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.