Practice Test Geeks(CAP) Certified Carbon Auditing Professional Practice Test
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Environmental Law & Regulations Flashcards

7 cards from real CAP practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Environmental Law & Regulations flashcards as text

  1. Under the SEC's enhanced climate disclosure rules, what is the threshold for registrants to disclose a climate-related risk as 'material'?

    Answer: A risk with a substantial likelihood of affecting a reasonable investor's decision

    Materiality under SEC rules follows the longstanding standard: a risk is material if there is a substantial likelihood that a reasonable investor would consider it important.

  2. California's Low Carbon Fuel Standard (LCFS) measures fuel carbon intensity in what unit?

    Answer: Grams CO₂e per megajoule (gCO₂e/MJ)

    LCFS measures and regulates the carbon intensity of transportation fuels in grams of CO₂e per megajoule of energy delivered.

  3. The National Environmental Policy Act (NEPA) requires federal agencies to prepare an Environmental Impact Statement (EIS) when a proposed action is deemed to have what kind of impact?

    Answer: A significant impact on the human environment

    NEPA requires an EIS when a federal action may significantly affect the quality of the human environment, as initially assessed through an Environmental Assessment.

  4. Under the EU ETS, what happens when a regulated installation's verified emissions exceed the number of allowances it holds at surrender deadline?

    Answer: The installation pays a penalty of €100 per excess tonne and must still surrender missing allowances

    EU ETS non-compliance results in a €100 per excess tonne penalty (inflation-adjusted) and the obligation to surrender the shortfall in the following year.

  5. Which provision of the Inflation Reduction Act (IRA) directly incentivizes carbon capture and storage projects through enhanced tax credits?

    Answer: Section 45Q credit

    IRA expanded Section 45Q tax credits for carbon capture, utilization, and storage, increasing credit values and broadening eligible project types.

  6. The Task Force on Climate-related Financial Disclosures (TCFD) organizes its recommendations under four core elements: Governance, Strategy, Risk Management, and what fourth element?

    Answer: Metrics and Targets

    TCFD's four core disclosure pillars are Governance, Strategy, Risk Management, and Metrics and Targets, which together provide a comprehensive climate risk disclosure framework.

  7. Under the Endangered Species Act (ESA), what is required before a federal agency may authorize an action that could harm a listed species' critical habitat?

    Answer: Formal Section 7 consultation with the U.S. Fish and Wildlife Service or NOAA

    Section 7 of the ESA requires federal agencies to consult with USFWS or NMFS to ensure their actions do not jeopardize listed species or destroy critical habitat.