(a) The total amount of reduced-CI crop and associated CI must be maintained and tracked from the farm to the biofuel refiner using records and mass balance accounting.

(b) Crops with different CIs can be physically mixed at any entity along the supply-chain.

(c) Processed products derived from crops (for example, seed oils) can be produced using crops with different CIs.

(d) All entities specified in § 2100.010 must maintain required documentation for 5 years from when reduced-CI crops or processed products are sold, including documentation of previous verification activities and audits conducted as required by this part. Documentation must be readily available to accredited third-party verifiers and provided upon request during an audit.

(a) Farm producers must keep records demonstrating implementation of the CSA practices used in calculation of a CI.

(1) For reduced till or no-till, see § 2100.051(c), titled Tillage management recordkeeping standards.

(2) For cover crops, see § 2100.052(b), titled Cover crop recordkeeping standards.

(3) For nutrient management, see § 2100.053(g), titled Nutrient management recordkeeping standards.

(b) Farm producers must keep records demonstrating all sales of crop as a reduced-CI crop. These records must indicate the total amount sold, the purchasing entity, and the date of the transaction.

(c) For each crop that is sold as a reduced-CI crop, farm producers must prepare and maintain a Biofuel Feedstock Report. Farm producers must provide the Biofuel Feedstock Report to any entity purchasing reduced-CI crop. The Biofuel Feedstock Report must:

(1) State the farm name, farm producer name, and farm location (county and state);

(2) Demonstrate the quantification of the farm-level crop-specific CI, including:

(i) Documentation of USDA FD-CIC calculation for each field or management unit (for example, screenshots or printouts from the USDA FD-CIC excel tool, or similar documentation showing USDA FD-CIC inputs and outputs including CI for each field or management unit) including a unique identifier for each field or management unit; and

(ii) Calculation of the farm-level crop-specific CI for each crop; and

(3) Include a Farm Producer Attestation declaring that the farm producer:

(i) Has operational control over all fields using CSA practices and has decision-making authority to manage fields as specified for practice standards in subpart F of this part;

(ii) Implemented CSA practice(s) that were used in calculation of the CI according to the implementation standards in subpart F of this part;

(iii) Calculated the farm-level CI as specified in subpart C of this part;

(iv) Will retain required records for 5 years and make records available upon request to accredited third-party verifier;

(v) Will not double sell greenhouse gas benefits resulting from CSA practice(s) that are used in calculation of the CI (that is, will not sell the CI information, attributes, or greenhouse gas benefits associated with CSA crops in more than one market);

(vi) When implementing no-till, will continue no-till for a minimum of four out of every five years; and

(vii) Did not convert the land used to produce CSA biofuel feedstock crops into crop production after the date that this rule was published.

(a) The first point of aggregation and intermediary entities must establish and maintain a reporting system to ensure a clear link between reduced-CI crops and documentation at all times. The first point of aggregation and intermediary entities must have a documented system in place to prevent the double sale of crops associated with a CI. At minimum, the entity must keep:

(1) Records of incoming and outgoing reduced-CI crop, including:

(i) the total amount of reduced-CI crop purchased, sold, or both;

(ii) the entity from and to which the crop was purchased, sold, or both;

(iii) the associated CI; and

(iv) the date of the transaction;

(2) List of and contracts with all suppliers and recipients of reduced-CI crop; and

(3) List of and contracts with subcontractors and service providers who have a direct role in data management, accounting, processing, or other activities that involve the receipt, storage, sale, or tracking of reduced-CI crop.

(b) In addition to the standards in paragraph (a) of this chapter, the first point of aggregation and intermediary entities must maintain some documentation from the previous entity in the supply chain:

(1) The first point of aggregation must maintain the Biofuel Feedstock Report from each farm supplying reduced-CI crops; and

(2) Intermediary entities must maintain documentation showing that entities supplying reduced-CI crops or reduced-CI processed products received accredited third-party verification under this part.

(c) When a first point of aggregation or intermediary entity sells reduced-CI crops or reduced-CI processed products, the entity must provide the following documentation to the purchasing entity:

(1) documentation that the selling entity received third-party verification in accordance with this part;

(2) total amount of reduced-CI crop or reduced-CI processed product sold; and

(3) CI(s) associated with the amount of reduced-CI crop or reduced-CI processed product sold.

(a) Any entity that processes product using reduced-CI crops is subject to additional recordkeeping standards. Processing includes extracting oil from seed oil crops (for example, soybeans). Entities that process reduced-CI crops must:

(1) Keep records on processing of reduced-CI crops, including the entity's crushing yield, the amount of reduced-CI crop used in processing, and the corresponding amount of reduced-CI processed product; and

(2) Demonstrate calculation of the amount of reduced-CI processed product corresponding to the amount of reduced-CI crop, using the entity specific crushing yield and the following equation:

reduced CI processed product = crushing yield × reduced CI crop

(b) Any entity that sells or purchases reduced-CI processed product must keep records demonstrating:

(1) The amount of reduced-CI crop used as an input for reduced-CI processed product sold or purchased;

(2) The CI associated with reduced-CI crop used as an input for reduced-CI processed product sold or purchased; and

(3) The amount of reduced-CI processed product sold or purchased.

(a) First points of aggregation and intermediary entities must calculate and record the mass balance of incoming and outgoing reduced-CI crops, such that the incoming and outcoming amounts of reduced-CI crops with a specific CI are equal over a defined period of time. If an entity processes, purchases, or sells reduced-CI processed product, the mass balance accounting must document the amount of reduced-CI crop that was used in the reduced-CI processed product.

(b) To complete mass balance calculations, entities must define mass balance time periods such that mass balance time periods are continuous (that is, no gaps between mass balance periods occur). Each mass balance time period may not exceed three months. Entities must document the mass balance time period used for the mass balance calculation.

(c) Entities must provide documentation of the mass balance calculation for each time period to the third-party verifier during audits.

(d) For any given CI, records must indicate that incoming and outgoing crops and processed products are balanced according to the equation:

incoming feedstocki,c,m + beginning stored feedstocki,c,m = outgoing feedstocki,c,m + ending stored feedstocki,c,m

(1) Where feedstocks (incoming, stored, and outgoing) for entity i are identified by their carbon intensity, c, and the pre-defined mass balance accounting time period, m.

(i) Incoming feedstocks include those purchased by entity i in time period m.

(ii) Outgoing feedstocks must include both sold and discarded or wasted feedstocks in time period m.

(iii) Stored feedstocks are those maintained by the entity during time period m and must be accounted for in the mass balance accounting.

(iv) If reduced-CI crops or processed product is remaining at the end of a mass balance time period m, it is accounted for as ending stored feedstock for that time period and as beginning stored feedstock for the subsequent time period.

(2) To ensure that the mass balance accounting for entity i appropriately accounts for different forms of reduced-CI processed products (that is, oils), the entity's crushing yield must be used to convert reduced-CI processed products back to their crop volume or weight equivalents using the following equation:

processed feedstock crop equivalent = (processed feedstock)/(crushing yield)

(a) For reduced-CI crop that a biofuel refiner sources directly from a farm, the biofuel refiner is acting as a first point of aggregation and must follow the standards in § 2100.032.

(b) For reduced-CI crops and reduced-CI processed products that are sourced from a first point of aggregation or intermediary entity, a biofuel refiner must keep:

(1) Records of incoming reduced-CI crops or reduced-CI processed products, which, at a minimum this includes records of incoming reduced-CI crop or reduced-CI processed products, including the total amount of reduced-CI crop or reduced-CI processed product purchased, the entity from which the crop or processed product was purchased, the associated CI, and the date of the transaction; and

(2) Documentation that the entity supplying reduced-CI crop or reduced-CI processed product has undergone third-party verification by an accredited third-party verifier and met the standards of this part.

(c) For all reduced-CI crops, a biofuel refiner must establish a system to track all incoming reduced-CI crops and the associated CI.