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American Clean Energy and Security Act of 2009: Title V: Agricultural and Forestry Related Offsets

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On June 26, 2009 the House of Representatives passed the American Clean Energy and Security Act (ACES) of 2009, a combined energy and climate bill representing our first real chance for a national carbon reduction plan in the United States. The bill combines standards and incentives to promote clean energy and energy efficiency technologies with a firm cap on greenhouse gas emissions. The Alliance will continue to work to obtain Senate passage of strong climate legislation.

Title V: Agricultural and Forestry Related Offsets

Subtitle A: Offset Credit Program from Domestic Agricultural and Forestry Sources

Sec. 501: Definitions

This section excludes agriculture and forestry from the GHG cap.

Sec. 502: Establishment of Offset Credit Program from Domestic Agricultural and Forestry Sources

This section requires the USDA to establish, within a year, a program governing the generation of offsets from domestic agricultural and forestry sources.  Offsets must be verifiable and additional, and must result in permanent net reductions of atmospheric GHGs.

Sec. 503: List of Eligible Domestic Agricultural and Forestry Offset Practice Types

This section requires the USDA to publish a list of qualified practice types to generate offset credits.  At a minimum, this list must include several practices in the agricultural, forestry and manure management sectors.  The full list must be reviewed and updated every 2 years.

Sec. 504: Requirements for Domestic Agricultural and Forestry Practices

This section requires USDA to develop a standardized methodology to establish baselines for to ensure the environmental integrity of offsets.  It must also develop a methodology to determine the additionality and permanence of offsets and establish a system to account for reversals. 

Sec. 505: Project Plan Submission and Approval

This section requires project developers to submit their offset plans to USDA for approval. 

Sec. 506: Verification of Offset Practices

This section requires USDA to verify that offset practices in an approved plan have been implemented and to verify the quantity of GHGs reduced, avoided or sequestered from an offset.  Project developers must submit a report, prepared by an accredited third-party verifier. 

Sec. 507: Certification of Offset Credits

This section requires USDA, after receiving a complete verification report, to, within 90 days, determine the quantity of GHGs reduced, avoided or sequestered by the offset practice. 

Sec. 508: Ownership and Transfer of Offset Credits

This section specifies that offset project developers own the offset credits from those projects.  The credit may be sold, traded or transferred unless the offset has expired or been retired.

Sec. 509: Program Review and Revision

This section requires USDA to review and revise, at least every 5 years, many aspects of the offset program.

Sec. 510: Environmental Considerations

This section requires USDA to consider environmental sustainability in eligible forestry offset practices.

Sec. 511: Audits

This section requires USDA to annually conduct random audits of offset projects, credits and the practices of third-party verifiers.

Subtitle B – USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee

Sec. 531: Establishment of USDA Greenhouse Gas Emission Reduction and Sequestration Advisory Committee

This section requires USDA to establish, within 30 days of enactment, an independent advisory committee to provide scientific and technical advice on ensuring the environmental integrity of the domestic offset program.  Not later than January 1, 2017, and every five years thereafter, the advisory committee must submit an analysis to USDA recommending any needed changes to the offset program.  It would also offer initial recommendations to USDA on the offset program within 180 days of enactment.  USDA may provide such funding support as necessary.  Every year, USDA must submit to Congress a report on the offset program and any other related concerns or information.

Subtitle C – Miscellaneous

Sec. 551: International Indirect Land Use Changes

This section directs EPA to exclude emissions from indirect land use changes outside a renewable fuel’s feedstock’s country of origin.  It directs the National Academies of Science to study indirect GHG emissions related to transportation fuels in a publicly available report, to be completed within three years of the date of enactment of this paragraph. EPA and USDA will then make an initial determination as to whether to calculate indirect emissions within four years after enactment, and, after a period of public comment, a final determination within five years after enactment.  Such regulation would take effect six years following enactment.