(a) Audit standards for first point of aggregation. Each audit for a first point of aggregation must meet the following standards.

(1) First points of aggregation must hire a third-party verifier to conduct an audit annually;

(2) An audit, conducted by a third-party verifier, must verify that the first point of aggregation:

(i) Operates a mass balance system as specified in § 2100.034; and

(ii) Correctly recorded the CI associated with reduced-CI crops delivered from each farm; and

(3) The first point of aggregation must include supplying farms in its audit scope. The first point of aggregation and third-party verifier must adhere to the following standards when selecting the audit sample.

(i) The first point of aggregation must provide farm producer information to enable the third-party verifier to select a sample of supplying farms for verification. Farm producer information must include the total number of farms supplying reduced-CI crops, geographic location of each farm, type and amount of crop supplied by each farm, and CI associated with the crop from each farm;

(ii) The third-party verifier will determine the total number of farms to be included in the audit sample. The third-party verifier must determine the minimum size of the farm audit sample by taking the square root, rounded up to the nearest whole number, of the total number of farms supplying the first aggregation point with reduced-CI crops; and

(iii) The third-party verifier must select the individual farms to be included in the sample for verification. The third-party verifier should select the sample in a way that is representative of supplying farms' characteristics including types of supplied reduced-CI crop, size of farm, geographic location, and risk of non-conformity or fraud. If an audit occurs at the same first aggregation point in subsequent years, the sample of farms should avoid selecting those audited in prior years.

(b) Audit standards for farms. Each audit for a farm must meet the following standards.

(1) Farms that supply reduced-CI crops to a first point of aggregation may be selected for an audit by the first point of aggregation's third-party verifier;

(2) If the farm is selected as part of the audit sample as the first point of aggregation, the farm may be considered for exemption from an additional audit when an audit was previously completed for the applicable year. Farm producers can elect to proactively retain an accredited third-party verifier to complete an audit at their farm per the standards of paragraph (b)(3) of this section. To be considered for exemption from an additional audit, the farm producer must provide results of the completed audit. It is up to the discretion of the third-party verifier to determine whether the farm is exempt from an additional audit or if a full or partial audit is necessary; and

(3) For farms that are audited individually or included in an audit sample:

(i) The third-party verifier must verify that CSA practices and practice recordkeeping is in accordance with the standards in subpart F of this part;

(ii) The third-party verifier must verify that the weighted average CI for each crop is calculated correctly in accordance with subpart C; and

(iii) Records from relevant sub-contractors or service providers must be made available during the farm audit at the request of the third-party verifier if necessary to audit practice standards.

(c) Audit standards for intermediary entities. Each audit for an intermediary entity must meet the following standards.

(1) Intermediary entities must hire a third-party verifier to conduct an audit annually; and

(2) An audit, conducted by a third-party verifier, must verify that the intermediary entity:

(i) Operates a mass balance system as specified in § 2100.034; and

(ii) Correctly recorded the CI associated with reduced-CI crops or reduced-CI processed product delivered to the intermediary entity.

(d) Additional audit standards for entities that process, sell, or purchase reduced-CI processed product. Each audit for a first point of aggregation or intermediary entity that processes, sells, or purchases reduced-CI processed products must meet the following standards.

(1) For entities that process, sell, or purchase reduced-CI processed products, an audit, conducted by a third-party verifier, must verify that the entity implemented recordkeeping standards specified in § 2100.033.

(2) [Reserved]

(e) Additional audit standards for entities that process reduced-CI crop. Each audit for a first point of aggregation or intermediary entity that processes reduced-CI processed products must meet the following standards.

(1) For entities that process reduced-CI crop, the third-party verifier must verify that internal records support the calculation and application of the entity's crushing yield used to:

(i) Determine the amount of reduced-CI processed product derived from the amount of inputs; and

(ii) Perform the mass balance calculation.

(2) [Reserved]

(f) Audit standards for biofuel refiners. Each audit for a biofuel refiner must meet the following standards.

(1) Biofuel refiners must hire a third-party verifier to conduct an audit annually; and

(2) An audit, conducted by a third-party verifier, must verify that the biofuel refiner:

(i) Operates a system to correctly record the CI associated with reduced-CI crop or reduced-CI processed product as specified in § 2100.035(c); and

(ii) Followed the standards in paragraph (a) of this section, if the biofuel refiner acted as a first point of aggregation for any reduced-CI crop.

Third-party verifiers that conduct audits in accordance with this part must be accredited to ISO 14065: General principles and requirements for bodies validating and verifying environmental information by a member of the International Accreditation Forum.