Oregon Administrative Rules › Chapter 340 - DEPARTMENT OF ENVIRONMENTAL QUALITY › Division 272 - THIRD PARTY VERIFICATION › Section 340-272-0450 - Material Misstatement Assessments for CFP Fuel Pathways and Quarterly Fuel Transactions Submitted under OAR Chapter 340, Division 253

Current through Register Vol. 63, No. 7, July 1, 2024
(1) 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 OAR chapter 340 division
			 253). Material misstatement assessments are not conducted for quarterly
			 review.
(2) Assessments of material
			 misstatement of carbon intensity must meet all the requirements of this
			 section.
(a) Each fuel pathway CI is subject
			 to data checks under OAR 340-272-0430  and must be assessed separately for
			 material misstatement of its carbon intensity. The inputs and annual
			 operational carbon intensity for fuel pathway codes that are not a
			 recertification of a California Fuel Pathway Code(s) but have an active
			 California Fuel Pathway Code(s) must be assessed.
(b) Material misstatement of carbon intensity
			 includes any discrepancy as described in paragraph (A) of this subsection,
			 omission as described in paragraph (B) of this subsection, or misreporting as
			 described in paragraph (C) of this subsection, 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 CFP 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.
(A) Discrepancies include any
			 differences between the reported site-specific CI inputs and the verifier's
			 calculated site-specific CI inputs subject to data checks under OAR
			 340-272-0430.
(B) Omissions include
			 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.
(C) 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.
(c) One or more material misstatements of
			 carbon intensity will result in a finding of material misstatement for the fuel
			 pathway application or report.
(d)
			 A controlled version of the Simplified CI Calculator for Tier 1 pathways, a
			 DEQ-approved OR-GREET for Tier 2 pathways, or another substantially equivalent
			 model approved by DEQ for the specific fuel pathway application under OAR
			 340-253-0400(1), as applicable, must be populated to assess whether a fuel
			 pathway application or report contains a material misstatement of carbon
			 intensity.
(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 included in
			 the final verification report according to OAR 340-272-0495.
Percent error (CI) = ([SIGMA] | Difference in CI | ÷ |
				Reported Operational CI |) × 100%
Relative error threshold (CI) = | Difference in CI | [GREATER
				THAN EQUAL TO] 0.05 × |Reported Operational CI Value|
Absolute error threshold (CI) = | Difference in CI | [GREATER
				THAN EQUAL TO] 2 g CO2e/MJ