Or. Admin. Code § 340-258-0290

Current through Register Vol. 63, No. 10, October 1, 2024

Section 340-258-0290 - Oxygenated Gasoline: Attest Engagements Guidelines When Prohibited Activities Alleged

(1) The Department will not require a CAR or blender CAR to submit attest engagement reports except as an optional defense for any alleged violations of OAR 340-258-0110 through 340-258-0310.

(2) The attest engagement shall consist of performing the agreed-upon procedures set forth in the guidelines in accordance with the Association of Independent Certified Public Accountants' (AICPA's) statements on standards for Attestation Engagements and using statistical sample design parameters provided by EPA.

(3) In performing the attest engagement, the CPA shall determine the sample size for each population according to parameters set out in Table B. [View a PDF of table by clicking on "Tables" link below.]

(4) The number of populations from which samples should be drawn will vary depending on the circumstances. Sample items should be selected in such a way that the sample can be expected to be representative of the population.

(5) If the CPA agrees to use some other form of sample selection and some other method to determine the sample size, that agreement should be summarized in the CPA's report.

(6) The attest engagement shall be conducted by an independent Certified Public Accountant (CPA).

(7) The CPA is required to comply with the general code of conduct and ethics as prescribed by the State of Oregon and by the AICPA.

(8) The attest engagement shall include the following agreed-upon procedures, as appropriate, for the CAR's standardized reporting form(s):

(a) Read the report completed by management and filed with the Department;

(b) Obtain from the CAR an inventory reconciliation summarizing receipts and deliveries of all gasoline, gasoline blendstocks, and oxygenates for CARs serving a control area:

(A) Test mathematical accuracy of inventory reconciliation;

(B) Agree beginning and ending inventory amounts to company's perpetual inventory records;

(C) Agree deliveries into the control area to Department report, if applicable.

(c) Obtain listing of all gasoline, gasoline blendstocks, and oxygenate receipts during the period:

(A) Test mathematical accuracy of listing;

(B) Agree amounts to inventory reconciliation;

(C) Select a representative sample of individual receipts of gasoline, gasoline blendstocks, and oxygenates and trace details back to source documents.

(d) Obtain listing of all gasoline, gasoline blendstocks, and oxygenates sold or dispensed during the period:

(A) Test mathematical accuracy of listing;

(B) Agree amounts to inventory reconciliation report;

(C) Select a representative sample of individual batches sold or dispensed both into and outside the control area:

(i) Agree volumes for the sample items to original bill of lading or other source documents;

(ii) For sales or deliveries into the control area, determine that oxygenate content is at least two percent by examining bills of lading.

(e) Using the volume of oxygenated gasoline sold or dispensed into the control area from the inventory reconciliation report, recalculate the number of oxygen content units required by multiplying by 2.7 percent, except where otherwise specified in OAR 340-258-0310, and agree to Department report;

(f) Recalculate the actual total oxygen credit units generated by adding the oxygen content of each batch or truck load of oxygenated gasoline that was sold or dispensed in the control area as determined in subsection (8)(e) of this rule multiplied by the actual oxygen content by weight associated with each batch or truck load;

(g) Recalculate the adjusted actual total oxygen credit units as follows:

(A) The actual total oxygen credit units generated from subsection (8)(f) of this rule;

(B) Plus the total oxygen credit units purchased or acquired through trade; and

(C) Minus the total oxygen credit units sold or given away through trade.

(h) The following steps apply to the testing of the actual total oxygen content from subsection (8)(f) of this rule and are applicable based on method of blending:

(A) For CARs using rack- and truck-blending, recompute oxygen content by weight for a representative sample of deliveries based on detailed meter readings of gasoline, blendstocks and oxygenate receipts;

(B) For CARs using in-tank blending of gasoline, blendstocks and oxygenates, obtain register of running weighted oxygen content by tank and:

(i) Using the individual sample items from subsections (8)(c) and (d) of this rule test calculation of running totals;

(ii) Where laboratory analysis is used with the CAR's weighted average calculation, select individual analysis reports of oxygenated gasoline receipts and deliveries during the period on a representative sample basis:

(I) Review laboratory results for consistency with CAR's calculations noting oxygen volume and specific gravity;

(II) Recalculate oxygen by weight;

(III) Agree information on lab reports to underlying delivery and receiving documentation.

(i) Obtain register of oxygen credit unit purchases and sales and select separate representative samples of individual purchased credits and individual sales credits:

(A) Agree selected credit unit transactions to the underlying contract and/or other supporting documentation noting specific volumes and oxygen content of the gasoline associated with the credits;

(B) Agree to the underlying contract and/or supporting documentation that the credits are generated in the same control areas as they are used. For example, no credits may be transferred between control areas;

(C) Agree to the underlying contract and/or supporting documentation that the credits are generated in the same averaging period as they are used;

(D) Agree to the underlying contract and/or supporting documentation that the ownership of credits is transferred only between CARs;

(E) Agree to the underlying contract and/or supporting documentation that the credit transfer agreement was made no later than 30 days after the final day of the averaging period in which the credits are generated.

(j) Prepare a report to client in accordance with the report provisions of Statements on Standards for Attestation Engagements indicating results of performing the above procedures.

(9) The attestation report must be in compliance with the AICPA's Statement on Standards for Attestation Engagements.

[NOTE: Publications referenced are available from the agency.]

Or. Admin. Code § 340-258-0290

DEQ 25-1992, f. 10-30-92, cert. ef. 11-1-92; DEQ 4-1993, f. & cert. ef. 3-10-93; DEQ 15-1993, f. & cert. ef. 11-4-93; Administrative correction 10-27-97; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-022-0630; DEQ 14-1999, f. & cert. ef. 10-14-99, Renumbered from 340-022-0630 DEQ 13-2019, amend filed 05/16/2019, effective 5/16/2019

To view tables referenced in rule text, click here to view rule.

Statutory/Other Authority: ORS 468A

Statutes/Other Implemented: ORS 468A.420