Section 95131 - Requirements for Verification ServicesVerification 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;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; and5. 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; and6. 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; orc. 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): Click here to view image
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: (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; and7. 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; and3. 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.(f) Upon request by the Executive Officer, the reporting entity shall provide the data used to generate an emissions data report, including all data available to a verifier in the conduct of verification services, within 14 days.(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.(h) Upon written notification by the Executive Officer, the verification body shall make itself and its personnel available for an ARB audit.(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 andb. 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.Cal. Code Regs. Tit. 17, § 95131
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.
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).