Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Verification services shall be subject to the following
requirements.
(a)
Notice of
Verification Services. After the Executive Officer has provided a
determination that the potential for a conflict of interest is acceptable as
specified in section
95133(f) and that
verification services may proceed, the verification body shall submit a notice
of verification services to ARB. The verification body may begin verification
services for the reporting entity after the notice is received by the Executive
Officer, but must allow 14 days advance notice of the site visit unless an
earlier date is approved by the Executive Officer in writing. In the event that
the conflict of interest statement and the notice of verification services are
submitted together, verification services cannot begin until ten days after the
Executive Officer has deemed acceptable the potential for conflict of interest
as specified in 95133(f). Verification services may not begin until the
reporting entity certifies the emissions data report in Cal e-GGRT. The notice
shall include the following information:
(1) A
list of the staff who will be designated to provide verification services as a
verification team, including the names of each designated staff member, the
lead verifier, and all subcontractors, and a description of the roles and
responsibilities each member will have during verification.
(2) Documentation that the verification team
has the skills required to provide verification services for the reporting
facility. This shall include a demonstration that a verification team includes
at least one member accredited as a sector specific verifier that is not also
the independent reviewer, when required below:
(A) For providing verification services to an
electric power entity; a supplier of petroleum products or biofuels; a supplier
of natural gas, natural gas liquids, or liquefied petroleum gas; or a supplier
of carbon dioxide, at least one verification team member must be accredited by
ARB as a transactions specialist;
(B) For providing verification services to
the operator of a petroleum refinery, hydrogen production unit or facility, or
petroleum and natural gas system listed in section
95101(e), at
least one verification team member must be accredited by ARB as an oil and gas
systems specialist;
(C) For
providing verification services to the operator of a facility engaged in cement
production, glass production, lime manufacturing, pulp and paper manufacturing
if process emissions are included in the scope of operations, iron and steel
production, nitric acid production, or lead production, at least one
verification team member must be accredited by ARB as a process emissions
specialist.
(3) General
information on the reporting entity, including:
(A) The name of the reporting entity and the
facilities and other locations that will be subject to verification services,
reporting entity contact, address, telephone number, and e-mail
address;
(B) The industry sector
and the North American Industry Classification System (NAICS) code for the
reporting facility;
(C) The date(s)
of the on-site visit, if required in section
95130(a)(1), with
facility address and contact information;
(D) A brief description of expected
verification services to be performed, including expected completion
date.
(4) If any of the
information under section
95131(a)(1) or
95131(a)(3)
changes after the notice is submitted to ARB, the verification body must notify
ARB by submitting an updated conflict of interest self-evaluation form and
updated notice of verification services as soon as the change is made. The
conflict of interest must be reevaluated pursuant to section
95133(f) and ARB
must approve any changes in writing.
(b) Verification services shall include, but
are not limited to, the following:
(1)
Verification Plan. The verification team shall develop a
verification plan based on the following:
(A)
Information from the reporting entity. Such information shall include:
1. Information to allow the verification team
to develop a general understanding of facility or entity boundaries,
operations, emissions sources, product data, and electricity or fuel
transactions as applicable;
2.
Information regarding the training or qualifications of personnel involved in
developing the emissions data report;
3. Description of the specific methodologies
used to quantify and report greenhouse gas emissions, product data, electricity
and fuel transactions, and associated data as needed to develop the
verification plan;
4. Information
about the data management system used to track greenhouse gas emissions,
product data, electricity and fuel transactions, and associated data as needed
to develop the verification plan;
5. Previous verification
reports.
(B) Timing of
verification services. Such information shall include:
1. Dates of proposed meetings and interviews
with reporting facility personnel;
2. Dates of proposed site visits;
3. Types of proposed document and data
reviews;
4. Expected date for
completing verification services.
(2)
Planning Meetings with the
Reporting Entity. The verification team shall discuss with the
reporting entity the scope of the verification services and request any
information and documents needed for initial verification services. The
verification team shall create a draft sampling plan and verification plan
prior to the site visit during full verification. The verification team shall
also review the documents submitted and plan and conduct a review of original
documents and supporting data for the emissions data report.
(3)
Site Visits. At least
one accredited verifier in the verification team, including the sector specific
verifier, if applicable, shall at a minimum make one site visit, during each
year full verification is required, to each facility for which an emissions
data report is submitted. The verification team member(s) shall visit the
headquarters or other location of central data management when the reporting
entity is a retail provider, marketer, or fuel supplier. During the site visit,
the verification team member(s) shall conduct the following:
(A) The verification team member(s) shall
check that all sources specified in sections
95110 to
95123, and
95150 to
95158, as applicable to the
reporting entity are identified appropriately.
(B) The verification team member(s) shall
review and understand the data management systems used by the reporting entity
to track, quantify, and report greenhouse gas emissions and, when applicable,
product data, and electricity and fuel transactions. The verification team
member(s) shall evaluate the uncertainty and effectiveness of these
systems.
(C) The verification team
shall carry out tasks that, in the professional judgment of the team, are
needed in the verification process, including the following:
1. Interviews with key personnel, such as
process engineers and metering experts, as well as staff involved in compiling
data and preparing the emissions data report;
2. Making direct observations of equipment
for data sources and equipment supplying data for sources determined in the
sampling plan to be high risk;
3.
Assessing conformance with measurement accuracy, data capture, and missing data
substitution requirements, as well as ARB-approved alternate methods, temporary
methods, and ARB-approved meter calibration postponements;
4. Reviewing financial transactions to
confirm fuel, feedstock, product data and electricity purchases and sales, and
confirming the complete and accurate reporting of required data such as
facility fuel suppliers, fuel quantities delivered, and if fuel was received
directly from an interstate pipeline.
(4)
Review of Reporting Entity's
Operations, Product Data and Emissions. The verification team shall
review facility operations to identify applicable greenhouse gas emissions
sources and product data. This shall include a review of the emissions
inventory and each type of emission source to ensure that all sources listed in
sections 95110 to
95123 and sections
95150 to
95158 of this article are properly
included in the emissions data report. This shall also include a review of the
product data to ensure that all product data listed in sections
95110 to
95123 and sections
95150 to
95158 of this article are included
in the emissions data report as required by this article. The verification team
shall also ensure that the reported current primary and any secondary (if
reported) NAICS codes reported pursuant to section
95104(c)
accurately represent the NAICS-associated Activities listed in Table 8-1 of the
Cap-and-Trade Regulation. Review of these NAICS codes and associated activities
must be documented in the verification team's sampling plan.
(5)
Other Reporting Entity
Information. Reporting entities shall make available to the
verification team all information and documentation used to calculate and
report emissions, product data, fuels and electricity transactions, and other
information required under this article, as applicable.
(6)
Electricity Importers and
Exporters. The verification team shall review the GHG Inventory
Program documentation required pursuant to section
95105(d),
electricity transaction records, including deliveries and receipts of power via
North American Electric Reliability Corporation (NERC) e-Tags, written power
contracts, settlements data, and any other applicable information required to
confirm reported electricity procurements and deliveries.
(7)
Sampling Plan. As part
of confirming emissions data, product data, electricity transactions, or fuel
transactions, the verification team shall develop a sampling plan that meets
the following requirements:
(A) The
verification team shall develop a sampling plan based on a strategic analysis
developed from document reviews and interviews to assess the likely nature,
scale and complexity of the verification services for a reporting entity. The
analysis shall review the inputs for the development of the submitted emissions
data report, the rigor and appropriateness of data management systems, and the
coordination within the reporting entity's organization to manage the operation
and maintenance of equipment and systems used to develop emissions data
reports.
(B) The verification team
shall include in the sampling plan a ranking of emissions sources by amount of
contribution to total CO2 equivalent emissions for the
reporting entity, and a ranking of emissions sources with the largest
calculation uncertainty. The verification team shall also include in the
sampling plan a ranking of the product data by units specified in the
appropriate section of this article and a ranking of the product data with the
largest uncertainty. As applicable and deemed appropriate by the verification
team, fuel and electricity transactions shall also be ranked or evaluated
relative to the amount of fuel or power exchanged and uncertainties that may
apply to data provided by the reporting entity including risk of incomplete
reporting.
(C) The verification
team shall include in the sampling plan a qualitative narrative of uncertainty
risk assessment in the following areas as applicable under sections
95110 to
95123,
95129, and
95150 to
95158:
1. Data acquisition equipment;
2. Data sampling and frequency;
3. Data processing and tracking;
4. Emissions calculations;
5. Product data;
6. Data reporting;
7. Management policies or practices in
developing emissions data reports.
(D) After completing the analyses required by
sections 95131(b)(7)(A)-(C),
the verification team shall include in the sampling plan a list which includes
the following:
1. Emissions sources, product
data, and/or transactions that will be targeted for document reviews, and data
checks as specified in 95131(b)(8), and an explanation of why they were
chosen;
2. Methods used to conduct
data checks for each source, product data, or transaction;
3. A summary of the information analyzed in
the data checks and document reviews conducted for each emissions source,
product data, or transaction targeted.
The sampling plan list must be updated and finalized
prior to the completion of verification services. The final sampling plan must
describe in detail how the identified risks were addressed during the
verification.
(E)
The verification team shall revise the sampling plan to describe tasks
completed by the verification team as information becomes available and
potential issues emerge with material misstatement or nonconformance with the
requirements of this article.
(F)
The verification body shall retain the sampling plan in paper, electronic, or
other format for a period of not less than ten years following the submission
of each verification statement. The sampling plan shall be made available to
ARB upon request.
(G) The
verification body shall retain all material received, reviewed, or generated to
render a verification statement for a reporting entity for no less than ten
years. The documentation must allow for a transparent review of how a
verification body reached its conclusion in the verification
statement.
(8)
Data Checks. To determine the reliability of the submitted
emissions data report, the verification team shall use data checks. Such data
checks shall focus on the largest and most uncertain estimates of emissions,
product data and fuel and electricity transactions, and shall include the
following:
(A) The verification team shall
use data checks to ensure that the appropriate methodologies and emission
factors have been applied for the emissions sources, fuel and electricity
transactions covered under sections
95110 to
95123,
95129, and
95150 to
95158;
(B) The verification team shall use data
checks to ensure the accuracy of product data reported under sections
95110 to
95123, and
95150 to
95158 of this article;
(C) The verification team shall choose data
checks for emissions sources, product data, and fuel and electricity
transactions data, as applicable, based on their relative contributions to
emissions and the associated risks of contributing to material misstatement or
nonconformance, as indicated in the sampling plan;
(D) The verification team shall use
professional judgment in the number of data checks required for the team to
conclude with reasonable assurance whether the total reported covered emissions
and covered product data are free of material misstatement. At a minimum, data
checks must include the following:
1. Tracing
data in the emissions data report to its origin;
2. Looking at the process for data
compilation and collection;
3.
Recalculating emission estimates to check original calculations;
4. Reviewing calculation methodologies used
by the reporting entity for conformance with this article; and
5. Reviewing meter and fuel analytical
instrumentation measurement accuracy and calibration for consistency with the
requirements of section
95103(k).
(E) As applicable, the verification team
shall review the following information when conducting data checks for product
data:
1. Product inventory and stock
records;
2. Product sales records
and contracts;
3. Onsite and
offsite product delivery records;
4. Purchase and delivery records for inputs
to product(s);
5. Product
measurement records; and
6. Other
information or documentation that provides financial or direct measurement
information about total product(s) reported.
(F) The verification team is responsible for
ensuring via data checks that there is reasonable assurance that the emissions
data report conforms to the requirements of this article. In addition, and as
applicable, the verifier's review of conformance must confirm the following
information is correctly reported:
1. For
facilities that combust natural gas, natural gas supplier customer account
number, service account identification number, or other primary account
identifier(s) reported pursuant to section
95115(k);
2. For suppliers of natural gas, end-user
names, account identification numbers, and natural gas deliveries in MMBtu,
reported pursuant to section
95122(d)(4);
3. Energy generation and disposition
information reported pursuant to section
95104(d),
95112(a),
95112(b) and
electricity and thermal energy purchases and acquisitions reported pursuant to
95104(d)(1) and 95104(d)(2), if any of the following apply:
a. The facility belongs to an industry sector
(e.g., reported a NAICS code) listed in Table 8-1 of section
95870 of the cap-and-trade
regulation;
b. The facility is
applying for legacy contract transition assistance under the cap-and-trade
regulation; or
c. The facility is
eligible for a limited exemption of emissions from the production of qualified
thermal output pursuant to section
95852(j) of the
cap-and-trade regulation.
(G) The verification team shall compare its
own calculated results with the reported data in order to confirm the extent
and impact of any omissions and errors. Any discrepancies must be investigated.
The comparison of data checks must also include a narrative to indicate which
sources, product data, and transactions were checked, the types and quantity of
data that were evaluated for each source, product data, and transaction, the
percentage of reported emissions covered by the data checks, the percentage of
product data covered by the data checks, and any separate discrepancies that
were identified in emission data or product data.
(9)
Emissions Data Report
Modifications. As a result of data checks by the verification team and
prior to completion of a verification statement(s), the reporting entity must
fix all correctable errors that affect covered emissions or covered product
data in the submitted emissions data report, and submit a revised emissions
data report to ARB. Failure to do so will result in an adverse verification
statement. Failure to fix misreported data that do not affect covered emissions
or covered product data represents a nonconformance with this article but does
not, absent other errors, result in an adverse verification statement. The
reporting entity shall maintain documentation to support any revisions made to
the initial emissions data report. Documentation for all emissions data report
submittals shall be retained by the reporting entity for ten years pursuant to
section 95105.
The verification team shall use professional judgment
in the determination of correctable errors as defined in section
95102(a),
including whether differences are not errors but result from truncation or
rounding or averaging.
If the verification team determines that the reported
NAICS code(s) reviewed pursuant to section
95131(b)(4) is
inaccurate, and the reporting entity does not submit a revised emissions data
report to correct the current NAICS code(s), the result will be an adverse
verification statement.
The verification team must document the source of any
difference identified, including whether the difference results in a
correctable error or whether the difference does not require further
investigation because it is the result of truncation, rounding, or
averaging.
(10)
Findings. To verify that the emissions data report is free of
material misstatements, the verification team shall make its own determination
of emissions for checked sources and product data for checked data and shall
determine whether there is reasonable assurance that the emissions data report
does not contain a material misstatement in GHG emissions reported for the
reporting entity, on a CO2 equivalent basis and/or a
material misstatement in product data for the reporting entity, using the units
required by the applicable sections of this article. To assess conformance with
this article the verification team shall review the methods and factors used to
develop the emissions data report for adherence to the requirements of this
article and ensure that other requirements of this article are met.
(11)
Log of Issues. The
verification team must keep a log of any issues identified in the course of
verification activities that may affect determinations of material misstatement
and nonconformance, whether identified by the verifier or by the reporter
regarding the original or subsequent certified reports, or identified by ARB
staff. The issues log must identify the regulatory section related to the
nonconformance or potential nonconformance, if applicable, and indicate if the
issues were corrected by the reporting entity prior to completing the
verification. Any other concerns that the verification team has with the
preparation of the emissions data report, including with any de
minimis method calculations, must be documented in the issues log and
communicated to the reporting entity during the course of verification
activities. The log of issues must indicate whether each issue has a potential
bearing on material misstatement, nonconformance, or both and whether an
adverse verification statement may result if not addressed.
(12)
Material Misstatement
Assessment. Assessments of material misstatement are conducted
independently on total reported covered emissions and total reported covered
product data (units from the applicable sections of this article).
(A) In assessing whether an emissions data
report contains a material misstatement, the verification team must separately
determine whether the total reported covered emissions and total reported
covered product data contain a material misstatement using the following
equation(s):
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Where:
"Discrepancies" means any differences between the
reported covered emissions or covered product data and the verifier's review of
covered emissions or covered product data for a data source or product data
subject to data checks in section
95131(b)(8).
"Omissions" means any covered emissions or covered
product data the verifier concludes must be part of the emissions data report,
but were not included by the reporting entity in the emissions data
report.
"Misreporting" means duplicate, incomplete or other
covered emissions the verifier concludes should, or should not, be part of the
emissions data report or duplicate or other product data the verifier concludes
should not be part of the emissions data report.
"Total reported covered emissions or covered product
data" means the total annual reporting entity covered emissions or total
reported covered product data for which the verifier is conducting a material
misstatement assessment.
For instances in which an entity reports covered
product data in different units of measurement or reports covered product data
subject to sections
95156(a)(7) and
95156(a)(8), the
verifier must conduct a material misstatement evaluation according to the
requirements of sections
95131(b)(12)(D) and
(E), respectively.
(B) When evaluating material misstatement,
verifiers must deem correctly substituted missing data to be accurate,
regardless of the amount of missing data.
(C) The omissions variable described in
section 95131(b)(12)(A)
does not apply to excluded covered product data as described in section
95103 (l), such
that excluded covered product data is not considered in the material
misstatement assessment.
(D)
Beginning with 2017 data reported in 2018, if multiple types of covered product
data are reported with different units of measurement, the verifier shall
conduct a separate material misstatement evaluation for each product, (for
example, wineries (NAICS code 312130) with products reported in proof gallons
shall have one material misstatement assessment, products reported in shorts
tons shall have another material misstatement assessment, and products reported
in gallons shall have another material misstatement assessment), except as
provided in section
95131(b)(12)(E).
(E) Beginning with 2019 data reported in
2020, the verifier shall conduct a separate material misstatement evaluation
for covered product data reported pursuant to section
95156(a)(7) and
covered product data reported pursuant to section
95156(a)(8). If a
facility reports covered product data under sections
95156(a)(7),
95156(a)(8), and
another section(s) that requires reporting covered product data, three (or
more) separate covered product data material misstatement assessments must be
completed and three (or more) separate product data verification statements
must be issued.
(13)
Review of Missing Data Substitution. If a source selected for
a data check was affected by a loss of data used to calculate GHG emissions for
the data year:
(A) The verification team
shall confirm that the reported emissions for that source were calculated using
the applicable missing data procedures, or that an approved interim data
collection procedure was used for the source.
(B) If 20 percent or less of any single data
elements used to calculate emissions are missing, and emissions are correctly
calculated using the missing data requirements in sections
95110 to
95123,
95129, and
95150 to
95158 these emissions will be
considered accurate and as meeting the reporting requirements for that
source.
(C) If greater than 20
percent of any single data element used to calculate emissions are missing or
any combination of data elements are missing that would result in more than 5
percent of a facility's emissions being calculated using missing data
requirements in sections
95110 to
95123,
95129, and
95150 to
95158, the verifier must include a
finding of nonconformance with the required emissions calculation methodology
as part of the verification statement.
(D) The verifier must note the date, time and
source of any missing data substitutions discovered during the course of
verification in the verification report.
(14)
Review of Product Data.
The verifier's review of product data must include the following, where
applicable.
(A) Verifiers must confirm that
data substitutions were not used for covered product data.
(B) Verifiers must confirm that all covered
product data specified in sections
95110-95124 and
95156 of this article conforms to
the reporting requirements of MRR, including, but not limited to, meeting the
applicable product data definitions, and meter accuracy and calibrations
requirements. Covered product data subject to this confirmation include
underlying product data that are measured and reported to support the
calculation of other covered product data (e.g., CWB throughputs reported by
refineries pursuant to section
95113 (l)(3) that
are used to calculate the total facility CWB). Verifiers shall describe in
their sampling plan how they determined that reported covered product data
conforms to the requirements of MRR.
(c) Completion of verification services must
include:
(1)
Verification
Statement. Upon completion of the verification services specified in
section 95131(b), the
verification body shall complete an emissions data verification statement and
product data verification statement(s), and provide those statements to the
reporting entity and ARB by the applicable verification deadline specified in
section 95103(f). Before
the emissions data verification statement and product data verification
statement(s) are completed, the verification body shall have the verification
services and findings of the verification team independently reviewed within
the verification body by an independent reviewer who is a lead verifier not
involved in services for that reporting entity during that year.
(2)
Independent Review. The
independent reviewer shall serve as a final check on the verification team's
work to identify any significant concerns, including:
(A) Errors in planning,
(B) Errors in data sampling, and
(C) Errors in judgment by the verification
team that are related to the draft verification statement.
The independent reviewer must maintain independence
from the verification services by not making specific recommendations about how
the verification services should be conducted. The independent reviewer will
review documents applicable to the verification services provided, and identify
any failure to comply with requirements of this article or with the
verification body's internal policies and procedures for providing verification
services. The independent reviewer must concur with the verification findings
before the verification statement(s) can be issued.
(3)
Completion of Findings and
Verification Report. The verification body is required to provide each
reporting entity with the following:
(A) A
detailed verification report, which shall at a minimum include:
1. A detailed description of the facility or
entity including all emissions and product data sources and
boundaries;
2. A detailed
description of data acquisition, tracking and emission calculation/product data
systems;
3. The verification
plan;
4. The detailed comparison of
the data checks conducted during verification services for emissions and
product data sources;
5. The log of
issues identified in the course of verification activities and their
resolution;
6. Any qualifying
comments on findings during verification services; and
7. The calculation performed in section
95131(b)(12)(A)
for emissions and product data.
The verification report shall be submitted to the
reporting entity at the same time as or before the final emissions data
verification statement and product data verification statement(s) are submitted
to ARB. The detailed verification report shall be made available to ARB upon
request.
(B) The
verification team shall have a final discussion with the reporting entity
explaining its findings, and notify the reporting entity of any unresolved
issues noted in the issues log before the verification statement(s) are
finalized.
(C) The verification
body shall provide the verification statement(s) to the reporting entity and
the ARB, attesting whether the verification body has found the submitted
emissions data report to be free of material misstatements, and whether the
emissions data report is in conformance with the requirements of this article.
For every qualified positive verification statement, the verification body
shall explain the nonconformances contained within the emissions data report
and shall cite the section(s) in this article that corresponds to the
nonconformance and why the nonconformances do not result in a material
misstatement. For every adverse verification statement, the verification body
must explain all nonconformances and material misstatements leading to the
adverse verification statement and shall cite the section(s) in this article
that corresponds to the nonconformance(s) and material misstatements.
(D) The lead verifier in the verification
team shall attest that the verification team has carried out all verification
services as required by this article, and the lead verifier who has conducted
the independent review of verification services and findings shall attest to
his or her independent review on behalf of the verification body and his or her
concurrence with the verification findings.
1. The lead verifier must attest in the
verification statement, in writing, to ARB as follows:
"I certify under penalty of perjury under the laws of
the State of California that the verification team has carried out all
verification services as required by this article."
2. The lead verifier independent reviewer who
has conducted the independent review of verification services and findings must
attest in the verification statement, in writing, to ARB as follows:
"I certify under penalty of perjury under the laws of
the State of California that I have conducted an independent review of the
verification services and findings on behalf of the verification body as
required by this article and that the findings are true, accurate, and
complete."
(4)
Adverse Verification Statement
and Petition Process. Prior to the verification body providing an
adverse verification statement for emissions or product data, or both, to ARB,
the verification body shall notify the reporting entity and the reporting
entity shall be provided at least 14 days to modify the emissions data report
to correct any material misstatements or nonconformance found by the
verification team. The verification body must provide notice to ARB of the
potential for an adverse verification statement(s) at the same time it notifies
the reporting entity, and include a preliminary issues log. The modified report
and verification statement(s) must be submitted to ARB before the verification
deadline, even if the reporting entity makes a request to the Executive Officer
as provided below in section
95131(c)(4)(A).
(A) If the reporting entity and the
verification body cannot reach agreement on modifications to the emissions data
report that result in a positive verification statement or qualified positive
verification statement for the emissions or product data because of a
disagreement on the requirements of this article, the reporting entity may
petition the ARB Executive Officer before the verification deadline and before
the verification statement is submitted to make a final decision as to the
verifiability of the submitted emissions data report. The reporting entity may
petition either emissions or product data verification statements, or both. At
the same time that the reporting entity petitions the Executive Officer, the
reporting entity must submit all information it believes is necessary for the
ARB Executive Officer to make a final decision.
(B) The Executive Officer shall make a final
decision no later than October 10 following the submission of a petition
pursuant to section
95131(c)(4)(A).
If at any point ARB requests information from the verification body or the
reporting entity, the information must be submitted to ARB within ten days. ARB
will notify both the reporting entity and the verification body of its
determination, which may also include an assigned emissions level calculated
pursuant to section
95131(c)(5), if
applicable.
(5)
Assigned Emissions Level. When a reporting entity fails to
receive a verification statement for a data year by the applicable deadline or
receives an adverse emissions data verification statement, the Executive
Officer shall develop an assigned emissions level for the data year for the
reporting entity. Within ten days of a written request by the Executive
Officer, the verification body (if applicable) shall provide any available
verification services information or correspondence related to the emissions
data. Within ten days of a request by the Executive Officer, the reporting
entity shall provide the data that is required to calculate GHG emissions for
the entity according to the requirements of this article, the preliminary or
final detailed verification report prepared by the verification body (if
applicable), and other information requested by the Executive Officer,
including the operating days and hours of the reporting entity during the data
year. The reporting entity shall also make available personnel who can assist
the Executive Officer's determination of an assigned emissions level for the
data year.
(A) In preparing the assigned
emissions level for the reporting entity, the Executive Officer shall consider
at a minimum the following information:
1. The
number, types and days and hours of operation of the sources operated by the
reporting entity for the emissions data year;
2. Any previous emissions data reports
submitted by the reporting entity and verification statements rendered for
those reports;
3. The potential
maximum fuel and process material input and output capacities for the reporting
entity's emissions sources during operating hours;
4. For electric power entities, wholesale and
retail transactions that would affect an assigned emissions level, for the
applicable data year and for previous years;
5. Emissions, electricity transactions, fuel
use, or product output information reported to ARB or other State, federal, or
local agencies.
(B) In
preparing the assigned emissions level for the reporting entity, the Executive
Officer may use the following methods, as applicable:
1. The sector specific calculation
methodologies in this article;
2.
In the event of missing data, the Executive Officer will rely on the missing
data provisions of this article; and
3. Any information reported under this
article for this data year and past years.
(C) The Executive Officer shall assign the
emissions level for the reporting entity using the best information available,
including the information in section
95131(c)(5)(A)
and methods in section
95131(c)(5)(B),
as applicable. The Executive Officer shall include an assigned emissions level
in the decision made pursuant to section
95131(c)(4)(B),
if applicable.
(d) Upon provision of the verification
statement, or statements, if applicable, to ARB, the emissions data report
shall be considered final. No changes shall be made to the report as submitted
to ARB, notwithstanding the requirements of
40 CFR §
98.3(h), and all
verification requirements of this article shall be considered complete except
in the circumstance specified in section
95131(e).
(e) If the Executive Officer finds a high
level of conflict of interest existed between a verification body and a
reporting entity, an error is identified, or an emissions data report that
received a positive or qualified positive verification statement fails an ARB
audit, the Executive Officer may set aside the positive or qualified positive
verification statement issued by the verification body, and require the
reporting entity to have the emissions data report re-verified by a different
verification body within 90 days. This paragraph applies to verification
statements for emissions and product data. In instances where an error to an
emissions data report is identified and determined by ARB to not affect the
emissions or covered product data, the change may be made without a set aside
of the positive or qualified positive verification statement.
(g) Upon request of the Executive Officer,
the verification body shall provide ARB the full verification report given to
the reporting entity, as well as the sampling plan, contracts for verification
services, and any other supporting documents and calculations, within 14
days.
(i)
Verifying Biomass-derived
Fuels. In the absence of certification of the biomass-derived fuel by
an accredited certifier of biomass-derived fuels, the verification body is
subject to the requirements of subarticle 4 of this article as modified below
when verifying biomass-derived fuel:
(1)
General biomass-derived fuel verification requirements. The
following requirements apply to the biomass-derived fuel verification:
(A)
Annual Verification.
Biomass-derived fuel is subject to annual verification as specified in section
95103(f).
(B)
Verification Services for
Biomass-derived Fuels. When a reporting entity reports that
biomass-derived fuels are used, the biomass-derived fuels must be considered
when providing all verification services required under section
95131(b) of this
article. The verification team must:
1.
Review the reporting entity's reported biomass-derived fuel emissions to ensure
the biomass-derived fuels are properly listed in the emissions data report as
required in section
95103(j) of this
article and sections
95852.1.1 and
95852.2 of the cap-and-trade
regulation.
2. Conduct separate
data checks that are consistent with the requirements in 95131(i)(2)(D) for the
fuel type being verified using the following documentation, as appropriate: the
invoice, nomination, scheduling, storage, in-kind fuel purchase, allocation,
transportation and balancing reports or other documents used as evidence of the
fuel delivery.
a. The reporting entity may
arrange for the documentation to be supplied directly to the verifier if there
are confidentiality issues that would prevent these documents from being made
available to the reporting entity.
(C)
Completion of Verification
Services for Biomass-derived Fuels.
1. All information used for the verification
of biomass-derived fuels must be included in the independent review as required
in section
95131(c)(2) of
this article.
2. Conformance for
biomass-derived fuels is evaluated against the requirements of this article and
sections 95852.1.1 and
95852.2 of the cap-and-trade
regulation.
3. Reported carbon
dioxide emissions from biomass-derived fuels are considered an omission in the
evaluation for material misstatement when:
a.
The fuel does not conform with sections
95852.1.1 and
95852.2 of the cap-and-trade
regulation and
b. The emissions are
listed as exempt biomass-derived
CO2.
(2) Specific biomass-derived fuel
verification requirements.
(A) For urban,
agricultural and forest derived wood and wood waste, the verifier must
determine the reporting entity met the requirements of section
95103(j).
(B) For biodiesel and fuel ethanol, the
verifier must determine the reporting entity met the requirements of section
95103(j) and the
following requirements:
1. At combustion
sources that purchase biomass-derived fuels, verify records to demonstrate that
volume purchased equals or exceeds volume reported.
2. At combustion sources that produce their
own fuel, verify:
a. that raw material is
sufficient to produce the quantity of fuel reported;
b. that the facility has the ability to
produce the biomass-derived fuel reported;
c. that the emissions from the fuel are
accurately reported and do not lead to the underreporting of fossil fuel
emissions.
(C)
For municipal solid waste and tires, the verifier must determine the reporting
entity met the requirements of section
95103(j).
(D) For biomethane and biogas, the verifier
must:
1. Examine all nomination, invoice,
scheduling, allocation, transportation, storage, in-kind fuel purchase and
balancing reports from the producer to the reporting entity and have reasonable
assurance that the reporting entity is receiving the identified fuel;
2. Determine that the biogas or biomethane
meets all requirements of sections
95852.1.1 and
95852.2 of the cap-and-trade
regulation and that no fossil-derived fuel is used to supplement the
biomass-derived fuel deliveries except for documented fuel purchases to avoid
loss of metered volumes in connection with the transportation of the biomethane
to the reporting entity. Where one or more contracts is used to procure biogas
or biomethane, ensure all applicable contracts meet the requirements of section
95852.1.1(a);
3. Ensure any discrepancies in the fuel
volumes, heat values and/or energies will be carried over into the evaluation
of material misstatement for the reporting
entity;
(3)
Assessment. If the reporting entity is unable to demonstrate
that the biomass-derived fuel is consistent with the requirements in sections
95852.1.1 and
95852.2 of the cap-and-trade
regulation, the emission data report must be revised to list these biomass
CO2 emissions as non-exempt biomass-derived
CO2.
1. New
section filed 12-2-2008; operative 1-1-2009 (Register 2008, No.
49).
2. Amendment of section and NOTE filed 12-14-2011; operative
1-1-2012 pursuant to Government Code section
11343.4
(Register 2011, No. 50).
3. Amendment of subsections (a)(2), (b)(3),
(b)(7), (b)(7)(B), (b)(9)-(10), (b)(12)-(b)(12)(A) and (i)(3)(C)3. and new
subsections (i)(1)(C)3.a.-b. filed 12-19-2012; operative 1-1-2013 pursuant to
Government Code section
11343.4
(Register 2012, No. 51).
4. Amendment of subsections (a), (a)(2)(C),
(b)(8)(A)-(B) and (b)(8)(D), new subsections (b)(8)(F)-(b)(8)(F)3.c.,
subsection relettering, amendment of subsection (b)(9), new subsections
(b)(12)(B)-(C), repealer of subsection (b)(13)(B), subsection relettering,
amendment of newly designated subsections (b)(13)(B)-(D) and (b)(14), new
subsections (b)(14)(A)-(B)5. and amendment of subsections (c)(1), (c)(3)(A),
(c)(4), (e) and (i)(1)(B)1. filed 12-31-2013; operative 1-1-2014 pursuant to
Government Code section
11343.4(b)(3)
(Register 2014, No. 1).
5. Amendment of subsections (b)(3)(C)4.,
(b)(4), (b)(8)(F)1., (b)(9), (b)(14)(B)1. and (i)(1)(C)1. filed 12-31-2014;
operative 1-1-2015 pursuant to Government Code section
11343.4(b)(3)
(Register 2015, No. 1).
6. Amendment filed 9-1-2017; operative
1-1-2018 (Register 2017, No. 35).
Note: Authority cited: Sections
38510,
38530,
39600,
39601,
39607,
39607.4
and
41511,
Health and Safety Code. Reference: Sections
38530,
39600
and
41511,
Health and Safety Code.
