You are here: Home » News & Events » Program announcements » ARB Notice of Review of ODS Compliance Offset Credits

ARB Notice of Review of ODS Compliance Offset Credits

Sacramento, CA, May 29, 2014

On May 29th, the California Air Resources Board (ARB) announced its review of compliance offset credits (ARBOCs) issued for ozone depleting substances (ODS) destruction events that took place at the Clean Harbors Incineration Facility in El Dorado, Arkansas, which may have been generated while the facility was not in compliance with provisions of its operating permit issued under the federal Resource Conversation and Recovery Act (RCRA). ARB believes the greenhouse gas reductions represented by the offsets are real, quantified, and verified reductions. None of the compliance offset credits currently under review have been used for compliance in the Cap-and-Trade Program.

The offset program serves as an important cost containment feature of the Cap-and-Trade Program, however, the Regulation allows ARB to review and invalidate any issued compliance offset credits that were generated if the offset project activity and implementation of the offset project was not in conformance with local, state, or national environmental and health and safety regulations during the reporting period for which the ARB offset credit was issued. 

During the period of review, ARB has blocked transfers on CITSS of potentially impacted compliance offset credits. All parties identified as holders of potentially impacted compliance offset credits have 25 calendar days to provide additional information to ARB to aid in the review. ARB may also request specific additional information to aid in its review. The Executive Officer has 30 calendars from the day that all information is submitted to make a final determination whether to invalidate any compliance offset credits subject to review. Once the review is completed, any compliance offset credits determined to meet the requirements of the Regulation, will be made available to the CITSS accounts of the respective owners. Parties holding offset credits issued for projects that took place at the Clean Harbors Incineration Facility should remain cognizant of the current review by ARB.  

Questions about ARB’s review should be directed to ARB. Questions about ODS projects in process as well as about ERTs and Registry Offset Credits (ROCs) that ACR has issued to potentially impacted ODS projects can be directed to Mary Grady at or by calling 805-884-1961.