OAR 340-272-0495: Independent Review and Completion of Verification Services

(1) Verification statement. The verification body must complete a verification statement(s) upon completion of verification services, provide its statement to the responsible entity, and submit its statement to DEQ by the applicable verification deadline specified under OAR 340-272-0100(3). Each positive, qualified positive, or adverse verification statement must describe the findings of the verification; and (a) For every qualified positive verification statement, the verification body must explain the nonconformances contained within the report or fuel pathway application and cite the sections(s) in OAR chapter 340, division 215, or OAR chapter 340, division 253, as applicable, that corresponds to the nonconformance and why the nonconformances do not result in a material misstatement; and (b) For every adverse verification statement, the verification body must explain all nonconformances or material misstatements leading to the adverse verification statement and cite the sections(s) in OAR chapter 340, division 215, or OAR chapter 340, division 253, as applicable, that corresponds to the nonconformance(s) and material misstatement(s). (2) Independent review. The verification body must have the verification services and findings of the verification team independently reviewed by an independent reviewer before each verification statement is completed. The independent reviewer must 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. The independent reviewer must: (a) Serve as a final check on the verification team’s work to identify any significant concerns, including: (A) Errors in planning; (B) Errors in data sampling; and (C) Errors in judgment by the verification team that are related to the draft verification statement; (b) Maintain independence from the verification services by not making specific recommendations about how the verification services should be performed; and (c) Review documents applicable to the verification services provided, and identify any failure to comply with requirements of this division, OAR chapter 340, division 215, OAR chapter 340, division 253, and with the verification body’s internal policies and procedures for providing verification services, as applicable. The independent reviewer must concur with the verification findings before the verification body issues the verification statement. (3) As part of completing verification services, the verification body must: (a) Provide the responsible entity with the following: (A) A detailed verification report, that 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; (ii) A detailed description of the accounting procedures and data management systems, including data acquisition, tracking, and emissions calculation, as applicable; (iii) The verification plan; (iv) The detailed comparison of the data checks conducted during verification services; (v) The log of issues identified in the course of verification services and their resolution; (vi) Any qualifying comments on findings during verification services; (vii) Findings of omissions, discrepancies, and misreporting, and the material misstatement calculations required under OAR 340-272-0450, OAR 340-272-0455, or OAR 340-272-0460, as applicable; and (viii) For CFP reports submitted under OAR chapter 340, division 253, a detailed description of entities in the supply chain contributing CI parameters; and (B) The verification statement(s); and (b) 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 verification statement is finalized. (4) Attestations in the verification statement. The 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 division, OAR chapter 340, division 215, and OAR chapter 340, division 253, as applicable; (b) The lead verifier on the verification team must attest that the verification team has carried out all verification services as required by this division; and (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. (5) Procedures for potential adverse verification statement and petition process. (a) Before the verification body submits an adverse verification statement to DEQ, the verification body must notify the responsible entity of the potential of an adverse verification statement, and the responsible entity must be provided at least 14 calendar days to make modifications to correct any material misstatements or nonconformance found by the verification team. When a verification body has provided notification to a responsible entity under this subsection: (A) The responsible entity must make modifications to correct any material misstatements or nonconformance found by the verification team; (B) The modified report and verification statement must be submitted to DEQ before the applicable verification deadline specified in OAR 340-272-0100(3), even if the responsible entity makes a request to DEQ according to subsection (b); and (C) The verification body must provide notice to DEQ of the potential for an adverse verification statement at the same time it notifies the responsible entity, and include in its notice to DEQ the current issues log. (b) When a verification body has provided notice under subsection (a) and the responsible entity and the verification body cannot reach agreement on modifications that result in a positive or qualified positive verification statement because of a disagreement on the requirements of this division, the responsible entity may petition DEQ before the verification deadline and before the 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 DEQ: (A) The responsible entity must submit all information it believes is necessary for DEQ to make a determination with its petition; (B) The responsible entity and the verification body must submit to DEQ within ten calendar days any additional information requested by DEQ; (C) DEQ will review the information submitted and, based on the requirements of this division and that information, will make a determination on whether modifications are necessary in order for the verification body to issue a positive or qualified positive verification statement, or if such a statement could be issued without modifications; and (D) DEQ will notify both the responsible entity and the verification body of its determination.