Carbon Sequestration Certification Program: Rule Impact Statement
RULE IMPACT STATEMENT
(Note to Reader: This chapter number will change.)
TITLE 155. OKLAHOMA CONSERVATION COMMISSION
CHAPTER 25. CARBON SEQUESTRATION CERTIFICATION PROGRAM
(A) PURPOSE OF THE PROPOSED RULE:
These rules are necessary to implement the provisions of the Oklahoma Carbon Sequestration Act. The purpose of the proposed rules is to provide the structure of the Carbon Sequestration Certification Program and outline the requirements for voluntary participation in this program. Specifically, the rules define a state verified carbon offset and the rules governing the interaction between offset buyers, verifiers, project owners, and the state carbon registry. Accurate project monitoring and review are necessary to ensure that each tradable offset is a true representation of the quantity of stored carbon that it claims to represent. Obtaining assurance is fundamental in a trading program where carbon offsets are tradable commodities with monetary value. These rules serve a compelling public interest because greenhouse gas emitters from within and outside of Oklahoma who want to offset their emissions are already looking within Oklahoma for high quality offset projects. There are entities already conducting greenhouse gas offset trading transactions in the State but there is currently no State guidance in place to assure the credibility of these transactions in order to protect the interest of those engaged in carbon trading in Oklahoma and the interests of the State itself in ensuring that carbon trading within the state conforms to some standard.
(B) CLASSES OF PERSONS WHO MOST LIKELY WILL BE AFFECTED BY THE PROPOSED RULE AND ANY INFORMATION ON COST IMPACTS RECEIVED BY THE AGENCY FROM ANY PRIVATE OR PUBLIC ENTITIES:
These rules affect persons who own land and voluntarily want to change their land use in order to be eligible for incentive payments. It also affects others who want to dispose of carbon dioxide and its equivalent under state program rules. No cost impacts have been received to date. The rule also affects aggregators and verifiers who want to be authorized to operate under the program.
(C) PERSONS WHO WILL BENEFIT FROM THE PROPOSED RULE:
Persons who own surface or subsurface rights and want to sequester carbon dioxide or its equivalent or anyone who engages in the buying or selling of emission offsets.
(D) DESCRIPTION OF THE PROBABLE IMPACT OF THE PROPOSED RULE UPON AFFECTED CLASSES OF PERSONS:
All affected persons stand to benefit from the proposed rule because the program will provide valued information and guidance on the buying and selling of emission offsets and the potential value of the offsets. Buyers of offsets will benefit from the knowledge that their purchase is certified by the State of Oklahoma.
(E) PROBABLE COST AND BENEFITS TO AGENCY; SOURCE OF REVENUE FOR IMPLEMENTATION AND ENFORCEMENT OF THE PROPOSED RULE:
Initially, one additional full-time employee will be necessary to administer the program. This number will expand as the program grows. Revenue for administration of the program will be derived from fees for the tasks associated with certification, aggregation, and verification.
(F) DETERMINATION OF WHETHER IMPLEMENTATION WILL HAVE ANY ECONOMIC IMPACT ON ANY POLITICAL SUBDIVISION OR REQUIRE THEIR COOPERATION IN IMPLEMENTING OR ENFORCING THE PROPOSED RULE:
No effect on any political subdivision is anticipated by these rules.
(G) DETERMINATION OF WHETHER IMPLEMENTATION OF THE PROPOSED RULE WILL HAVE AN ADVERSE EFFECT ON SMALL BUSINESS AS PROVIDED BY THE OKLAHOMA SMALL BUSINESS REGULATORY FLEXIBILITY ACT:
The agency knows of no adverse effects the rule will have on small business. Small business will benefit from the certainty provided by the rules should they wish to sell or purchase carbon offsets.
(H) DETERMINATION OF WHETHER THERE ARE LESS COSTLY METHODS OR NON-REGULATORY METHODS FOR ACHIEVING THE PURPOSE OF THE PROPOSED RULES:
This is a non-regulatory program. The agency knows of no less costly method to achieve the purpose of these rules and the Oklahoma Carbon Sequestration Enhancement Act.
(I) DETERMINATION OF THE EFFECT OF THE PROPOSED RULE ON THE PUBLIC HEALTH, SAFETY, AND ENVIRONMENT:
The proposed rules will benefit the environment and public health by encouraging the proliferation of vegetation, that prevents soil erosion, filters contaminants, protects water quality, and provides wildlife habitat. Vegetation also removes carbon dioxide from the air, which improves air quality for the public. Geologic sequestration of carbon dioxide poses no known danger to the public health and safety and may benefit public health and safety by removing carbon dioxide from the atmosphere.
(J) DETERMINATION OF ANY DETRIMENTAL EFFECT ON THE PUBLIC HEALTH, SAFETY, AND ENVIRONMENT:
The agency is not aware of any detrimental effect the proposed rules will have on public health, safety, and environment.
(K) DATE RULE IMPACT STATEMENT WAS PREPARED:
April 17, 2008
