What if the State (government) acquires land within the project area?

If the land under contract is acquired by the State, then Arbonics will remove the area from the project.

If the area in question has not generated VCUs, then there is no issue. The landowner notifies Arbonics of the sale, and we either terminate the contract (if all the land under contract is acquired) or re-adjust the project area and reset the landowner’s baseline (if only part of the land under contract is acquired).

If the land has generated VCUs, then the acquisition would trigger a loss event (or a project reversal). Following the land acquisition, Arbonics would calculate the losses associated with the area of land removed from the project, and then report the loss to Verra. Arbonics would then seek to recover the losses from the landowner and the landowner could then seek to recover losses from the State.

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