Exhibit C Draft Statement of Work.pdf

Exhibit C

Draft Statement of Work

I. Project Description

This environmental project serves to establish state-contracted, qualified third-party auditors to conduct energy and greenhouse gas (GHG) emission control audits at Colorado’s energy-intensive, trade-exposed (EITE) facilities. Under Air Quality Control Commission (AQCC)

Regulation 27, Part C (commonly referred to as GEMM 1), EITE facilities must conduct energy and GHG emission control audits every five years, beginning in 2022. The purpose of the audits is to establish GHG best available emissions control technology (GHG BAECT) and energy best management practices (energy BMPs) for the EITE facilities. Beginning in 2027, audits must be conducted by state-selected, qualified third-party auditors. This will ensure that there is no contractual agreement between a facility and the auditor, and will provide a robust and unbiased assessment.

There are currently four EITE facilities in the state: three Portland cement producers and a secondary steel mill. Local communities near EITE facilities and all interested stakeholders will benefit through the stringent, unbiased review and recommendations that come from the energy and GHG emission control audits. Having the state contract directly with the third-party auditors will allow for much greater transparency and higher quality overall. Audits will be performed in accordance with all Regulation 27, Part C requirements.

II. Definitions

A. APCD - Air Pollution Control Division

B. AQCC - Air Quality Control Commission

C. AQCC Regulation 27 - Greenhouse Gas Emissions and Energy Management for

Manufacturing (GEMM), effective 9/14/2026

D. Audit plan - The proposed audit scope, timelines and team submitted by the EITE stationary source to the Division for approval pursuant to AQCC Regulation 27, Part C.

E. Audit report - The resulting document from the audit containing all the information and data required under Regulation 27, Part C.

F. Audit scope - The GHG emission units and the energy consumption sources included in the energy and emissions control audit and identified in the approved audit plan.

G. Audit team - One or more persons performing the audit. The audit team must consist of at least one qualified third-party auditor. Additional capabilities and https://cdphe.colorado.gov/aqcc-regulations knowledge of the audit team must include, but are not limited to, technical expertise with specific operating and maintenance practices for the industry being audited; expertise in conducting GHG and energy management system audits; and expertise of the EITE stationary source’s domestic and international market. The audit team must include individual(s) with documented audit expertise in the relevant industrial sector as follows:

○ A bachelor’s level college degree or equivalent in science, technology, business, statistics, math, environmental policy, economic, or financial auditing; or evidence demonstrating completion of significant and relevant work experience or other personal development activities that have provided the applicant with the communication, technical, and analytical skills to conduct the audit; and

○ Sufficient workplace experience to act as an auditor, including a minimum two years of full-time experience in a professional role that involved emissions data management, emissions technology, emissions inventories, environmental auditing or other technical skills necessary to conduct the audit.

H. Biogenic CO2 - Carbon dioxide resulting from the combustion, decomposition, or processing, including but not limited to fermentation and digestion, of biologically-based materials.

I. CDPHE - Colorado Department of Public Health & Environment

J. Certification body - A professional organization that has been accredited to issue lead auditor certifications for a specific sector or to a specific standard.

K. Co-benefits - The additional benefits associated with the reduction of harmful air pollutants to local communities, including localized air quality benefits.

L. Direct GHG emissions - GHG emissions, excluding biogenic CO2 , in terms of CO2e calculated using global warming potential values from Table A-1 to Subpart A of

40 CFR, Part 98, effective January 1, 2025, by a manufacturing stationary source calculated using Subparts A through JJ, SS, TT, and WW through ZZ, as appropriate for the emissions sources at the facility, pursuant to 40 CFR, Part 98, such that:

○ For any emissions occurring prior to 2020, direct GHG emissions are those reported to the APCD and published at Appendix A of this Regulation Number 27.

○ For any emissions occurring between 2020 and 2024, direct GHG emissions are calculated using applicable 40 CFR Part 98 methodologies effective January 1, 2017, and reported to the

Division pursuant to Regulation Number 22, Part A.

○ For any emissions occurring after 2024, direct GHG emissions are calculated using applicable 40 CFR, Part 98 methodologies, effective January 1, 2025, and reported to the division pursuant to Regulation Number 22, Part A.

M. Direct GHG emissions with capture and storage - The capture and permanent storage of GHGs produced by direct GHG emissions occurring in or after 2026 that are reported pursuant to Division-approved GHG accounting protocols and expressed in CO2e.

N. Energy and GHG emission control audit (the audit) - A rigorous examination of the GHG emissions and energy consumption of an EITE stationary source with the goal of analyzing and recommending GHG BAECT and energy BMPs, and identifying opportunities for reduction in GHG emissions and energy consumption for the facility, conducted consistent with the requirements set forth in this section.

O. Energy best management practices (energy BMPs) - The best energy efficiency practices available to the EITE stationary source, based on the maximum degree of energy efficiency that is achievable on a case-by-case basis, taking into account energy, environmental, and economic impacts, and is achievable for such facility through application of production process improvements and available equipment or process control methods, systems, and techniques, and includes incorporating all the key elements of strategic energy management

(SEM), such that the facility continually improves its energy performance, reduces energy costs, and reduces GHG emissions associated with energy use.

P. Energy efficiency - Using less electricity or fuel to produce the same quantity of product or service.

Q. Energy-intensive, trade-exposed manufacturing stationary source (EITE stationary source) - A source that principally engages in cement and concrete product manufacturing, NAICS code 3273; foundries, NAICS code 3315; iron and steel mills and ferroalloy manufacturing, NAICS code 3311; and/or pulp, paper, and paperboard mills, NAICS code 3221.

R. EPA - Environmental Protection Agency

S. Federal ENERGY STAR ® Program - The EPA’s voluntary program for industrial manufacturers through which specific energy performance indicators are measured and compared across industries and to which facilities are certified if they are achieving an Energy Star scoring of 75 or greater.

T. GHG best available emission control technology (GHG BAECT) - A GHG emission control technology for a GHG emission unit based on the maximum degree of

GHG reductions achievable on a case-by-case basis, taking into account energy, environmental, and economic impacts, employment of which is demonstrated by compliance with the GHG BAECT and energy BMP intensity rate determination.

U. GHG BAECT and energy BMP intensity rate - The direct GHG emissions per unit of production from the emissions units within the audit scope after GHG BAECT and energy BMPs are operational as determined in Part C.

V. GHG removals - Capture with permanent storage of biogenic CO2 or direct air capture (of GHGs) with permanent storage by or on behalf of a manufacturing stationary source or midstream company occurring in or after 2026 that are reported pursuant to Division-approved GHG accounting protocols, measured in terms of CO2e using global warming potential values from Table A-1 to Subpart A of 40 CFR, Part 98, effective January 1, 2025.

W. Greenhouse gas (GHG) - Carbon dioxide (CO2), methane (CH4), nitrous oxide

(N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulfur hexafluoride

(SF6) and nitrogen trifluoride (NF3).

X. International Organization of Standardization (ISO) - The independent, non-governmental international standard-setting body composed of representatives from various national standards organizations.

Y. ISO 50001: Energy Management Systems Requirements with guidance for use (ISO

50001) - The internationally accepted standard which specifies the requirements for an organization to demonstrate that it has a sustainable energy management system in place, has completed the energy planning process, and has a commitment to continual improvement of its energy performance.

Z. Lead auditor - an individual who has met the requirements of and is certified as a lead auditor through a professional certification body.

AA. Management system - The policies, processes, and procedures used by an organization to ensure that it can fulfill the tasks required to achieve its GHG emissions or energy management objectives.

BB. Net GHG emissions - Direct GHG emissions minus the total quantity of GHG removals and minus the total quantity of direct GHG emissions with capture and storage, expressed in CO2e.

CC. Net meter - A renewable energy resource or renewable energy storage on the

EITE stationary source’s property that supplies energy directly to the EITE stationary source’s energy provider in exchange for a Power Purchase Agreement where the customer receives credit for the energy production.

DD. Non-GHG BAECT emissions - The GHG mass emissions from an EITE stationary source that are not covered by the audit.

EE. Plain-language - Writing that is clear, concise, well-organized, easily understandable, and follows other best practices appropriate to the subject or field.

FF. Process - A specific operation at an EITE stationary source comprising a series of actions or steps which are carried out in a specific order to complete a particular stage in the manufacturing process.

GG. Product - The quantifiable material output of an individual manufacturing process or manufacturing facility.

HH. Proof of certification - An official document issued by the formal registrar or certifying body stating the scope of certification, the expiration date, and the standards to which the stationary source is certified.

II. Qualified third-party auditor - one or more individuals who hold a valid lead auditor certification in greenhouse gas and/or energy management systems and have demonstrated capabilities to evaluate GHG reduction opportunities for large, energy-intensive, industrial manufacturing processes and facilities.

Qualified third-party auditors must have worked as an auditor for at least two years or must have worked as a project manager or lead person for not less than four years (two of which may be graduate level work) in: (1) the development of

GHG or other air emission inventories, or (2) as a lead environmental data or financial auditor. The auditor must not be affiliated with the EITE stationary source, its subsidiaries, or related entities; there can be no common ownership between the EITE stationary source and the third-party auditor. The capabilities and knowledge of the auditor must include, at a minimum, background, experience, and recognized abilities to perform the assessment activities, data analysis, and report preparation, and experience lead auditing GHG or energy management systems for the industry subject to this section.

JJ. RACT/BACT/LAER Clearinghouse (RBLC) - EPA’s central database of air pollution technology information, including past RACT, BACT, and LAER decisions contained in New Source Review (NSR) permits, to promote the sharing of information among permitting agencies and to aid in future case-by-case determinations.

KK. Retail distributed generation - A renewable energy resource or renewable energy storage that directly supplies building or process energy needs at a metered location, where surplus energy is supplied to the location’s energy provider when energy production is greater than on-site demand and grid energy is supplied through a customer meter to the location during times when on-site production is less than demand.

LL. Social cost of GHGs - The monetized damages associated with an incremental increase in GHG emissions in a given year. The social cost of GHGs must include separate calculations for carbon, methane, and nitrous oxide, and the social cost of any other GHGs must be calculated using CO2e. For purposes of Regulation

Number 27, the social cost of GHGs is established, using a two and one-half percent discount rate, by the Federal Interagency Working Group’s Technical

Support Document: Social Cost of Carbon, Methane, and Nitrous Oxide, Interim

Estimates under Executive Order 13990, dated February 2021.

MM. SOW - Statement of Work, this Exhibit to the Contract that outlines the work to be completed by the Contractor including the project’s goal, objectives, activities, standards, and requirement, deliverables, and timelines.

NN. State-contracted - A state-process for auditor or contractor selection and engagement for the contractor to perform work for the state which is funded by the regulated source.

OO. Strategic energy management (SEM) - A management system-based, continuous improvement approach to energy management that seeks to improve an organization’s energy performance, reduce energy costs, and reduce GHG emissions associated with energy use, and drives improvement in facility energy efficiency through equipment upgrades, operations and maintenance improvements, and behavioral changes.

PP. Technically feasible - The GHG reduction measure can be implemented at the facility within existing technological and scientific limitations.

III. Work Plan

Program Goal: To have a state-contracted, qualified third-party auditor complete the

2027 EITE facility energy and GHG emission controls audits, in accordance with AQCC

Regulation 27.

Project Objective: No later than December 31, 2027, submit the complete Audit

Report to APCD, fulfilling all requirements in AQCC Regulation 27, Part C.

https://bidenwhitehouse.archives.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf https://bidenwhitehouse.archives.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf https://bidenwhitehouse.archives.gov/wp-content/uploads/2021/02/TechnicalSupportDocument_SocialCostofCarbonMethaneNitrousOxide.pdf

Primary Activity (PA) #1: The Contractor shall submit the Audit Plan to the APCD for approval.

PA #1 Sub-Activities:

1. The contractor shall include in the Audit Plan:

a. A description of all the emission units at the EITE stationary source that directly release one or more GHGs, ordered from largest emitting to smallest emitting emission units averaged over the past 5 years, quantified in CO2e as well as broken out by GHG type. Using this list, the emission units that comprise at least the top eighty (80) percent of the

EITE stationary source’s direct GHG emissions must be identified, documented, and included in the GHG emissions audit scope.

Additionally, any individual emissions unit that comprises two (2) percent or more of the EITE stationary source’s direct GHG emissions must be identified, documented, and included in the GHG emissions audit scope.

b. A description of all the emission units at the EITE stationary source that consume energy, including electricity, averaged over the past five (5) years and ordered from largest consuming to smallest consuming. Using this list, the energy consumption sources that comprise the top eighty

(80) percent of the EITE stationary source’s energy consumption must be identified, documented, and included in the energy audit scope.

i. If an EITE stationary source is certified to the Federal Energy Star

Program or equally stringent program deemed equivalent by the

APCD, or ISO 50001, the EITE stationary source will be determined to be employing energy BMPs and the energy audit will be limited in scope. Proof of certification of the EITE stationary source to one or more of these existing standards must be included in the audit plan to utilize this option.

1. If an EITE stationary source is planning on becoming certified to one of these standards, the EITE stationary source must submit the certification or registration timeline or plan, including key milestones towards certification or registration with certification scheduled for no more than twelve (12) months after the audit date.

c. Records of any previous third-party audit results that the EITE stationary source proposes to use to support the audit on a supplementary basis or to avoid duplication of data collection efforts that have been performed within three (3) years prior to the planned audit date. To be accepted, supplementary audit data must be verified and validated by a third party and result from an audit that meets or exceeds nationally or internationally accepted energy and GHG accounting audit standards or protocols.

d. The specific GHG and/or energy audit standards, protocols or procedures to be used for conducting the audit, if applicable.

PA #1 Standards and Requirements:

1. The APCD will review the audit plan and notify the contractor and EITE stationary source within 60 days of submission of any deficiencies. If notified of deficiencies, the contractor must submit a revised audit plan for final approval no later than thirty (30) days prior to beginning the audit. The contractor and

EITE stationary source must receive approval from the APCD of the audit plan prior to beginning the audit. Such approval will not be unreasonably withheld.

PA #1 Deliverable(s):

Deliverable #1: Complete Audit Plan

Due: May 1, 2027

Deliver To: APCD Project Manager

Primary Activity (PA) #2: The Contractor shall submit the Audit Report to the APCD.

PA #2 Sub-Activities:

1. The contractor shall include in the Audit Report:

a. The GHG BAECT analysis. The audit team must analyze GHG BAECT as follows:

i. Identify all available control technologies and strategies with practical potential for application to reduce GHG emissions from the GHG emission units included in the audit scope. Identify the current GHG emissions rate of each audited emission unit at the time of the audit.

1. Control technologies and strategies identified must include, at a minimum, fuel use, raw material use, energy efficiency improvements, preheating/heat reuse and strategic energy management options, and carbon capture and underground storage or utilization.

ii. Eliminate technically infeasible control technologies and strategies.

iii. The audit team must perform a feasibility assessment of carbon capture and underground storage or utilization technology for any single emissions unit evaluated with direct emissions of 100,000 metric tons per year or greater CO2e in any of the previous five years as reported under Regulation Number 22, Part A and/or 40

C.F.R. § 52.319 (2023). The audit team must include this analysis in the audit report.

iv. Rank remaining emission unit control technologies and strategies in descending order based on the reduction in direct GHG emissions per ton of product or output.

v. Perform a cost-effectiveness analysis on all control technologies and strategies for the emissions unit considering the full lifetime of the equipment. The cost-effectiveness analysis must include an estimate of the net levelized cost per metric ton of GHG emission reductions ($/metric ton CO2e) over the life of each proposed control method. The audit team must document in the audit report the discount rate, which is of no more than eight (8) percent, used for the cost-effectiveness analysis. The net levelized cost analysis should include, but is not necessarily limited to, the following costs and benefits:

1. Engineering and design costs;

2. Equipment costs, including installation;

3. Available tax credits and/or incentive programs; and

4. Changes in the annual costs resulting from the control technology/method including energy costs, operations and maintenance costs, and changes to productivity and/or product quality.

vi. Eliminate cost-prohibitive GHG reduction measures considered.

GHG reduction measures with a cost-effectiveness of equal to or less than the social cost of GHGs cannot be eliminated as cost-prohibitive, except for a demonstrated, unreasonable burden on competitiveness as analyzed in the following.

vii. Consider the economic, energy, and environmental impacts arising from each option under consideration. In this case, economic reasonableness includes an analysis of the economic impact of the emission unit control option on the EITE stationary source’s competitiveness within the marketplace. The audit team must document these determinations and associated analyses in the audit report.

viii. Additional required documentation for all control technologies and strategies must include, at a minimum, overall implementation cost, control efficiency, remaining useful life of the equipment, impacts to land use approvals, and a quantification of any co-benefits. The level of analysis conducted and documented must consider the nature of the GHG BAECT measure and potential impacts of these additional criteria.

ix. The GHG BAECT analysis may reference recently permitted GHG best available control technologies (BACT), operational or process limits in the EITE stationary source’s air pollution permits or in the RACT/BACT/LAER Clearinghouse for similar operations as applicable.

b. The energy BMP analysis. The audit team must analyze energy BMP as follows:

i. Identify all available energy efficiency measures for the specific energy consumption sources included in the audit scope. Any energy efficiency measure considered to be a GHG BAECT option but not recommended as GHG BAECT must be included in the energy BMP analysis for that GHG emission unit, as applicable.

This analysis can exclude any control technologies that redefine the stationary source.

ii. Eliminate technically infeasible energy efficiency measures.

iii. Rank remaining energy efficiency measures based on the reduction in energy use per ton of final product manufactured at the facility.

iv. Perform a cost-effectiveness analysis on all energy efficiency measures considering the full lifetime of the measure. The cost-effectiveness analysis must include an estimate of the net levelized cost per energy consumption reduction over the life of the equipment. The audit team must document in the audit report the discount rate, which is of no more than eight (8) percent, used for the cost-effectiveness analysis. The net levelized cost analysis should include, at a minimum, the following costs and benefits:

1. Engineering and design costs;

2. Equipment costs including installation;

3. Available tax credits and/or incentive programs; and

4. Changes in the annual costs resulting from the control technology/method including energy costs, operations and maintenance costs, and changes to productivity and/or product quality.

v. Eliminate cost-prohibitive energy efficiency measures considered.

Energy efficiency measures with a cost-effectiveness equal to or under the social cost of GHGs cannot be eliminated as cost-prohibitive, except for a demonstrated, unreasonable burden on competitiveness as analyzed in the following.

vi. Consider the economic, energy, and environmental impacts arising from each measure remaining under consideration. In this case, economic reasonableness includes an analysis of the economic impact of the measure on the EITE stationary source’s competitiveness within the marketplace. The audit team must document these determinations and associated analyses in the audit report.

vii. Additional required documentation for all analyzed measures must include, at a minimum, cost-effectiveness, remaining useful life of the equipment, impacts to land use approvals and any co-benefits. The level of analysis conducted and documented must consider the nature of the energy efficiency measure and potential impacts of these additional criteria.

viii. In lieu of performing the energy BMP analysis, certification within twelve (12) months of the audit date under the annual Federal

Energy Star Program, or equally stringent program deemed equivalent by the Division, will be determined as employment of energy BMPs for the EITE stationary source. Annual Energy Star certification documentation, or that of an equally stringent program deemed equivalent by the Division, for all years subsequent to the previous audit as well as the current certification must be included in the audit report and contain:

1. Specific BMP energy efficiency measures the EITE stationary source used to achieve the Federal Energy Star

Program certification, or that of an equally stringent program deemed equivalent by the Division; and

2. The annual Energy Performance Indicator (EPI) benchmarking spreadsheet demonstrating a score of 75 or higher submitted with the Energy Star application.

ix. In lieu of performing the energy BMP analysis, registration to ISO

50001 within twelve (12) months of the audit date will be determined as employment of energy BMPs for the EITE stationary source. Management system documentation must be included in the audit report and contain:

1. Specific BMP energy efficiency measures the EITE stationary source used to achieve the ISO 50001 Program certification;

2. Information on the energy management system including the Manual, Objectives and Goals, Energy Policy and results of the most recent energy management system audit; and

3. The valid registration certificate.

c. The GHG BAECT recommendation. The GHG BAECT recommendation must include:

i. Recommendations on the most effective direct GHG emissions control technology and strategy, or suite of technologies and strategies, for the GHG emissions unit analyzed as GHG BAECT;

ii. A list of emissions control measures with a levelized cost less than or equal to $0; and

iii. Recommendations on GHG BAECT options that provide greater co-benefits to the surrounding communities where the top emission unit control technologies or strategies are comparable in terms of cost-effectiveness.

iv. A calculation of the Non-GHG BAECT emissions. Non-GHG BAECT emissions are calculated by subtracting the reported emissions from units evaluated for GHG BAECT from the facility annual emissions at the time of the first audit. This must be calculated as follows:

1. Non-GHG BAECT Emissions = Total direct emissions from the most recent year reported – reported emissions from the units evaluated for GHG BAECT.

d. The energy BMP recommendation. The energy BMP recommendation must include:

i. Recommendations on the most effective energy efficiency measures for the energy consumption sources analyzed to be set as Energy BMPs;

ii. A list of energy efficiency measures with a levelized cost less than or equal to $0; and

iii. Recommendations on Energy BMP options that provide greater co-benefits to the surrounding communities where the top emissions unit control technologies or strategies are comparable in terms of cost effectiveness.

e. A plain-language summary of the audit findings, determinations, and recommendations in the top two languages spoken by the community surrounding the EITE stationary source. This summary must include the list of GHG BAECT options for the emission units analyzed, how they were ranked and why they are being recommended.

f. Confidential business information must be clearly identified and be submitted in a separate, supplementary document to the audit report.

PA #2 Standards and Requirements (if applicable):

1. The audit report must include, at a minimum, the elements for all GHG emission units specified in the approved Audit Plan.

PA #2 Deliverable(s):

Deliverable #2: Complete Audit Report

Due: December 31, 2027

Deliver To: APCD Project Manager

Primary Activity (PA) #3: The Contractor shall submit the Supplement to the Audit

Report to the APCD.

PA #3 Sub-Activity(ies):

1. After the 30-day comment period, address public and APCD comments and provide any identified missing information.

PA #3 Standards and Requirements (if applicable):

1.

PA #3 Deliverable(s):

Deliverable #3:

Due:

Deliver To:

General Standards and Requirements

1. The content of electronic documents located on CDPHE and non-CDPHE websites, and information contained on CDPHE and non-CDPHE websites, may be updated periodically during the contract term. The Contractor shall monitor electronic documents and website content and information for changes to comply with all updates.

2. Contractor shall inform CDPHE of any nonfunctioning linked or incorporated hyperlinks, documents, or resources within ten (10) days of discovery.

Expected Results of Activities:

1. The qualified third-party audit performed by the Contractor will result in a complete Audit Report, as required and in accordance with AQCC Regulation

27, Part C.

Measurement of Expected Results:

1. Complete Audit Report(s) submitted to APCD by the December 31, 2027 regulatory deadline.

IV. Deliverable Schedule:

Description: Due Date:

Audit Plan No later than May 1, 2027

Audit Report No later than December 31, 2027

Supplement to Audit Report No later than March 1, 2028

V. Monitoring

CDPHE’s monitoring of this contract for compliance with performance requirements will be conducted throughout the contract period by the Project Manager. Methods used will include a review of documentation determined by CDPHE to be reflective of performance to include progress reports and other fiscal and programmatic documentation as applicable. The Contractor’s performance will be evaluated at set intervals and communicated to the Contractor. A Final Contractor Performance

Evaluation will be conducted at the end of the life of the contract.

VI. Resolution of Non-Compliance

The Contractor will be notified in writing within 30 calendar days of discovery of a compliance issue(s). Within 30 calendar days of discovery, the Contractor and the

State will collaborate, when appropriate, to determine the action(s) necessary to rectify the compliance issue and determine when the action(s) must be completed.

The action(s) and timeline for completion will be documented in writing and agreed to by both parties. If extenuating circumstances arise that require an extension to the timeline, the Contractor must email a request to the [insert CDPHE Position Title of person to receive this request] and receive approval for a new due date. The State will oversee the completion and implementation of the agreed-upon action(s) to ensure timelines are met and the compliance issue(s) is resolved. Failure by the

Contractor to diligently pursue the compliance resolution plan, or to reach an agreement with the State on such a plan, may result in the State exercising its rights under the provisions of the contract.

VII. Additional Provisions

A. Invoicing Provisions

To receive compensation under the Contract, the Contractor shall submit a signed

Monthly, Quarterly, or other Invoice Form. The Invoice Form must be submitted no later than forty-five (45) calendar days after the end of the billing period for which services were rendered. Expenditures shall be in accordance with the

Statement of Work and Budget.

Scan the completed and signed Invoice Form (and supporting documentation) into an electronic document. Email the Invoice form (and supporting documentation) to: (Name & Position Title), (Email address)

Final billings under the Contract must be received by the State within a reasonable time after the expiration or termination of the Contract; but in any event no later than forty-five (45) calendar days from the effective expiration or termination date of the Contract.

B. Deliverable Acceptance Process

1. The Contractor shall coordinate and prioritize all work to ensure that all deliverables, due dates, and timelines are met.

2. The Contractor shall employ an internal quality control process to ensure that all deliverables are complete, accurate, easy to understand, and of high quality.

3. The Contractor shall provide deliverables that, at a minimum, are responsive to the relevant Standards and Requirements in the SOW, organized in a logical order, contain no spelling or grammatical errors, are formatted uniformly, and contain accurate information and correct calculations.

4. The Contractor shall maintain all work papers related to the development of all Deliverables for reference through the duration of the contract.

5. The Contractor shall provide, at no cost to the State, copies of any work papers or supporting documentation related to the development of any Deliverable within 30 calendar days of request by the State.

6. The Contractor shall submit each Deliverable to the State by the specific due date for each Deliverable outlined in the Deliverable Schedule for review and approval.

7. Review - Unless specifically outlined elsewhere in the SOW, the State will have

30 calendar days from the date the deliverable is due to the State by the

Contractor to evaluate that Deliverable.

8. Notice - Unless specifically outlined elsewhere in the SOW, if the State, in its sole discretion, determines that a submitted Deliverable fails to meet the

Standards and Requirements or is otherwise deficient, the State will notify the

Contractor of the failure or deficiency within 30 calendar days of the date the

State becomes aware of the failure or deficiency.

9. Revision - Unless specifically outlined elsewhere in the SOW, the Contractor shall have 30 calendar days from notice of a Deliverable’s failure or deficiency to revise the Deliverable and resubmit it to the State for review and approval.

10. The Contractor shall participate in the Deliverable review and revision process until the State provides written acceptance of the Deliverable.

11. At no time shall payment or partial payment for a Deliverable constitute acceptance of the Deliverable and excuse Contractor’s obligation to participate in the Deliverable review and revision process until such time as the State issues written acceptance of the Deliverable.

C. Health Insurance Portability and Accountability Act (HIPAA) Business Associate

Determination

The State has determined that this Contract does not constitute a Business

Associate relationship under HIPAA.