INFORMATION COLLECTION REQUEST (ICR)

OMB-83 SUPPORTING STATEMENT

ENVIRONMENTAL PROTECTION AGENCY

STRATOSPHERIC OZONE PROTECTION

A. JUSTIFICATION

1\. [Identification of the Information Collection]{.underline}

a\) Title: Recordkeeping and Periodic Reporting of the Production,
Import, Recycling, Destruction, Transshipment and Feedstock Use of Ozone
Depleting Substances. Process for Exempting Critical Uses from the
Phaseout of Methyl Bromide.

EPA Number: 1432.23

b\) Short Characterization:

With this Information Collection Request (ICR), the Office of Air and
Radiation (OAR) is seeking permission to require the submission of data
from regulated industries to EPA and to require recordkeeping or key
documents to ensure compliance with the Montreal Protocol on Substances
that Deplete the Ozone Layer (Protocol) and the Clean Air Act.
Furthermore, this information is necessary in order to grant the
exemptions being proposed.

Entities applied to EPA for a critical use exemption that would allow
for the continued production and import of methyl bromide after the
phaseout in January 2005. EPA used the data submitted by end users to
create a nomination of critical uses which was submitted to the
Protocol's Ozone Secretariat for review by an international panel of
experts. The uses authorized internationally by the Parties to the
Protocol will be made available in the U.S. on an annual basis. This ICR
seeks to characterize the burden associated with the producing,
importing, distributing, and using of critically exempted methyl
bromide.

2\. [Need For, and Use Of, the Collection]{.underline}

a\) Authority for the Collection

This information collection is authorized under section 604 (d)(6) of
the Clean Air Act Amendments of 1990, added by Section 764 of the 1999
Omnibus Consolidated and Emergency Supplemental Appropriations Act
(Public Law No. 105-277; October 21, 1998).

b\) Practical Utility/Users of the Data

The reported data will enable EPA to:

> 1\) Ensure that critical use exemptions comply with Section 604(d)(6)
> as amended in 1998;
>
> 2\) Maintain compliance with the Protocol requirements for annual data
> submission on the production of ozone depleting substances;
>
> 3\) Analyze technical use data to ensure that exemptions are used in
> accordance with requirements included in today's proposed rulemaking.

3\. [Nonduplication, Consultation, and Other Collection
Criteria]{.underline}

a\) Nonduplication

All the information requested from respondents under this ICR is
authorized by statute (CAA Section 114 and 604 (d)(6)) and is not
available from other sources because it is proprietary or sensitive
information.

b\) Public Notice

EPA will provide public notice and comment regarding this ICR when the
accompanying proposed rulemaking entitled: Protection of Stratospheric
Ozone: Process for Exempting Critical Uses of Methyl Bromide (RIN \#
2060-AJ63) is published in the Federal Register.

c\) Consultations

EPA has held several consultations, in the form of stakeholder meetings,
on the options for the proposed rulemaking as well as the options for
reporting and recordkeeping requirements. Copies of transcripts from two
of the six sessions held during the summer of 2003 are available at
EPA's website at [www.epa.gov/ozone.]{.underline} EPA anticipates
receiving comments from stakeholders through the notice and comment
process as well.

d\) Effects of Less Frequent Collection

The U.S. government is required to report data to the Ozone Secretariat
on an annual basis. EPA is requesting quarterly reporting from entities
such as producers and importers in order to monitor the likelihood of
compliance throughout the year. In addition, these entities typically
prepare quarterly reports and prefer to report smaller data sets to EPA
and not leave the entire task to the end of the year. EPA is requesting
annual reporting from some entities that have less infrastructure or are
less familiar with Protocol reporting requirements.

e\) General Guidelines

This rule does not exceed any of the OMB guidelines

f\) Confidentiality

EPA informs respondents that they may assert claims of business
confidentiality for any of the information they submit. Information
claimed confidential will be treated in accordance with the procedures
for handling information claimed as confidential under 40 CFR Part 2,
Subpart b, and will be disclosed only if EPA determines that the
information is not entitled to confidential treatment. If no claim of
confidentiality is asserted when the information is received by EPA, it
may be made available to the public without further notice to the
respondents (40 CFR 2.203).

g\) Sensitive Information

Individual reporting data may be claimed as sensitive and will be
treated as confidential information in accordance with procedures
outlined in 40 CFR Part 2.

4\. [The Respondents and the Information Requested]{.underline}

a\) Respondents/SIC Codes

Respondents producers, importers, distributors, and custom applicators
of methyl bromide as well as users of methyl bromide who are farmers of
minor vegetable crops and companies that store agricultural commodities.
The appropriate North American Industry Classification System (NAICS)
and Standard Industrial Classification (SIC) codes for these entities
are:

TABLE I: NAICS CLASSIFICATION OF REGULATED ENTITIES

+-----------------------+-----------------------+-----------------------+
| Category              | NAICS code            | SIC code              |
+-----------------------+-----------------------+-----------------------+
| Agricultural          | 1112- Vegetable and   | 0171- Berry Crops     |
| production            | Melon farming         |                       |
|                       |                       | 0172- Grapes          |
| Storage Uses          | 1113- Fruit and Nut   |                       |
|                       | Tree Farming          | 0173- Tree Nuts       |
| Distributors and      |                       |                       |
| Applicators           | 1114- Greenhouse,     | 0175- Deciduous Tree  |
|                       | Nursery, and          | Fruits (except apple  |
| Producers and         | Floriculture          | orchards and farms)   |
| Importers             | Production            |                       |
|                       |                       | 0179- Fruit and Tree  |
|                       | 115114- Postharvest   | Nuts, NEC             |
|                       | Crop activities       |                       |
|                       | (except Cotton        | 0181- Ornamental      |
|                       | Ginning)              | Floriculture and      |
|                       |                       | Nursery Products      |
|                       | 311211- Flour Milling |                       |
|                       |                       | 0831- Forest          |
|                       | 311212- Rice Milling  | Nurseries and         |
|                       |                       | Gathering of Forest   |
|                       | 493110- General       | Products              |
|                       | Warehousing and       |                       |
|                       | Storage               | 2041- Flour and Other |
|                       |                       | Grain Mill Products   |
|                       | 493130- Farm Product  |                       |
|                       | Warehousing and       | 2044- Rice Milling    |
|                       | Storage               |                       |
|                       |                       | 4221- Farm Product    |
|                       | 115112- Soil          | Warehousing and       |
|                       | Preparation, Planting | Storage               |
|                       | and Cultivating       |                       |
|                       |                       | 4225- General         |
|                       | 424910- Farm Supplies | Warehousing and       |
|                       | Merchant Wholesalers  | Storage               |
|                       |                       |                       |
|                       | 325310- Pesticide and | 0721- Crop Planting,  |
|                       | Other Agricultural    | Cultivation, and      |
|                       | Chemical              | Protection            |
|                       | Manufacturing         |                       |
|                       |                       | 2879- Pesticides and  |
|                       |                       | Agricultural          |
|                       |                       | Chemicals, NEC        |
+-----------------------+-----------------------+-----------------------+

b\) Information Requested

i\) Data Items

EPA has proposed to require the following information to be reported to
the Agency by the following entities.

-   Producers and importers

-   Quarterly: number and type of expended and unexpended critical use
    allowances and critical stock allowances;

-   Annually: kilograms of methyl bromide held in inventory for
    themselves or third parties;

-   Annually: number of kilograms and type of methyl bromide sold.

-   Distributors, fumigators and applicators

-   Annually: the number and type of expended critical stock allowances;

-   Annually: the total amount and type of methyl bromide bought(in
    kilograms);

-   Annually: the total amount and type held in inventory for themselves
    or on behalf of a third party (in kilograms);

-   Annually: the total amount and type of methyl bromide sold (in
    kilograms);

\(B\) Recordkeeping

-   Producers and importers

-   Self certification form for each sale that indicates the buyer will
    only sell/use the methyl bromide for approved critical uses;

-   Order forms and invoices for methyl bromide;

-   Records to be kept for 3 years.

-   Distributors, fumigators, and applicators

-   Self certification form for each sale that indicates the buyer will
    only sell/use the methyl bromide for approved critical uses;

-   Order forms and invoices for methyl bromide;

-   Records to be kept for 3 years.

5\. [The Information Collected, Agency Activities, Collection
Methodology, and Information Management]{.underline}

a\) Agency Activities

-   All reported data will be reviewed by EPA.

-   EPA will ensure that compliance has been maintained with U.S.
    production and consumption levels of exempted material at the
    national and sector levels.

-   EPA will report annually to the Ozone Secretariat, through the U.S.
    Department of State, on U.S. compliance with allowable production
    and consumption levels.

-   EPA will adjust future amounts of exempted materials requested based
    on actual use data and levels of material in inventory.

-   The data will then be stored.

b\) Collection and Methodology and Management

Data will be tracked by industry and reported to EPA. Quarterly and
annual submissions to EPA will be provided to EPA via a paper
submission. EPA will use our electronic tracking system to update
company specific and overall U.S. compliance with production and
consumption. Confidential business information will be stored in
appropriately controlled areas.

c\) Small Entity Flexibility

The information collection is authorized by statute under section 604 of
the Clean Air Act and is required in order to ensure U.S. compliance
with international treaty obligations under the Montreal Protocol.
Bearing in mind, U.S. obligations, EPA designed a system that would
remove almost all burden from the end users of methyl bromide, some of
whom are small entities, and placed it instead on chemical
manufacturers, distributors and applicators, who are not small entities.

This ICR is related to the collection of information for an exemption
program. Participation in this system is therefore voluntary and
constitutes a benefit. However, in order to minimize the administrative
burden on end users of methyl bromide participating in this system, some
of whom may be small entities, EPA is proposing a system that is
streamlined. EPA is proposing a system that would only require end users
to sign a short form (1-2 pages in length) certifying that they are
buying the exempted material for an allowable use and will use it
accordingly. The form would be kept by the supplier, not the end user.

d\) Collection Schedule

The information is to be submitted on an annual or quarterly basis (see
section 5 a) to EPA beginning in the first quarter of 2005 and
continuing for the life of the exemption.

6\) [Estimating the Burden and Cost of Collection]{.underline}

a\) Estimating the Burden

The basis of the analysis is the identification of the steps involved in
understanding and complying with the new requirements. EPA drew upon
experience implementing similar regulations among the same entities in
order to derive estimates of the burden associated with the reporting
and recordkeeping requirements.

b\) Estimating the Respondent Cost

To determine respondent costs, EPA used an hourly industry wage rate of
\$80 per hour. Some activities, such as rule familiarization, are in
fact one time activities therefore total respondent burden hours
indicated in Table II (below) may be overestimated.

**TABLE II- RESPONDENT BURDEN HOURS PER YEAR**

+------------------------+----------+-----------+---------+----------+
| **Collection           | **No. of | **Total   | **Hours | **Total  |
| Activity**             | respo    | no. of    | per     | hours**  |
|                        | ndents** | re        | res     |          |
|                        |          | sponses** | ponse** |          |
+------------------------+----------+-----------+---------+----------+
| **Rule                 | **54**   | **54**    | **4**   | **216**  |
| Familiarization**      |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Data Compilation**   | **4**    | **16**    | **4**   | **64**   |
|                        |          |           |         |          |
| **(quarterly basis)**  |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Data Compilation     | **50**   | **50**    | **8**   | **400**  |
| (annual basis)**       |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Data Reporting       | **4**    | **16**    | **.5**  | **8**    |
| (quarterly basis)**    |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Data Reporting       | **50**   | **50**    | **.5**  | **25**   |
| (annual basis)**       |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Reporting on         | **4**    | **16**    | **.5**  | **8**    |
| Allowance Trading      |          |           |         |          |
| Activities**           |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Self Certification   | **54**   | **100**   | **.25** | **25**   |
| Activities by          |          |           |         |          |
| Producers, Importers,  |          |           |         |          |
| and Distributors**     |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Self Certification   | *        | **2,500** | **.25** | **625**  |
| Activities by End      | *2,000** |           |         |          |
| Users**                |          |           |         |          |
+------------------------+----------+-----------+---------+----------+
| **Total Burden Hours** |          | **2,802** | **18**  | *        |
|                        |          |           |         | *1,370** |
+------------------------+----------+-----------+---------+----------+

**TABLE III- CAPITAL AND OPERATING COSTS**

+----------------------------+--------+-------------+----------------+
| **Activity**               | **No   | **Estimated | **Total        |
|                            | of     | Annual      | Estimated      |
|                            | En     | Cost**      | Annual Cost**  |
|                            | tities |             |                |
|                            | Affe   | **per       |                |
|                            | cted** | entity**    |                |
+----------------------------+--------+-------------+----------------+
| **None**                   |        |             |                |
+----------------------------+--------+-------------+----------------+

c\) Estimating Agency Burden and Cost

The basis of this analysis is the identification of the steps involved
in distributing critical use allowances, reviewing reporting data,
submitting data to the Ozone Secretariat on U.S. compliance, and
developing guidance for regulated entities. Each hour of extramural
(contractor) time is valued at \$80.00 per hour including overhead and
fringe. Each hour of Agency time is valued using the 2003 OPM annual
base pay table divided by 2,080 to estimate the hourly wage and then
multiplied by 1.6, the standard government benefits multiplier. The
hourly wage rates are as flows: for EPA managerial staff the rate is
\$65.49, for technical staff (GS-13 level) the value is \$47.12, and for
clerical staff (GS-5 level) is \$18.03.

The data in table IV reflects total annual Agency effort.

**TABLE IV- AGENCY BURDEN HOURS**

+-------------+--------+--------+--------+-------+--------+---------+
| Hours per   |        |        |        |       |        |         |
| Response    |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
|             | No. of | Mana   | Tec    | Cle   | Extr   | Total   |
|             | Res    | gerial | hnical | rical | amural | Agency  |
|             | ponses | Hours  | Hours  | Hours |        | Hou     |
|             |        | per    | per    | per   | Hours  | rs/Year |
|             |        | Re     | Re     | Res   | per    |         |
|             |        | sponse | sponse | ponse | Re     |         |
|             |        |        |        |       | sponse |         |
+-------------+--------+--------+--------+-------+--------+---------+
| W           | n/a    | 25     | 25     | 0     | 150    | 200     |
| rite/revise |        |        |        |       |        |         |
| reporting   |        |        |        |       |        |         |
| forms       |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| Process     | 50     | .5     | 1.5    | 0     | 1      | 150     |
| annual      |        |        |        |       |        |         |
| reports     |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| Process     | 16     | .5     | 1.5    | 0     | 1      | 48      |
| quarterly   |        |        |        |       |        |         |
| reports     |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| Determine   | 16     | .5     | 1      | 0     | 0      | 24      |
| historic    |        |        |        |       |        |         |
| baseline    |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| Distribute  | 4      | 1      | 5      | 0     | 4      | 40      |
| allowances  |        |        |        |       |        |         |
| annually    |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| Report to   | 1      | 0      | 10     | 0     | 0      | 10      |
| the Ozone   |        |        |        |       |        |         |
| Secretariat |        |        |        |       |        |         |
+-------------+--------+--------+--------+-------+--------+---------+
| TOTAL       |        | 27.5   | 44     | 0     | 156    | 472     |
+-------------+--------+--------+--------+-------+--------+---------+

d\) Estimating the Respondent Universe

EPA was able to estimate the number of regulated entities drawing upon
experience regulating the same entities, except for end users of methyl
bromide, as we do under the phaseout program. EPA believes that there
are 4 producers and importers of methyl bromide who report quarterly and
up to 50 distributors/ applicators of methyl bromide who report
annually. EPA was able estimate the number of potential end users based
on self reported data from those entities who requested an exemption.
Our estimate for the total number of applicators/end users who may
participate in the system is 2,000.

e\) Bottom Line Burden Hours and Cost Tables

i\) The burden hours portion of the respondent reporting burden and
operating/capital costs are estimated in Tables II and III respectively.
The dollar estimate associated with this burden is displayed in Table V
below.

**TABLE V- RESPONDENT BURDEN HOURS AND COSTS**

+---------------+----------+-------------+-----------+---------------+
| **Response**  | **No of  | **Hours/**  | **Co      | **Total       |
|               | Res      |             | st/Hour** | Cost**        |
|               | ponses** | *           |           |               |
|               |          | *Response** |           |               |
+---------------+----------+-------------+-----------+---------------+
| Reporting     | 1,186    | 1.07        | \$80      | \$101,835     |
+---------------+----------+-------------+-----------+---------------+
| Recordkeeping | 54       | .25         | \$80      | \$1,080       |
|               |          |             |           |               |
| -producers,   |          |             |           |               |
| importers,    |          |             |           |               |
| distributors  |          |             |           |               |
+---------------+----------+-------------+-----------+---------------+
| Recordkeeping | 2,500    | .25         | \$80      | \$50,000      |
|               |          |             |           |               |
| -end users    |          |             |           |               |
+---------------+----------+-------------+-----------+---------------+
| **Total**     |          |             |           | **\$152,915** |
+---------------+----------+-------------+-----------+---------------+

ii\) Agency burden is reported in Table IV. The dollar value associated
with this burden is displayed below in Table VI.

**TABLE VI- ANNUAL AGENCY BURDEN HOURS AND COSTS**

+--------+---------+--------+--------+---------+---------+----------+
|        | Man     | Tec    | Cl     | Ext     | Total   | Total    |
|        | agerial | hnical | erical | ramural | Agency  | Agency   |
|        | Hours   | Hours  | Hours  |         | Hours   | Costs    |
|        | Annual  | Annual | Annual | Hours   | per     | per Year |
|        | Total   | Total  | Total  | Annual  | Year    |          |
|        |         |        |        | Total   |         |          |
|        | @       | @      | @      |         |         |          |
|        | \$65.49 | \      | \      | \$      |         |          |
|        |         | $47.12 | $18.03 | 80.00   |         |          |
+--------+---------+--------+--------+---------+---------+----------+
| Hours/ | 70      | 170    | 0      | 232     | 472     | \$31,155 |
|        |         |        |        |         |         |          |
| Re     |         |        |        |         |         |          |
| sponse |         |        |        |         |         |          |
+--------+---------+--------+--------+---------+---------+----------+

f\) Reasons for Change in Burden

Amending current regulations to create exemption program.

g\) Burden Statement

Table II presents the average annual respondent burden. For respondents
affected by the methyl bromide critical use exemption, the annual
reporting and recordkeeping burden is as follows: 4 producers and
importers at a total of 110 hours per year for this group of entities;
50 distributors and applicators at 635 hours per year; 2,000 end users
at 625 hours per year. The total industry burden hours per year are
therefore 1,370 under the option proposed by EPA.

Burden means the total time, effort, or financial resources expended by
persons to generate, maintain, retain, or disclose or provide
information to or for a Federal agency. This includes the time needed to
review instructions; develop, acquire, install, and utilize technology
and systems for the purposes of collecting, validating, and verifying
information, processing and maintaining information, and disclosing and
providing information; adjust the existing ways to comply with any
previously applicable instructions and requirements; train personnel to
be able to respond to a collection of information; search data sources;
complete and review the collection of information; and transmit or
otherwise disclose the information.

An Agency may not conduct or sponsor, and a person is not required to
respond to a collection of information unless it displays a currently
valid OMB control number. The OMB control numbers for EPA\'s regulations
are listed in 40 CFR Part 9 and 48 CFR Chapter 15.

To comment on the Agency's need for this information, the accuracy of
the provided burden estimates, and any suggested methods for minimizing
respondent burden, including the use of automated collection techniques,
EPA has established a public docket for this rule, which includes this
ICR, under Electronic Docket ID number OAR-2003-0230. Submit any
comments related to the rule ICR for this proposed rule to EPA and OMB.
See "Addresses' section at the beginning of this notice for where to
submit comments to EPA. Send comments to OMB at the Office of
Information and Regulatory Affairs, Office of Management and Budget, 725
17^th^ Street NW, Washington D.C.20503 attn: Desk Officer for EPA.
Include the EPA ICR number (1432.23) in correspondence related to this
ICR.