Title 40—Protection of Environment--Volume 1
PART 1090—REGULATION OF FUELS, FUEL ADDITIVES, AND REGULATED BLENDSTOCKS
§ 1090.1720   Affirmative defense provisions.
(a) Any person liable for a violation under § 1090.1715(e) or (f) will not be deemed in violation if the person demonstrates all the following:
(1) The violation was not caused by the person or the person's employee or agent.
(2) If PTD requirements of this part apply, the PTDs account for the fuel, fuel additive, or regulated blendstock found to be in violation and indicate that the violating fuel, fuel additive, or regulated blendstock was in compliance with the applicable requirements while in that person's control.
(3) The person conducted a quality assurance program, as specified in paragraph (d) of this section.
(i) A carrier may rely on the quality assurance program carried out by another party, including the party that owns the fuel in question, provided that the quality assurance program is carried out properly.
(ii) A retailer or WPC is not required to conduct sampling and testing of fuel as part of their quality assurance program.
(b) For a violation found at a facility operating under the corporate, trade, or brand name of a fuel manufacturer, or a fuel manufacturer's marketing subsidiary, the fuel manufacturer must show, in addition to the defense elements required under paragraph (a) of this section, that the violation was caused by one of the following:
(1) An act in violation of law (other than the Clean Air Act or this part), or an act of sabotage or vandalism.
(2) The action of any retailer, distributor, reseller, oxygenate blender, carrier, retailer, or WPC in violation of a contractual agreement between the branded fuel manufacturer and the person designed to prevent such action, and despite periodic sampling and testing by the branded fuel manufacturer to ensure compliance with such contractual obligation.
(3) The action of any carrier or other distributor not subject to a contract with the fuel manufacturer, but engaged for transportation of fuel, fuel additive, or regulated blendstock despite specifications or inspections of procedures and equipment that are reasonably calculated to prevent such action.
(c) For any person to show under paragraph (a) of this section that a violation was not caused by that person, or to show under paragraph (b) of this section that a violation was caused by any of the specified actions, the person must demonstrate by reasonably specific showings, through direct or circumstantial evidence, that the violation was caused or must have been caused by another person and that the person asserting the defense did not contribute to that other person's causation.
(d) To demonstrate an acceptable quality assurance program under paragraph (a)(3) of this section, a person must present evidence of all the following:
(1)(i) A periodic sampling and testing program adequately designed to ensure the fuel, fuel additive, or regulated blendstock the person sold, dispensed, supplied, stored, or transported meets the applicable per-gallon standard. A person may meet this requirement by participating in the NFSP under § 1090.1405 that was in effect at the time of the violation.
(ii) In addition to the requirements of paragraph (d)(1)(i) of this section, a gasoline manufacturer must also participate in the NSTOP specified in § 1090.1450 at the time of the violation.
(2) On each occasion when a fuel, fuel additive, or regulated blendstock is found to be in noncompliance with the applicable per-gallon standard, the person does all the following:
(i) Immediately ceases selling, offering for sale, dispensing, supplying, offering for supply, storing, or transporting the non-complying fuel, fuel additive, or regulated blendstock.
(ii) Promptly remedies the violation and the factors that caused the violation ( e.g., by removing the non-complying fuel, fuel additive, or regulated blendstock from the distribution system until the applicable standard is achieved and taking steps to prevent future violations of a similar nature from occurring).
(3) For any carrier that transports a fuel, fuel additive, or regulated blendstock in a tank truck, the periodic sampling and testing program required under paragraph (d)(1) of this section does not need to include periodic sampling and testing of gasoline in the tank truck. In lieu of such tank truck sampling and testing, the carrier must demonstrate evidence of an oversight program for monitoring compliance with the requirements of this part relating to the transport or storage of the fuel, fuel additive, or regulated blendstock by tank truck, such as appropriate guidance to drivers regarding compliance with the applicable per-gallon standards and PTD requirements, and the periodic review of records received in the ordinary course of business concerning gasoline quality and delivery.
(e) In addition to the defenses provided in paragraphs (a) through (d) of this section, in any case in which an oxygenate blender, distributor, reseller, carrier, retailer, or WPC would be in violation under § 1090.1715 as a result of gasoline that contains between 9 and 10 percent ethanol (by volume) but exceeds the applicable standard by more than 1.0 psi, the oxygenate blender, distributor, reseller, carrier, retailer, or WPC will not be deemed in violation if such person can demonstrate, by showing receipt of a certification from the facility from which the gasoline was received or other evidence acceptable to EPA, all the following:
(1) The gasoline portion of the blend complies with the applicable RVP standard in § 1090.215.
(2) The ethanol portion of the blend does not exceed 10 percent (by volume).
(3) No additional alcohol or other additive has been added to increase the RVP of the ethanol portion of the blend.
(4) In the case of a violation alleged against an oxygenate blender, distributor, reseller, or carrier, if the demonstration required by paragraphs (e)(1) through (3) of this section is made by a certification, it must be supported by evidence that the criteria in paragraphs (e)(1) through (3) of this section have been met, such as an oversight program conducted by or on behalf of the oxygenate blender, distributor, reseller, or carrier alleged to be in violation, which includes periodic sampling and testing of the gasoline or monitoring the volatility and ethanol content of the gasoline. Such certification will be deemed sufficient evidence of compliance provided it is not contradicted by specific evidence, such as testing results, and provided that the party has no other reasonable basis to believe that the facts stated in the certification are inaccurate. In the case of a violation alleged against a retail outlet or WPC facility, such certification will be deemed an adequate defense for the retailer or WPC, provided that the retailer or WPC is able to show certificates for all the gasoline contained in the storage tank found in violation, and, provided that the retailer or WPC has no reasonable basis to believe that the facts stated in the certifications are inaccurate.
§ 1090.1800   General provisions.
(a) The following parties must arrange for attestation engagement using agreed-upon procedures as specified in this subpart:
(1) A gasoline manufacturer that produces or imports gasoline subject to the requirements of subpart C of this part.
(2) A gasoline manufacturer that performs testing as specified in subpart N of this part or that relies on testing from a third-party laboratory.
(b) An auditor performing attestation engagements must meet the following requirements:
(1) The auditor must meet one of the following professional qualifications:
(i) The auditor may be an internal auditor that is employed by the fuel manufacturer and certified by the Institute of Internal Auditors. Such an auditor must perform the attestation engagement in accordance with the International Standards for the Professional Practice of Internal Auditing (Standards) (incorporated by reference in § 1090.95).
(ii) The auditor may be a certified public accountant, or firm of such accountants, that is independent of the gasoline manufacturer. Such an auditor must comply with the AICPA Code of Professional Conduct, including its independence requirements, the AICPA Statements on Quality Control Standards (SQCS) No. 8, A Firm's System of Quality Control (both incorporated by reference in § 1090.95), and applicable rules of state boards of public accountancy. Such an auditor must also perform the attestation engagement in accordance with the AICPA Statements on Standards for Attestation Engagements (SSAE) No. 18, Attestation Standards: Clarification and Recodification, especially as noted in sections AT-C 105, 215, and 315 (incorporated by reference in § 1090.95).
(2) The auditor must meet the independence requirements in § 1090.55.
(3) The auditor must be registered with EPA under subpart I of this part.
(4) Any auditor suspended or debarred under 2 CFR part 1532 or 48 CFR part 9, subpart 9.4, is not qualified to perform attestation engagements under this subpart.
(c) An auditor must perform attestation engagements separately for each gasoline manufacturing facility for which the gasoline manufacturer submitted reports to EPA under subpart J of this part for the compliance period.
(d) The following provisions apply to each attestation engagement performed under this subpart:
(1) The auditor must prepare a report identifying the applicable procedures specified in this subpart along with the auditor's corresponding findings for each procedure. The auditor must submit the report electronically to EPA by June 1 of the year following the compliance period.
(2) The auditor must identify any instances where compared values do not agree or where specified values do not meet applicable requirements under this part.
(3) Laboratory analysis refers to the original test result for each analysis of a product's properties. The following provisions apply in special cases:
(i) For a laboratory using test methods that must be correlated to the standard test method, the laboratory analysis must include the correlation factors along with the corresponding test results.
(ii) For a gasoline manufacturer that relies on a third-party laboratory for testing, the laboratory analysis consists of the results provided by the third-party laboratory.
§ 1090.1805   Representative samples.
(a) If the specified procedures require evaluation of a representative sample from the overall population for a given data set, determine the number of results for evaluation using one of the following methods:
(1) Determine sample size using the following table:
Table 1 to Paragraph ( a )(1)—Sample Size Determination
(2) Determine sample size corresponding to a confidence level of 95 percent, an expected error rate of 0 percent, and a maximum tolerable error rate of 10 percent, using conventional statistical principles and methods.
(3) Determine sample size using an alternate method that is equivalent to or better than the methods specified in paragraphs (a)(1) and (2) of this section with respect to strength of inference and freedom from bias. An auditor that determines a sample size using an alternate method must describe and justify the alternate method in the attestation report.
(b) Select specific data points for evaluation over the course of the compliance period in a way that leads to a simple random sample that properly represents the overall population for the data set.
§ 1090.1810   General procedures for gasoline manufacturers.
An auditor must perform the procedures in this section for a refiner, blending manufacturer, or transmix processer that produces gasoline.
(a) Registration and EPA reports. An auditor must review registration and EPA reports as follows:
(1) Obtain copies of the gasoline manufacturer's registration information submitted under subpart I of this part and all reports (except batch reports) submitted under subpart J of this part.
(2) For each gasoline manufacturing facility, confirm that the facility's registration is accurate based on the activities reported during the compliance period, including that the registration for the facility and any related updates were completed prior to conducting regulated activities at the facility and report any discrepancies.
(3) Confirm that the gasoline manufacturer submitted all the reports required under subpart J of this part for activities they performed during the compliance period and report any exceptions.
(4) Obtain a written statement from the gasoline manufacturer's RCO that the submitted reports are complete and accurate.
(5) Report in the attestation report the name of any commercial computer program used to track the data required under this part, if any.
(b) Inventory reconciliation analysis. An auditor must perform an inventory reconciliation analysis review as follows:
(1) Obtain an inventory reconciliation analysis from the gasoline manufacturer for each product type produced at each facility ( e.g., RFG, CG, RBOB, CBOB), including the inventory at the beginning and end of the compliance period, receipts, production, shipments, transfers, and gain/loss.
(2) Foot and cross-foot the volumes.
(3) Compare the beginning and ending inventory to the manufacturer's inventory records for each product type and report any variances.
(4) Report in the attestation report the volume totals for each product type on the basis of which gasoline batches are reported.
(c) Listing of tenders. An auditor must review a listing of tenders as follows:
(1) Obtain detailed listings of gasoline tenders from the gasoline manufacturer, by product type.
(2) Foot the listings of gasoline tenders.
(3) Compare the total volume from the gasoline tenders to the total volume shipped in the inventory reconciliation analysis for each product type and report any variances.
(d) Listing of batches. An auditor must review listings of batches as follows:
(1) Obtain the batch reports submitted under subpart J of this part.
(2) Foot the batch volumes by product type.
(3) Compare the total volume from the batch reports to the total production or shipment volume from the inventory reconciliation analysis specified in paragraph (b)(4) of this section for each product type and report any variances.
(4) Report as a finding in the attestation report any gasoline batch with reported values that do not meet a per-gallon standard in subpart C of this part.
(e) Test methods. An auditor must follow the procedures specified in § 1090.1845 to determine whether the gasoline manufacturer complies with the applicable quality control requirements specified in § 1090.1375.
(f) Detailed testing of BOB tenders. An auditor must review a detailed listing of BOB tenders as follows:
(1) Select a representative sample from the listing of BOB tenders.
(2) Obtain the associated PTD for each selected sample.
(3) Using a unique identifier, confirm that the correct PTDs are obtained for the samples and compare the volume on the listing of each selected BOB tender to the associated PTD and report any exceptions.
(4) Confirm that the PTD associated with each selected BOB tender contains all the applicable language requirements under subpart L of this part and report any exceptions.
(g) Detailed testing of BOB batches. An auditor must review a detailed listing of BOB batches as follows:
(1) Select a representative sample from the BOB batch reports submitted under subpart J of this part.
(2) Obtain the volume documentation and laboratory analysis for each selected BOB batch.
(3) Compare the reported volume for each selected BOB batch to the volume documentation and report any exceptions.
(4) Compare the reported properties for each selected BOB batch to the laboratory analysis and report any exceptions.
(5) Compare the reported test methods used for each selected BOB batch to the laboratory analysis and report any exceptions.
(6) Determine each oxygenate type and amount that is required for blending with the BOB.
(7) Confirm that each oxygenate type and amount included in the BOB hand blend agrees with the manufacturer's blending instructions for each selected BOB batch and report any exceptions.
(8) Confirm that the manufacturer participates in the NFSP under § 1090.1405, if applicable.
(9) For a blending manufacturer, confirm that the laboratory analysis includes test results for oxygenate content, if applicable, and distillation parameters ( i.e., T10, T50, T90, final boiling point, and percent residue). For a blending manufacturer not required to measure oxygenate content, confirm that records demonstrate that the PCG or blendstock contained no oxygenate, no oxygenate was added to the final gasoline batch, and the blending manufacturer did not account for oxygenate added downstream under § 1090.710.
(h) Detailed testing of finished gasoline tenders. An auditor must review a detailed listing of finished gasoline tenders as follows:
(1) Select a representative sample from the listing of finished gasoline tenders.
(2) Obtain the associated PTD for each selected sample.
(3) Using a unique identifier, confirm that the correct PTDs are obtained for the samples and compare the volume on the listing for each finished gasoline tender to the associated PTD and report any exceptions.
(4) Confirm that the PTD associated with each selected finished gasoline tender contains all the applicable language requirements under subpart L of this part and report any exceptions.
(i) Detailed testing of finished gasoline batches. An auditor must review a detailed listing of finished gasoline batches as follows:
(1) Select a representative sample of finished gasoline batches from the batch reports submitted under subpart J of this part.
(2) Obtain the volume documentation and laboratory analysis for each selected finished gasoline batch.
(3) Compare the reported volume for each selected finished gasoline batch to the volume documentation and report any exceptions.
(4) Compare the reported properties for each selected finished gasoline batch to the laboratory analysis and report any exceptions.
(5) Compare the reported test methods used for each selected finished gasoline batch to the laboratory analysis and report any exceptions.
(6) For a blending manufacturer, confirm that the laboratory analysis includes test results for oxygenate content, if applicable, and distillation parameters ( i.e., T10, T50, T90, final boiling point, and percent residue). For a blending manufacturer not required to measure oxygenate content, confirm that records demonstrate that the PCG or blendstock contained no oxygenate, no oxygenate was added to the final gasoline batch, and the blending manufacturer did not account for oxygenate added downstream under § 1090.710.
(j) Detailed testing of blendstock batches. In the case of adding blendstock to TGP or PCG under § 1090.1320(a)(2), an auditor must review a detailed listing of blendstock batches as follows:
(1) Select a representative sample of blendstock batches from the batch reports submitted under subpart J of this part.
(2) Obtain the volume documentation and the laboratory analysis for each selected blendstock batch.
(3) Compare the reported volume for each selected blendstock batch to the volume documentation and report any exceptions.
(4) Compare the reported properties for each selected blendstock batch to the laboratory analysis and report any exceptions.
(5) Compare the reported test methods used for each selected blendstock batch to the laboratory analysis and report any exceptions.
(6) For blending a manufacturer not required to measure oxygenate content, confirm that records demonstrate that the PCG or blendstock contained no oxygenate, no oxygenate was added to the final gasoline batch, and the blending manufacturer did not account for oxygenate added downstream under § 1090.710.
§ 1090.1815   General procedures for gasoline importers.
An auditor must perform the procedures in this section for a gasoline importer.
(a) Registration and EPA reports. An auditor must review registration and EPA reports for a gasoline importer as specified in § 1090.1810(a).
(b) Listing of imports. An auditor must review a listing of imports as follows:
(1) Obtain detailed listings of gasoline imports from the importer, by product type.
(2) Foot the listings of gasoline imports from the importer.
(3) Obtain listings of gasoline imports directly from the third-party customs broker, by product type.
(4) Foot the listings of gasoline imports from the third-party customs broker.
(5) Compare the total volume from the importer's listings of gasoline imports to the listings from the third-party customs broker for each product type and report any variances.
(6) Report in the attestation report the total imported volume for each product type.
(c) Listing of batches. An auditor must review listings of batches as follows:
(1) Obtain the batch reports submitted under subpart J of this part.
(2) Foot the batch volumes by product type.
(3) Compare the total volume from the batch reports to the total volume per the listings of gasoline imports obtained under paragraph (b)(1) of this section for each product type and report any variances.
(4) Report as a finding in the attestation report any gasoline batches with parameter results that do not meet the per-gallon standards in subpart C of this part.
(d) Test methods. An auditor must follow the procedures specified in § 1090.1845 to determine whether the importer complies with the quality control requirements specified in § 1090.1375 for gasoline, gasoline additives, and gasoline regulated blendstocks.
(e) Detailed testing of BOB imports. An auditor must review a detailed listing of BOB imports as follows:
(1) Select a representative sample from the listing of BOB imports from the importer and obtain the associated U.S. Customs Entry Summary and PTD for each selected BOB import.
(2) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the samples and compare the location that each selected BOB import arrived in the United States and volume on the listing of BOB imports from the importer to the U.S. Customs Entry Summary and report any exceptions.
(3) Using a unique identifier, confirm that the correct PTDs are obtained for the samples. Confirm that the PTD contains all the applicable language requirements under subpart L of this part and report any exceptions.
(f) Detailed testing of BOB batches. An auditor must review a detailed listing of BOB batches as follows:
(1) Select a representative sample of BOB batches from the batch reports submitted under subpart J of this part and obtain the volume inspection report and laboratory analysis for each selected BOB batch.
(2) Compare the reported volume for each selected BOB batch to the volume inspection report and report any exceptions.
(3) Compare the reported properties for each selected BOB batch to the laboratory analysis and report any exceptions.
(4) Compare the reported test methods used for each selected BOB batch to the laboratory analysis and report any exceptions.
(5) Determine each oxygenate type and amount that is required for blending with each selected BOB batch.
(6) Confirm that each oxygenate type and amount included in the BOB hand blend agrees within an acceptable range to each selected BOB batch and report any exceptions.
(7) Confirm that the importer participates in the NFSP under § 1090.1405, if applicable.
(g) Detailed testing of finished gasoline imports. An auditor must review a detailed listing of finished gasoline imports as follows:
(1) Select a representative sample from the listing of finished gasoline imports from the importer and obtain the associated U.S. Customs Entry Summary and PTD for each selected finished gasoline import.
(2) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the samples and compare the location that each selected finished gasoline import arrived in the United States and volume on the listing of finished gasoline imports from the importer to the U.S. Customs Entry Summary and report any exceptions.
(3) Using a unique identifier, confirm that the correct PTDs are obtained for the samples. Confirm that the PTD contain all the applicable language requirements under subpart L of this part and report any exceptions.
(h) Detailed testing of finished gasoline batches. An auditor must review a detailed listing of finished gasoline batches as follows:
(1) Select a representative sample of finished gasoline batches from the batch reports submitted under subpart J of this part and obtain the volume inspection report and laboratory analysis for each selected finished gasoline batch.
(2) Compare the reported volume for each selected finished gasoline batch to the volume inspection report and report any exceptions.
(3) Compare the reported properties for each selected finished gasoline batch to the laboratory analysis and report any exceptions.
(4) Compare the reported test methods used for each selected finished gasoline batch to the laboratory analysis and report any exceptions.
(i) Additional procedures for certain gasoline imported by rail or truck. An auditor must perform the following additional procedures for an importer that imports gasoline into the United States by rail or truck under § 1090.1610:
(1) Select a representative sample from the listing of batches obtained under paragraph (c)(1) of this section and perform the following for each selected batch:
(i) Identify the point of sampling and testing associated with each selected batch in the tank activity records from the supplier.
(ii) Confirm that the sampling and testing occurred after the most recent delivery into the supplier's storage tank and before transferring product to the railcar or truck.
(2)(i) Obtain a detailed listing of the importer's quality assurance program sampling and testing results.
(ii) Determine whether the frequency of the sampling and testing meets the requirements in § 1090.1610(a)(2).
(iii) Select a representative sample from the importer's sampling and testing records under the quality assurance program and perform the following for each selected batch:
(A) Obtain the corresponding laboratory analysis.
(B) Determine whether the importer analyzed the test sample, and whether they performed the analysis using the methods specified in subpart N of this part.
(C) Review the terminal test results corresponding to the time of collecting the quality assurance test samples. Compare the terminal test results with the test results from the quality assurance program, noting any parameters with differences that are greater than the reproducibility of the applicable method specified in subpart N of this part.
§ 1090.1820   Additional procedures for gasoline treated as blendstock.
In addition to any applicable procedures required under §§ 1090.1810 and 1090.1815, an auditor must perform the procedures in this section for a gasoline manufacturer that imports GTAB under § 1090.1615.
(a) Listing of GTAB imports. An auditor must review a listing of GTAB imports as follows:
(1) Obtain a detailed listing of GTAB imports from the GTAB importer.
(2) Foot the listing of GTAB imports from the GTAB importer.
(3) Obtain a listing of GTAB imports directly from the third-party customs broker.
(4) Foot the listing of GTAB imports from the third-party customs broker and report any variances.
(5) Compare the total volume from the GTAB importer's listing of GTAB imports to the listing from the third-party customs broker.
(6) Report in the attestation report the total imported volume of GTAB and the corresponding facilities at which the GTAB was blended.
(b) Listing of GTAB batches. An auditor must review a listing of GTAB batches as follows:
(1) Obtain the GTAB batch reports submitted under subpart J of this part.
(2) Foot the batch volumes.
(3) Compare the total volume from the GTAB batch reports to the total volume from the listing of GTAB imports in paragraph (a)(6) of this section and report any variances.
(c) Detailed testing of GTAB imports. An auditor must review a detailed listing of GTAB imports as follows:
(1) Select a representative sample from the listing of GTAB imports obtained under paragraph (a)(1) of this section.
(2) For each selected GTAB batch, obtain the U.S. Customs Entry Summaries.
(3) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the samples. Compare the volumes and locations that each selected GTAB batch arrived in the United States to the U.S. Customs Entry Summary and report any exceptions.
(d) Detailed testing of GTAB batches. An auditor must review a detailed listing of GTAB batches as follows:
(1) Select a representative sample from the GTAB batch reports obtained under paragraph (b)(1) of this section.
(2) For each selected GTAB batch sample, obtain the volume inspection report.
(3) Compare the reported volume for each selected GTAB batch to the volume inspection report and report any exceptions.
(e) GTAB tracing. An auditor must trace and review the movement of GTAB from importation to gasoline production as follows:
(1) Compare the volume total on each GTAB batch report obtained under paragraph (b)(1) of this section to the GTAB volume total in the gasoline manufacturer's inventory reconciliation analysis under § 1090.1810(b).
(2) For each selected GTAB batch under paragraph (d)(1) of this section:
(i) Obtain tank activity records that describe the movement of each selected GTAB batch from importation to gasoline production.
(ii) Identify each selected GTAB batch in the tank activity records and trace each selected GTAB batch to subsequent reported batches of BOB or finished gasoline.
(iii) Match the location of the facility where gasoline was produced from each selected GTAB batch to the location where each selected GTAB batch arrived in the United States, or to the facility directly receiving the GTAB batch from the import facility.
(iv) Determine the status of the tank(s) before receiving each selected GTAB batch ( e.g., empty tank, tank containing blendstock, tank containing GTAB, tank containing PCG).
(v) If the tank(s) contained PCG before receiving the selected GTAB batch, take the following additional steps:
(A) Obtain and review a copy of the documented tank mixing procedures.
(B) Determine the volume and properties of the tank bottom that was PCG before adding GTAB.
(C) Confirm that the gasoline manufacturer determined the volume and properties of the BOB or finished gasoline produced using GTAB by excluding the volume and properties of any PCG, and that the gasoline manufacturer separately reported the PCG volume and properties under subpart J of this part and report any discrepancies.
§ 1090.1825   Additional procedures for PCG used to produce gasoline.
In addition to any applicable procedures required under § 1090.1810, an auditor must perform the procedures in this section for a gasoline manufacturer that produces gasoline from PCG under § 1090.1320.
(a) Listing of PCG batches. An auditor must review a listing of PCG batches as follows:
(1) Obtain the PCG batch reports submitted under subpart J of this part.
(2) Foot the batch volumes.
(3) Compare the volume total for each PCG batch report to the receipt volume total in the inventory reconciliation analysis specified in § 1090.1810(b) and report any variances.
(b) Detailed testing of PCG batches. An auditor must review a detailed listing of PCG batches as follows:
(1) Select a representative sample from the PCG batch reports obtained under paragraph (a)(1) of this section.
(2) Obtain the volume documentation, laboratory analysis, associated PTDs, and tank activity records for each selected PCG batch.
(3) Identify each selected PCG batch in the tank activity records and trace each selected PCG batch to subsequent reported batches of BOB or finished gasoline and report any exceptions.
(4) For each selected PCG batch, report as a finding in the attestation report any instances where the reported PCG batch volume was adjusted from the original receipt volume, such as for exported PCG.
(5) Compare the volume for each selected PCG batch to the volume documentation and report any exceptions.
(6) Compare the product type and grade for each selected PCG batch to the associated PTDs and report any exceptions.
(7) Compare the reported properties for each selected PCG batch to the laboratory analysis and report any exceptions.
(8) Compare the reported test methods used for each selected PCG batch to the laboratory analysis and report any exceptions.
§ 1090.1830   Alternative procedures for certified butane blenders.
An auditor must use the procedures in this section instead of or in addition to the applicable procedures in § 1090.1810 for a certified butane blender that blends certified butane into PCG under § 1090.1320(b).
(a) Registration and EPA reports. An auditor must review registration and EPA reports as follows:
(1) Obtain copies of the certified butane blender's registration information submitted under subpart I of this part and all reports submitted under subpart J of this part, including the batch reports for the butane received and blended.
(2) For each butane blending facility, confirm that the facility's registration is accurate based on activities reported during the compliance period, including that the registration for the facility and any related updates were completed prior to conducting regulated activities at the facility and report any discrepancies.
(3) Confirm that the certified butane blender submitted all the reports required under subpart J of this part for activities they performed during the compliance period and report any exceptions.
(4) Obtain a written statement from the certified butane blender's RCO that the submitted reports are complete and accurate.
(5) Report in the attestation report the name of any commercial computer program used to track the data required under this part, if any.
(b) Inventory reconciliation analysis. An auditor must perform an inventory reconciliation analysis review as follows:
(1) Obtain an inventory reconciliation analysis from the certified butane blender for each butane blending facility related to all certified butane movements, including the inventory at the beginning and end of the compliance period, receipts, blending/production volumes, shipments, transfers, and gain/loss.
(2) Foot and cross-foot the volumes.
(3) Compare the beginning and ending inventory to the certified butane blender's inventory records and report any variances.
(4) Compare the total volume of certified butane received from the batch reports obtained under paragraph (a)(1) of this section to the inventory reconciliation analysis and report any variances.
(5) Compare the total volume of certified butane blended from the batch reports to the inventory reconciliation analysis and report any variances.
(6) Report in the attestation report the total volume of certified butane received and blended.
(c) Listing of certified butane receipts. An auditor must review a listing of certified butane receipts as follows:
(1) Obtain a detailed listing of all certified butane batches received at the butane blending facility from the certified butane blender.
(2) Foot the listing of certified butane batches received.
(3) Compare the total volume from batch reports for certified butane received at the butane blending facility to the certified butane blender's listing of certified butane batches received and report any variances.
(d) Detailed testing of certified butane batches. An auditor must review a detailed listing of certified butane batches as follows:
(1) Select a representative sample from the certified butane batch reports submitted under subpart J of this part.
(2) Obtain the volume documentation and laboratory analysis for each selected certified butane batch.
(3) Compare the reported volume for each selected certified butane batch to the volume documentation and report any exceptions.
(4) Compare the reported properties for each selected certified butane batch to the laboratory analysis and report any exceptions.
(5) Compare the reported test methods used for each selected certified butane batch to the laboratory analysis and report any exceptions.
(6) Confirm that the butane meets the standards for certified butane under subpart C of this part and report any exceptions.
(e) Quality control review. An auditor must obtain the certified butane blender's sampling and testing results for certified butane received and determine if the frequency of the sampling and testing meets the requirements in § 1090.1320(b)(4) and report any discrepancies.
§ 1090.1835   Alternative procedures for certified pentane blenders.
(a) An auditor must use the procedures in this section instead of or in addition to the applicable procedures in § 1090.1810 for a certified pentane blender that blends certified pentane into PCG under § 1090.1320(b).
(b) An auditor must apply the procedures in § 1090.1830 by substituting “pentane” for “butane” in all cases.
§ 1090.1840   Additional procedures related to compliance with gasoline average standards.
An auditor must perform the procedures in this section for a gasoline manufacturer that complies with the standards in subpart C of this part using the procedures specified in subpart H of this part.
(a) Annual compliance demonstration review. An auditor must review annual compliance demonstrations as follows:
(1) Obtain the annual compliance reports for sulfur and benzene and associated batch reports submitted under subpart J of this part.
(2)(i) For a gasoline refiner or blending manufacturer, compare the gasoline production volume from the annual compliance report to the inventory reconciliation analysis under § 1090.1810(b) and report any variances.
(ii) For a gasoline importer, compare the gasoline import volume from the annual compliance report to the corresponding volume from the listing of imports under § 1090.1815(b) and report any variances.
(3) For each facility, recalculate the following and report in the attestation report the recalculated values:
(i) Compliance sulfur value, per § 1090.700(a)(1), and compliance benzene value, per § 1090.700(b)(1)(i).
(ii) Unadjusted average sulfur concentration, per § 1090.745(b), and average benzene concentration, per § 1090.700(b)(3).
(iii) Number of credits generated during the compliance period, or number of banked or traded credits needed to meet standards for the compliance period.
(iv) Number of credits from the preceding compliance period that are expired or otherwise no longer available for the compliance period being reviewed.
(v) Net average sulfur concentration, per § 1090.745(c), and net average benzene concentration, per § 1090.745(d).
(4) Compare the recalculated values in paragraph (a)(3) of this section to the reported values in the annual compliance reports and report any exceptions.
(5) Report in the attestation report whether the gasoline manufacturer had a deficit for both the compliance period being reviewed and the preceding compliance period.
(b) Credit transaction review. An auditor must review credit transactions as follows:
(1) Obtain the gasoline manufacturer's credit transaction reports submitted under subpart J of this part and contracts or other information that documents all credit transfers. Also obtain records that support intracompany transfers.
(2) For each reported transaction, compare the supporting documentation with the credit transaction reports for the following elements and report any exceptions:
(i) Compliance period of creation.
(ii) Credit type ( i.e., sulfur or benzene) and number of times traded.
(iii) Quantity.
(iv) The name of the other company participating in the credit transfer.
(v) Transaction type.
(c) Facility-level credit reconciliation. An auditor must perform a facility-level credit reconciliation separately for each gasoline manufacturing facility as follows:
(1) Obtain the credits remaining or the credit deficit from the previous compliance period from the gasoline manufacturer's credit transaction information for the previous compliance period.
(2) Compute and report as a finding the net credits remaining at the end of the compliance period.
(3) Compare the ending balance of credits or credit deficit recalculated in paragraph (c)(2) of this section to the corresponding value from the annual compliance report and report any variances.
(4) For an importer, the procedures of this paragraph (c) apply at the company level.
(d) Company-level credit reconciliation. An auditor must perform a company-level credit reconciliation as follows:
(1) Obtain a credit reconciliation listing company-wide credits aggregated by facility for the compliance period.
(2) Foot and cross-foot the credit quantities.
(3) Compare and report the beginning balance of credits, the ending balance of credits, the associated credit activity at the company level in accordance with the credit reconciliation listing, and the corresponding credit balances and activity submitted under subpart J of this part.
(e) Procedures for gasoline manufacturers that recertify BOB. An auditor must perform the following procedures for a gasoline manufacturer that recertifies a BOB under § 1090.740 and incurs a deficit:
(1) Perform the procedures specified in § 1090.1810(a) to review registration and EPA reports.
(2) Obtain the batch reports for recertified BOB submitted under subpart J of this part.
(3) Select a representative sample of recertified BOB batches from the batch reports.
(4) For each sample, obtain supporting documentation.
(5) Confirm the accuracy of the information reported and report any exceptions.
(6) Recalculate the deficits in accordance with the provisions of § 1090.740 and report any discrepancies.
(7) Confirm that the deficits are included in the annual compliance demonstration calculations and report any exceptions.
§ 1090.1845   Procedures related to meeting performance-based measurement and statistical quality control for test methods.
(a) General provisions. (1) An auditor must conduct the procedures specified in this section for a gasoline manufacturer.
(2) An auditor performing the procedures specified in this section must meet the laboratory experience requirements specified in § 1090.55(b)(2).
(3) In cases where the auditor employs, contracts, or subcontracts an external specialist, all the requirements in § 1090.55 apply to the external specialist. The auditor is responsible for overseeing the work of the specialist, consistent with applicable professional standards specified in § 1090.1800.
(4) In the case of quality control testing at a third-party laboratory, the auditor may perform a single attestation engagement on the third-party laboratory for multiple gasoline manufacturers if the auditor directly reviewed the information from the third-party laboratory. A third-party laboratory may also arrange for an auditor to perform a single attestation engagement on the third-party laboratory and make that available to gasoline manufacturers that have testing performed by the third-party laboratory.
(b) Non-referee method qualification review. For each test method used to measure a parameter for gasoline as specified in a report submitted under subpart J of this part that is not one of the referee procedures listed in § 1090.1360(d), the auditor must review the following:
(1) Obtain supporting documentation showing that the laboratory has qualified the test method by meeting the precision and accuracy criteria specified under § 1090.1365.
(2) Report in the attestation report a list of the alternative methods used.
(3) Confirm that the gasoline manufacturer supplied the supporting documentation for each test method specified in paragraph (b)(1) of this section and report any exceptions.
(4) If an auditor has previously reviewed supporting documentation under this paragraph (b) for an alternative method at the facility, the auditor does not have to review the supporting document again.
(c) Reference installation review. For each reference installation used by the gasoline manufacturer during the compliance period, the auditor must review the following:
(1) Obtain supporting documentation demonstrating that the reference installation followed the qualification procedures specified in § 1090.1370(c)(1) and (2) and the quality control procedures specified in § 1090.1370(c)(3).
(2) Confirm that the facility completed the qualification procedures and report any exceptions.
(d) Instrument control review. For each test instrument used to test gasoline parameters for batches selected as part of a representative sample under § 1090.1810, the auditor must review whether test instruments were in control as follows:
(1) Obtain a listing from the laboratory of the instruments and period when the instruments were used to measure gasoline parameters during the compliance period for batches selected as part of the representative sample under § 1090.1810.
(2) Obtain statistical quality assurance data and control charts demonstrating ongoing quality testing to meet the accuracy and precision requirements specified in § 1090.1375 or 40 CFR 80.47, as applicable.
(3) Confirm that the facility performed statistical quality assurance monitoring of its instruments under § 1090.1375 and report any exceptions.
(4) Report as a finding in the attestation report the instrument lists obtained under paragraph (d)(1) of this section and the compliance period when the instrument control review was completed.
§ 1090.1850   Procedures related to in-line blending waivers.
In addition to any other procedure required under this subpart, an auditor must perform the procedures specified in this section for a gasoline manufacturer that relies on an in-line blending waiver under § 1090.1315.
(a) Obtain a copy of the gasoline manufacturer's in-line blending waiver submission and EPA's approval letter.
(b) Confirm that the sampling procedures and composite calculations conform to specifications as specified in § 1090.1315(a)(2).
(c) Review the gasoline manufacturer's procedure for defining a batch for compliance purposes. Review available test data demonstrating that the test results from in-line blending correctly characterize the fuel parameters for the designated batch.
(d) Confirm that the gasoline manufacturer corrected their operations because of previous audits, if applicable.
(e) Confirm that the equipment and procedures are not materially changed from the gasoline manufacturer's in-line blending waiver. In cases of material change in equipment or procedure, confirm that the gasoline manufacturer updated their in-line blending waiver and report any exceptions.
(f) Perform any additional procedures unique to the blending operation, as specified in the in-line blending waiver, and report any findings, variances, or exceptions, as applicable.
(g) Confirm that the gasoline manufacturer has complied with all provisions related to their in-line blending waiver and report any exceptions.