Cal. Code Regs. tit. 17 § 95491.1

Current through Register 2024 Notice Reg. No. 36, September 6, 2024
Section 95491.1 - Recordkeeping and Auditing
(a)Record Retention. Any record required to be maintained under this subarticle shall be retained for ten years. All data and calculations submitted by a regulated entity for demonstrating compliance, or generating credits or deficits are subject to inspection by the Executive Officer or a verification body accredited by the Executive Officer pursuant to section 95502, and must be made available within 20 days upon request of the Executive Officer.
(1)Record Retention for Fuel Reporting Entities. Fuel reporting entities must maintain all records and calculations relied upon for data reported in the LRT-CBTS. These records include, but are not limited to:
(A) Product transfer documents;
(B) Copies of all data reports submitted to the Executive Officer;
(C) Records related to each fuel transaction;
(D) Records used for each credit transaction;
(E) Records related to FSE registration, including but not limited to copies of monthly utility bills, Bills of Lading, Division of Measurement Standards' certificates, and any other document used as a proof at the time of FSE registration pursuant to this subarticle;
(F) Chain of custody evidence for produced fuel imported into California;
(G) Attestations regarding environmental attributes associated with book-and-claim accounting for biomethane pursuant to 95488.8(i)(2)(C); and
(H) Records used for compliance or credit and deficit calculations.
(2)Record Retention for Fuel Pathway Holders and Applicants. Fuel pathway holders and applicants must maintain all records relied upon in producing fuel pathway applications and annual Fuel Pathway Reports. The retained documents, including CI input source data and supplemental documentation, must be sufficient to allow for verification of each CI calculation. These records include but are not limited to:
(A) The quantity of fuel produced and subsequently sold in California under the certified fuel pathway. Sales invoices, contracts, and bills of lading for those fuel sales shall be retained.
(B) The quantity of feedstocks purchased to produce the fuel specified in subsection (A) above. Invoices from the sellers and purchase contracts shall be retained. Records to support material balance and energy balance calculations for facilities processing multiple feedstocks.
(C) The quantity of all forms of energy consumed to produce the fuel covered in subsection (A) above. All invoices for the purchase of process fuel, and all receipts for the sale of the fuel pathway applicant's finished fuel shall be maintained.
(D) Copies of the federal RFS Third Party Engineering Review Report, if required pursuant to 40 CFR 80.1450.
(E) The quantity of all products co-produced with the fuel covered by certified LCFS pathway. Copies of invoices, contracts, and bills of lading covering those sales shall be retained. In addition, copies of the federal RFS Fuel Producer Co-products Report shall be retained, if applicable. If the amount of co-product produced exceeds the amount sold by five percent or more, full documentation of the fate of the unsold fractions shall be maintained.
(F) Evidence demonstrating chain of custody from the point of origin along the supply chain to the fuel production facility is required for any feedstock defined as a specified source feedstock pursuant to section 95488.8(g). A copy of the federal RFS separated food waste plan required pursuant to 40 CFR 80.1450(b)(1)(vii)(B), if applicable.
(G) Any additional records that the Executive Officer requests during pathway certification, and records that demonstrate compliance with all special limitations and operating conditions issued at the time of certification.
(H) Attestations regarding environmental attributes associated with book-and-claim accounting for biomethane pursuant to 95488.8(i)(2)(C).
(3)Record Retention for Verification Bodies. The verification body providing verification services pursuant to this subarticle must retain the following:
(A) The sampling plan in paper, electronic, or other format for a period of no less than ten years following the submission of each validation or verification statement. The sampling plan must be made available to the Executive Officer upon request.
(B) All material received, reviewed, or generated to render a validation or verification statement for an entity required to validate and verify under LCFS. The documentation must allow for a transparent review of how a verification reached its conclusion in the validation or verification statement, including independent review.
(b)Documenting Fuel Transfers Reported in the LRT-CBTS. A product transfer document provided by a fuel reporting entity pursuant to section 95483(a) must prominently state the information specified below.
(1) For transfers where an LCFS obligation to act as a credit or deficit generator is being passed to the recipient:
(A) Transferor Company Name, Address and Contact Information;
(B) Recipient Company Name, Address and Contact Information;
(C) Transaction Date: Date of Title Transfer for Fuel;
(D) Fuel Pathway Code (FPC) and Carbon Intensity (CI);
(E) Fuel Quantity and Units;
(F) A statement identifying whether the LCFS obligation to act as a credit or deficit generator is passed to the recipient; and
(G) Fuel Production Company ID and Facility ID as registered with RFS program or LCFS program. This does not apply to CARBOB, Diesel Fuel or Fossil NG.
(2) For transfers where the LCFS obligation to act as a credit or deficit generator was retained by the transferor, the following is to be provided to the recipient and passed along to any subsequent owner or supplier:
(A) All information identified in subsection 95491.1(b)(1). above as items (A) through (G);
(B) The following notice reading as follows:

"This transportation fuel has been reported to the CARB LCFS Program by <Insert name of Fuel Reporting Entity holding LCFS obligation to act as a credit or deficit generator > for intended use in California. If you export this fuel from California you must report to the CARB LCFS Program (www.arb.ca.gov/lcfsrt). Contact the CARB LCFS Administrator for assistance with reporting exported amounts (lrtadmin@arb.ca.gov)."

(c)Monitoring Plan for Entities Required to Validate or Verify. Each entity responsible for obtaining a validation or verification statement under this subarticle must complete and retain for review by a verifier, or the Executive Officer, a written Monitoring Plan. Entities also reporting pursuant to MRR may use a single monitoring plan for both programs, so long as all of the following elements are included and clearly identified:
(1) The monitoring plan must contain the following general items and associated references to more detailed information:
(A) Information to allow CARB and the verification team to develop a general understanding of boundaries and operations relevant to the entity, facility, or project, including participation in other markets and other third-party audit programs;
(B) Reference to management policies or practices applicable to reporting pursuant to this subarticle, including recordkeeping;
(C) Explanation of the processes and methods used to collect necessary data for reporting pursuant to this subarticle, including identification of changes made after January 1, 2019;
(D) Explanations and queries of source data to compile summary reports of intermediate and final data necessary for reporting pursuant to this subarticle;
(E) Reference to one or more simplified block diagrams that provide a clear visual representation of the relative locations and positions of measurement devices and sampling locations, as applicable, required for calculating reported data (e.g., temperature, total pressure, LHV or HHV, fuel consumption); the diagram(s) must include storage tanks for raw material, intermediate products, and finished products, fuel sources, combustion units, and production processes, as applicable;
(F) Clear identification of all measurement devices supplying data necessary for reporting pursuant to this subarticle, including identification of low flow cutoffs as applicable, with descriptions of how data from measurement devices are incorporated into the submitted report;
(G) Descriptions of measurement devices used to report LCFS data and how acceptable accuracy is demonstrated, e.g., installation, maintenance, and calibration method and frequency for internal meters or how the criteria in MRR section 95103(k)(7) are met to demonstrate meters are financial transaction meters such that the accuracy is acceptable; this provision does not apply to data reported in the LRT-CBTS for generating credits for EV charging;
(H) Description of the procedures and methods that are used for quality assurance, maintenance, and repair of all continuous monitoring systems, flow meters, and other instrumentation used to provide data for LCFS reports;
(I) Original equipment manufacturer (OEM) documentation or other documentation that identifies instrument accuracy and required maintenance and calibration requirements for all measurement devices used to collect necessary data for reporting pursuant to this subarticle;
(J) The dates of measurement device calibration or inspection, and the dates of the next required calibration or inspection;
(K) Requests for postponement of calibrations or inspections of internal meters and subsequent approvals by the Executive Officer. The entity must demonstrate that the accuracy of the measured data will be maintained pursuant to the measurement accuracy requirements of 95488.8(j);
(L) A listing of the equation(s) used to calculate flows in mass, volume, or energy units of measurement, and equations from which any non-measured parameters are obtained, including meter software, and a description of the calculation of weighted average transport distance;
(M) Identification of job titles and training practices for key personnel involved in LCFS data acquisition, monitoring, reporting, and report attestation, including reference to documented training procedures and training materials;
(N) Records of corrective and subsequent preventative actions taken to address verifier and CARB findings of past nonconformance and material misstatements;
(O) Log of modifications to fuel pathway report conducted after attestation in response to review by third-party verifier or CARB staff;
(P) Written description of an internal audit program that includes data report review and documents ongoing efforts to improve the entity's LCFS reporting practices and procedures, if such an internal audit program exists; and
(Q) Methodology used to allocate the produced fuel quantity to each certified FPC.
(2) The monitoring plan must also include the following elements specific to fuel pathway carbon intensity calculations and produced quantities of fuels per FPC, as applicable:
(A) Explanation of the processes and methods used to collect necessary data for fuel pathway application and Fuel Pathway Reports and all site-specific CA-GREET3.0 inputs, as well as references to source data;
(B) Description of steps taken and calculations made to aggregate data into reporting categories, for example aggregation of quarterly fuel transactions per FPC;
(C) Methodology for assigning fuel volumes by FPC, if not using a method prescribed/suggested by CARB. If using a CARB suggested methodology, the methodology should be referenced;
(D) Methodologies for testing conformance to specifications for feedstocks and produced fuels, particularly describing physical testing standards and processes;
(E) Description of procedure taken to ensure measurement devices are performing in accordance with the measurement accuracy requirements of 95488.8(j);
(F) Methodology for monitoring and calculating weighted average feedstock transport distance and modes, including the specific documentation records that will be collected and retained on an ongoing basis;
(G) Methodology for monitoring and calculating fuel transport distance and modes, including the specific documentation records that will be collected and retained on an ongoing basis;
(H) References to contracts and accounting records that confirm fuel quantities were delivered into California for transportation use in CI determination, and confirm feedstock and finished fuel transportation distance;
(I) All documentation required pursuant to 95488.8(g)(1)(B) for specified source feedstocks, defined in 95488.8(g)(1)(A);
(3) The monitoring plan must also include the following elements specific to quarterly fuel transactions reports for importers, exporters and producers of alternative fuels, gasoline and diesel, as well as quarterly reports of crude oil information, as applicable:
(A) Documentation that can be used to justify transaction types reported for fuel in the LRT-CBTS must be referenced in the monitoring plan. This can pertain to the production amount, sale/purchase agreements and final fuel dispensing records.
(d)Verification Outcomes. Each entity responsible for obtaining a validation or verification statement under this subarticle must obtain third-party verification services from a verification body that meets the requirements specified in section 95502. A positive or qualified positive verification statement for the previous calendar year must be submitted to the Executive Officer by the verification body by August 31 in order to maintain a valid fuel pathway code for use in reporting fuel transactions for credit generation. An adverse transactions verification statement would result in Executive Officer investigation and possible enforcement action.
(e)Access to Records. Pursuant to H&S section 41510, the Executive Officer has the right of entry to any premises used, leased, or controlled by a regulated entity in order to inspect and copy records relevant to the determination of compliance. Scheduling of access shall be arranged in advance where feasible and must not unreasonably disturb normal operations, provided, however that access shall not be unreasonably delayed.

Cal. Code Regs. Tit. 17, § 95491.1

1. Redesignation and amendment of former subsections (b)-(e) as new section 95491.1 filed 1-4-2019; operative 1-4-2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).

Note: Authority cited: Sections 38510, 38530, 38560, 38560.5, 38571, 38580, 39600, 39601, 41510, 41511 and 43018, Health and Safety Code; 42 U.S.C. section 7545; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975). Reference: Sections 38501, 38510, 39515, 39516, 38571, 38580, 39000, 39001, 39002, 39003, 39515, 39516, 41510, 41511 and 43000, Health and Safety Code; Section 25000.5, Public Resources Code; and Western Oil and Gas Ass'n v. Orange County Air Pollution Control District, 14 Cal.3d 411, 121 Cal.Rptr. 249 (1975).

1. Redesignation and amendment of former subsections (b)-(e) as new section 95491.1 filed 1-4-2019; operative 1/4/2019 pursuant to Government Code section 11343.4(b)(3) (Register 2019, No. 1).