By Claudia O’Brien and Bart Kempf

On November 14, 2014, the California Air Resources Board (CARB) released a final determination invalidating almost 89,000 previously-issued offset credits due to CARB’s conclusion that the facility at issue failed to comply with a permit issued under the Resource Conservation and Recovery Act (RCRA).[1]  CARB reached this conclusion even though it determined that “the [GHG] emission reductions represented by the offsets at issue here are real, quantified, and verified reductions.”[2]  CARB’s decision comes following a months-long investigation, and leaves open a number of questions about how California will exercise its discretion to investigate and invalidate offsets in the future.