Title 40
SECTION 80.1356
80.1356 What are the attest engagement requirements for gasoline benzene compliance
§ 80.1356 What are the attest engagement requirements for gasoline benzene compliance?In addition to the requirements for attest engagements that apply to refiners and importers under §§ 80.125 through 80.130, 80.410, and 80.1030, the attest engagements for refiners and importers must include the following:
(a) EPA Early Credit Generation Baseline Years' Reports. (1) Obtain and read a copy of the refinery's or importer's annual reports and batch reports filed with EPA for 2004 and 2005 that contain gasoline benzene and gasoline volume information.
(2) Agree the yearly volumes of gasoline and benzene concentration, in volume percent and benzene gallons, reported to EPA in the reports specified in paragraph (a)(1) of this section with the inventory reconciliation analysis under § 80.128.
(3) Verify that the information in the refinery's or importer's batch reports filed with EPA under §§ 80.75 and 80.105, and any laboratory test results, agree with the information contained in the reports specified in paragraph (a)(1) of this section.
(4) Calculate the average benzene concentration for all of the refinery's or importer's gasoline volume over 2004 and 2005 and verify that those values agree with the values reported to EPA per § 80.1285.
(b) Baseline for Early Credit Generation. Take the following steps for the first attest reporting period following approval of a benzene baseline:
(1) Obtain the EPA benzene baseline approval letter for the refinery to determine the refinery's applicable benzene baseline under § 80.1285.
(2) Obtain a written statement from the company representative identifying the benzene value used as the refinery's baseline and agree that number to paragraph (b)(1) of this section and to the reports to EPA.
(c) Early Credit Generation. The following procedures shall be completed for a refinery or importer that generates early benzene credits per § 80.1275:
(1) Obtain the baseline benzene concentration and gasoline volume from paragraph (a)(4) of this section.
(2) Obtain the annual benzene report per § 80.1354.
(3) If the benzene value under paragraph (c)(2) of this section is at least 10 percent less than the value in paragraph (c)(1) of this section, compute and report as a finding the difference according to § 80.1275.
(4) Compute and report as a finding the total number of benzene credits generated by multiplying the value calculated in paragraph (c)(3) of this section by the volume of gasoline listed in the report specified in paragraph (c)(2) of this section, and agree this number with the number reported to EPA.
(d) Standard Credit Generation. The following procedures shall be completed for a refinery or importer that generates benzene credits per § 80.1290:
(1) Obtain the annual average benzene value from the annual benzene report per § 80.1285.
(2) If the annual average benzene value under paragraph (d)(1) of this section is less than 0.62 percent by volume, compute and report as a finding the difference according to § 80.1290.
(3) Compute and report as a finding the total number of benzene credits generated by multiplying the value calculated in paragraph (d)(2) of this section by the volume of gasoline listed in the report specified in paragraph (d)(1) of this section, and agree this number with the number reported to EPA.
(e) Credits Required. The following attest procedures shall be completed for refineries and importers:
(1) Obtain the annual average benzene concentration and volume from the annual benzene report per § 80.1285.
(2) If the value in paragraph (e)(1) of this section is greater than 0.62 percent by volume, compute and report as a finding the difference between 0.62 percent by volume and the value in paragraph (e)(1) of this section.
(3) Compute and report as a finding the total benzene credits required by multiplying the value in paragraph (e)(2) of this section times the volume of gasoline in paragraph (e)(1) of this section, and agree this number with the report to EPA.
(4) Obtain a statement from the refiner or importer as to the portion of the deficit under paragraph (e)(3) of this section that was resolved with credits, or that was carried forward as a deficit under § 80.1230(b), and agree these figures with the report to EPA.
(f) Credit Purchases and Sales. The following attest procedures shall be completed for a refinery or importer that is a transferor or transferee of credits during an averaging period:
(1) Obtain contracts or other documents for all credits transferred to another refinery or importer during the year being reviewed; compute and report as a finding the number and year of creation of credits represented in these documents as being transferred; and agree these figures with the report to EPA.
(2) Obtain contracts or other documents for all credits received during the year being reviewed; compute and report as a finding the number and year of creation of credits represented in these documents as being received; and agree with the report to EPA.
(g) Credit Reconciliation. The following attest procedures shall be completed each year credits were in the refiner's or importer's possession at any time during the year:
(1) Obtain the credits remaining or the credit deficit from the previous year from the refiner's or importer's report to EPA for the previous year.
(2) Compute and report as a finding the net credits remaining at the conclusion of the year being reviewed by totaling credits as follows:
(i) Credits remaining from the previous year; plus
(ii) Credits generated under paragraphs (c) and (d) of this section; plus
(iii) Credits purchased under paragraph (f) of this section; minus
(iv) Credits sold under paragraph (f) of this section; minus
(v) Credits used under paragraphs (e) of this section; minus
(vi) Credits expired; minus
(vii) Credit deficit from the previous year.
(3) Agree the credits remaining or the credit deficit at the conclusion of the year being reviewed with the report to EPA.
(4) If the refinery or importer had a credit deficit for both the previous year and the year being reviewed, report this fact as a finding.