.

(d) Such other evaluations and statements as may be required by the department.

(ix) 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.

(x) 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 department in the state or United States jurisdiction where the offset project is located.

(2) Consistency applications shall be submitted in a format approved by the department.

(d) 'Prohibition against filing consistency applications in more than one participating state'. 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 because more of the CO₂ equivalent emissions reduction or carbon sequestration due to the offset project is projected to occur in New York than in any other participating state.

(e) 'Department action on consistency applications'.

(1) 'Completeness determination'. Within 30 days following receipt of the consistency application filed pursuant to subdivision (b) of this section, 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 paragraph (2) of this subdivision.

(2) 'Consistency determination'. Within 90 days of making the completeness determination under paragraph (1) of this subdivision, the department will issue a determination as to whether the offset project is consistent with the requirements of this section and section 242-10.3 of this Subpart and the requirements of the applicable offset project standard of section 242-10.5 of this Subpart. For any offset project found to lack consistency with these requirements, the department will inform the project sponsor of the offset project's deficiencies.

N.Y. Comp. Codes R. & Regs. Tit. 6 §§ 242-10.4

Amended New York State Register December 16, 2020/Volume XLII, Issue 50, eff. 12/31/2020