Window #1: Offsets for use in the Regional Greenhouse Gas Initiative
Overview
Several Initiative Participants are pursuing the purchase of greenhouse gas (GHG) offsets as part of an overall compliance strategy under the Regional Greenhouse Gas Initiative (RGGI). In anticipation of the continued development of the RGGI offset project regulations, the Initiative Participants are interested in GHG offset projects that meet not only the current RGGI offset project policy, but also projects that could meet future regulations. Toward this goal, projects are eligible under Request for Proposals (RFP) Window #1 if they meet any of the following criteria:
Projects that meet the current RGGI offset project guidelines. The current RGGI model rule lists a total of five eligible offset project sectors (listed below) and nine participating states (also listed below).
Projects providing GHG offsets in RGGI-eligible project sectors that are located in non-RGGI states. These are projects within the five eligible project sectors, but located outside of the nine RGGI states.
Any GHG offset projects located in current RGGI states but falling outside the eligible project sectors list. Projects in any offset sector located in one of the nine participating RGGI states are eligible under this RFP window. Initiative Participants are especially interested in forestry management projects.
Total Anticipated Demand: 7.5 million short tons of CO2-e
Eligible Project Types
There are five different eligible GHG offset project types under RGGI. Projects in any of these five sectors should be submitted through this RFP Window, even if they are not located within a RGGI-participating state:
Initiative Participants are interested in receiving project proposals in any offset sector (including those not listed under the five eligible project types under RGGI) located in one of the nine states currently participating in RGGI. These states, as of the release of the RFP, are:
Connecticut,
Delaware,
Maine,
Massachusetts,
New Hampshire,
New Jersey,
New York
Rhode Island, and
Vermont.
Projects that are within one of the five RGGI project types, but are located in a state outside the RGGI system are also eligible for submission under this RFP window. Under the RGGI Model Rule, GHG offset projects can be located in a state that has established a memorandum of understanding with RGGI. Although no such memorandums have been established as of this date of issuance of this RFP, Initiative Participants are interested in any projects in the five RGGI-eligible offset sectors in anticipation of the establishment of these memorandums. Note that updates will be provided for this section if any new states join RGGI.
Monitoring and Verification For the five RGGI offset sectors, refer to the RGGI Model Rule for monitoring and verification requirements. For projects in other offset sectors, applicants are responsible for the presentation of the monitoring and verification plan.
Projects that Displace Electric Generation If the offset project includes an electric generation component, the project proponent may have to transfer any and all attribute credits that could be used to comply with a renewable portfolio standard or other regulatory requirement to an appropriate regulatory agency or its agent. Proposing entities must discuss what, if any, attribute credits could result from the project and demonstrate how those would be transferred to the appropriate agency.
Ineligible Projects Projects that have been awarded reduction credits under any other mandatory or voluntary greenhouse gas program. This is intended to prevent double counting of offset credits, and proposing entities, therefore, must demonstrate and ensure that offsets will not be used for other crediting purposes.
