WAC 173-424-820

(1) Validation of CFS fuel pathway (carbon intensity or CI) applications.

(a) Applicability. The following persons must meet the requirements of this chapter and engage the services of a verification body for the purposes of fuel pathway validation, including required site visit(s), for each fuel pathway application submitted under this chapter, except as otherwise provided under (b) of this subsection:

(i) Fuel pathway applicants supplying site-specific CI data for fuel pathway applications that meet the requirements of this chapter; or

(ii) Specified source feedstock suppliers and other persons with site-specific CI data that apply for separate ecology recognition as a joint applicant and elect to be responsible for separate validation and verification as specified in WAC 173-424-610 (9)(g)(iii)(C)(II).

(b) Validation schedule.

(i) Fuel pathway applicants submitting fuel pathway applications to ecology that have been validated according to the requirements of this chapter must submit the validation statement at the same time the pathway application is submitted according to WAC 173-424-600 through 173-424-630.

(ii) Fuel pathway applications submitted to ecology that have been validated under CARB's low carbon fuel standard (LCFS) or Oregon's clean fuels program (CFP) must include the following:

(A) Documents generated during the validation for the fuel pathway application submitted to CARB LCFS or OR-DEQ CFP, including a positive or qualified validation statement, and other fuel pathway application documents as required under WAC 173-424-610(2); and

(B) The annual fuel pathway report and verification statement of the annual fuel pathway report, if they were submitted under CARB's LCFS or OR-DEQ CFP, after the latest validation statement.

(iii) Fuel pathway applications submitted to ecology that include an adverse validation statement under ecology's CFS, CARB's LCFS, or Oregon's CFP will not be considered by ecology.

(2) Annual verification of CFS annual fuel pathway (carbon intensity or CI) reports.

(a) Applicability. The following persons must meet the requirements of this chapter and engage the services of a verification body for the purposes of annual verification, including required site visit(s), for each annual fuel pathway report submitted under this chapter, except as otherwise provided under (b) of this subsection:

(i) Holders of certified fuel pathways that supplied site-specific CI data for pathway certification and are required to update site-specific CI data on an annual basis; and

(ii) Specified source feedstock suppliers and other persons with site-specific CI data that apply for separate ecology recognition as a joint applicant and elect to be responsible for separate verification as specified in WAC 173-424-610 (9)(g)(iii)(C)(II).

(b) Verification schedule. Responsible entities that are subject to the subsection (a) requirement to engage the services of a verification body to perform verification of annual fuel pathway reports (CI) must ensure a fuel pathway verification statement for each fuel pathway report is submitted to ecology according to WAC 173-424-810.

(i) Annual verification. Verification statements are due to ecology by September 15th of the year the annual fuel pathway report is submitted, beginning in 2028 for 2027 data, unless eligible to defer verification, as specified in (b)(ii) of this subsection.

(ii) Deferred verification. Fuel pathway holders producing alternative fuels may defer verification of their annual fuel pathway reports for each production facility up to two years if the quantity of fuel produced at the production facility and reported by any entity does not result in 6,000 or more credits and/or deficits generated in WFRS-CBTS during the prior calendar year. Fuel pathways with biomethane or hydrogen supplied using book-and-claim accounting pursuant to WAC 173-424-610 (9)(g)(iii)(C)(II) are not eligible to defer verification. Fuel pathway holders classified as joint applicants are not eligible to defer verification. The verification body must submit fuel pathway verification statements to ecology for all prior unverified reports on or before September 15th of the year verification is required or conducted for the production facility.

(iii) Quarterly review of operational CI data is optional and may only be included as part of annual verification services if the fuel pathway holder submits quarterly data to ecology. Quarterly review may only be conducted after the fuel pathway holder submits the report and attests that the statements and information submitted are true, accurate, and complete. Quarterly review does not replace the requirements for the verification team to consider all quarterly data submitted during annual verification. Quarterly review must meet the requirements for verification under this chapter, but a verification statement and verification report are not submitted after quarterly review.

(iv) Facilities with California or Oregon pathways recertified in Washington. A responsible entity that must meet the requirements of this chapter for the purposes of annual verification for any fuel production facility that is also subject to annual or deferred verification under CARB's LCFS or OR-DEQ's CFP must submit its verification statement to ecology within 10 calendar days of its comparable submittal to CARB or OR-DEQ. If the responsible entity received an adverse verification statement, it must also submit the log of issues as specified in WAC 173-424-830 (2)(h) at the same time it submits the verification statement to ecology.

(A) For responsible entities that operate facilities with one or more Washington fuel pathway codes that are a recertification of California or Oregon fuel pathway codes, the verification statement submitted to CARB or OR-DEQ must be submitted to ecology according to the verification deadline specified under WAC 173-424-810.

(B) For responsible entities that operate facilities with one or more fuel pathway codes that are not a recertification of California or Oregon fuel pathway codes, but have active California or Oregon fuel pathway codes, the fuel pathway holder must ensure the following:

(I) That when verification services are provided, the inputs and annual operational carbon intensity are confirmed under WA-GREET as required under WAC 173-424-830 (2)(a)(i); and

(II) That a fuel pathway verification statement for each annual fuel pathway report is submitted to ecology according to WAC 173-424-810.

(v) If a fuel pathway holder is eligible for deferred verification under the California or Oregon program, the fuel pathway holder must notify ecology before April 30th of each year. If fuel from the facility results in 6,000 or more total credits and deficits in Washington, then the fuel pathway holder must engage the services of a verification body to perform verification and ensure a fuel pathway verification statement for each annual fuel pathway report is submitted to ecology according to WAC 173-424-810.

(3) Annual verification of CFS quarterly reports.

(a) Applicability. The following persons must meet the requirements of this chapter and engage the services of a verification body for the purposes of annual verification under this chapter, including required site visit(s), for CFP quarterly reports submitted under WAC 173-424-410, except as otherwise provided under (b) of this subsection:

(i) Regulated parties, credit generators, and aggregators subject to WAC 173-424-810. The scope of verification services is limited to the transaction types under (a)(ii) of this subsection, including associated corrections submitted into CFS quarterly and annual reports.

(ii) Except as provided in (b) of this subsection, reporters of volumes for any of the following transaction types must engage the services of a verification body to perform verification for the following transaction types:

(A) All liquid fuels, including:

(I) Production in Washington;

(II) Production for import;

(III) All import transactions;

(IV) Exports, or position holder sale for export if that transaction is used with the undefined business partner;

(V) Gain of inventory;

(VI) Loss of inventory;

(VII) Not used for transportation; and

(VIII) Transactions used to claim exempt fuel uses under WAC 173-424-130.

(B) NGV fueling;

(C) Propane fueling;

(D) For the following hydrogen-based transaction types:

(I) Forklift hydrogen fueling; and

(II) Fuel cell vehicle (FCV) fueling;

(E) For the following electricity-based transaction types:

(I) eCHE fueling;

(II) eGSE fueling;

(III) eOGV fueling;

(IV) eTRU fueling;

(V) EV charging, except for nonmetered residential EV charging as specified under WAC 173-424-420 (3)(b);

(VI) Fixed guideway electricity fueling; and

(VII) Forklift electricity fueling;

(F) FCV fueling for hydrogen produced from biomethane supplied using book-and-claim accounting pursuant to WAC 173-424-610 (9)(g)(iii)(C)(II).

(b) Verification schedule. Responsible entities under (a) of this subsection required to engage the services of a verification body to perform annual verification of CFS quarterly reports must ensure a transactions data verification statement is submitted to ecology according to WAC 173-424-810.

(i) Annual verification. The responsible entity must ensure a transactions verification statement is submitted annually by September 15th, as specified in WAC 173-424-810(3), to ecology for the prior calendar year of data unless specified otherwise in (b)(ii) and (iii) of this subsection. Quarterly review of a quarterly fuel transactions report may only be included as part of annual verification services after the responsible entity submits the report and attests that the statements and information submitted are true, accurate, and complete.

(ii) Exempted verification. Fuel reporting entities that report only fuel transaction types identified in (a)(ii)(D) and (E) of this subsection are exempted from engaging in third-party verification if the fuel transactions do not result in 3,000 or more credits in the WFRS-CBTS during the prior calendar year.

(iii) Deferred verification. Fuel reporting entities may defer annual verification of their quarterly fuel transactions reports up to two years if they do not generate 6,000 or more credits and/or 6,000 or more deficits in the WFRS-CBTS during the prior calendar year. If fuel transaction types identified in (a)(ii)(D) and (E) of this subsection are reported, and also do not result in 10,000 or more credits in the WFRS-CBTS during the prior calendar year, the reporting entity may defer verification of their quarterly fuel transaction reports up to four years. Any fuel quantity reported under a pathway with biomethane or hydrogen supplied using book-and-claim accounting pursuant to WAC 173-424-610 (9)(g)(iii)(C)(II) is not eligible for deferred verification. The verification body must submit transactions verification statements to ecology for all prior unverified reports on or before September 15th of the year verification is required or conducted for the reporting entity.

(iv) Verification exemption for designated liquid fuel transactions. Entities reporting fuel transactions as export, gain of inventory, loss of inventory, and not used for transportation, which do not result in 6,000 or more credits and/or 6,000 or more deficits generated in the WFRS-CBTS in a calendar year, are exempt from verification of the quarterly fuel transactions reports for that calendar year if all the following conditions are met:

(A) The entity did not report any liquid fuel using the transaction types: Production in Washington, production for import, or import; and

(B) The entity did not report any transactions specified in (a)(ii)(B) through (F) of this subsection.

(c) Optional quarterly review. Quarterly review of a CFS quarterly report is optional and does not replace the requirements for the verification team to consider all quarterly data submitted during annual verification. Quarterly review must meet the requirements of this chapter, but a verification statement and verification report are not submitted after quarterly review.

(4) Verification of crude oil quarterly and annual volumes reports.

(a) Applicability. Entities submitting crude oil volume data must obtain the services of a verification body accredited by ecology for purposes of conducting verification services, including required site visit(s), for crude oil quarterly and annual volumes reports submitted under this chapter.

(b) Verification schedule. Entities required to contract for verification of crude oil quarterly and annual volumes reports must ensure a crude oil volume verification statement for the prior calendar year of data is submitted to ecology annually by September 15th. Quarterly review of a crude oil quarterly volumes report may only be conducted as part of annual verification services after the entity submits the quarterly report and attests that the statements and information submitted are true, accurate, and complete.

(5) Annual verification of CFS annual carbon sequestration project reports.

Applicability. The following persons must meet the requirements of this chapter and engage the services of a verification body for the purposes of annual verification, including required site visit(s), for CFS carbon capture and sequestration project reports required to be submitted as a condition of a fuel pathway's continued approval under WAC 173-424-610 (9)(g)(v).

(a) Project operators of carbon sequestration projects; and

(b) Joint applicants for carbon sequestration projects. Verification schedule. Responsible entities under this subsection required to engage the services of a verification body to perform verification of CFS project reports must ensure a project report verification statement is submitted annually to ecology on or before September 15th, as specified by WAC 173-424-810.