Current through Register 2024 Notice Reg. No. 38, September 20, 2024
Validation and verification services must be performed
by verification bodies accredited by the Executive Officer; in addition, such
services must meet the following requirements (the general term "verification
services" includes validation services for fuel pathway applications unless
otherwise provided):
(a)
Notice of Verification Services. The verification body must
submit a notice of validation or verification services to the Executive
Officer.
For verification bodies, the notice must be submitted
to the Executive Officer after the Executive Officer has provided a
determination that the potential for a conflict of interest is acceptable, as
specified in section
95503(e), and
that verification services may proceed. The verification body may begin
services for the entity required to contract for verification services after
the notice is received by the Executive Officer, but the verification body must
allow a minimum of 14 calendar 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, services cannot begin until ten calendar days after the
Executive Officer has deemed acceptable the potential for conflict of interest
as specified in 95503(e).
The verifier's notice must include all the following
information:
(1) A list of personnel
who will be designated to provide verification services as a verification team,
including the names of each designated employee, the lead verifier, and all
subcontractors, and a description of the roles and responsibilities each team
member will have. The independent reviewer must also be listed
separately.
(2) Documentation that
the verification team has the skills required to provide verification services
for the entity required to contract for verification services and type of
application or report. The notice must include a demonstration that the
verification team includes at least one member with specified competency that
is not also the independent reviewer, when required below:
(A) Specified competency as evidenced by
experience in alternative fuel production technology and process engineering
when providing validation services for fuel pathway applications or
verification services for Fuel Pathway Reports;
(B) Specified competency as evidenced by
accreditation by the Executive Officer as an oil and gas systems specialist
pursuant to MRR when providing verification services for Quarterly Fuels
Transactions Reports submitted by producers and importers of gasoline or
diesel, Crude Oil Quarterly and Annual Volumes Reports, and Project Reports as
listed in section
95500.
(3) General information on the entity
required to contract for verifications, including:
(A) The entity's name and the facilities and
other locations that will be subject to verification services, and the contact,
address, telephone number and e-mail address for the entity required to
contract for verification services;
(B) The LCFS ID(s) for the entity required to
contract for verification services;
(C) The date(s) of the on-site visit, if
required in section
95501(b)(3), with
physical address and contact information;
(D) A brief description of expected
verification services to be performed, including expected completion date, and
whether quarterly review is planned in the context of an annual verification
requirement.
(4) If any
of the information under sections
95501(a)(1) or
95501(a)(2)
changes after the notice is submitted to the Executive Officer, the
verification body must notify the Executive Officer as soon as the change is
made and submit an updated notice of verification services.
The verification body must also submit an updated
conflict of interest self-evaluation form with an updated notice of
verification services as soon as the change is made. The conflict of interest
must be reevaluated pursuant to section
95503(e) and the
Executive Officer must approve any changes in
writing.
(b)
Verification services must include, but are not limited to, the following:
(1)
Validation or Verification
Plan. The verification team must develop a validation or verification
plan based on the following:
(A) Information
from the fuel pathway applicant, pathway holder, or reporting entity. Such
information must include all the following:
1.
Information to allow the verification team to develop an understanding of
facility or entity boundaries, operations, accounting practices, type of LCFS
report(s) the entity is responsible for, LCFS regulatory sections they are
subject to, other renewable or low carbon fuels markets they participate in,
and other mandatory or voluntary auditing programs they are subject to, as
applicable;
2. Organizational chart
and list of key personnel involved in developing applications and reports
submitted to the Executive Officer, as specified in section
95500, and their qualifications,
including training;
3. Description
of the specific methodologies used to quantify and report data, as required in
this subarticle, which are needed to develop the validation or verification
plan, including but not limited to calibration procedures and logs for
measurement devices capturing site-specific data;
4. Information about the data management
systems and accounting procedures used to capture and track data for fuel
pathway application and each type of report as needed to develop the validation
or verification plan;
5.
Information about the entities in the supply chain upstream and downstream of
the fuel producer that contribute to site-specific CI data, including a list of
feedstock suppliers and contact names with physical addresses;
6. Evidence demonstrating that any joint
applicants are being separately verified and thus are outside the scope of the
instant verification services being provided by the verification body;
and
7. Previous LCFS validation and
verification reports, as applicable, and other audit reports including reports
from production or management system certifications and internal
audits.
(B) Timing of
verification services. Such information must include:
1. Dates of proposed meetings and interviews
with personnel of the entity required to contract for verification
services;
2. Dates of proposed site
visits;
3. Types of proposed
document and data reviews and, if applicable, how quarterly review is planned
in the context of an annual verification requirement;
4. Expected date for completing validation or
verification services.
(2)
Planning Meetings with the Entity
Required to contract for Verification Services. The verification team
must discuss with the entity contracting for verification services the scope of
the verification services and request any information and documents needed for
the verification services.
The verification team must create a draft sampling plan
and verification plan prior to the site visit. The verification team must also
review the documents provided, and plan and conduct a review of original
documents and supporting data for the verification services specified in
section 95501.
(3)
Site Visits. At least
one lead LCFS verifier accredited by the Executive Officer on the verification
team must, in addition to one visit to validate an application, annually visit
each facility; and, if different from the fuel production facility, the central
records location for which the records supporting an application or report
subject to verification are submitted. Site visits, included voluntarily as
part of a quarterly review, may not substitute for the required site visit for
annual verification services, which must occur after all LCFS data for the
prior calendar year has been submitted to the Executive Officer and attested
to.
(A) During site visits, the verification
team member(s) must carry out tasks that, in the professional judgment of the
team, are necessary, including the following:
1. Review supporting evidence used to develop
reports listed in section
95500 submitted to the Executive
Officer;
2. Interview key
personnel, such as process engineers, metering experts, accounting personnel,
and project operators, as well as staff involved in compiling data and
preparing the LCFS reports;
3.
Review and understand the data management systems and accounting practices used
by the entity to acquire, process, track, and report LCFS data. The
verification team member(s) must evaluate the uncertainty and effectiveness of
these systems;
4. Directly observe
production equipment, confirming diagrams for processes, piping, and
instrumentation; measurement system equipment; and accounting systems for data
types determined in the sampling plan to be high risk;
5. Assess conformance with measurement
accuracy requirements specified in this subarticle for measurement devices that
do not meet criteria for financial transactions meters, assess the
reasonableness of temporary measurement methods, assess conformance with the
monitoring plan, and assess conformance with data capture requirements
specified in this subarticle, if applicable.
6. Review financial transactions to confirm
complete and accurate reporting.
(4)
Sampling Plan. As part
of validating fuel pathway applications and verifying LCFS reports the
verification team must develop a sampling plan that meets the following
requirements:
(A) The verification team must
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 the entity required to contract for verification
services and type of report. The analysis must include a review of: the inputs
for the development of the submitted applications and reports specified in
section 95500; the rigor and
appropriateness of data management systems; and the coordination within the
responsible entity's organization to manage the operation and maintenance of
equipment and systems used to complete applications and reports.
(B) The sampling plan must include a ranking
of data sources by relative contribution to the data type to be assessed for
material misstatement and a ranking of data sources with the largest
calculation uncertainty, including risk of incomplete reporting, based on type
of report or application.
(C) The
sampling plan must include a qualitative narrative of uncertainty risk
assessment in the following areas as applicable in this subarticle:
1. Data acquisition equipment;
2. Data sampling and frequency;
3. Data processing and tracking;
4. Tracking of fuel transportation into
California to include modes of transportation and distances traveled, as
applicable;
5. CI calculations, as
applicable;
6. Fuel pathway code
(FPC) allocation methodology, as applicable;
7. Management policies or practices in
developing LCFS reports.
(D) After completing the analysis required by
sections 95501(b)(4)(A) through
(C) above, the verification team must include
in the sampling plan a list which includes the following:
1. Data sources that will be targeted for
document reviews, data checks as specified in 95501(b)(5), and an explanation
of why they were chosen;
2. Methods
used to conduct data checks for each data type;
3. A summary of the information analyzed in
the data checks and document reviews conducted for each data type.
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. When quarterly reviews are conducted as part of annual
verification services, the final sampling plan must describe in detail how the
risks and issues identified for the annual data set were addressed during each
quarterly review and final annual verification.
(E)
Specified Source
Feedstocks. Specified source feedstocks included in fuel pathway
applications and reports that require third-party verification must be included
in the scope of verification services. When a fuel pathway does not require
third-party validation or verification, e.g., Lookup Table pathways including
hydrogen (gaseous and liquefied) from central SMR of biomethane, specified
source feedstocks must be included in the scope of verification of the
Quarterly Fuel Transactions Reports. The verification team must use
professional judgment and include in its risk assessment and sampling plan its
analysis of the need for a desk review or site visit for verification of any
entity in the feedstock chain of custody. This analysis must include an
evaluation of the need to trace feedstock through feedstock suppliers,
including aggregators, storage or pretreatment facilities, and traders or
brokers, to the point of origin as required in section
95488.8(g). If an
error is detected during data checks of records maintained by the entity
required to contract for verification services, the verification team must
update its risk assessment and sampling plan to assure specified source
feedstock characterization and quantities to the point of origin.
(F) The verification team must 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
subarticle.
(G) The verification
body must retain the sampling plan in paper or electronic format (which
includes digital media) for a period of no less than ten years following the
submission of each validation or verification statement. The sampling plan must
be made available to the Executive Officer upon request.
(H) The verification body must retain all
material received, reviewed, or generated to render a validation or
verification statement for the entity required to contract for verification
services for a period of no less than ten years. The documentation must allow
for a transparent review of how a verification body reached its conclusion in
the validation or verification statement, including independent
review.
(5)
Data
Checks. To determine the reliability of the submitted data, the
verification team must conduct data checks. Such data checks must focus on the
most uncertain data and on data with the largest contributions to greenhouse
gas emissions (including life cycle greenhouse gas emissions) and greenhouse
gas emission reductions. The selection of data checks must meet all the
following criteria:
(A) The verification team
must use data checks to ensure that the appropriate methodologies have been
applied for the data submitted in applications and reports required in this
subarticle;
(B) The verification
team must choose data checks to ensure the accuracy of the data submitted in
applications and reports required in this subarticle;
(C) The verification team must choose data
checks based on the relative contribution to greenhouse gas emissions or
reductions and the associated risks of contributing to material misstatement or
nonconformance, as indicated in the sampling plan;
(D) The verification team must use
professional judgment in establishing the extent of data checks for each data
type, as indicated in the sampling plan, which are needed for the team to
conclude with reasonable assurance whether the data type specified for the
application or report is free of material misstatement. At a minimum, the data
checks selected by the verification team must include the following:
1. Tracing data in the application or report
to its origin;
2. Reviewing the
procedure for data compilation and collection;
3. Recalculating intermediate and final data
to check original calculations;
4.
Reviewing calculation methodologies used by the entity required to contract for
verification services for conformance with this subarticle; and
5. Reviewing meter and analytical
instrumentation measurement accuracy and calibration for consistency with the
requirements of this subarticle.
(E) The verification team is responsible for
determining via data checks whether there is reasonable assurance that the
application or report conforms to the requirements of this
subarticle.
(F) The verification
team must compare its own calculated results with the submitted 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 data were checked, the quantity of data evaluated
for each data type, the percentage of reported source data covered by the data
checks, and any separate discrepancies that were identified in the application
or report.
(6)
Application and Report Modifications. As a result of data
checks by the verification team and prior to completion of a validation or
verification statement, the entity required to contract for verification
services must fix all correctable errors that affect the data submitted in the
application or reports specified in section
95500 and submit a revised
application or report to the Executive Officer. Failure to do so before
completion of verification services will result in an adverse verification
statement. Failure to fix misreported data that do not affect credit or deficit
calculations represents a nonconformance with this subarticle but does not,
absent other errors, result in an adverse validation or verification statement.
The verification team must use professional judgment in
identifying correctable errors as defined in section
95481(a),
including determining whether differences are not errors but result from
truncation or rounding or averaging.
The verification team must document the source of any
difference identified, including whether the difference results in a
correctable error or on the other hand, was the result of truncation, rounding,
or averaging.
(7)
Findings. To verify that the application or report is free of
material misstatements, the verification team shall make its own calculation of
the specified data types reported by substituting the checked data from
95501(b)(5). The verification team must determine whether there is reasonable
assurance that the application or report does not contain a material
misstatement, as defined for each application or report type in section
95481, and calculated pursuant to
section 95501(b)(9) through
(11), using the units required by the
applicable parts of this subarticle. To assess conformance with this
subarticle, the verification team must review the methods and factors used to
develop the application or report for adherence to the requirements of this
subarticle and identify whether other requirements of this subarticle are
met.
(8)
Log of
Issues. The verification team must keep a log that documents any
issues identified in the course of verification services that may affect
determinations of material misstatement and nonconformance, whether identified
by the verifier, the entity required to contract for verification services, or
the Executive Officer, regarding the original or subsequent application or
report versions. 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 entity required to contract for verification
services prior to completing the verification services. Any other concerns that
the verification team has with the preparation of the application or report
must be documented in the issues log and communicated to the entity required to
contract for verification services during the course of the verification
services. 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. If quarterly review
is conducted before an annual verification, any issues identified must be
formalized pursuant to this subsection in the log of issues during the
quarterly review. The log of issues for the annual verification must include
the cumulative record of issues from all quarterly reviews, as well as the
annual verification.
(9)
Material Misstatement Assessments for Fuel Pathways and Quarterly Fuel
Transactions. Assessments of material misstatement are conducted
separately on each calculated operational CI value and each quarterly fuel
transaction quantity per FPC (expressed in units from the applicable sections
of this subarticle). Material misstatement assessments are not conducted for
quarterly review.
(A)
Operational
CI. In assessing whether a fuel pathway application or fuel pathway
report contains a material misstatement, as defined in section
95481(a), the
verification team must populate a controlled version of the Simplified CI
Calculator for Tier 1 pathways, or CARB-approved CA-GREET3.0 for Tier 2
pathways, and determine whether any reported operational CI value contains a
material misstatement using the following equations for relative error
threshold and absolute error threshold.
The following calculations of relative error threshold,
absolute error threshold, and percent error must be included in the final
verification report pursuant to section
95501(c)(3)(A)8.
Each fuel pathway CI is subject to data checks in
section 95501(b)(5) and
must be assessed separately for material misstatement. One or more material
misstatements results in a finding of material misstatement for the fuel
pathway application or for the fuel pathway report.
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Relative error threshold (CI)
= ¦
Difference in CI
¦
>= 0.05 x
¦
Reported Operational CI
Value
¦
Absolute error threshold
(CI)
= ¦
Difference in CI
¦
>= 2 gCO2e/MJ
where:
"Difference in CI" means the absolute
value result of the reported operational CI minus the verifier's calculation of
CI. The verifier's calculation of CI is based on site-specific data inputs
modified to include discrepancies, omissions, and misreporting found during the
course of verification services;
"Discrepancies" means any differences
between the reported site-specific CI inputs and the verifier's calculated
site-specific CI inputs subject to data checks in section
95501(b)(5);
"Omissions" means any site-specific CI
inputs or associated source data the verifier concludes must be part of the
fuel pathway application or fuel pathway report, but were not included;
"Misreporting" means duplicate,
incomplete or other CI input data the verifier concludes should, or should not,
be part of the fuel pathway application or fuel pathway report; and
"¦
Reported Operational CI
Value
¦" means the absolute value of the operational CI
submitted in the fuel pathway application or fuel pathway
report.
(B)
Quarterly Fuel Transaction Quantities per FPC. In assessing
whether a quarterly fuel transaction report contains a material misstatement,
as defined in section
95481(a), the
verification team must determine whether any quarterly fuel transaction
quantity per FPC specified in section
95500(c)(1)
contains a material misstatement using the following equation. The reported
quarterly fuel transaction quantity for an FPC contains a material misstatement
if the 5 percent error threshold is exceeded. The following calculation of
percent error must be included in the final verification report pursuant to
section 95501(c)(3)(A)8.
Each aggregated quarterly fuel quantity per FPC is
subject to data checks in section
95501(b)(5) and
must be assessed separately for material misstatement. One or more material
misstatements results in a finding of material misstatement for the
verification period.
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where:
"Discrepancies" means any differences
between the fuel quantity for the FPC reported in the Quarterly Fuel
Transactions Report and the verifier's calculation of fuel quantity subject to
data checks in section
95501(b)(5);
"Omissions" means any fuel quantity
the verifier concludes must be part of the Quarterly Fuel Transactions Report,
but was not included;
"Misreporting" means duplicate,
incomplete or other fuel quantity data the verifier concludes should, or should
not, be part of the Quarterly Fuel Transactions Report; and
"Reported Quarterly Fuel Transaction Quantity
for FPC" means the total of all reported fuel quantities for each FPC
for each transaction type specified in section
95500(c)(1) for
each quarter for which the verifier is conducting a material misstatement
assessment.
(C) When
evaluating material misstatement, verifiers must deem correctly substituted
missing data to be accurate, regardless of the amount of missing
data.
(10)
Material Misstatement Assessment for Project Reports (Project-based
Crediting).
(A) Verification
services, including assessment of material misstatement, are conducted
separately for each Project Report. In assessing whether a Project Report
contains a material misstatement, as defined in section
95481(a), the
verification team must determine whether the greenhouse gas reductions
quantified and reported in the Project Report contain a material misstatement
using the following equation.
Any discrepancies, omissions, or misreporting found by
the verification team must include the positive or negative impact on the total
reported greenhouse gas emission reductions when entered in the material
misstatement equation. The reported project data contain a material
misstatement if the 5 percent error threshold is exceeded. The following
calculation of percent error must be included in the final verification report
pursuant to section
95501(c)(3)(A)8.
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where:
"Discrepancies" means any differences
between the reported greenhouse gas emissions reductions in the Project Report
and the verifier's calculated value based on data checks required in section
95501(b)(5);
"Omissions" means any greenhouse gas
emissions, excluding any greenhouse gas reductions, the verifier concludes must
be part of the Project Report, but were not included;
"Misreporting" means duplicate,
incomplete or other greenhouse gas emissions or reductions data the verifier
concludes should, or should not, be part of the Project Report;
"Reported GHG emissions reduction"
means the total of all greenhouse gas emissions reductions reported in the
Project Report for which the verifier is conducting a material misstatement
assessment.
(B) When
evaluating material misstatement, verifiers must deem correctly substituted
missing data to be accurate, regardless of the amount of missing
data.
(11)
Material Misstatement Assessment for Low-Complexity/Low-Energy-Use
Refinery Reports.(A) Verifications
and assessments of material misstatement are conducted separately for volumes
of CARBOB produced from crude oil and for volumes of diesel produced from crude
oil for the calendar year. In assessing whether a Low-Complexity/Low-Energy-Use
Refinery Report contains a material misstatement, as defined in section
95481(a), the
verification team must determine whether the Low-Complexity/Low-Energy-Use
refinery data specified in this subarticle contains a material misstatement
using the following equation.
Any discrepancies, omissions, or misreporting found by
the verification team must include the positive or negative impact on the total
CARBOB or diesel volume produced from crude oil when entered in the material
misstatement equation. The reported refinery data contain a material
misstatement if the 5 percent error threshold is exceeded. The following
calculation of percent error must be included in the final verification report
pursuant to section
95501(c)(3)(A)8.
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where:
"Discrepancies" means any differences
between the sum of the quarterly volumes of CARBOB or diesel produced from
crude oil reported in the Low-Complexity/Low-Energy-Use Refinery Report and the
verifier's calculation based on data checks in section
95501(b)(5);
"Omissions" means any volume of CARBOB
or diesel produced from crude oil or associated source data the verifier
concludes must be part of the Low-Complexity/Low-Energy-Use Refinery Report,
but was not included;
"Misreporting" means duplicate,
incomplete or other refinery data the verifier concludes should, or should not,
be part of the Low-Complexity/Low-Energy-Use Refinery Report;
"CARBOB or Diesel Volume Produced from Crude
Oil" means the sum of the quarterly volumes of CARBOB or diesel
produced from crude oil in a calendar year reported in the
Low-Complexity/Low-Energy-Use Refinery Report for which the verifier is
conducting a material misstatement assessment.
"CARBOB Volume Produced from Crude
Oil" and "Diesel Volume Produced from Crude Oil" are
separately subject to data checks in section
95501(b)(5) and
must be assessed separately for material misstatement. One or more material
misstatements results in a finding of material misstatement for the
Low-Complexity/Low-Energy-Use Refinery Report.
(B) When evaluating material misstatement,
verifiers must deem correctly substituted missing data to be accurate,
regardless of the amount of missing data.
(12)
Crude Oil Quarterly and Annual
Volumes Reports. Material misstatement assessment does not apply to
data submitted in crude oil quarterly and annual volumes reports, but the data
must be assessed for reasonable assurance of conformance with this
subarticle.
(13)
Review of
Missing Data Substitution. If a source selected for a data check was
affected by a loss of data used for the reported data in the application or
report, pursuant to this subarticle:
(A) The
verification team must confirm that the reported data were calculated using:
1. the applicable missing data procedures,
or
2. a reasonable temporary
method, or
3. an Executive Officer
approved alternate method.
(B) The verifier must note the date, time and
source of any missing data substitutions discovered during the course of
verification in the validation or verification
report.
(c)
Completion of verification services must include:
(1)
Validation or Verification
Statement. Upon completion of the verification services specified in
section 95500, the verification body must
complete a validation or verification statement, and provide its statement to
the entity required to contract for verification services and Executive Officer
by the applicable verification deadline specified in section
95500. Before the validation or
verification statement is completed, the verification services and findings of
the verification team must be independently reviewed by an employee of the
verification body who is an accredited lead verifier not involved in
verification services for the entity required to contract for verification
services during that application period or reporting period.
(2)
Independent Review. The
independent reviewer must 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 validation or 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 services provided, and identify any failure
to comply with requirements of this subarticle 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
validation or verification statement is issued.
(3)
Completion of Findings and
Validation or Verification Report and Statement. The verification body
is required to provide each entity required to contract for verification
services with the following:
(A) A detailed
validation or verification report, which must at a minimum include:
1. A detailed description of the facility or
entity including all data sources and boundaries;
2. A detailed description of the data
management system and accounting procedures;
3. A detailed description of entities in the
supply chain contributing CI parameters;
4. The validation or verification
plan;
5. The detailed comparison of
the data checks conducted during verification services;
6. The log of issues identified in the course
of verification services and their resolution;
7. Any qualifying comments on findings during
verification services;
8. Findings
of omissions, discrepancies, and misreporting and the material misstatement
calculations required in section
95501(b)(9) through
(11).
(B) The validation or verification report
must be submitted to the entity required to contract for verification services
at the same time as or before the final validation or verification statement is
submitted to the Executive Officer. The detailed validation or verification
report must be made available to the Executive Officer upon request.
(C) The verification team must have a final
discussion with the entity required to contract for verification services
explaining its findings, and notify the entity required to contract for
verification services of any unresolved issues noted in the issues log before
the validation or verification statement is finalized.
(D) The verification body must provide the
validation or verification statement to the entity required to contract for
verification services and the Executive Officer, attesting whether the
verification body has found the submitted application or report to be free of
material misstatement, and whether the application or report is in conformance
with the requirements of this subarticle. For every qualified positive
validation or verification statement, the verification body must explain the
nonconformances contained within the application or report, and must cite the
section(s) in this subarticle that corresponds to the nonconformance and why
the nonconformances do not result in a material misstatement. For every adverse
validation or verification statement, the verification body must explain all
nonconformances or material misstatements leading to the adverse validation or
verification statement and must cite the sections in this subarticle that
correspond to the nonconformance and material misstatements.
(E) The lead verifier on the verification
team must attest that the verification team has carried out all verification
services as required by this subarticle. The lead verifier who has conducted
the independent review of verification services and findings must attest to his
or her independent review on behalf of the verification body and his or her
concurrence with the findings.
1. The lead
verifier must attest in the validation or verification statement, in writing,
to the Executive Officer as follows:
"I certify under penalty of perjury under the laws of
the State of California that the verification team has carried out all
validation or verification services as required by this
subarticle."
2. The lead
verifier who has conducted the independent review of verification services and
findings must attest in the validation or verification statement, in writing,
to the Executive Officer 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
validation or verification services and findings on behalf of the verification
body as required by this subarticle and that the findings are true, accurate,
and complete."
(4)
Adverse validation or
verification statement and petition process. Prior to the verification
body providing an adverse validation or verification statement for the
application or report to the Executive Officer, the verification body must
notify the entity required to contract for verification services and the entity
required to contract for verification services must be provided at least 14
calendar days to modify the application or report(s) to correct any material
misstatement or nonconformances found by the verification team. The
verification body must provide notice to the Executive Officer of the potential
for an adverse validation or verification statement at the same time it
notifies the entity required to contract for verification services, and include
a current issues log. The modified application or report and validation or
verification statement must be submitted to the Executive Officer before the
verification deadline, even if the entity required to contract for verification
services makes a request to the Executive Officer as provided below in section
95501(c)(4)(A).
(A) If the entity required to contract for
verification services and the verification body cannot reach agreement on
modifications to the data that result in a positive validation or verification
statement, the responsible entity may, before the validation or verification
deadline and before the validation or verification statement is submitted,
petition the Executive Officer to make a final decision as to the verifiability
of the submitted application or report. At the same time that the entity
required to contract for verification services petitions the Executive Officer,
the entity required to contract for verification services must submit all
information it believes is necessary for the Executive Officer to make a final
decision.
(B) The Executive Officer
shall make a final decision no later than October
31st following the submission of a petition pursuant
to section
95501(c)(4)(A).
If at any point the Executive Officer requests information from the
verification body, or the entity required to contract for verification
services, the information must be submitted to the Executive Officer within ten
calendar days. The Executive Officer will notify the entity required to
contract for verification services and the verification body of its
determination.
(d)
Validated Applications and
Verified Reports Considered Final by the Executive Officer. Upon
provision of a validation or verification statement to the Executive Officer,
the reported data is deemed final by the Executive Officer. No changes may be
made to the application or report as submitted to the Executive Officer, and
all verification requirements of this subarticle shall be considered complete
except in the circumstance specified in section
95501(e).
(e)
Set Aside of Validation or
Verification Statement. 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 application or report that received a
positive or qualified positive verification statement fails an audit by the
Executive Officer, 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 report re-verified by a different
verification body within 90 calendar days. In instances where an error to a
report is identified and determined by the Executive Officer to not affect the
final value submitted in the application or report, the change may be made
without a set aside of the positive or qualified positive verification
statement.
(f)
Executive
Officer Audits and Data Requests to the Entity Required to Contract for
Verification Services. Upon request by the Executive Officer, the
entity required to contract for verification services must provide the data
used to generate the application or report including all data available to a
verifier in the conduct of validation or verification services, within 14
calendar days. Upon written notification by the Executive Officer, the entity
required to contract for verification services must make available for an
Executive Officer audit itself, its personnel, and other entities in its
feedstock and finished fuel supply chain, as applicable.
(g)
Executive Officer Audits and Data
Requests to the Verification Body. Upon request by the Executive
Officer, the verification body must provide the Executive Officer the
validation or verification report given to the entity required to contract for
verification services, as well as the sampling plan, contracts for verification
services, and any other supporting documents and calculations, within 14
calendar days. Upon written notification by the Executive Officer, the
verification body must make itself and its personnel available for an Executive
Officer audit.
1. New
section filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section
11343.4(b)(3)
(Register 2019, No. 1).
Note: Authority cited: Sections
38510,
38530,
38560,
38560.5,
38571,
38580,
39600,
39601,
41510,
41511
and
43018,
Health and Safety Code; 42
U.S.C. section 7545; and Western Oil and Gas
Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121
Cal.Rptr. 249 (1975). Reference: Sections
38501,
38510,
39515,
39516,
38571,
38580,
39000,
39001,
39002,
39003,
39515,
39516,
41510,
41511
and
43000,
Health and Safety Code; Section
25000.5,
Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air
Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249
(1975).
