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Cost Containment Strategies for California's Offset Programs: Insights from the C-AGG Workshop

This document summarizes key points from the C-AGG Workshop held on October 9, 2013, by the California Air Resources Board. It covers existing cost containment options, including biennial verification for small projects and cooperative forestry initiatives. The workshop also addressed streamlining the DNDC for ease of use and the role of ARB-accredited aggregators in monitoring projects. Additional considerations for aggregation and the requirements for offset projects were discussed, emphasizing the importance of transparency and individual project accountability.

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Cost Containment Strategies for California's Offset Programs: Insights from the C-AGG Workshop

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  1. Offsets Implementation Cost Containment C-AGG Workshop October 9, 2013 California Air Resources Board

  2. Existing Cost Containment Options • Small projects, <25,000 mtCO2e, can verify biennially • Skip one year of verifications • Only credited after verification California Air Resources Board

  3. Existing Cost Containment Options • Authorized Project Designee • Multiple project operators can contract with a single entity to aid in monitoring, reporting, and verification • Economy of scale • Each project is credited individually and not dependent upon the success of others California Air Resources Board

  4. Existing Cost Containment Options • Cooperative • Forestry • Multiple forest owners can join together to form one project • One report, one verification • All lands credited together and depend on the success of others California Air Resources Board

  5. Additional Cost Containment • Streamlining DNDC • Working to make operation of the DNDC more user-friendly • Contract to develop front and back ends for DNDC • Verification tools • Remote sensing • Others California Air Resources Board

  6. C-AGG Proposal • ARB Accredited Aggregator • Staffing • Minimum levels • ARB accredited staff • Liability insurance • Outstanding questions • How are reports submitted • Frequency of verification • Number/Percent of projects verified annually California Air Resources Board

  7. Considerations for Aggregation • Inconsistent with WCI design document • Inconsistent with transparency requirements • Centralized reporting and verification with heterogeneous baselines • Uncertain implications of an adverse verification California Air Resources Board

  8. General Offset Requirements • Individual project operators are public • Each project location is public • Every individual project’s data is public • Limited to what is required in Offset Project Data Report California Air Resources Board

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