3 REFERENCES Confirm Revision # Prior to Audit

Company Name : Location : Auditor : BQ-9000 Marketer Surveillance Audit Checklist Rev 7.1 – 5/30/14 Use with Rev 7.1. Of Marketer Requirements

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1 SCOPE

1.0 Demonstrates the commitment to receive Minor and maintain product that meets ASTM ☐ ☐ D6751. 1.0 Demonstrates procedures for blending Major biodiesel and distributing either B100 B99.9) ☐ ☐ or blends. 1.0 Identifies site or facility covered by the Major scope of the quality program. ☐ ☐

2 TERMS AND DEFINITIONS

2.0 “Shall” and “Should” shall be defined. ☐ ☐ Major 2.1 ASTM ☐ ☐ Minor 2.2 Biodiesel ☐ ☐ Minor 2.3 Blend ☐ ☐ Minor 2.4 External Laboratory ☐ ☐ Minor 2.5 Internal Laboratory ☐ ☐ Minor 2.6 Marketer ☐ ☐ Minor 2.7 Broker ☐ ☐ Minor 2.8 NBAC ☐ ☐ Minor 2.9 Organization ☐ ☐ Minor 2.10 Producer ☐ ☐ Minor 2.11 Quality Manual ☐ ☐ Minor 2.12 Quality Program ☐ ☐ Minor

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3 REFERENCES Confirm Revision # Prior to Audit Normative References 3.1 ASTM D396 Standard Specification for Fuel Note 1, Verify revision on site. Oils ☐ ☐ 3.1 ASTM D975, Standard Spec for Diesel Fuel Note 1, Verify revision on site. Oil ☐ ☐ 3.1 ASTM D1298, Std TM for Density, Relative Note 1, Verify revision on site. Density (Specific Gravity), or API Gravity of ☐ ☐ Crude Petroleum and Liquid Petroleum Products by Hydrometer Method 3.1 ASTM D4052, Standard Test Method for Note 1, Verify revision on site. Density and Relative Density of Liquids by ☐ ☐ Digital Density Meter 3.1 ASTM D4057, Standard Practice for Note 1, Verify revision on site. Manual Sampling of Petroleum and ☐ ☐ Petroleum Products 3.1 ASTM D4176, Standard Test Method for Note 1, Verify revision on site. Free Water and Particulate Contamination ☐ ☐ in Distillate Fuels (Visual Inspection Procedures) 3.1 ASTM D6751, Standard Specification for Note 2, Verify revision on site. Biodiesel Fuel Blend Stock (B100) for ☐ ☐ Middle Distillate Fuels 3.1 ASTM D7371, Standard TM to determine Note 1, Verify revision on site. Biodiesel content in Diesel Fuel Oil using ☐ ☐ Mid Infra-red Spectroscopy 3.1 ASTM D7467, Standard Spec for Diesel Note 1, Verify revision on site. Fuel Oil/Biodiesel Blend (B6 – B20) ☐ ☐ 3.1 Form BQF-1, BQ-9000 External Laboratory Note 1, Verify revision on site. Verification ☐ ☐ Note 1: Not having these documents or having a revision that is two revisions old is a Major nonconformance. Having a revision of this document that is one revision old is a Minor nonconformance. Note 2: Not having this document or having a revision that is two revisions old is a Critical nonconformance. Having a revision of this document that is one revision old is a Major nonconformance.

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Informative References 3.2 ISO 9001:19943 , Quality Management Minor System - requirements ☐ ☐

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4 MARKERTER DOCUMENTATION REQUIREMENTS

4.0 a The quality management system shall Major include documented statements of a quality ☐ ☐ policy. 4.0 b The quality management system shall Major include a quality manual. ☐ ☐ 4.0 c The quality management system shall Major include documented procedures required by ☐ ☐ the program. 4.0 d The quality management system shall have Major records required by this standard. ☐ ☐ 4.0 The organization shall establish and Minor maintain a documented quality system ☐ ☐ containing provisions, which explicitly or by reference include the requirements contained in this document. 4.0 The organization shall implement the Major newest revision of the BQ-9000 Producer ☐ ☐ Program Requirements into their quality management system within 90 days of the effective date of the latest revision. 4.0 The organization shall notify the NBAC Minor when these quality system changes have ☐ ☐ been made when change are due to updates from NBAC. 4.1 The quality program shall be documented in Minor a quality manual. ☐ ☐ 4.2 A quality policy shall be defined and Minor documented which included objectives for ☐ ☐ and a commitment to quality. 4.2 The quality policy shall be related to the Minor business goals of the biodiesel operation and ☐ ☐ the expectations of it’s customers. 4.2 The quality policy shall be invoked Minor throughout the biodiesel operation and ☐ ☐ understood by all levels of personnel. 4.3 Documented QSPs shall be prepared that Minor describe the process to be employed for ☐ ☐

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determining and documenting how operational quality requirements will be met and consistent with the requirements herein. 4.3 Procedures shall make reference to work Minor instructions that define how an activity is ☐ ☐ performed. 4.4 a Verification that the current version of each Minor controlled document is being used or found ☐ ☐ in the quality manual. 4.4 b Verification that all quality system Minor documents are listed in the document status ☐ ☐ form along with their current status. 4.4 c Document Control shall include a Minor distribution list of those in possession of the ☐ ☐ Quality Manuals. 4.4 d Document Control shall include a method Minor for controlling the distribution of new and ☐ ☐ updated sections of your Quality System documents. 4.4 d The method for controlling the distribution Minor of new and updated sections of your Quality ☐ ☐ System documents should include a mechanism to remind the recipients to destroy the copies of the obsolete documents. 4.5 Verification that records are being Major established, are legible and maintained to ☐ ☐ provide evidence of effective implementation, operation, and compliance of the organization’s quality system. 4.5 Verification that records are being retained Minor for at least two years and are being ☐ ☐ maintained in a manner to insure record integrity.

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5 MARKERTER MANAGEMENT RESPONSIBILITY

5.1 A quality management representative Major (QMR) shall be appointed. ☐ ☐ 5.1 QMR should chair quality management Minor review meetings ☐ ☐ 5.1 QMR should ensure that a quality program Major is established and meets the requirements ☐ ☐ 5.1 QMR should report on the performance of Major the quality program. ☐ ☐ 5.1 QMR should ensure that the most recent Major version of the quality documents are made ☐ ☐ available to personnel. 5.2 Organization shall have developed and Major implemented a system for performing ☐ ☐ internal quality audits. 5.2 Organization has held at least one internal Critical audit within the last twelve months. ☐ ☐ 5.2 Each element of the quality system shall be Major audited at a minimum of once per year. ☐ ☐ 5.2 Audits should be performed by persons Minor other than those responsible for the area ☐ ☐ being audited. 5.2 Audit results shall be presented to personnel Major responsible for the audited area. ☐ ☐ 5.2 Cited nonconformities shall be resolved in a Major timely manner as defined in documented ☐ ☐ procedures. 5.2 Audit process, nonconformance reports, Major corrective action plans, and effective ☐ ☐ corrective action shall be included in internal audit records. 5.2 Verification that audit nonconformances, Major corrective actions and verification of ☐ ☐ effectiveness are documented. 5.2 Verification that an internal audit report was Critical generated and distributed to the quality ☐ ☐ management team and to management. 5.3 Organization’s management review Critical meetings shall be held at least once every ☐ ☐ six months

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5.3 Records shall be kept of the management Major review meetings ☐ ☐ 5.3.a Management review meetings should Major include results on internal quality system ☐ ☐ audits 5.3.b Management review meetings should Minor include results on customer feedback ☐ ☐ 5.3.c Management review meetings should Minor include results on process performance & ☐ ☐ product conformity 5.3.d Management review meetings should Minor include results on status of preventive and ☐ ☐ corrective actions 5.3.e Management review meetings should Minor include results on follow-up actions from ☐ ☐ previous management reviews 5.3.f Management review meetings should Minor include results on changes that could affect ☐ ☐ the quality management system 5.3.g Management review meetings should Minor include recommendations for improvement ☐ ☐

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7 PRODUCER LABORATORY ELEMENTS 6.1.a Verify that the Laboratory has copies of the Note 3. Not having these Major current ASTM test methods for the tests ☐ ☐ documents or having a revision being conducted in the laboratory. that is two revisions old is a Major nonconformance. Having a revision that is only one revision old is a Minor nonconformance. 6.1.b Verify that the Laboratory has all the Major required equipment and standards that are ☐ ☐ required for in-house ASTM testing. 6.1.c Verification of calibration records for in- Major house test equipment. ☐ ☐ 6.1.d Verification of training records demonstrating Major personnel were trained to perform in-house ☐ ☐ ASTM testing. 6.1.e At least once every four months, a Major laboratory shall execute a documented ☐ ☐ program to verify that their testing results are accurate 6.1.f Shall determine, collect and monitor Major appropriate data to demonstrate the ☐ ☐ effectiveness of the testing performance 6.1.g Verification that external laboratory testing is Minor identified on test documentation. ☐ ☐ 6.1.h Analytical results shall reference the test Major method specification ☐ ☐ 6.2.1 Internal lab audits shall be included as part Major of the Internal Quality System Audits. ☐ ☐ 6.2.2 Organization’s using external laboratories Major shall receive a completed/signed form BQF- ☐ ☐ 1 with supporting documentation indicating compliance with the requirements 6.2.2 BQF-1 form shall be completed annually by Major the external laboratory and be retained for a ☐ ☐ minimum of two (2) years.

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7 RECIEPT OF PRODUCT 7.0 Verification of records of biodiesel suppliers, Major their BQ-9000 status and the volumes of the ☐ ☐ Biodiesel purchases. 7.0 Verification of purchase records reporting Major the EPA registration number of the supplier. ☐ ☐ 7.0 Verification that samples are collected from Major each biodiesel purchase, are being stored ☐ ☐ safely and retained for a minimum of 60 days. 7.0 Verify that all purchased biodiesel collected Major samples are tested per ASTM D4176 ☐ ☐ (Procedure 2, max value of 2) 7.1 Verification that the COA or other provided Major documentation for biodiesel purchased from ☐ ☐ a BQ-9000 Producer or other Marketer met the D6751 specifications and was directly off loaded into a storage tank. 7.2 Verification that COA or other provided Major documentation for biodiesel purchased from ☐ ☐ a non BQ-9000 supplier was generated from test results by this Marketer’s Lab or by an independent Lab not connected with the biodiesel supplier. 7.3 Verification that biodiesel shipments are Minor commingled only after the requirements of ☐ ☐ 7.1 and 7.2 has been satisfied. 7.3 Verification of reported test results on COAs Minor per the requirement of 7.3 when purchased ☐ ☐ shipments of biodiesel have different cloud points, or oxidation stability or cold soak are commingled. 7.4 Verification that when the BQ-9000 Marketer Minor distributes product from a tank where other ☐ ☐ companies lease space, the position holders in the tank shall purchase product from this tank using the guidelines defined in 7.0 – 7.2. 7.5 Verification that the company is requesting/ Minor receiving/ and recording the data on the ☐ ☐ biodiesel content of D975 diesel fuel that is

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used in further biodiesel/diesel fuel blending.

BQ-9000 Marketer Functioning per the Broker Definition

A BQ-9000 Marketer functioning only per the Broker definition must operate under the following: a) The Broker shall deal only with BQ-9000 Producers or other BQ-9000 Marketers when transferring B100 or B99 product; b) The B99 blending must be performed by the BQ-9000 Producer or Marketer utilizing their loading/blending facilities; c) If the Broker is involved in transferring blends lower than B99, the Broker shall deal only with BQ-9000 Marketers who are responsible for the blending with the BQ-9000 Marketer’s facilities; d) If the Broker is responsible for arranging contract haulers to deliver the biodiesel product, these contracts shall include cleanliness standards for the transports as specified in section 9.4; the Broker is also responsible to arrange with on-site personnel to perform and document the required periodic verification that these transports are meeting the cleanliness standard; e) If cleanliness standards are not included in the hauling contracts or TAS (terminal automation system), the Broker is responsible to arrange with on-site personnel to perform cleanliness inspections prior to loading and document these inspections; f) If the customer is responsible for transport of the biodiesel product, the Broker has no specific responsibility to enforce transport cleanliness standards; g) The Broker may request in writing from their supplier that they retain a representative sample of the shipment that is being transferred. Such retains and records are still an auditable portion of the program.

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8 BIODIESEL STORAGE

8.1 Verify that all B100 storage tanks should be Minor dedicated to biodiesel service ☐ ☐ 8.1 Verification that any tank that was moved Minor into biodiesel service was drained, cleaned ☐ ☐ and inspected before going into biodiesel service 8.1 Verification that required tank inspections Major are being performed and recorded. ☐ ☐ 8.2 Verification that required product testing is Major being performed. ☐ ☐ 8.2 Verification that inspection/test records are Minor being maintained to ensure integrity and are ☐ ☐ retained for 2 years. 8.2 Verification that any product that is tested Major and found out of spec is isolated and ☐ ☐ identified as non-conforming material. 8.3 Product shall not be shipped from the Major storage tank if storage tank has no activity ☐ ☐ for 30 days until an outlet sample is taken and tested for water and sediment per ASTM D6751 and for Oxidative Stability per ASTM D6751. 8.3 Verification that if a storage tank volume Major failed to meet the 30 day idle test ☐ ☐ specifications, the product in the tank was isolated and identified as nonconforming.

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9 FUEL BLENDING AND DISTRIBUTION

9.1 Verify that blending records are being Major reviewed to insure proper blend component ☐ ☐ volumes are being dispensed. 9.1.1 Verification that blending records are Minor retained for a minimum of 2 years. ☐ ☐ 9.1.1 Verification that the blending validation Major included homogeneity testing of the blend ☐ ☐ with upper, middle and lower level samples. 9.1.2 Verification of the initial blending validation Critical of three consecutive blend lots, for each ☐ ☐ blend that is sold/distributed. 9.1.3 Verification that the blending validation Major includes testing each level sample for % ☐ ☐ methyl ester per D7371, and the test results meet the specification as defined in 9.1.3. 9.1.4 Verification that blending validation records Minor are retained for a minimum of 2 years. ☐ ☐ 9.1.5 Verification that annual blending validation Minor is being performed per 9.1.5 ☐ ☐ 9.1.6 Verification that if the Marketer has both Major rack and tank blending that both systems ☐ ☐ are validated annually per 9.1 9.2 Verification that if any tank was changed Minor into biodiesel blend service, the tank was ☐ ☐ drained, cleaned and inspected before placed into biodiesel service. 9.2 Verification that there are records of any Minor tank changed into biodiesel blend service ☐ ☐ was cleaned and inspected. 9.3 Blended product shall not be shipped from Major the storage tank if storage tank has no ☐ ☐ activity for 30 days until an outlet sample is taken and tested for moisture and sediment per ASTM D4176 (procedure 2) 9.3 Verification that if the blended tank volume Major failed to meet the 30 day idle test ☐ ☐ specifications, the product in the tank was isolated and identified as nonconforming.

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9.4 Verification that Load out documents are Minor reporting the preloading inspections and ☐ ☐ draining of transports, if applicable. 9.4 If applicable, review contract documents Minor that specify the transport cleanliness ☐ ☐ standards when no prior loading inspection is required. 9.4 If contractual cleanliness standards are Minor used, verify records that demonstrate ☐ ☐ periodic transport inspections.

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10 MARKERTER REMEDIATION ELEMENTS

10.1 Verify that any nonconforming product was Major identified as nonconforming and handled ☐ ☐ per documented procedures. 10.1 Verify that any reprocessed nonconforming Minor product was tested and the testing ☐ ☐ documented. 10.1 Verify that any nonconforming product Minor records demonstrated evidence that the ☐ ☐ nonconformity was reviewed according to the documented procedures 10.1 Verify that Corrective and/or Preventive Major actions are being generated to deal with ☐ ☐ nonconforming product issues. 10.2 Verify that Corrective and/or Preventive Minor actions are being generated to deal with ☐ ☐ nonconforming issues of the quality system. 10.2 Verify that any generated Corrective and Major Preventive Actions include all the ☐ ☐ information specified in 10.2. 10.2 Records shall be maintained for corrective Minor and preventive actions and retained for a ☐ ☐ minimum of 2 years. 10.2 Verify that all corrective actions shall not be Minor closed until verification of effectiveness ☐ ☐ activities have been completed and recorded.