(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.

(3) A gasoline manufacturer that transacts sulfur or benzene credits under this part.

(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, the AICPA Statement on Quality Management Standards (SQMS) No. 1, No. 2, and No. 3 (all incorporated by reference, see § 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 Statement on Standards for Attestation Engagements (SSAE) No. 19, Agreed-Upon Procedures Engagements, especially as noted in sections AT-C 105, 215, and 315 (incorporated by reference, see § 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 an attestation engagement report identifying the applicable procedures specified in this subpart along with the auditor's corresponding findings for each procedure. The auditor must submit the attestation engagement 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.

(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:

(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 engagement 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.

An auditor must perform the procedures specified in this section for a gasoline manufacturer that produces gasoline in the United States.

(a) Registration and reports. An auditor must review registration and 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 by the gasoline manufacturer 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 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 the name of any commercial computer program used to track any data required under this part.

(b) Inventory reconciliation analysis. An auditor must review an inventory reconciliation analysis as follows:

(1) Obtain an inventory reconciliation analysis from the gasoline manufacturer for each gasoline type produced at each facility (e.g., RFG, CG, RBOB, CBOB), including the inventory at the beginning and end of the compliance period and inventory records (e.g., receipts, production volumes, shipments, transfers, and gain/loss).

(2) Foot and cross-foot the volumes by gasoline type.

(3) Compare the beginning and ending inventory to the inventory records for each gasoline type and report any variances.

(4) Report the total volume of each gasoline type.

(c) Listing of gasoline tenders. An auditor must review a listing of gasoline tenders as follows:

(1) Obtain a detailed listing of gasoline tenders from the gasoline manufacturer, by gasoline type.

(2) Foot the tender volumes by gasoline type.

(3) Compare the total volume from the tenders to the inventory reconciliation analysis obtained under paragraph (b) of this section for each gasoline type and report any variances.

(d) Listing of gasoline batches. An auditor must review a listing of gasoline batches as follows:

(1) Obtain the gasoline batch reports submitted by the gasoline manufacturer under subpart J of this part.

(2) Foot the batch volumes by gasoline type.

(3) Compare the total volume from the batch reports to the inventory reconciliation analysis obtained under paragraph (b) of this section for each gasoline type and report any variances.

(4) Report as a finding any batch with a reported value that does 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 of BOB tenders from the listing of tenders obtained under paragraph (c) of this section.

(2) Obtain the associated PTD for each selected tender.

(3) Using a unique identifier, confirm that the correct PTDs are obtained for the selected tenders.

(4) Compare the volume on the listing for each selected tender to the associated PTD and report any exceptions.

(5) Confirm that the PTD associated with each selected tender contains all the applicable language required 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 of BOB batches from the batch reports obtained under paragraph (d) of this section.

(2) Obtain the volume documentation and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume documentation and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(6) Determine each oxygenate type and amount that was required for blending with each selected batch.

(7) Confirm that each oxygenate type and amount included in the BOB hand blend agrees with the gasoline manufacturer's blending instructions for each selected batch and report any exceptions.

(8) Confirm that the gasoline manufacturer participates in the NFSP under § 1090.1405, if applicable.

(9)(i) 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).

(ii) 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 of finished gasoline tenders from the listing of tenders obtained under paragraph (c) of this section.

(2) Obtain the associated PTD for each selected tender.

(3) Using a unique identifier, confirm that the correct PTDs are obtained for the selected tenders.

(4) Compare the volume on the listing for each selected tender to the associated PTD and report any exceptions.

(5) Confirm that the PTD associated with each selected tender contains all the applicable language required 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 obtained under paragraph (d) of this section.

(2) Obtain the volume documentation and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume documentation and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(6)(i) 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).

(ii) 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 obtained under paragraph (d) of this section.

(2) Obtain the volume documentation and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume documentation and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(6) 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.

An auditor must perform the procedures specified in this section for a gasoline importer.

(a) Registration and reports. An auditor must review registration and reports for the importer as specified in § 1090.1810(a).

(b) Listing of gasoline imports. An auditor must review a listing of gasoline imports as follows:

(1) Obtain a detailed listing of gasoline imports from the importer, by gasoline type.

(2) Foot the import volumes from the importer by gasoline type.

(3) Obtain a detailed listing of gasoline imports directly from the third-party customs broker, by gasoline type.

(4) Foot the import volumes from the third-party customs broker by gasoline type.

(5) Compare the total volume from the listing of imports supplied by the importer to the listing of imports supplied by the third-party customs broker for each gasoline type and report any variances.

(6) Report the total imported volume of each gasoline type.

(c) Listing of gasoline batches. An auditor must review a listing of gasoline batches as follows:

(1) Obtain the gasoline batch reports submitted by the importer under subpart J of this part.

(2) Foot the batch volumes by gasoline type.

(3) Compare the total volume from the batch reports to the listing of imports supplied by the importer under paragraph (b) of this section for each gasoline type and report any variances.

(4) Report as a finding any batch with a reported value that does not meet a per-gallon standard 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 applicable quality control requirements specified in § 1090.1375.

(e) Detailed testing of BOB imports. An auditor must review a detailed listing of BOB imports as follows:

(1) Select a representative sample of BOB imports from the listing of imports supplied by the importer under paragraph (b) of this section.

(2) Obtain the associated U.S. Customs Entry Summary and PTD for each selected import.

(3) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the selected imports.

(4) Compare the volume and location the import arrived in the United States on the listing for each selected import to the associated U.S. Customs Entry Summary and report any exceptions.

(5) Using a unique identifier, confirm that the correct PTDs are obtained for the selected imports.

(6) Compare the volume on the listing for each selected import to the associated PTD and report any exceptions.

(7) Confirm that the PTD associated with each selected import contains all the applicable language required 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 obtained under paragraph (c) of this section.

(2) Obtain the volume inspection report and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume inspection report and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(6) Determine each oxygenate type and amount that was required for blending with each selected batch.

(7) Confirm that each oxygenate type and amount included in the BOB hand blend agrees with the importer's blending instructions for each selected batch and report any exceptions.

(8) 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 of finished gasoline imports from the listing of imports supplied by the importer under paragraph (b) of this section.

(2) Obtain the associated U.S. Customs Entry Summary and PTD for each selected import.

(3) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the selected imports.

(4) Compare the volume and location the import arrived in the United States on the listing for each selected import to the associated U.S. Customs Entry Summary and report any exceptions.

(5) Using a unique identifier, confirm that the correct PTDs are obtained for the selected imports.

(6) Compare the volume on the listing for each selected import to the associated PTD and report any exceptions.

(7) Confirm that the PTD associated with each selected import contains all the applicable language required 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 obtained under paragraph (c) of this section.

(2) Obtain the volume inspection report and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume inspection report and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(i) Additional procedures for 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)(i) Select a representative sample of gasoline batches from the batch reports obtained under paragraph (c) of this section.

(ii) Obtain the tank activity records for each selected batch from the party that supplied the gasoline to the importer.

(iii) Identify the point of sampling and testing associated with each selected batch in the tank activity records.

(iv) Confirm that the sampling and testing for each selected batch occurred after the most recent delivery into the supplier's storage tank and before transferring gasoline 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 sampling and testing meets the requirements in § 1090.1610(a)(2) and report any discrepancies.

(iii)(A) Select a representative sample of gasoline batches from the sampling and testing results.

(B) Obtain the laboratory analysis for each selected batch.

(C) Determine whether the importer analyzed the test sample for each selected batch, and report as a finding any batch where the importer failed to perform the analysis using the methods specified in subpart N of this part.

(D) Obtain and review any terminal test results corresponding to the time of collecting the quality assurance test samples.

(E) Compare the terminal test results to the test results from the quality assurance program. Report as a finding any test result with a difference that is greater than the reproducibility of the applicable method specified in subpart N of this part.

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 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 importer.

(2) Foot the import volumes from the importer.

(3) Obtain a detailed listing of GTAB imports directly from the third-party customs broker.

(4) Foot the import volumes from the third-party customs broker.

(5) Compare the total volume from the listing of imports supplied by the importer to the listing of imports supplied by the third-party customs broker and report any variances.

(6) 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 by the importer under subpart J of this part.

(2) Foot the batch volumes.

(3) Compare the total volume from the batch reports to the listing of imports supplied by the importer under paragraph (a) 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 of GTAB imports from the listing of imports supplied by the importer under paragraph (a) of this section.

(2) Obtain the associated U.S. Customs Entry Summary for each selected import.

(3) Using a unique identifier, confirm that the correct U.S. Customs Entry Summaries are obtained for the selected imports.

(4) Compare the volume and location the import arrived in the United States on the listing for each selected import to the associated 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 of GTAB batches from the batch reports obtained under paragraph (b) of this section.

(2) Obtain the volume inspection report for each selected batch.

(3) Compare the reported volume for each selected 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 total volume from the batch reports obtained under paragraph (b) of this section to the inventory reconciliation analysis obtained under § 1090.1810(b).

(2)(i) Obtain tank activity records that describe the movement of each selected batch under paragraph (d) of this section from importation to gasoline production.

(ii) Identify each selected batch in the tank activity records and trace each selected batch to subsequent reported batches of BOB or finished gasoline and report any exceptions.

(iii) Match the location of the facility where gasoline was produced from each selected batch to the location where each selected batch arrived in the United States, or to the facility directly receiving the selected batch from the import facility.

(iv) Determine the status of the tank(s) before receiving each selected 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 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.

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 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 by the gasoline manufacturer under subpart J of this part.

(2) Foot the batch volumes.

(3) Compare the total volume from the batch reports to the inventory reconciliation analysis obtained under § 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 of PCG batches from the batch reports obtained under paragraph (a) of this section.

(2) Obtain the volume documentation, laboratory analysis, associated PTD, and tank activity records for each selected batch.

(3) Identify each selected batch in the tank activity records and trace each selected batch to subsequent reported batches of BOB or finished gasoline and report any exceptions.

(4) For each selected batch, report as a finding any instance where the reported volume was adjusted from the original receipt volume, such as for exported PCG.

(5) Compare the reported volume for each selected batch to the volume documentation and report any exceptions.

(6) Compare the reported gasoline type for each selected batch to the associated PTD and report any exceptions.

(7) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(8) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

An auditor must perform the procedures specified 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 reports. An auditor must review registration and 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 by the certified butane blender under subpart J of this part, including the batch reports for the certified butane received and blended.

(2) For each butane blending 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 certified butane blender submitted all 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 the name of any commercial computer program used to track any data required under this part.

(b) Inventory reconciliation analysis. An auditor must review an inventory reconciliation analysis 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 inventory reconciliation analysis to the batch reports obtained under paragraph (a) of this section and report any variances.

(5) Compare the total volume of certified butane blended from the inventory reconciliation analysis to the batch reports obtained under paragraph (a) of this section and report any variances.

(6) 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 certified butane receipts for certified butane received at each butane blending facility from the certified butane blender.

(2) Foot the receipt volumes.

(3) Compare the total volume from the receipts to the batch reports obtained under paragraph (a) of this section 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 of certified butane batches from the batch reports obtained under paragraph (a) of this section.

(2) Obtain the volume documentation and laboratory analysis for each selected batch.

(3) Compare the reported volume for each selected batch to the volume documentation and report any exceptions.

(4) Compare the reported properties for each selected batch to the laboratory analysis and report any exceptions.

(5) Compare the reported test methods used for each selected batch to the laboratory analysis and report any exceptions.

(6) Report as a finding any batch with a reported value that does not meet a standard for certified butane in subpart C of this part.

(e) Quality assurance program review. An auditor must review a certified butane blender's quality assurance program as follows:

(1) Obtain a detailed listing of the certified butane blender's quality assurance program sampling and testing results.

(2) Determine whether the frequency of sampling and testing meets the requirements in § 1090.1320(b)(4) and report any discrepancies.

(a) An auditor must perform the procedures specified 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.

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 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 by the gasoline manufacturer under subpart J of this part.

(2)(i) For a gasoline refiner or gasoline blending manufacturer, compare the total volume of gasoline produced at each facility from the annual compliance report to the inventory reconciliation analysis obtained under § 1090.1810(b) and report any variances.

(ii) For a gasoline importer, compare the total volume of gasoline imported from the annual compliance report to the listing of imports supplied by the importer under § 1090.1815(b) and report any variances.

(3) For each facility, recalculate and report the following 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 under paragraph (a)(3) of this section to the reported values in the annual compliance reports and report any exceptions.

(5) 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 credit transaction reports submitted by the gasoline manufacturer 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. Except as specified in paragraph (c)(4) of this section, 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 credit transaction reports obtained under paragraph (b) of this section.

(2) Calculate 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 under paragraph (c)(2) of this section to the corresponding value from the annual compliance report obtained under paragraph (a) of this section 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 by the gasoline manufacturer 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 BOB under § 1090.740 and incurs a deficit:

(1) Perform the procedures specified in § 1090.1810(a) to review the gasoline manufacturer's registration and reports.

(2)(i) Obtain the recertified BOB batch reports submitted by the gasoline manufacturer under subpart J of this part.

(ii) Select a representative sample of recertified BOB batches from the batch reports.

(iii) Obtain supporting documentation (e.g., PTDs, bills of lading, etc.) for each selected batch.

(iv) Compare the information on the batch reports to the supporting documentation and report any exceptions.

(v) Recalculate the deficits in accordance with the provisions of § 1090.740 and report any discrepancies.

(vi) Confirm that the deficits are included in the annual compliance report and report any exceptions.

(a) General provisions. (1) In addition to any other procedure required under this subpart, an auditor must perform the procedures specified in this section for a gasoline manufacturer.

(2) The auditor performing the procedures 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. The third-party laboratory may also arrange for the 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 gasoline parameter 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 alternative test method by meeting the precision and accuracy criteria specified under § 1090.1365.

(2) Report a list of the alternative test methods used.

(3) Confirm that the gasoline manufacturer supplied the supporting documentation for each alternative test method and report any exceptions.

(4) If the auditor has previously reviewed supporting documentation under this paragraph (b) for an alternative test method at the laboratory, the auditor does not have to review the supporting documentation 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 laboratory completed the qualification procedures and report any exceptions.

(d) Instrument control review. For each test instrument used to measure 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 laboratory performed statistical quality assurance monitoring of its instruments under § 1090.1375 and report any exceptions.

(4) Report as a finding any test result that was excluded for being out of control and the laboratory did not have an assignable cause with appropriate supporting justification.

(5) Report as a finding the listing of instruments obtained under paragraph (d)(1) of this section and the compliance period when the instrument control review was completed.

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)(1) Obtain a copy of the gasoline manufacturer's in-line blending waiver submission and EPA's approval letter.

(2) Confirm that the sampling procedures and composite calculations conform to the specifications in § 1090.1315(a)(2).

(3) 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.

(4) Confirm that the gasoline manufacturer corrected their operations because of previous audits, if applicable.

(5) Confirm that the equipment and procedures have 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.

(6) 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.

(7) Confirm that the gasoline manufacturer has complied with all provisions related to their in-line blending waiver and report any exceptions.

(b)(1) Obtain test data, including head, middle, and tail results, for each batch produced under the gasoline manufacturer's in-line blending waiver.

(2) Review the alternative sampling plan to meet requirements to test head, middle, and tail samples for small batches under § 1090.1315(a)(9).

(3) Report as a finding any instance where only a single sample was taken for a small batch involving more than 8 hours of blending or more than 1 million gallons of fuel.

(4) Report as a finding any instance where two samples were unevenly distributed for a small batch or where only two samples were taken for a small batch involving more than 16 hours of blending or up to 2 million gallons of fuel.

(5) Determine and report the percentage of in-line blending batches where the gasoline manufacturer failed to perform the required head, middle, and tail samples due to unforeseen circumstances. Report as a finding if this percentage is greater than 10 percent of in-line blending batches for the calendar year.

(6) Determine and report each instance where a contingency plan for alternative sampling was utilized under § 1090.1315(a)(12).