Cal. Code Regs. Tit. 17, § 95132 - Accreditation Requirements for Verification Bodies, Lead Verifiers, and Verifiers of Emissions Data Reports and Offset Project Data Reports

(a) The accreditation requirements specified in this subarticle shall apply to all verification bodies, lead verifiers, and verifiers that wish to provide verification services under this article and under the cap-and-trade regulation.

(b) The Executive Officer may issue accreditation to verification bodies, lead verifiers, and verifiers that meet the requirements specified in this section.

(1) Verification Body Accreditation Application. To apply for accreditation as a verification body, the applicant shall submit the following information to the Executive Officer:

(A) A list of all verification staff and a description of their duties and qualifications, including ARB accredited verifiers on staff. The applicant shall demonstrate staff qualifications by listing each individual's education, experience, professional licenses, and other pertinent information.

1. A verification body shall employ and retain at least two verifiers that have been accredited as lead verifiers, as specified in section 95132(b)(2);

2. A verification body shall employ and retain at least five total full-time staff.

(B) The applicant shall provide a list of any judicial proceedings, enforcement actions, or administrative actions filed against the body within the previous 5 years, with an explanation as to the nature of the proceedings.

(C) The applicant shall provide documentation that the proposed verification body maintains a minimum of four million U.S. dollars of professional liability insurance and must maintain this insurance for three years after completing verification services. Neither general nor umbrella liability policies can be used for the professional liability insurance minimum for the purposes of this provision.

(D) The applicant shall provide a demonstration that the body has policies and mechanisms in place to prevent conflicts of interest and to identify and resolve potential conflict of interest situations if they arise. The applicant shall provide the following information:

1. Identification of services provided by the verification body, the industries that the body serves, and the locations where those services are provided;

2. A detailed organizational chart that includes the verification body, its management structure, and any related entities;

3. The verification body's internal conflict of interest policy that identifies activities and limits to monetary or non-monetary gifts that apply to all employees and procedures to monitor, assess, and notify ARB of potential conflicts of interest.

(E) The applicant shall provide a demonstration that the body has procedures or policies to support staff technical training as it relates to verification. This training shall include participating in ARB verifier training on an ongoing basis.

(F) The verification body shall notify ARB within 30 days of when it no longer meets the requirements for accreditation as a verification body in section 95132(b)(1). The verification body may request that the Executive Officer provide additional time to hire additional staff to meet the requirements of this section.

(G) If the applicant is a California air pollution control district or air quality management district, the requirements of section 95132(b)(1)(A)(2) and 95132(b)(1)(B)-(D) do not apply, except that the applicant shall provide a demonstration that the district has policies and mechanisms in place to prevent conflicts of interest and resolve potential conflict of interest situations if they arise.

(2) Lead Verifier Accreditation Application. To apply for accreditation as a lead verifier, the applicant shall submit documentation to the Executive Officer that provides the evidence specified in section 95132(b)(2)(A), and section 95132(b)(2)(B), or (C):

(A) Evidence that the applicant meets the criteria in 95132(b)(3); and,

(B) Evidence that the applicant has been an ARB accredited verifier for two continuous years and has worked as a verifier in at least three completed verifications under the supervision of an ARB accredited lead verifier, with evidence of favorable assessment by ARB for services performed; or,

(C) Evidence that the applicant has worked as a project manager or lead person for not less than four years, of which two may be graduate level work:

1. In the development of GHG or other air emissions inventories; or,

2. As a lead environmental data or financial auditor.

(3) Verifier Accreditation Application. To apply for accreditation as a verifier, the applicant shall submit the following documentation to the Executive Officer:

(A) Evidence demonstrating the minimum education background required to act as a verifier for ARB. Minimum education background means that the applicant has either:

1. A bachelors level college degree or equivalent in science, technology, business, statistics, mathematics, environmental policy, economics, or financial auditing; or

2. Evidence demonstrating the completion of significant and relevant work experience or other personal development activities that have provided the applicant with the communication, technical and analytical skills necessary to conduct verification.

(B) Evidence demonstrating sufficient workplace experience to act as a verifier, including evidence that the applicant has a minimum of two years of full-time work experience in a professional role involved in emissions data management, emissions technology, emissions inventories, environmental auditing, or other technical skills necessary to conduct verification.

(4) The applicant must take an ARB approved general verification training and receive a passing score of greater than an unweighted 70 percent on an exit examination. If the applicant does not pass the exam after the training, they may retake the exam a second time. Only one retake of the examination is allowed before the applicant is required to retake the ARB approved general verification training course. Training under the previous version of the regulation does not qualify an applicant to retake an exam under this version without first taking the training for this revised regulation.

(5) Sector Specific and Offset Project Specific Verifiers.

(A) Sector Specific Verifier. The applicant seeking to be accredited as a sector specific verifier as specified in section 95131(a)(2) must, in addition to meeting the requirements for accredited lead verifier or verifier qualification, have at least two years of professional experience related to the sector in which they are seeking accreditation, take ARB sector specific verification training and receive a passing score of greater than an unweighted 70 percent on an exit examination. If the applicant does not pass the exam after the training, they may retake the exam a second time. Only one retake of the examination is allowed before the applicant is required to retake the ARB approved sector specific verification training.

(B) Offset Project Specific Verifier. The applicant seeking to be accredited as an offset project specific verifier as specified in the cap-and-trade regulation must, in addition to meeting the requirements for accredited lead verifier or verifier qualification, meet one of the following requirements:

1. Have at least two years of professional experience related to developing emission inventories, conducting technical analyses, or environmental audits of the offset project type, and take general ARB offset verification training and ARB offset project specific verification training for an offset project type, and receive a passing score of greater than an unweighted 70 percent on an exit examination. If the applicant does not pass the exam after the training, they may retake the exam a second time. Only one retake of the examination is allowed before the applicant is required to retake the applicable ARB-approved offset verification training; or,

2. Be a verifier in good standing for the Climate Action Reserve prior to October 28, 2011, taken Climate Action Reserve project specific verifier training, have performed at least two project verifications for a project type by October 28, 2011, and have taken general ARB offset verification training, and receive a passing score of greater than an unweighted 70 percent on an exit examination. If the applicant does not pass the exam after the training, they may retake the exam a second time. Only one retake of the examination is allowed before the applicant is required to retake the ARB approved general ARB offset verification training and offset project specific verification training.

(6) Nothing in this section shall be construed as preventing the Executive Officer from requesting additional information or documentation from an applicant after receipt of the application for accreditation as a verification body, lead verifier, or verifier, or from seeking additional information from other persons or entities regarding the applicant's fitness for qualification.

(c) ARB Accreditation.

(1) Within 90 days of receiving an application for accreditation as a verification body, lead verifier, verifier, sector specific verifier, or offset project specific verifier, the Executive Officer shall inform the applicant in writing either that the application is complete or that additional specific information is required to make the application complete.

(2) Upon a finding by the Executive Officer that an application for accreditation as a verification body, verifier, lead verifier, sector specific verifier, or offset project specific verifier is complete, meets all applicable regulatory requirements, and passes a performance review as defined in section 95102(a), the prescreening requirement is met and the applicant will be eligible to attend the verification training required by this section.

(3) Within 45 days following completion of the application process and all applicable training and examination requirements, the Executive Officer shall act to withhold accreditation or issue an Executive Order to grant accreditation for the verification body, lead verifier, sector specific verifier, offset project specific verifier or verifier.

(4) The Executive Order for accreditation is valid for a period of three years, whereupon the applicant may re-apply for accreditation as a verifier, lead verifier, sector specific verifier, offset project specific verifier, or verification body if the applicant has not been subject to ARB enforcement action under this article. All ARB approved general, sector specific, or offset project specific verification training and examination requirements applicable at the time of re-application must be met for accreditation to be renewed by the Executive Officer. In addition, the performance review requirement set forth in section 95132(c)(2) must be met for accreditation to be renewed by the Executive Officer.

(5) All verification body requirements in section 95132(b)(1) must be met for the Executive Officer to renew the verification body accreditation.

(6) Within 20 days of being notified of any nonconformance in another voluntary or mandatory GHG program, an ARB accredited verification body, lead verifier, sector specific verifier, offset project specific verifier, or verifier shall provide written notice to the Executive Officer of the corrective action. That notification shall include reasons for the corrective action and the type of corrective action. The verification body or verifier must provide additional information to the Executive Officer upon request.

(d) Modification, Suspension, or Revocation of an Executive Order Approving a Verification Body, Lead Verifier, or Verifier and Voluntary Withdrawal from the Accreditation Program. The Executive Officer may review and, for good cause, including any violation of subarticle 4 of this article or any similar action in an analogous GHG system, modify, suspend, or revoke an Executive Order providing accreditation to a verification body, lead verifier, or verifier. The Executive Officer shall not revoke an Executive Order without affording the verification body, lead verifier, or verifier the opportunity for a hearing in accordance with the procedures specified in title 17, California Code of Regulations, section 60055.1 et seq.

(1) During suspension or revocation proceedings, the verification body, lead verifier, or verifier may not continue to provide verification services.

(2) Within ten days of suspension or revocation of accreditation, a verification body must notify all reporting entities, offset project operators, or authorized project designees for whom it is providing verification services, or has provided verification services within the past 6 months of its suspension or revocation of accreditation.

(3) A reporting entity, offset project operator, or authorized project designee who has been notified by a verification body of a suspended or revoked accreditation must contract with a different verification body for verification services.

(4) An accredited verification body or individual verifier may request to voluntarily withdraw its accreditation by providing a written notice to the Executive Officer requesting such withdrawal.

(e) Subcontracting. The following requirements shall apply to any verification body that elects to subcontract a portion of verification services.

(1) All subcontractors must be accredited by ARB to perform the verification services for which the subcontractor has been engaged by the verification body.

(2) The verification body must assume full responsibility for verification services performed by subcontractor verifiers.

(3) A verification body shall not use subcontractors to meet the minimum staff total or lead verifier requirements as specified in section 95132(b)(1)(A)1. and section 95132(b)(1)(A)2.

(4) A verifier acting as a subcontractor to another verification body shall not further subcontract or outsource verification services for a reporting entity.

(5) A verification body that engages a subcontractor shall be responsible for demonstrating an acceptable level of conflict of interest, as provided in section 95133, between its subcontractor and the reporting entity for which it will provide verification services.

(6) A verification body may not use a subcontractor as the independent reviewer.

Notes

Cal. Code Regs. Tit. 17, § 95132

1. New section filed 12-2-2008; operative 1-1-2009 (Register 2008, No. 49).
2. Amendment of section heading, section and NOTE filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
3. Amendment of subsections (b)(5)(B), (c)(1)-(4) and (c)(7) filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
4. Amendment of subsections (b)(1)(A)2., (b)(1)(C), (b)(1)(F), (b)(5)(B) and (d) and new subsection (d)(4) filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
5. Amendment of subsections (b)(1)(A)1. and (b)(3)(B) filed 12-31-2014; operative 1-1-2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
6. Amendment of subsections (b)(1)(D)3., (b)(2)(C), (b)(2)(C)2., (b)(4), (b)(5)(A), (b)(5)(B)1.-2. and (c)(3), repealer of subsections (c)(6) and (c)(8) and amendment of newly designated subsection (c)(7) and subsections (d)(2)-(3) filed 9-1-2017; operative 1-1-2018 (Register 2017, No. 35).

Note: Authority cited: Sections 38510, 38530, 39600, 39601, 39607, 39607.4 and 41511, Health and Safety Code. Reference: Sections 38530, 39600 and 41511, Health and Safety Code.

1. New section filed 12-2-2008; operative 1-1-2009 (Register 2008, No. 49).
2. Amendment of section heading, section and Note filed 12-14-2011; operative 1-1-2012 pursuant to Government Code section 11343.4 (Register 2011, No. 50).
3. Amendment of subsections (b)(5)(B), (c)(1)-(4) and (c)(7) filed 12-19-2012; operative 1-1-2013 pursuant to Government Code section 11343.4 (Register 2012, No. 51).
4. Amendment of subsections (b)(1)(A)2., (b)(1)(C), (b)(1)(F), (b)(5)(B) and (d) and new subsection (d)(4) filed 12-31-2013; operative 1-1-2014 pursuant to Government Code section 11343.4(b)(3) (Register 2014, No. 1).
5. Amendment of subsections (b)(1)(A)1. and (b)(3)(B) filed 12-31-2014; operative 1/1/2015 pursuant to Government Code section 11343.4(b)(3) (Register 2015, No. 1).
6. Amendment of subsections (b)(1)(D)3., (b)(2)(C), (b)(2)(C)2., (b)(4), (b)(5)(A), (b)(5)(B)1.-2. and (c)(3), repealer of subsections (c)(6) and (c)(8) and amendment of newly designated subsection (c)(7) and subsections (d)(2)-(3) filed 9-1-2017; operative 1/1/2018 (Register 2017, No. 35).