California Cap-and-Trade Forest Offset Projects and Biomass Exemption

The California economy-wide cap-and-trade program established under the California Global Warming Solutions Act authorizes the creation of forest offsets. The California Air Resources Board has adopted the Forest Compliance Offset Protocol, which provides standards for qualifying and calculating offset credits for reforestation and forest improvement projects as well as programs to establish conservation easements. CO2 emissions from biomass combustion or biomass-based fuels are exempted from the requirement for the surrender of allowances, thus incentivizing sustainable forestry practices.