§ 145.396. Accreditation of independent verifiers.
(a) Standards for accreditation. An independent verifier may be accredited by the Department to provide verification services as required of a project sponsor under this subchapter, provided that an independent verifier meets all the requirements of this section.
(1) Verifier minimum requirements. Each accredited independent verifier shall demonstrate knowledge of the following:
(i) Utilizing engineering principles.
(ii) Quantifying greenhouse gas emissions.
(iii) Developing and evaluating air emissions inventories.
(iv) Auditing and accounting principles.
(v) Information management systems.
(vi) The requirements of this subchapter.
(vii) Such other qualifications as may be required by the Department to provide competent verification services as required for individual offset categories under § 145.395 (relating to CO2 emissions offset project standards).
(2) Organizational qualifications. An accredited independent verifier shall demonstrate that they meet the following:
(i) No direct or indirect financial relationship, beyond a contract for provision of verification services, with any offset project developer or project sponsor.
(ii) Employ staff with professional licenses, knowledge and experience appropriate to the specific category of offset projects under § 145.395 that they seek to verify.
(iii) Hold a minimum of $1 million of professional liability insurance. If the insurance is in the name of a related entity, the verifier shall disclose the financial relationship between the verifier and the related entity, and provide documentation supporting the description of the relationship.
(iv) Implementation of an adequate management protocol to identify potential conflicts of interest with regard to an offset project, offset project developer or project sponsor, or any other party with a direct or indirect financial interest in an offset project that is seeking or has been granted approval of a consistency application under § 145.394(e) (relating to application process), and remedy any conflicts of interest prior to providing verification services.
(3) Pre-qualification of verifiers. The Department may require prospective verifiers to successfully complete a training course, workshop or test developed by the Department or its agent, prior to submitting an application for accreditation.
(b) Application for accreditation. An application for accreditation shall not contain any proprietary information and shall include the following:
(1) The applicant’s name, address, e-mail address, telephone number and facsimile transmission number.
(2) Documentation that the applicant has at least 2 years of experience in each of the knowledge areas specified at subsection (a)(1)(i)—(v), and as may be required under subsection (a)(1)(vii).
(3) Documentation that the applicant has successfully completed the requirements at subsection (a)(3), as applicable.
(4) A sample of at least one work product that provides supporting evidence that the applicant meets the requirements at subsection (a)(1) and (2). The work product shall have been produced, in whole or part, by the applicant and shall consist of a final report or other material provided to a client under contract in previous work. For a work product that was jointly produced by the applicant and another entity, the role of the applicant in the work product shall be clearly explained.
(5) Documentation that the applicant holds professional liability insurance as required under subsection (a)(2)(iii).
(6) Documentation that the applicant has implemented an adequate management protocol to address and remedy any conflict of interest issues that may arise, as required under subsection (a)(2)(iv).
(c) Department action on applications for accreditation. The Department will approve or deny a complete application for accreditation within 45 days after submission. Upon approval of an application for accreditation, the independent verifier shall be accredited for a period of 3 years from the date of application approval.
(d) Reciprocity. Independent verifiers accredited in other participating states may be deemed to be accredited in this Commonwealth, at the discretion of the Department.
(e) Conduct of an accredited verifier.
(1) Prior to engaging in verification services for an offset project sponsor, the accredited verifier shall disclose all relevant information to the Department to allow for an evaluation of potential conflict of interest with respect to an offset project, offset project developer or project sponsor. The accredited verifier shall disclose information concerning its ownership, past and current clients, related entities, as well as any other facts or circumstances that have the potential to create a conflict of interest.
(2) An accredited verifier shall have an ongoing obligation to disclose to the Department any facts or circumstances that may give rise to a conflict of interest with respect to an offset project, offset project developer or project sponsor.
(3) The Department may reject a verification report and certification statement from an accredited verifier, submitted as part of a consistency application required under § 145.394(b) or submitted as part of a monitoring and verification report submitted under § 145.397(b) (relating to award and recordation of CO2 offset allowances), if the Department determines that the accredited verifier has a conflict of interest related to the offset project, offset project developer or project sponsor.
(4) The Department may revoke the accreditation of a verifier at any time for the following:
(i) Failure to fully disclose any issues that may lead to a conflict of interest situation with respect to an offset project, offset project developer or project sponsor.
(ii) The verifier is no longer qualified due to changes in staffing or other criteria.
(iii) Negligence or neglect of responsibilities pursuant to the requirements of this subchapter.
(iv) Intentional misrepresentation of data or other intentional fraud.
Cross References This section cited in 25 Pa. Code § 145.302 (relating to definitions); 25 Pa. Code § 145.391 (relating to purpose); 25 Pa. Code § 145.392 (relating to definitions); 25 Pa. Code § 145.393 (relating to general requirements); 25 Pa. Code § 145.394 (relating to application process); 25 Pa. Code § 145.395 (relating to CO2 emissions offset project standards); and 25 Pa. Code § 145.397 (relating to award and recordation of CO2 offset allowances).
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