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Offset Scorecard: Californian forestry credits dominate ARB’s latest issuance

October 12, 2017 by Ronjoy Bezbarua

Over 1.1 million credits were issued this week to four projects with a bulk of the credits coming from the Mailliard Ranch (CAR1180) IFM forestry project. The other projects to receive offset credits were two livestock projects and a single mine methane project. With this latest batch of issuances, the issuance backlog of Registry Offset Credits awaiting ARB’s approval fell to 30.9 million which is nearing levels last seen in July before peaking in September.

Over 78% of this week’s credits came from the Mailliard Ranch (CAR1180) IFM forestry project which was issued over 927K credits from its first reporting period with over 163K credits held in the buffer pool. It is the sole Californian project to be awarded credits this week. As the post 2020 AB398 mandated offset supply rules draw nearer, it remains to be seen if credits from new Californian projects will be able to meet demand.

Elk Creek Permit Area Abandoned Mine Project (ACR367) developed by Vessels Coal Gas was the recipient of over 230K credits and was the second highest grossing project for the week. The remaining 23.8K credits were awarded to two livestock projects. Stotz Southern Generation (CAR1078) developed by Solar & Renewables Management which received ROCs 40 days back accrued over 16K credits for its fourth reporting period and has been issued a total of close to 40K ARBOCs previously. Maple Leaf Dairy East (CAR1156) received over 7.4K credits from its second reporting period. It has generated over 7.7K credits from its previous reporting period.

Only 7.7K CCO 8s underwent conversion to CCO 3s for the week from a single project. The credits from the first reporting period of the Maple Leaf Dairy East (CAR1156) livestock project transitioned to CCO 3s. AG Methane Advisors are the developers of the project which is located in Manitowoc County in the state of Wisconsin.

Since the last issuance, over 46K credits from two projects have transitioned into zero risk offsets i.e. completed the invalidation timeframe successfully. The total supply of zero risk offsets available for compliance now stand at over 14.3 million.

California continues to lead other states in terms of offset supply but is closely followed by Washington, although a majority of the credits issued are from the Colville IFM project which accounts for a whopping 98% of all the 14.4 million offset credits issued from projects in Washington.

 

ARB’s next issuance will take place on October 25.

 

Ronjoy Bezbarua (ronjoy.bezbarua@californiacarbon.info)

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