WAC 173-424-830

(1) Notice of verification services.

(a) Before a verification body commences any verification services for the responsible entity, the responsible entity must ensure the verification body submits a notice of verification services to ecology that meets the requirements of WAC 173-424-810 through 173-424-850. The notice must be submitted to ecology after ecology has provided a determination that the potential for a conflict of interest is acceptable, as specified in WAC 173-424-850(7), and that verification services may proceed.

(i) If the conflict of interest evaluation submitted by the responsible entity and the notice of verification services submitted by the verification body are submitted at the same time, verification services may not begin until ecology has determined the potential for conflict of interest is acceptable in writing.

(ii) Except as provided in (a) of this subsection, the verification body may begin verification services for the responsible entity after the notice of verification services is received by ecology. However, the verification body must allow a minimum of 14 calendar days advance notice of a site visit unless an earlier date is approved by ecology. The site visit may not take place prior to the applicable regulatory deadline for the reporting type to be verified, except under the conditions listed in subsection (2)(c)(ii)(A) of this section.

(b) The verification notice must include all of the following information:

(i) A list of the staff designated to provide verification services as a verification team, including the names of each individual, the lead verifier, and all subcontractors, and a description of the roles and responsibilities each member will have during verification. The independent reviewer must also be listed separately. The list must include any verifiers in training who will participate on the verification team.

(ii) Documentation that the verification team has the skills required to provide verification services for the responsible entity and the type of report or fuel pathway application requiring verification. The notice must include a demonstration that the verification team includes at least one individual approved by ecology as a sector-specific verifier that is not also the independent reviewer, but may be the lead verifier, as required under the following conditions:

(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; and

(B) Specified competency as evidenced by accreditation by CARB as an oil and gas systems specialist pursuant to mandatory reporting requirements (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 carbon sequestration reports as listed under WAC 173-424-820.

(iii) General information about the responsible entity, including the following:

(A) Name and list of facilities and other locations that will be subject to verification, and contact, address, telephone number, and email address for each facility;

(B) The CFS company and/or facility ID(s) for the responsible entity, as required under WAC 173-424-420 and 173-424-610;

(C) The date(s) of the site visit, if full verification is required under WAC 173-424-810(4) and 173-424-830 (2)(c), with physical address and contact information; and

(D) A brief description of expected verification services to be provided, including expected completion date and whether quarterly review is planned in the context of an annual verification requirement.

(c) The responsible entity must ensure the verification body submits an updated notice of verification services to ecology immediately if any of the information provided under this subsection changes after the notice of verification services is submitted to ecology. When an updated notice of verification services is submitted to ecology, the conflict-of-interest must be reevaluated and information must be resubmitted according to WAC 173-424-850 (6) through (8), except WAC 173-424-850 (7)(b) and (c). Verification services must be suspended until ecology approves the resubmitted conflict of interest evaluation information in writing.

(2) Verification services must include, but are not limited to, the following:

(a) Scoping of validation or verification services.

(i) Before beginning work on a validation or verification, the responsible entity and the verification team must discuss the activities and scope of the validation or verification services, and the responsible entity must provide information and documents requested by the verification team to conduct the verification services.

(ii) The verification team must review original documents and supporting data provided to them by the responsible entity.

(iii) Before conducting any site visits, the verification team must create a validation or verification plan that meets the requirements in (b) of this subsection and a draft sampling plan that meets the requirements in (d) of this subsection.

(b) Validation or verification plan.

(i) The verification team must develop a validation or verification plan that meets the requirements under WAC 173-424-810 through 173-424-850.

(ii) All validation and verification plans must contain information on the timing of verification services, including:

(A) Dates of proposed meetings and interviews with personnel of the responsible entity;

(B) Dates of proposed site visits;

(C) Types of proposed document and data reviews and, if applicable, how quarterly review is planned in the context of an annual verification requirement; and

(iii) The expected date for completing validation or verification services. The validation or verification plan must be based on the information from the responsible entity and must include all the following:

(A) Information to allow the verification team to develop an understanding of facility or entity boundaries, operations, accounting practices, type of CFS report(s) the entity is responsible for, CFS regulatory sections the entity is subject to, other renewable or low carbon fuels markets the entity participates in, and other mandatory or voluntary auditing programs the responsible entity is subject to, as applicable;

(B) Information regarding the training or qualifications of personnel involved in developing the report(s) or fuel pathway application(s);

(C) Description of the specific methodologies used to quantify and report data, as required in this chapter, 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;

(D) Information about the data management systems and accounting procedures used to capture and track data for fuel pathway application(s) and each type of CFS report(s), as needed to develop the validation or verification plan;

(E) 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;

(F) Evidence demonstrating that any joint applicants are being separately verified;

(G) Previous CFS validation and verification reports, as applicable, and other audit reports including reports from production or management system certifications and internal audits; and

(H) For aggregators, information about the entities the aggregator reports on behalf of, including a list of reporting entities and the fuel type(s) they report.

(c) Site visits.

(i) Verification services must include site visit(s) that meet the requirements under WAC 173-424-810(4) and this subsection (2)(c).

(ii) Site visit(s) conducted as part of verification services for validation or verification of fuel pathway applications or CFS reports submitted must meet the requirements of this section:

(A) Site visits must occur after all data and CFS reports for the previous calendar year have been attested to and submitted to ecology, except that a site visit may be conducted as part of a quarterly review if:

(I) No aspects of the data management systems or accounting practices change following the site visit; and

(II) There are no significant changes to the fuel production process or facility when the verification is for an annual fuel pathway report.

(B) At least one ecology-approved lead verifier on the verification team, including the sector specific verifier, if applicable, must at a minimum make one site visit to each facility during each year full verification is required under WAC 173-424-810(4). If the responsible entity keeps records supporting a report or fuel pathway application subject to verification under this chapter in a location that is different from the fuel production facility, then such verifier(s) must at a minimum make one site visit to the location where those records are stored;

(C) A separate site visit is required if a responsible entity elects to engage the services of a verification body to provide verification services for a fuel pathway application; and

(D) For aggregators and responsible entities only reporting electricity-based transaction types, the verifier(s) must make at least one site visit to the location where the entity's records are stored. Additional site visits to the entities using an aggregator or to charging sites operated by the responsible entity are to be performed at the verifier's discretion and must follow the requirements for sampling outlined in (d) of this subsection.

(E) The following must be conducted during a site visit:

(I) Review supporting evidence used to develop CFS reports listed in WAC 173-424-820 submitted to ecology;

(II) Review and understand the data management systems and accounting practices used by the responsible entity to acquire, process, track, and report CFS data; and evaluate the uncertainty and effectiveness of these systems; and

(III) Carry out tasks that, in the professional judgment of the verification team, are needed in the verification process, including the following, at minimum:

• Conduct interviews with key personnel, such as process engineers, metering experts, accounting personnel, and project operators, as well as staff involved in compiling data and preparing the CFS reports;

• Make direct observations of 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;

• Assess conformance with measurement accuracy, data capture, temporary measurement method requirements, and the monitoring plan for consistency with the requirements of this chapter; and

• Review financial transactions to confirm complete and accurate reporting.

(d) Sampling plan. As part of validating fuel pathway applications and verifying CFS reports the verification team must develop a sampling plan that meets all the following requirements:

(i) The sampling plan must be developed 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 responsible entity and type of report or fuel pathway application. The analysis must review the inputs for the development of the submitted report(s) and fuel pathway application(s), 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 develop submitted report(s) and fuel pathway application(s);

(ii) 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 fuel pathway application;

(iii) The sampling plan must include a qualitative narrative of uncertainty risk assessment in the following areas:

(A) Data acquisition equipment;

(B) Data sampling and frequency;

(C) Data processing and tracking;

(D) Tracking of fuel transportation into Washington state to include modes of transportation and distances traveled, as applicable for CFS fuel pathway applications or annual fuel pathway reports;

(E) CI calculations, as applicable;

(F) Fuel pathway code allocation methodology, as applicable; and

(G) Management policies or practices in developing CFS reports.

(iv) After the verification team completes the strategic analysis and risk assessment required by (d)(i) through (iii) of this subsection, the sampling plan must include a list with the information described in (d)(iv)(A) through (C) of this subsection. The sampling plan list must be updated and finalized before 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.

(A) Data sources that will be targeted for document reviews, data checks as specified under (e) of this subsection, and an explanation of why they were chosen;

(B) Methods used to conduct data checks for each data type; and

(C) A summary of the information analyzed in the data checks and document reviews conducted for each data type.

(v) Specified source feedstocks included in CFS fuel pathway applications and annual fuel pathway reports that require verification must be included in the scope of verification services. When verification is not required for a fuel pathway, specified source feedstocks must be included in the scope of verification of the CFS quarterly 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. If an error is detected during data checks of records maintained by the responsible entity, the risk assessment and sampling plan must be updated to assure specified source feedstock characterization and quantities to the point of origin.

(vi) Sampling plans for aggregators of credit generators must include the following:

(A) A ranking of credit generators by relative contribution to the data type to be assessed for material misstatement and a ranking of credit generators with the largest calculation uncertainty;

(B) A qualitative narrative of uncertainty risk assessment for credit generations according to the requirements of (d)(iii) of this subsection; and

(C) An indication of whether the verification team intends to make a site visit(s) to credit generators listed based on the risk assessments described in this subsection.

(vii) The verification team must revise the sampling plan to describe tasks completed as information becomes available and potential issues emerge with material misstatement or nonconformance with this chapter.

(viii) The verification body must retain the sampling plan and all material received, reviewed, or generated according to the recordkeeping requirements of WAC 173-424-400(1). The sampling plan must be made available to ecology upon request.

(e) Data checks.

(i) Verification services must include data checks to determine the reliability of the submitted report in the fuel pathway applications and CFS reports, as applicable. 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.

(ii) The selection of data checks must meet all the following requirements:

(A) The verification team must use data checks to ensure that the appropriate methodologies and emission factors have been applied for the data submitted in applications and reports required in this rule;

(B) The verification team must choose data checks to ensure the accuracy of the data submitted in applications and reports required in this rule;

(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;

(E) At a minimum, the data checks must include the following:

(I) Tracing data in the application or report to its origin;

(II) Reviewing the procedure for data compilation and collection;

(III) Recalculating intermediate and final data to check original calculations;

(IV) Reviewing calculation methodologies used by the responsible entity for conformance with this chapter; and

(V) Reviewing meter and analytical instrumentation measurement accuracy and calibration for consistency with the requirements of this chapter;

(F) 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 chapter;

(G) 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 the following:

(I) A narrative to indicate which data were checked;

(II) The quantity of data evaluated for each data type;

(III) The percentage of reported source data covered by data checks; and

(IV) Any separate discrepancies that were identified in the CFS report or fuel pathway application.

(f) Documentation of differences and modifications to reports and fuel pathway applications.

(i) While conducting verification services and data checks, the verification team must:

(A) Determine correctable errors using professional judgment, including whether differences are not errors but result from truncation, rounding, or averaging; and

(B) 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.

(ii) As a result of data checks conducted by the verification team and before completion of a verification statement(s), the responsible entity must fix all correctable errors that affect the data in the submitted report or fuel pathway application, and submit a revised report or fuel pathway application to ecology.

(A) Failure to fix all correctable errors identified before the completion of the verification services and submit a revised report or fuel pathway application to ecology will result in an adverse verification statement.

(B) Failure to fix misreported data that do not affect credit or deficit calculations in CFS reports submitted under this chapter represents a nonconformance but does not, absent other errors, result in an adverse verification statement.

(g) Findings.

(i) 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 (e) of this subsection.

(ii) The verification team must determine whether there is reasonable assurance that the fuel pathway application or CFS report does not contain a material misstatement calculated pursuant to (j) and (k) of this subsection using the units required by the applicable parts of this chapter.

(iii) To assess conformance with this chapter, the verification team must review the methods and factors used to develop the fuel pathway application or report for adherence to the requirements of this chapter and identify whether other requirements of this chapter are met.

(h) Log of issues.

(i) 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 verification team, the responsible entity, or ecology, regarding the original or subsequent application or report versions. The log of issues must:

(A) 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;

(B) Document any other concerns that the verification team has with the preparation of the application or report and communicate the concerns to the responsible entity during the course of verification services; and

(C) 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.

(ii) If quarterly review is conducted before an annual verification for CFS reports, any issues identified that may affect determinations of material misstatement or nonconformance must be documented 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.

(i) Material misstatement assessments for fuel pathways and quarterly fuel transactions.

(i) The verification team must conduct separate assessments of material misstatement on each calculated operational CI value and each quarterly fuel transaction quantity for each fuel pathway code (expressed in units from the applicable sections of this chapter). Material misstatement assessments are not conducted for quarterly review.

(ii) Assessments of material misstatement of carbon intensity must meet all the requirements of this subsection (2)(i).

(A) A controlled version of the Simplified CI Calculator for Tier 1 pathways, an ecology-approved WA-GREET for Tier 2 pathways, or another substantially equivalent model approved by ecology for the specific fuel pathway application under WAC 173-424-600(1), as applicable, must be populated to assess whether a fuel pathway application or report contains a material misstatement of carbon intensity.

(B) Each fuel pathway CI is subject to data checks in (e) of this subsection and must be assessed separately for material misstatement. The inputs and annual operational carbon intensity for fuel pathway codes that are not a recertification of a California or Oregon fuel pathway code(s) but have an active California or Oregon fuel pathway code(s) must be assessed.

(C) One or more material misstatements results in a finding of material misstatement for the fuel pathway application or for the fuel pathway report.

(D) Material misstatement of carbon intensity includes any discrepancy as described in paragraph (I) below, omission as described in paragraph (II) below, or misreporting as described in paragraph (III) below, or aggregation of the three, identified in the course of verification services that leads a verification team to believe that the reported operational CI (grams of carbon dioxide equivalent per megajoule or gCO2e/MJ) in a CFS fuel pathway application or report contains one or more errors that, individually or collectively, result in an overstatement or understatement more than five percent of the reported operational CI, or 2 gCO2e/MJ, whichever absolute value expressed in gCO2e/MJ is greater.

(I) Discrepancies means any differences between the reported site-specific CI inputs and the verifier's calculated site-specific CI inputs subject to data checks under (e) of this subsection.

(II) Omissions means any site-specific CI inputs or associated source data the verifier concludes must be part of a fuel pathway application or report but were not included.

(III) Misreporting includes duplicate, incomplete, or other CI input data the verifier concludes should or should not be part of a fuel pathway application or report.

(E) The following equations for percent error, relative error threshold, and absolute error threshold must be used to determine whether any reported operational CI value contains a material misstatement of carbon intensity and must be in the final verification report pursuant to subsection (3)(c)(i)(A)(IX) of this section.

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;

"|Reported Operational CI Value|" means the absolute value of the operational CI submitted in the fuel pathway application or fuel pathway report.

(iii) Assessments of material misstatement of quarterly fuel quantity for each fuel pathway code must meet all the requirements of this section.

(A) Each aggregated quarterly fuel quantity for each fuel pathway code is subject to data checks under (e) of this subsection and must be assessed separately for material misstatement of quarterly fuel quantity.

(B) One or more material misstatements of quarterly fuel quantity will result in a finding of material misstatement for the annual verification of the quarterly fuel quantity for each fuel pathway code.

(C) Material misstatement of quarterly fuel quantity includes any discrepancy as described in paragraph (I) below, omission as described in paragraph (II) below, or misreporting as described in paragraph (III) below, or aggregation of the three, identified in the course of verification services that leads a verification team to believe that the reported fuel quantity for each fuel pathway code per quarter in a CFS quarterly report contains one or more errors that, individually or collectively, result in an overstatement or understatement greater than five percent.

(I) Discrepancies include any differences between the fuel quantity for the fuel pathway code reported and the verifier's review of calculation of fuel quantity subject to data checks under (e) of this subsection.

(II) Omissions include any fuel quantity the verifier concludes must be part of a quarterly report but was not included.

(III) Misreporting includes duplicate, incomplete, or other fuel quantity data the verifier concludes should or should not be part of a quarterly report.

(D) The following equation for percent error must be used to determine whether any quarterly fuel quantity for each fuel pathway code contains a material misstatement of quarterly fuel quantity and must be included in the final verification report according to subsection (3)(c)(i)(A)(IX) of this section.

Where:

"Reported quarterly fuel transaction quantity for FPC" means the total of all reported fuel quantities for each fuel pathway code for each transaction type specified in WAC 173-424-820 (3)(a) for each quarter for which the verifier is conducting a material misstatement assessment.

(E) When evaluating material misstatement of quarterly fuel quantity, correctly substituted missing data must be deemed to be accurate, regardless of the amount of missing data.

(j) Material misstatement assessment for carbon sequestration project reports.

(i) The verification team must conduct separate assessments of material misstatement of project data for each carbon sequestration project report submitted under this chapter. The assessments of material misstatement of project data must meet all the requirements of this rule.

(ii) Material misstatement of project data includes any discrepancy as described in paragraph (A) below, omission as described in paragraph (B) below, or misreporting as described in paragraph (C) below, or aggregation of the three, identified in the course of verification services that leads a verification team to believe that the project report contains one or more errors that, individually or collectively, result in an overstatement greater than five percent of the responsible entity's reported emissions reductions.

(A) Discrepancies include any differences between the reported GHG emissions reductions in the project report and the verifier's calculated value based on data checks under (e) of this subsection.

(B) Omissions include any emissions, excluding any GHG emissions reductions, the verifier concludes must be part of the project report, but were not included.

(C) Misreporting includes duplicate, incomplete, or other GHG emissions or emissions reductions data the verifier concludes should or should not be part of the project report.

(iii) A material misstatement of project data is not found when discrepancies, omissions, or misreporting, or an aggregation of the three, result in an understatement of reported emissions reductions in the project report.

(iv) The following equation for percent error must be used to determine whether the greenhouse gas reductions quantified and reported in the project report contain a material misstatement of project data and must be included in the final verification report according to subsection (3)(c)(i)(A)(IX) of this section.

Where:

"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.

(v) Any discrepancies, omissions, or misreporting found must include the positive or negative impact on the reported emissions reductions when entered in the material misstatement equation in (j)(iv) of this subsection. The reported project data contain a material misstatement if the 5.00 percent error threshold is exceeded.

(vi) When evaluating material misstatement of project data, correctly substituted missing data must be deemed to be accurate, regardless of the amount of missing data.

(k) 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 chapter.

(l) Review of missing data substitution.

(i) If a source selected for a data check was affected by a loss of data used for the reported data in the fuel pathway application or CFS report, then the verification team must confirm that the reported data were calculated using:

(A) The applicable missing data procedures under this chapter; or

(B) A temporary method as permitted under WAC 173-424-610 and described in WAC 173-424-110. A temporary method may be used for a source that was affected by a loss of data for a period not to exceed six months. Missing data covering a period longer than six months during a calendar year requires an ecology-approved alternate method; or

(C) An ecology-approved alternate method.

(ii) If a source selected for a data check was affected by a loss of data used for the reported data in the report or fuel pathway application, the verification team must note the date, time, and source of any plan substitutions discovered during the course of verification in the validation or verification report.

(3) Independent review and completion of verification services.

(a) Validation or verification statement. The verification body must complete a validation or verification statement(s) upon completion of verification services, provide its statement to the responsible entity, and submit its statement to ecology by the applicable verification deadline specified under WAC 173-424-810(3). Each positive, qualified positive, or adverse verification statement must describe the findings of the verification.

(i) For every qualified positive validation or verification statement, the verification body must explain the nonconformances contained within the report or fuel pathway application and cite the section(s) in this chapter that corresponds to the nonconformance and why the nonconformances do not result in a material misstatement; and

(ii) For every adverse validation or verification statement, the verification body must explain all nonconformances or material misstatements leading to the adverse verification statement and cite the section(s) in this chapter that corresponds to the nonconformance(s) and material misstatement(s).

(b) Independent review. The verification body must have the verification services and findings of the verification team independently reviewed by an independent reviewer before each validation or verification statement is completed. The independent reviewer must:

(i) Be employed by the verification body and must be a lead verifier not involved in verification services for the responsible entity during that reporting year or for that fuel pathway application period, but does not need to be a sector specific verifier;

(ii) 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.

(iii) Maintain independence from the verification services by not making specific recommendations about how the verification services should be performed; and

(iv) Review documents applicable to the verification services provided and identify any failure to comply with requirements of this chapter and 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 body issues the validation or verification statement.

(c) Completion of findings and validation or verification report and statement.

(i) The verification body must provide the responsible entity with the following:

(A) A detailed validation or verification report, which must at a minimum include:

(I) A list of all verification team members that provided verification services, including identification of verifiers, lead verifiers, sector specific verifiers, verifiers in training and the independent reviewer;

(II) A detailed description of the facility or entity including all data sources and boundaries;

(III) A detailed description of entities in the supply chain contributing CI parameters;

(IV) A detailed description of the accounting procedures and data management systems, including data acquisition, tracking, and emissions calculation, as applicable;

(V) The validation or verification plan;

(VI) The detailed comparison of the data checks conducted during verification services;

(VII) The log of issues identified in the course of verification services and their resolution;

(VIII) Any qualifying comments on findings during verification services; and

(IX) Findings of omissions, discrepancies, and misreporting and the material misstatement calculations required in subsection (2)(i) and (j) of this section.

(B) The validation or verification statement(s) at the same time as or before the final validation or verification statement is submitted to ecology. The detailed validation or verification report must be made available to ecology upon request.

(ii) The verification team must have a final discussion with the responsible entity explaining the verification team's findings and notify the responsible entity of any unresolved issues noted in the issues log before the validation or verification statement is finalized.

(iii) Attestations in the validation or verification statement. The validation or verification statement must contain the following attestations:

(A) The verification body must attest whether it has found the submitted report or fuel pathway application to be free of material misstatement, and whether the report or fuel pathway application is in conformance with the requirements of this chapter;

(B) The lead verifier on the verification team must attest in writing that the verification team has carried out all verification services as required by this chapter. The lead verifier must attest in writing to ecology as follows:

"I certify under penalty of perjury under the laws of the State of Washington that the verification team has carried out all validation or verification services as required by this chapter."

(C) The lead verifier that has performed the independent review of verification services and findings must attest to their independent review on behalf of the verification body and their concurrence that the findings are true, accurate, and complete. The lead verifier who has conducted the independent review must attest in writing to ecology as follows:

"I certify under penalty of perjury under the laws of the State of Washington 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 chapter and that the findings are true, accurate, and complete."

(iv) Procedures for potential adverse validation or verification statement and petition process.

(A) Prior to the verification body providing an adverse validation or verification statement for the application or report to ecology, the verification body must notify the responsible entity of the potential of an adverse validation or verification statement, and provide at least 14 days to modify the application or report(s) to correct any material misstatement or nonconformances found by the verification team. When a verification body has provided notification to a responsible entity under this subsection:

(I) The responsible entity must make modifications to correct any material misstatements or nonconformance found by the verification team;

(II) The modified report, and validation or verification statement must be submitted to ecology before the applicable verification deadline specified in WAC 173-424-810, even if the responsible entity makes a request to ecology according to (c)(iv)(B) of this subsection; and

(III) The verification body must provide notice to ecology of the potential for an adverse verification statement at the same time it notifies the responsible entity and include the current issues log in its notice to ecology.

(B) When a verification body has provided notice under (a) of this subsection and the responsible entity and the verification body cannot reach agreement on modifications that result in a positive or qualified validation or verification statement because of a disagreement on the requirements of this chapter, the responsible entity may petition ecology before the verification deadline and before the validation or verification statement is submitted to make a final decision as to the verifiability of the submitted report or fuel pathway application. When the responsible entity files such petition with ecology:

(I) The responsible entity must submit all information it believes is necessary for ecology to make a determination with its petition;

(II) The responsible entity and the verification body must submit to ecology within 10 calendar days any additional information requested by ecology;

(III) Ecology will review the information submitted and, based on the requirements of this chapter and the submitted information, make a determination on whether modifications are necessary in order for the verification body to issue a positive or qualified positive validation or verification statement, or if such a statement could be issued without modifications; and

(IV) Ecology will notify both the responsible entity and the verification body of its determination.

(d) Ecology review and approval of validation or verification statement and reverification requirements.

(i) Ecology review of verification.

(A) In addition to any other enforcement authority ecology may have, ecology retains full authority in determining whether to approve, modify, or reject any verification statement submitted to ecology for a report or fuel pathway application by a verification body on behalf of a responsible entity under this chapter.

(B) Ecology may issue an adverse verification statement for a report or fuel pathway application if it has information to support such a conclusion, even if it has received a positive verification statement from a verification body.

(C) Ecology may also issue an adverse verification statement for:

(I) Failure to submit a complete or accurate fuel pathway application or annual or quarterly report in a timely manner;

(II) Failure to conduct or complete third-party verification as required by this chapter; or

(III) Any other violation of this chapter.

(D) A responsible entity may file petition with ecology to resolve disagreement with the verification body on the requirements of this chapter.

(ii) Reverification requirements.

(A) If a verification body submits a positive or qualified positive verification statement to ecology, ecology may reject and set aside the submitted validation or verification statement and require the applicable responsible entity to have a CFS report or fuel pathway application reverified by a different verification body within 90 days if:

(I) Ecology finds an unacceptable level of conflict of interest according to WAC 173-424-850(2);

(II) Ecology finds a potential conflict of interest has arisen between the responsible entity and the verification body or any verifier engaged by the responsible entity to perform verification through monitoring as required under WAC 173-424-850(8);

(III) Ecology makes a determination that any of the bases for modification, suspension, or revocation of ecology approval under WAC 173-424-840(10) for a verification body or verifier engaged by the responsible entity to perform verification have occurred, and impacted the verification services provided, or impacted the verification statement(s) submitted to ecology;

(IV) An error is identified that affects the credit or deficit calculations in a CFP report(s) or fuel pathway application(s) submitted under this chapter; or

(V) A report that received a positive or qualified positive verification statement fails ecology verification or audit under (e) of this subsection.

(B) If ecology identifies an error and determines that the error does not affect the credit or deficit calculations in a CFP report or fuel pathway application, a correction may be made by the responsible entity without ecology set aside of the positive or qualified positive verification statement.

(C) A verification body may not continue to provide verification services to a responsible entity, and the responsible entity must have any report(s) or fuel pathway application(s) verified by a different verification body, upon receiving notification from the verification body with which it is currently engaged to provide verification services of either of the following:

(I) A modification to ecology approval of the verification body or any members of the verification team that is relevant to the verification services being performed; or

(II) Suspension or revocation of ecology approval of the verification body or any members of the verification team.

(D) A responsible entity that must have a report or fuel pathway application verified by a different verification body according to (d)(ii)(C) of this subsection may contact ecology to request an extension if it believes it cannot meet the applicable verification deadline under WAC 173-424-810(3) and it must receive written approval from ecology of any extended deadline(s).

(e) Data requests and audits.

(i) Ecology data requests and audits of responsible entity.

(A) Upon written request by ecology, the responsible entity must provide the data used to generate the application or report including all data available to the verification team in the conduct of validation or verification services, within 14 days of ecology's request.

(B) Upon written notification by ecology, the responsible entity must make itself, its personnel, and other entities in its feedstock and finished fuel supply chain, as applicable, available for an ecology audit.

(ii) Ecology data requests and audits of verification bodies.

(A) Upon request by ecology, the verification body must provide ecology the validation or verification report given to the responsible entity, as well as the sampling plan, contracts for verification services, and any other supporting documents and calculations, within 14 days.

(B) Upon written notification by ecology, the verification body must make itself and its personnel available for an ecology audit.