1 

### Supporting Statement for Inform ation Collection Request

**Recordk eeping and Reporting Requirements**  **Regarding the Sulfur Content of Motor Vehicle Gasoline, Gasoline Additives,**

**Denatured Fuel Ethanol, and Other Oxygenates under the Tier 3**  **Proposed Rule**  40 CFR Part 80, Subpart O

EPA I CR 2482.01

May 2013

Office of Transportation and Air Qualit y U.S. Environmental Protection Agency2

**1. IDENTIFICATION OF THE INFORMATION COLLECTION**  **1(a) Title of the Information Collection**  Recordkeeping and Reporting Requirements Regarding the Sulfur Content of Motor Vehicle Gasoline , Gasoline Additives, Denatured Fuel Ethanol and Other Oxygenates under the Tier 3 Proposed Rule; EPA I CR 2482.01

. **1(b) Short Characterization/Abstract**  The requirements covered under this Information Collection Request (I CR) are included in the proposed Tier 3 rule that will be published in the Federal Register

. The scope of the recordkeeping and reporting requirements for each type of part y in the gaso line distribution sy stem, and therefore the cost to that party , reflects the part y's opportunit y to create, control or alter the sulfur content of gasoline. As a result, petroleum refiners and importers have more significant requirements, which are necess ary both for their own tracking and that of downstream parties, and for EPA enforcement . At the same time, parties downstream from the gasoline production or import point, such as distributors and pipelines, have fewer requirements under the proposed rule

. The recordkeeping and reporting requirements for refiners and importers of motor vehicle gasoline under the proposed Tier 3 program are the same requirements that exist under the Tier 2 sulfur program

. 1 Additionally , the proposed Tier 3 rule contain s recordkeeping and reporting requirements that appl y t o gasoline additive manufacturers and ox ygenate manufacturers whose products are blended into finished gasoline or gasoline blendstocks. The r ecordkeeping and Product Transfer Document (PTD) requirements for gasoline additive manufacturers would be new but should be minimal since we expect that they are alread y followed as part of customary business practices. Finally , there would be new recordkeeping and PTD requirements for producers of den atured fuel ethanol or other ox yg enates under the proposed Tier 3 program and new requirements for all downstream parties in the gasoline distribution system to retain PTD information. The information under this I CR would be collected by EPA’s Compliance Division, within the Office of Transportation and Air Quality, Office of Air and Radiation, and by EPA’s Air Enforcement Division, within the Office of Civil Enforcement, Office of Enforcement and Compliance Assurance. The information collected would be used b y EPA to evaluate compliance with the sulfur control requirements under the Tier 3 rule , if finalized . This oversight b y EPA would be necessary to ensure attainment of the air quality goals of the proposed Tier 3 program. Proprietary information may

be submitted by

refiners and importers for demonstrating compliance with the sulfur standards. Confidentiality would be handled in accordance with EPA regulations at 40 CFR Part 2 and established Agency procedures.

1 65 FR 6698, February 10, 2000 ; OMB Control Number: 2060

- 0437; EPA ICR 1907.053

In general terms, the recordkeeping and reporting requirements regarding the sulfur content of gasoline , gasoline additives, denatured fuel ethanol, and other oxygenates under the proposed Tier 3 program consist of the following: (1) Sampling and Testi ng. Refiners and importers. Under the proposed Tier 3 rule , refiners and importers would be required to test every

batch of gasoline produced or imported for its sulfur content. Note that refiners and importers are already required to sample and test ev ery batch of the reformulated gasoline ( RFG ) they

produce under the RFG program. For the conventional gasoline ( CG ) portion of a refiner’s gasoline production under the proposed Tier 3 rule, batch sampling and testing requirements would just be a continu ation of the batch sampling and testing requirements that are in place under the current Tier 2 gasoline sulfur program. Additionally , denatured fuel ethanol and other ox ygenate producers would be required to conduct batch sampling and testing. Refiners and importers would also conduct quality assurance (QA) periodic sampling and testing for sulfur for defense purposes under the proposed Tier 3 rule

. Blenders of Butane and Other Blendstocks into Previously Certified Gasoline . Under certain circumstances, blenders who blend butane into previously certified gasoline (PCG) are allowed to comply

with the current Tier 2 gasoline sulfur standards based on data from the butane producer/supplier as an alternative to testing every batch testing. Blenders who blend other blendstocks into PCG are allowed to calculate the sulfur content of the blendstock by testing the PCG before blending and the gasoline produced after blending, and subtracting the volume and sulfur content of the PGC from the volume and sulfur content of the finished blend. Tier 3 proposes to maintain this practice. Terminals and Pipelines . Terminals and pipelines would be required to sample and test gasoline designated as small refiner or small volume refinery gaso line for compliance with the applicable downstream small refiner/small volume refinery standard subsequent to the most recent receipt of gasoline. Terminals and pipelines also conduct periodic QA testing for sulfur. Truck Importers . Under certain circum stances, an importer that imports gasoline by truck is allowed to comply

with the sulfur standards based on test records from the foreign terminal. To use this option, the truck importer would have to conduct QA testing of the gasoline. (2) Sample Retention. The proposed Tier 3 rule would require gasoline refiners and importers and producers of denatured fuel ethanol or other oxygenates to retain sample portions from the most recent 20 samples collected or for each sample collected during the most recent 21

- day period , whichever is greater, and annually certify that samples have been collected under required procedures. R efiners and denatured fuel ethanol and other ox ygenate producers would be allowed to conduct their own testing rather than having it conducted at an independent laboratory

. (3) Recordkeeping. The proposed Tier 3 rule includes recordkeeping requirements for any part y that produces, imports, sells, offers for sale dispenses, distributes, supplies, offers for suppl y, stores, or tran sports gasoline. Such recordkeeping requirements include PTD information and4

sulfur sampling and testing information. Refiners and importers would be required to keep additional information for each batch of gasoline produced or imported. Additionally , the proposed Tier 3 program includes new PTD requirements that would apply to gasoline additive manufacturers and denatured fuel ethanol and other oxygenate producers

. (4) Reporting. The proposed Tier 3 rule would require refiners and imp orters and ox ygenate producers and importers to submit an annual report which demonstrates compliance with the applicable sulfur standards and for refiners and importers only an y Averaging, Banking, and Trading ( ABT ) credit activity

. 1 (5) Attest Requirem ents. The proposed Tier 3 rule would require refiners and importers to undergo an annual independent review (called an attest engagement) of the their records which would form the basis for the ir annual sulfur compliance report. Attest engagements are required under the RFG program for both RFG and CG. There would be a small incremental cost associated with including the information required under the proposed Tier 3 sulfur program

. (6) ABT Cre dit Trading Provisions. The proposed Tier 3 rule ’s ABT credit trading provisions would reduce the overall cost of compliance b y providing refiners and importers flexibility in complying with the gasoline sulfur standards. A s required under the current Ti er 2 program, r efiners and importers are would be required to report annually regarding the generation, transfer, and use of credits. (7) Small refiners /small volume refineries

. Most of this I CR’s requirements for small entities are associated with alte rnate sulfur standards that are designed to lessen the overall burden of compliance for these entities during the phase

- in of the program. Eligible small refiners and small volume refineries who participate in the small refiner program would be required t o comply with the recordkeeping and reporting requirements applicable to all refiners. Small refiners and small volume refineries would be required to identify their gasoline on PTDs.

**2. NEED FOR AND USE OF THE COLLECTION**  **2(a) Need/Authority For The**  **Collection** The Tier 3 sulfur requirements are being proposed under the authorit y granted by Section 211(c)(1) of the Clean Air Act (CAA). 2 Under Section 211(c)(1), EPA may adopt a fuel control if at least one of the following two criteria is met: (1) the emission products of the fuel cause or contribute to air pollution which may reasonabl y be anticipated to endanger public health or

1 The report forms for the fuels programs m ay be found on the fuels reporting page of the Office of Transportation and Air Quality (OTAQ) web site, http://www.epa.gov/otaq.

2 We currently have regulatory requirements for conventional and reformulated gasoline adopted under Sections 211(c) and 211(k) of the Act, in addition to the “substantially similar” requirements for fuel additives of Section 211(f). These requirements directly or indirectly control sulfur levels in gasoline. See the RIA for more details.5

welfare, or (2) the emission products of the fuel will significantly impair emissions control sy stems in general use or which would be in general use were the fuel control to be adopted. The Tier 3 rule is being proposed based on both of these criteria. Un der the first criterion, EPA believes that emissions products of sulfur in gasoline used in Tier 3 technology vehicles contribute to ozone pollution, air toxics, and PM. Under the second criterion, EPA believes that sulfur in gasoline that would be used i n Tier 3 technology vehicles would significantl y impair the emissions control sy stems of such vehicles. The Draft Regulatory Impact Anal ys is (RIA) submitted with the Tier 3 notice of proposed rulemaking includes a more detailed discussion of EPA’s authori ty to set gasoline sulfur standards, including a discussion of EPA’s conclusions related to the factors that must be considered under Section 211(c). This supporting statement describes the recordkeeping and reporting requirements and the associated cost s to various parties (e.g., refiners, importers, distributors, and retailers of gasoline). These requirements would be necessary to enable the Administrator to: (1) Identify

the sources of gasoline, gasoline additives, denatured fuel ethanol, and other oxygenates and gasoline blendstocks; and (2) Ensure that these sources compl y with the standards and limitations of the proposed Tier 3 rule. An effective enforcement scheme is necessary to ensure that the environmental goals of the proposed Tier 3 rul e are met, and that those complying with the requirements in good faith are not disadvantaged b y non - complying parties. The proposed Tier 3 rule’s requirements create a significant economic incentive for noncompliance. Without the accompanying recordkeep ing and reporting requirements, Congressional intent to improve air quality through the proposed Tier 3 program would be thwarted because neither EPA nor industry would have sufficient information to monitor compliance. Non

- compl ying gasoline, gasoline ad ditives, denatured fuel ethanol, and other ox yge nates would likely be introduced into commerce on a widespread basis but for requirements that make it possible for EPA to cross

- check records of various entities in order to determine compliance. Sections 114 and 208 of the CAA, 42 U.S.C. §§ 7414 and 7542, authorize EPA to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA. The current regulations applicable to motor vehicle gasoline, including the regulation s associated with this information collection, can be found in 40 CFR Part 80, Regulation of Fuels and Fuel Additives. **2(b) Practical Utility/Users of the Data**  EPA proposes to use the information and test results (e.g., sulfur content and volume of eac h batch of gasoline) contained in the annual reports that would be required b y this information collection to evaluate the compliance of parties involved in the production and importation of gasoline, gasoline additives, denatured fuel ethanol, and other o xygenates with the proposed sulfur control requirements

. These reports would also be used b y EPA to target6

compliance investigations. PTDs maintained by parties in the gasoline distribution sy stem and records related to gasoline blending would be used to evaluate the compliance of parties that maintain the records, and to help evaluate upstream compliance. **3. NONDUPLICATION, CONSULTATIONS, AND OTHER COLLECTION**  **CRITERIA 3(a)**  **Non**
**- duplication**  Efforts have been made to eliminate duplication in this information collection. Provisions included in the proposed Tier 3 sulfur rule would allow parties to consolidate reporting requirements and/or provide abbreviated reports where appropriate. For example, to reduce the reporting burden, reports spec ific to compliance with the sulfur standards and reports related to the sulfur ABT credit trading program are included in the annual reports already required to be submitted under the RFG program. Where possible, information requirements from various organizations within the Agency have been combined to minimize the submittal of duplicate information in different formats. The information in this collection is not available from another source. To minimize the information collection burden, refiners and importers who are alread y registered with the Agency would not have to register again under the proposed Tier 3 rule

. Additionally , since California’s state gasoline sulfur requirements are as stringent as those under the Tier 3 sulfur program for mos t of the remainder of the nation’s gasoline, and since California has its own compliance and enforcement provisions, California gasoline is exempt from most of the requirements of the sulfur program. **3(b) Public Notice Prior to Submission to OMB**  EPA wi ll submit the IC R to OMB for review, along with the notice of proposed rulemaking. This proposed supporting statement is being docketed in order to permit interested parties to fully

comment on it. **3(c) Consultations**  The regulations, including the cost anal ys is that is reflected in this I CR, were developed based on experience with similar regulations developed in the past in close consultation with the affected industry

. Collaboration with industry and other stakeholders has been a key element in developing the agencies’ rules. Throughout the development of this proposal, EPA met extensively

with individual refiners , industry trade associations, and other stakeholders. Th eir comments have been reflected in the burden estimates discussed below.7

**3(d) Effect of Less Frequent Collection**  The proposed Tier 3 sulfur program would require gasoline refiners and importers and oxygenate producers and importers to submit annual reports which demonstrate compliance with the applicable sulfur standards by the information contained within . The information contained in such reports would include information regarding the sulfur content and volume of a refinery ’s or importer’s gasoline or denatured fuel ethanol or other oxygenate . Less frequent submittal of such reports would severely hinder EPA’s ability

to monitor compliance, and would likely lead to noncompliance. Additionally , requiring less than every

- batch sampling and testing, where applicable , would make the sulfur cap requirement (i.e., the pe r gallon maximum sulfur content) meaningless, and would likely lead to extreme excursions in fuel sulfur content which could affect emission control systems and lead to increased emissions. This would be an unacceptable outcome given that the proposed Tier 3 sulfur program is intended to lead to reduced emissions in part by compatible vehicle and fuel interaction. **3(e) General Guidelines**  This information collect ion activity complies with 5 CFR 1320.6, except that respondents would be required to keep certain records for longer than three years. Specifically , all parties would be required to keep PTDs and records of quality assurance programs for five ye ars, and refiners and importers as well as denatured fuel ethanol and other oxygenate producers and importers would be required to keep their compliance records for five ye ars. R ecords related to the ABT credit trading program would also be required to be retained for five y ears. The information required to be retained will facilitate EPA’s identification of the source of any gasoline found to be in violation of the sulfur standard. Much of the information required under the proposed Tier 3 rule is already required under the current Tier 2 program, and most records are required to be kept for five ye ars under the Tier 2 program. Therefore, the recordkeeping requirements under the proposed Tier 3 rule impose little additional burden. Five ye ars is the applicable statute of limitations for the Tier 2 gasoline sulfur and other fuel programs. See 28 U.S.C. 2462. Refiners and importers submit a limited amount of proprietary information, such as batch volume and sulfur content in their annual reports. EPA believes that requiring annual reports provides an appropriate and effective means of monitoring compliance with the standards under the sulfur program. This ty pe of information has been collected in the past and would be safeguarded in the same manner as data required by other EPA directives. Pertinent information, whether kept b y the respondent or b y a contractor, is subject to auditing b y EPA. Consequently , EPA officials will require voluntary entry and access to facilities. **3(f) Conf** 

**identiality** As discussed in 3(e) above, proprietary information may submitted by refiners and importers for demonstrating compliance with the sulfur standards

. Such information is protected in accordance with the EPA regulations at 40 CFR Part 2 and es tablished Agency procedures.8

**3(g) Sensitive Questions**  No questions of a sensitive nature are asked in this information collection.

**4. THE RESPONDENTS AND THE INFORMATION COLLECTED**  **4(a) Respondents/SIC Codes**  The respondents to this information collection would be :

- Refiners (both domestic and foreign refiners who manufacture gasoline for use in the U.S.)

- Importers of gasoline into the U. S.

- Gasoline distributors, carriers, wholesale purchaser

- consumers, and retailers

- Users of research and development gasoline (testing laboratories)9

**Table 4(a).1: Respondent Industry Classification Codes** Category NAI CS 1 Code SI C 2 Code Examples of Potentially Affected Entities Industry 324110 2911 Petroleum refineries (including importers) Industry 325110 2869 Butane manufacturers Industry 325193 2869 Ethyl alcohol manufacturing Industry 211112 1321 Natural gas liquids extraction and fractionation Industry 325199 2869 Other basic organic chemical manufacturing Industry 486910 4613 Natural gas liquids pipelines, refined petroleum products pipelines. Industry 424690 5169 Chemical and allied products merchant wholesalers Industry 325199 2869 Manufacturers of gasoline additives Industry 424710 5171 Petroleum bulk stations and terminals. E51

- 83 manufacturers. Industry 493190 4226 Other warehousing and storage
- bulk petroleum storage Gasoline Retailers and Wholesale Purchaser

Consumers 44711 44719 5541 < 6.5 million dollars
Testing Laboratories 54138 8734 < 5 million dollars 1) North American Industry Classification S ys tem 2) Standard Industrial Classification sy stem **4(b) Information Requested**  The recordkeeping and reporting requirements applicable to the regulated parties vary depending on their position in the gasoline production , blending and distribution stream and their potential to influence the sulfur content of gasoline. The regulated parties are divided into groups (and sub

- groups) as indicated in the list below, based on the applicable recordkeep ing and reporting requirements.10

- Gasoline r efiners and i mporters

- Additional and/or alternative requirements exist if:

- Refiner qualifies and opts to use the small

- refiner provisions

- Refiner or importer participates in the ABT credit trading program

- Refiner (including parties who blend gasoline at a terminal facility) produces gasoline b y blending butane or other blendstocks into previously certified gasoline

- Gasoline d istributors ( g asoline t erminals, p ipelines, and truckers)

- Additional requir ements exist for distributors of gasoline subject to the small refiner and small volume refinery standards.

- Gasoline retailers and wholesale purchaser

- consumers (WPC)

- Additional requirements exist for retailers and WPCs of exempted research and develop ment (R&D) gasoline

- Users of R&D gasoline (testing laboratories)

- Denatured fuel ethanol and other ox ygenate producers and importers

- Gasoline additive manufacturers (i ) Data items, including recordkeeping requirements The information collection re quirements are categorized in the following lists according to which regulated parties they apply . Certain requirements, such as the PTD requirements, would be broadl y applicable to most parties who transfer gasoline. These more generall y applicable requ irements are discussed separatel y from the requirements that apply onl y to specific groups of regulated parties. Additional and/or alternative requirements applicable to subgroups of respondents are also discussed separately . Where a regulated party is n ot specificall y mentioned, only the most broadl y applicable requirements apply. The presence of an “*” in the following list of requirements indicates an explanatory note regarding the applicability of these requirements. (A ) Broadly

-

Applicable Requirements The following requirements apply broadly to all of the regulated parties listed above. The responsibilities of gasoline distributors (gasoline terminals, pipelines, and carriers) and gasoline retailers and WPCs are primarily related to comp liance with the following broadl y applicable requirements. Some terminal or other facility operators blend butane or other blendstocks into previously certified gasoline. These gasoline producers are considered refiners under the sulfur program, and are discussed under the requirements for refiners. Unless specificall y noted, the PTD requirements listed below do not result in any new activities for gasoline distributors, retailers, and WPCs.

- The proposed Tier 3 rule would require persons who manufac ture, import, sell, offer for sale, dispense, distribute, supply , offer for supply , store, or transport gasoline to include the following information in PTDs that accompan y each transfer of gasoline:11

- PTDs that accompan y the transfer of gasoline manufactured by small refiners and small volume refineries and designated as small refiner/small volume refinery gasoline are required to identify the gasoline as small refiner/small volume refinery gasoline and designate the applicable downstream cap. * The small refiner and small volume refinery provisions would allow the production of a special classification of gasoline which would be allowed to continue meeting the Tier 2 sulfur standards through December 31, 2019 . The presence of th is special clas sification of gasoline in the distribution sy stem necessitates the inclusion of additional information on gasoline PTDs. Beginning January 1, 20 2020 , small refiner and small volume refinery gasoline would be subject to the Tier 3 sulfur standards applicab le to a ll other refiners and refineries and the additional PTD requirements would no longer be applicable. Small refiners and small volume refineries would experience an additional burden associated with adding the required information to the PTDs but downstream p arties in the gasoline distribution chain would not be required to undertake an y new activities due to the additional information on the PTDs. Except for transfers to truck carriers, retailers and wholesale purchaser

- consumers, product codes can be used on PTDs to convey the required information if such codes are clearl y understood by each transferee. This allowance lessens the burden of complia nce and is consistent with the requirements under the current Tier 2 gasoline sulfur program .

- Under the proposed Tier 3 rule, an y party that would be required to conduct sampling and testing for sulfur content would be required to retain records regardi ng:

- The location, date, time, tank or storage tank identification for each sample collected

- The name and title of the person who collected the sample and the person who performed the testing

- The results of the test as originall y printed or recorded, and an y record which contains a result that is not identical to the originall y printed or recorded test

- For purposes of establishing an affirmative defense to a violation, parties other than retailers or wholesale purchaser

- consumers would be required t o provide business records documenting the following:

- A periodic sampling and testing program designed to ensure that the gasoline meets the applicable sulfur standard

- On each occasion that the gasoline is found not to be in compliance with the applicable sulfur standard, the actions taken to stop the sale or distribution of any gasoline found not to be in compliance, and the actions taken to remedy the violation and the factors that caused the violation (such as removing the non

- complying gasoli ne from the distribution sy stem and taking steps to prevent future violations)

- Records would be required to be maintained for five y ears from the date they were create with one exception

. Records related to ABT credits would be required to be kept for five ye ars from the date of generation, except where credits are transferred. In such cases, records would be required to be kept by the transferor for five y ears from the date of transfer, and by

the transferee for five ye ars from the date of transfer, use or termination,12

whichever is later. As a result, in certain circumstances, records related to credits may be required to be maintained for longer than five ye ars from the date of originati on. This potentially

longer retention time is necessary to enable the Agency

to determine the legitimacy

of credit transfers in the context of an enforcement action * Inmost cases, this requirement does not impose an additional burden because the required records are already maintained under other 40 CFR Part 80 fuels programs, or the records are maintained as a customary business practice. (B ) Requirements Sp ecific to Gasoline Refiners and Importers: The following requirements apply to all refiners and importers :

- Register with EPA six months prior to producing or importing gasoline meeting the proposed Tier 3 standards and/or participating in the credit program. *One

- time requirement

. Registration under other 40 CFR Part 80 f uel program s is sufficient to satisfy

this requirement. As a result, no additional burden is expected under the proposed Tier 3 rule.

- Calculate the annual average sulfur level for each refinery or all imported gasoline.

- Submit annual sulfur averaging report to EPA for each refinery and importer by March 31 for the previous y ear’s averaging period.

- In clude the following information in the refinery ’s or importer’s annual average report:

- EPA refiner and refinery facility , or importer registration numbers

- Applicable annual average standard

- Tota l volume of gasoline produced at the refinery or imported

- Annual average gas oline sulfur content produced at the refinery or imported

- Annual average sulfur level after inclusion of an y credits

- For each batch of gasoline produced or imported during the averaging period, the assigned batch numbe r , the date the batch was produc ed, and the volume and sulfur content of the batch.

- Arrange to have an attest engagement report submitted to EPA by May 3 1 for the previous ye ar’s annual averaging period

- The attest engagement would be required to be performed on the underl yi ng documentation that forms the basis of an y required report

- The attest engagement would be required to be prepared in accordance with established procedures

- The attest engagement would be required to be performed b y an independent certified public acco untant (CPA)

- Internal auditors may

assist the CPA pursuant to the Standards for Attestation Engagements13

(C ) Additional and/or Alternate Requirements for Refiners and Importers that Participate in the ABT Credit Trading Program The following recordkeeping and reporting requirements apply to refiners and importers who utilize the ABT credit trading provisions under the sulfur program:

- Calculate ABT credits generated

- In clude in the refinery or importer annual sulfur compliance report (in addition to the information required for all refiners and importers) the number of credits:

- Carried over from the prior averaging period

- Generated

- Used

- Obtained from or transferred to another part y, and the name and EPA refiner or importer registration number of the other part y t o the transaction

- Expired at the end of the averaging period

- Carried over to the subsequent averaging period

- Retain the following records (in addition to records required to be kept by all refiners and impo rters), separatel y b y ye ar of creation and pertaining to the number of credits:

- Carried over from the prior averaging period

- Generated

- Used

- Obtained from or transferred to another part y, and the name and EPA registration number of the other par

ty to the transaction

- Expired at the end of the averaging period

- Retain records related to credits for five years from the date of generation; if transferred, the transferor must retain records for five ye ars from the date of transfer and the trans feree must retain records for five ye ars from the date of transfer, use or termination, whichever is later * As discussed above, these requirements could result in records being required to be retained for longer than five years in some cases. (D) Alternative Requirements for Importers who Import Gasoline by Truck

- Importers who import gasoline into the U. S. by truck may

use the test results from the foreign terminal to satisfy the sampling and testing requirements that are otherwise required if the importer fulfills the following alternative requirements:

- Obtai n records from the foreign terminal at which the gasoline was loaded for importation into the U.S. which shows the sulfur content of each truck load of gasoline imported into the U.S.

- Conduct a QA program for each truck loading terminal. QA samples woul d be required to be taken from the truck

- loading terminal for testing b y the importer, or as14 an alternative, b y an independent laboratory , to determine the sulfur content. The sampling and testing would be required to be performed using the regulatory methods. The frequency

of the sampling and testing would be required to be at least one sample for each fift y of an importer’s trucks that are loaded at the terminal, or one sample per month, whichever is more frequent.

- Treat each truck load of imported ga soline as a separate batch for purposes of assigning batch numbers, maintaining records, and reporting * These requirements only appl y if the importer elects to use this alternative way of demonstrating compliance.

- For a truck importer to use the alternative sampling and testing procedures, the foreign terminal must agree to fulfill the following requirements:

- Sample and test the gasoline contained in the storage tank from which the trucks used to transport gasoline are loaded, to demonstrate that a sulfur content does not exceed the applicable per

- gallon standard. This sampling and testing would be required to be performed after each receipt of gasoline into the storage tank, or immediately before each transfer of gasoline into the importer’s truck. * These requirements apply onl y if the importer elects to use the alternative procedures to demonstrate complian ce with the every batch sampling and testing requirement. These additional requirements are not applicable if the importer has an independent third party conduct the required testing at the foreign terminal facility . This is generally the case because of the cost savings that result for the importer as well as the foreign terminal operator. Terminal testing conducted b y a third party satisfies the testing requirements that are otherwise applicable to the importer. Therefore, EPA expects that these requi rements will not result in additional activities for foreign terminal operators. (E ) Alternative Requirements for Refiners, Pipelines, and Terminals that Produce Gasoline by Blending Butane or Other Blendstocks into Previously Certified Gasoline (PCG)

- As an alternative to the every batch sampling and testing requirements, refiner

- blenders who blend butane into PCG may meet the sampling and testing requirements by using sulfur test results from the butane supplier provided that the ref iner

- blender:

- Obtains a cop y of the test results from the butane supplier which shows that the sulfur content of each load of butane in the storage tank from which the blendstock was drawn does not exceed the applicable per

- gallon standard and that the tests were performed using the regulatory method

- Treats the butane as a batch (re: sulfur content and volume) for the purpose of calculating compliance with the applicable sulfur averaging standard

- Conducts a quality

assurance program including samplin g and testing from each butane supplier to demonstrate that butane sulfur content is below the applicable per

gallon standard. The frequency of butane sampling and testing from each supplier15 would be required to be one sample for every 500,000 gallons of butane received, or one sample every

3 months, which ever results in more frequent sampling

- As an alternative to the every batch sampling testing requirements, refiner

- blenders who blend other blendstocks into PCG may :

- Sample and test the PCG for sulfur content prior to blending and subsequent to blending and calculate the volume and sulfur content of the blendstock b y subtracting the volume and sulfur content of the PCG from the volume and sulfur content of the gasoline subsequent to blending, or

- If every

batch of blendstock used during an averaging period has a sulfur content that is equal to or less then the applicable per

- gallon standard, sample and test each batch of blendstock for volume and sulfur content when received and treat each blend stock receipt as a separate batch for purposes of compliance calculations (F ) Requirements for Pipelines and Terminals Pipelines and terminals that receive s mall refiner/ small volume refinery gasoline must:

- Fulfill testing requirements to assure that gasoline designated as small refiner/small volume refinery

gasoline has the applicable sulfur content to qualify as small refiner/small volume refinery gasoline

. (G) Requirements for Gasoline Retailers and Wholesale Purchaser

- Consumers:

- If research and development (R&D) gasoline is to be stored b y a retailer or wholesale purchaser

- consumer (WPC), records would be required to be kept to demonstrate that the retailer or WPC is associated with the facility that would be using the R&D gasolin e. Documents associated with R&D gasoline are required to be retained for five y ears. (H) Requirements for Users of R& D Gasoline. Users of R&D gasoline must submit an application to EPA prior to initial use of the R&D gasoline. The application must contain the following:

- Statement of purpose

- Description of the R& D program, including the sulfur level of the gasoline expected to be used

- Expected start and completion dates of the R&D program

- Estimation of the number of vehicles or engines in which the fuel would be used and mileage to be accumulated

- Locations where gasoline would be stored and used

- Volume of gasoline to be used.

- Id entification of the gasoline distributor or other source of the R&D gasoline

- Explanation of why

sulfur

- compliant gasoline cannot be used

- Provisions to ensure EPA monitoring capability16

* A report would be required to be submitted to obtain an exemption for R&D gasoline under EPA’s proposed Tier 3 rule . The application under the Tier 3 sulfur program may be combined with the report already submitted to gain an exemption under other 40 CFR Part 80 fuel programs. Therefore, the R&D gasoline exemption application under the proposed Tier 3 sulfur program would not result in additional reports/applications being submitted to EPA.

- R&D gasoline would be required to be identified on PTDs as gasoline to be used onl y for this purpose * This requirement already exists to establish an exemption from EPA’s T ier 2 program; hence this PTD requirement should not result in a new activit y. (I) Requirements for Gasoline Additive Manufacturers

- PTDs that state the maximum registered concentration for the additive and the corresponding maximum allowed treatment rate. (J) Requirements for Denatured Fuel Ethanol and Other Oxygenate Producers.

- PTDs with the applicable statement for either denatured fuel ethanol or ox ygenates other than denatured fuel ethanol

. (ii) Respondent Activities As noted above, much of the information needed for compliance with the recordkeeping requirements under the proposed Tier 3 rule is alread y being retained either to comply with the requirements of other 40 CFR Part 80 f uel programs or as a customary busine ss practice. To the extent possible, EPA has ensured that information collected and reported under other 40 CFR Part 80 fuel programs such as the RFG program can also be used to demonstrate compliance with the proposed Tier 3 sulfur program without necess itating additional activities by the regulated parties. Onl y in cases where it is essential to ensure the realization of the projected benefits of the sulfur program, is EPA requiring additional testing, recordkeeping, and reporting

. The activities arising out of the testing, recordkeeping, and reporting requirements outlined in the preceding section are listed below according to the respondent class to which they apply . Activities that apply to a broad class of respondents (such as refiners and importers) are also applicable to respondent subclasses (such as small refiners) unless otherwise noted. The burdens and costs included in this I CR are those which are expected to be incurred during the next three y ears, the period of time covered b y this ICR. The following lists detail the activities of the various regulated parties:17

(A ) Activities of Gasoline Refiners and Importers

- Test each batch of gasoline for its sulfur content, retain samples from the most recent 20 samples collected or for each sample collected during the most recent 21 day period, whichever is greater, and retain records of the testing for five ye ars.

- Conduct a QA periodic sampling and testing program for sulfur content for defense purposes.

- Calculate the average annual sulfur level of each refinery , or all imported gasoline, using batch test reports.

- Submit refinery

and importer annual averagin g reports to EPA by the March 31 of the ye ar following the prior y ear’s averaging period.

- Arrange to have an independent third part y submit to EPA an attest engagement report b y May 31 of each y ear for the prior calendar ye ar averaging period. (B ) Activities of Gasoline Refiners That Utilize the Small Refiner Provisions:

- For transfers of gasoline with a small refiner designation, identify the gasoline as small refiner /small volume refinery gasoline and indicate the downstream small refiner sulf ur standard on PTDs.

- Notify

EPA if refiner wishes to withdrawal small refiner status. Upon notice to EPA, effective on January

1 of the y ear following such notification, the small refiner will become subject to the sulfur standards for all other non

- sm all refiners

. ( C ) Activities of Refiners and Importers Who are Exempt from Requirements for Extreme Hardship

- Submit annual sulfur averaging reports to EPA under the terms of the hardship application. ( D ) Activities of Refiners and Importers Who Participate in the ABT Credit Trading Program

- In clude in the annual sulfur averaging report to EPA.

- The credits carried over from prior averaging period, generated, used, terminated, transferred or carried over to the next averaging period.

- The identity

of the refiners/refineries and importers (including EPA registration numbers) involved in credit transactions.

- Retain records related to ABT credit activity.18

*These activities are required only if a refiner or importer elects to participate in the ABT credit trading program. ( E ) Alternate Activities for Importers that Import Gasoline by Truck

- Use the following alternative requirements to satisfy the requirement to sample and test every batch of gasoline:

- Obtain test results from the foreign terminal at which the gasoline was loaded which shows the sulfur content of each truck load of gasoline imported into the U.S.

- Satisfy

the program requirement for each truck loading terminal *Samples from the truck

- loading terminal may be taken for testing either by the importer or an independent third party . The frequency of the sampling and testing would be required to be at least one sample for each 50 of an importer’s trucks that are loade d at the terminal, or one sample per month, whichever is more frequent. * These alternative requirements only appl y if the importer elects to use this alternative way of demonstrating compliance. ( F ) Alternative Activities for Refine rs, Terminals, and Pipelines That Produce Gasoline by Blending Butane or Other Blendstocks into Previously Certified Gasoline

- For butane blenders, use the test results from the butane supplier to satisfy the requirement to sample and test each batch of gasoline provided that:

- The butane blender obtains a cop y of the test results from the butane supplier which shows that the butane in the storage tank from which the butane was drawn does not exceed the applicable per

- gallon standard.

- The butane is tr eated as a batch regarding sulfur content and volume for the purpose of calculating compliance with the applicable sulfur averaging standard.

- The refiner conducts a QA program including sampling and testing from each butane supplier to demonstrate that b utane sulfur content does not exceed the applicable per

gallon standard. The frequency of butane sampling and testing from each supplier would be required to be one sample for every 500,000 gallons of butane received, or one sample every

3 months, which e ver results in more frequent sampling.

- For blenders who blend other blendstocks into PCG, calculate the volume and sulfur content of the blendstock by subtracting the volume and sulfur content of the PCG from the volume and sulfur content of the finishe d blend, or

- If every

batch of blendstock used during the averaging period has a sulfur content that is equal to, or less than, the applicable per

- gallon cap standard, sample and test each batch of blendstock received and treat each receipt as a separate batch for purposes of compliance calculations19

( G ) Activities of Pipelines and Terminals

- Conduct sampling and testing of gasoline designated as small refiner/small volume refinery gasoline

.

- Conduct periodic QA assurance testing for sulfur content for defense purposes. ( H ) Activities of Users of Research and Development Gasoline:

- Prior to initial use of R&D gasoline, submit an application to EPA * As discussed above, the application for an R&D exemption under the proposed Tier 3 rule may be combined with the report already submitted to gain exemptions under other 40 CFR Part 80 fuel programs. This requirement, therefore, is not expected to result in additional reports or applications being submitted to EPA. ( I ) Activities of D istributors, Retailers, and WPCs

- WPCs identify

and keep records of an y R &D gasoline. *As discussed above, this activity should not result in any

additional burden since the documents are kept as a customary business practice. (I) Requirements for Gasoline Additive Manufacturers

- Maintain records of its additive production quality control activities and make records available upon request. (J) Requirements for Denatured Fuel Ethanol and Other Oxygenate Producers.

- Test each batch of denatured fuel ethanol or other oxygenate for its sulfur content, retain samples from the most recent 20 samples collected or for each sample collected during the most recent 21 day

period, whichever is greater, and retain records of the testing for five y ears.

- Conduct a QA periodic samplin g and testing program for sulfur content for defense purposes.

- Calculate the average annual sulfur level using batch test reports.

- Submit annual averaging reports to EPA by March 31 of the y ear following the prior ye ar’s averaging period.20

5. **THE INFORMATION COLLECTED** 
**-- AGENCY ACTIVITIES, COLLECTION**  **METHODOLOGY, AND INFORMATION MANAGEMENT 5(a)**  **Agency Activities** Agency activities associated with the annual reporting requirements of this information collection consist of the following: 1) Review submitted reports (includes associated Agency inspections and investigations); 2) Enter data from the reports into the database; 3) Anal yz e requests for confidentiality and provide appropriate protection; 4) Store the data and archive according to a recor d retention schedule conforming to EPA policy

. Agency activities associated with the attest engagement requirements of this information collection consist of the following: 1) Review submitted reports (includes associated Agency inspections and investigations); 2) Store the data and archive according to a record retention schedule conforming to EPA policy

. **5(b) Collection Methodology and Management**  The collection methodology and management of the information collected is similar to the proces s used for other 40 CFR Part 80 fuel program s . The information should be reported electronically

via a format specified b y the Administrator

. When the submittal is received, EPA would review it for completeness EPA may also review respondents' records as a part of its enforcement effort to ensure the accuracy and validity of the data submitted. Non

- confidential data would be made available to the public upon request. **5(c) Small Refiner** **/Small Volume Refinery and Temporary Relief Flexibilities**  As dis cussed in Section 3(c) above, as part of its effort to comply with the Small Business Regulatory

Enforcement Fairness Act (SBREFA) requirements, EPA met several times with small entity

representatives. Additionally , EPA convened an intergovernmental panel , in accordance with the SBREFA, which also met with small entity representatives and which then made specific recommendations to EPA regarding the impact of sulfur control on small businesses. A cop y of the panel’s report is available in the docket for t his regulatory

action. The report contains a list of the fuel industry ’s participating small entity representatives, and provides a summary

of their comments. The panel’s recommendations were carefully considered b y EPA in developing the proposed Tier 3 rule and the specific provisions for small refiners. The panel did not recommend a wholesale exemption for small refiners and small volume refineries , but rather that they be21

provided additional time to comply . As a result, the gasoline sulfur rule provides for less stringent sulfur standards for qualifying small refiners until 2020 In addition, the gasoline sulfur rule provided temporary relief from the sulfur requirements for refiners who demonstrated that extreme hardship would result in the absence of such relief. A Draft Regulatory

Impact Anal ys is (RIA) which further discusses the measures taken to minimize the impact on small business entities is included in the docket for the gasoline sulfur rulemaking. **5(d) Collection Schedule**  The collection schedule of the sulfur program reporting requirements is shown in Table 5(d). **Table 5(d). Collection Schedule**

Item Due Date Refinery and importer annual averaging reports, including ABT information March 31 following the previous year’s averaging period Attest reports May 31 following the previous year’s averaging period

**6. ESTIMATING THE ANNUAL BURDEN AND COST OF THE COLLECTION**  **6(a) Estimating Respondent**  **Burden** The estimated hourl y burdens for this I CR are contained in Tables 6(a)1 and 6(a)2. The accounting assumptions made in making the estimates of annual hourl y burden and cost are summarized after the following tables on respondent hourly burdens.22

**Table 6(a)1: Annual Hourly Burden for Gasoline Refiners and Importers and Denatured Fuel Ethanol and Other Oxygenate Producers** 

Co nt ract or Eq ui va len t 1) Annu alrefine ry/im port er averagin g report : Refin ers 0.25 0 0.75 0 3 3. 00 Import ers 0.25 0 0.75 0 1 1. 00 Denat ur ed

F ue l Et hanolP rod

uc er 0.25 0 0.75 0 1 1. 00 2) AB T cred

it an d/ or allot me nt t rad

in g report 0.25 0. 25 0.25 0 1 0. 75 3) Ad dit io nalbat ch rep ort s for C G: Refs(ow

n eq uip ) 0.1 0.7 0. 2 0 400 400 Refs(l ab$ 74/hr) 0 0 0 1 400 400 Import ers(l ab

$74/hr) 0 0 0 1 27 27 Denat ur ed

F ue l Et hanolP rod

uc er (lab $74/ hr) 0 0 0 1 400 400 4) Alt ern at iv e s ampl in g/t esti ng : P CG 0 0.5 0. 5 0 40 40 B ut ane 0 0. 25 0. 5 0 5 3. 75 5) S ma ll refin ers/sm all v olum e refin eries : P TD s 0 1 1 0 1 2 Rep ort in g 0 0 0. 5 0 1 0.5 6) S eparat e an nu

alav eragin g rep ort for te mporary hard

sh ip 0 0 0. 5 0 1 0.5 7) Alt ern at iv e s ampl in g/t esti ng for t ruck im port ers 0 0. 25 0. 75 0 12 12 8) At te st en ga ge ment s: Refineries 0 5 0 0 3 15 Import ers 0 5 0 0 1 5 Denat ur ed

F ue l Et hanolP rod

uc er 0 5 0 0 1 5 9) Refiner Q/

A p eriod ic s ampl in g/t esting

for de fens e (field

t est $40) 0 0 0 1 10 10 10) G as ol in e Ad

di tive Manufact ur er P TD s 0 1 1 0 1 2 11) D en at ur ed

Fu el Et hanolP rod

uc er P TD s 0 1 1 0 1 2 To ta l An nu al Bur de n Ho ur s (pe r respond en t) Co llect io n Act iv it y An nual B ur de n Ho ur s per Respons e Nu mb er o f Re sp ons es pe r Re sp ond ent pe r Year Managerial ($110/hr) Te ch ni cal

($96/hr) Cl erical

($37/ hr)

*This estimate is based on an average of 3 refineries per refiner. I n reality, larger refiners may own several refineries, while smaller refiners may own only one refinery.23 **Table 6(a)2: Annual Hourly Burden for Gasoline Terminals, Pipelines and Users of Research and Development (R&D) Gasoline** 

Collection Activity Annual Burden Hours per Respondent Number of Responses per Respondent per Year Total Annual

Burden Hours (per Respondent) Managerial Technical Clerical Contractor Equivalent ($40/hr

- field test) Sampling and Testing for small refiner/ small volume refinery gasoline Terminals Pipelines 0 0 0

0 0

0 1.0

1.0 2

2 2.0

2.0 Q/A Periodic Sampling and Testing for Defense Terminals Pipelines 0 0 0

0 0

0 1.0

1.0 10

10 10

10 R&D Applications 0 0 0.5 0 1 0.5 Accounting Assumptions: The discussion of the requirements under the sulfur program (Section 4(b)(i)) contains notes on the extent to which these requirements could be satisfied without necessitating additional activities by

using information that is already collected and submitt ed to EPA under other 40 CFR Part 80 fuel programs. This discussion helps to support the selection of the activities that were newly required under the sulfur rule (Section 4(b)(ii)), the selection of the respondent classes (Section 6(a)), and the followi ng accounting assumptions. Accounting Assumptions that Pertain to Labor Costs: 1) The cost of managerial time is $1 10 /hour. 2) The cost of technical time is $ 96 /hour. 3) The cost of clerical time is $ 37 /hour. An hourly

equivalent rate of $74 was assumed for dependent laboratory testing and $40 for field testing for sulfur. Accounting Assumptions that Pertain to Activities: These costs are similar to those used in other 40 CFR Part 80 fuel program ICR s, and are based upon Bureau of Labor Statistics figures from “Employer Costs for Employee Compensation

– Table 12

– Private Industry , Manufacturing and Non

- Manufacturing Industries by Occupational Group (December 2003).24

1) The following assumptions were made in estimating the burden to refiners and importers and denatured fuel ethanol and other ox ygenate producers of submitting averaging reports to EPA:

- There are currently

about 80 refiners and 39 importers of gasoline. There are 144 operable refineries (including 10 idle) as of January 1, 2012 , 111 of which produce gasoline

. 2

- There are approximately 105 ethanol producers covering 233 domestic ethanol producing facilities registered with EPA and another 40 companies that are registered to import ethanol.

- Preparing the report in the proper format and submitting it to EPA will require 0.75 hour of a clerical employee’s time and 0.25 hour of a manager’s time.

- Reporting associated with ABT credit and/or allotment activity is estimated to be 0.25 hour of managerial time, 0.25 technical time, and 0.25 clerical time. 2) The following assumptions were used to estimate the additional burden for refiners and importers associated with testing the sulfur content of each batch of CG rather than testing composite samples and to estimate the burden for denatured fuel ethanol and other oxygenate producers to test the sulfur content of each batch of oxygenate.

- There are approximately 75 domestic refiners that produce CG and 30 importers that import CG

- The number of additional sulfur tests required on batches of CG would be approximately

400 for each refiner and 27 for each importer. We also assume 400 tests for denatured fuel ethanol and other ox ygenate producers.

- 2/3 of refiners will perform their own sulfur testing; 1/3 will have the testing done b y an independent thi rd party laboratory

- Importers will have testing done b y an independent third party laboratory

- A sulfur test conducted at a private laboratory will cost a refiner or importer $50 for the test itself, plus $24 for the transportation of the sample to t he lab and to perform other administrative functions, for a total cost of $74/test (this assumes that the cost of the employ ee to transport the sample and handle the associated administrative duties is $24/hour, and it takes one hour to perform the task)

- An annual cost of the additional testing of gasoline sulfur content for refiners who conduct their own testing was calculated using the following assumptions:

- The hourl y burden associated with batch reports for the additional testing for sulfur is 0.1 0 hour for managerial time, 0.7 0 hour for technical time, and 0.2 0 hour for clerical time. Since the average CG refiner will need to test 400 additional batches, the hourl y burden for this additional testing is 400 hours.

- The annual cost of the additio nal testing of gasoline sulfur content for refiners and importers who use an independent third party laboratory

was estimated using the following assumptions:

- Since the average CG refiner will need to test 400 additional batches, and the cost of a test c onducted at a private laboratory is $74 per test, the annual cost of the additional testing for those refiners that use a private laboratory is $29,600/y ear

2 Petroleum Supply Annual, U.S. EIA Energy Information Administration, June 2012.25 - Since the average importer will need to test 27 additional batches of CG per year, and the cost o f a test conducted at a private laboratory is $74 per test, the annual cost of the testing for such parties is $1,998/year

- There are no additional costs associated with storing the CG batch samples for 30 day s beyond those considered above 3) The following assumptions were made in estimating the burden that would result from the use of the alternate provisions to satisfy the CG batch test requirement by refiners that blend blendstocks (other than butane) into previously certified gasoline:

- These alternate provisions would be used to the fullest extent possible by all refiners who blend blendstocks into previously certified gasoline, since their use will result in a significant savings in the overall cost of compliance

- The refiner already tests each blendstock upon receipt to determine its sulfur content in order to compl y with the requirements of the RFG program or as a customary business practice

- 15 refiners blend blendstocks other than butane into CG

– on average, each of these refiners prod

uces 40 batches of gasoline b y blendstock addition

- The costs related to the use of this alternate provision would be related to performing calculations using existing data and of keeping records regarding compliance

– these tasks could be accomplished us ing 0.5 hour of technical time and 0.5 0 hour of clerical time 4) The following assumptions were made in estimating the burden associated with the use of the alternate provisions to satisfy the CG batch test requirement by refiners who blend butane into pr eviously

certified gasoline:

- Due to gasoline volatility requirements, butane is blended only during the winter season (from September 16 through February 28 )

- Refiner/blenders at eight terminals, eight pipelines, and four refiners blend butane into prev iously

- certified gasoline during the winter season.

- On average, each blender blends butane into five batches of gasoline during the winter season

- On average, each blender is supplied butane by two suppliers

- All tests would be conducted b y an independent laboratory at a cost of $74 per test

- The administrative duties associated with the alternative requirements could be accomplished using 0.5 0 hour of clerical time, and 0.25 hour of technical time 5) The following additional assumptions were made in estimating the burden to refiners of participating in the small refiner /small volume refinery program:

- Administrative duties associated with recording, maintaining, and reporting the information required during the participation in the small refiner program (such as on the annual sulfur averaging report) could be accomplished with an additional 0.5 0 hour clerical time 6 ) The following additional assumptions were made in estimating the burden to refiners who are granted temporary hardship relief:26

- Administrative duties associated with recording, maintaining, and reporting the information required during the period of temporary relief (such as on the annual sulfur averaging report) could be accomplished with an additional 0.5 0 hour clerical time 7 ) The following assumptions were made in estimating the burden associated with the use by importers that import gasoline b y truck of the alternate provisions to satisfy the requirement to test every

batch of CG:

- All importers that import by truck will utilize the alternate provisions, since this will result in a significant reduction in the overall cost of compliance

- Foreign terminal operators currently have sampling and testing conducted by an independent third part y as a customary business practice, and will continue to do so

– this will release the terminal operator from additional activities which would otherwise be required

- To minimize the number of tests required, samples are already drawn after the receipt of each batch of gasoline into the storage tank at the terminal as a customary business practice

- All importers will contract with the independent third part y that performs sampling and testing at the terminal(s) from which the importer receives gasoline to keep records of the required data and report it to the importer

– by making this arrangement directly , the importer can demonstrate compliance with the requirement to conduct testing at the terminal facility without the need to undertake additional sampling and testing

- On average, two importers draw gasoline from the same terminal facility for importation into the U.S.

– in such cases, the importers will split the cost of the third party ’s services.

- 25 percent of importers use trucks (10 importers)

- The following costs would be billed to importers by the independent third party for services related to testing conducted at one terminal: Independent third party will use an additional 1.0 hour of clerical employ ee time and 0.25 hour of technician time to complete the task (an additional 10 percent of this base cost could be added to account for overhead cost and to provide a profit margin) 8 ) The following assumptions were made in estimating the burden to refiners and importers of having an independent third party pr epare an attest engagement report for submission to EPA:

- The main cost of preparing the attest engagement would be associated with reviewing existing records on gasoline sulfur content

- It is estimated this task will require an extra five hours of technical employee time (to account for other costs and to provide a profit margin an additional 10 percent could be added to the cost derived using the assumptions under the previous bullet) 9 ) The following assumptions were made in estimating the burden to refiners, terminals and pipelines who conduct periodic QA testing for sulfur for defense purposes:

- 60 pipelines and 120 0 terminals will conduct downstream QA testing for sulfur in addition to many

refiners (RFG refiners t ypically conduct downstream QA testing).27 Assume $40 cost per periodic test, based on availability of field test equipment. Assume 10 samples per year for QA testin g per respondent. 1 0 ) The following assumptions were made in estimating the burden to terminal and pipelines that are required to test small refiner and small volume refinery batches for sulfur content:

- 60 pipelines and 1200 terminals will test two batches of small refiner/small volume refinery gasoline for sulfur annuall y (man y terminals and pipelines will test none and others more than two ). Assume cost of testing per batch is approximately $40, based on availability

of field test equipment. 1 1 ) The following assumptions were made in estimating the burden to users of research and development gasoline of adding the required information to the application submitted to EPA to obtain an exemption:

- Adding the information on why sulfur compliant gasoline could not be used will require 0.5 0 hours of clerical time

- This information is already available as a customary business practice 12) The following assumptions were made in estimating the burden to gasoline additive manufacturers to do th e initial programming for PTDs

- 1 hour of technical time and 1 hour of clerical time 13) The following assumptions were made in estimating the burden to denatured fuel ethanol and other ox ygenate producers to do the initial programming for PTDs

- 1 hour of technical time and 1 hour of clerical time *Data reported to EPA under other 40 CFR Part 80 fuel programs (including the Tier 2 gasoline sulfur and RFG programs) was used in formulating these assumptions. **6(b) Estimating Respondent Costs**  The estimation of the hourly managerial, technical and clerical employee pay rates for the various regulated parties as well as the accounting assumptions used are discussed in the previous section on respondent burdens. The estimated costs for the various re gulated parties for this I CR are contained in Tables 6(b)1 and 6(b)2.28 **Table 6(b)1: Annual Hourly Costs for Gasoline Refiners and Importers and Denatured Fuel Ethanol and Other Oxygenate Producers** 

Co ntra ct or Eq uiv alen t 110 96 37 74 1) An nu al refinery /im port er av er agin g rep or t: R efin er s $28 $0 $28 $0 3 $166 Import ers $28 $0 $28 $0 1 $55 Den at ur ed

Fu el Et hanolP rod

uc er $28 $0 $28 $0 1 $55 2) AB T cred

it an d/ or al lo tm en t tr ad

in g $28 $24 $9 $0 1 $61 3) Ad di ti onalbat ch report s for C G: Ref s (ow n e quip) $11 $67 $7 $0 400 $34,240 Ref s (l ab $74) $0 $0 $0 $74 400 $29,600 Import ers(lab

$74) $0 $0 $0 $74 27 $1,998 Den at ur ed

Fu el Et hanolP rod

uc er (lab $74/hr) $0 $0 $0 $74 400 $29,600 4) Alt ernati ve s am pl in g/te st in g: P CG $0 $48 $19 $0 40 $2,660 B ut an e $0 $24 $19 $0 5 $213 5) S ma ll refin er s/sm all vo lu

me refin er ies: P TD s $0 $96 $37 $0 1 $133 Rep ort in g $0 $0 $19 $0 1 $19 6) S eparat e an nu

al av eragin g report for t em porary hardsh ip $0 $0 $19 $0 1 $19 7) Alt ernati ve s am pl in g/te st in g fo r t ru ck import er s $0 $24 $28 $0 12 $621 8) At te st en ga ge me nt s: R efin er ies $0 $480 $0 $0 3 $1,440 Import ers $0 $480 $0 $0 1 $480 Den at ur ed

Fu el Et hanolP rod

uc er $0 $480 $0 $0 1 $480 9) Refin er Q/A p erio di c s ampl in g & t es ti ng for d efens e (fi eld t es t $40) $0 $0 $0 $40 10 $400 10) G aso lin e Ad

di tive Man uf

act ur er P TD s $0 $96 $37 $0 1 $133 11) De na tu

red Fu elEt hanolP rod

uc er P TD s $0 $96 $37 $0 1 $133 Co llect io n Act iv it y Nu mb er o f Re sp ons es pe r Re sp ond en t pe r Year To ta l

An nu al C os t ($ per respond en t) Lab or C os t pe r Resp ons e ($ )

Man ager ial ($110/ hr) Te ch ni cal ($ 96/hr) Clerical

($37/hr)

* This estimate is based on an average of 3 refineries per refiner. In reality, larger refiners may own more refineries, while smaller refiners may own only one refinery.29 **Table 6(b)2: Annual Costs for Gasoline Terminals, Pipelines, Truckers and Users of**  **Research and Development (R&D) Gasoline**

Collection Activity Cost per Respondent ($) Number of Responses per Respondent per Year Total Annual

Burden ($ per respondent Managerial ($1 10 /hr) Technical

($ 96 /hr) Clerical

($ 37 /hr) Contractor

Equivalent ($40/hr

- field test) Sampling and Testing for sm all refiner/small volume refinery gasoline Terminals Pipelines 0 0 0

0 0

0 1.0

1.0 2

2 $ 80

$ 80 Q/A Periodic Sampling and Testing for Defense Terminals Pipelines 0 0 0

0 0

0 1.0

1.0 10

10 $ 400

$ 400 R&D Applications 0 0 0.5 0 1 $ 24
**6(c) Estimating Agency Burden**  Gasoline sulfur reports are handled as part of other 40 CFR Part 80 fuels reporting, including items accounted for in the reformulated gasoline (RFG) and anti

- dumping ICR. This estimate is restricted only to the reporting of sulfur values to EPA. The Agency burden consist of 0.10 of a GS

- 13 technical worker ($ 161,000 including overhead), or $16,000; and 0.10 of a GS

- 7 clerical worker ($ 76,000 including overhead), o r $7,600, for a total of $23,700.
**6(d) Estimating the Respondent Universe and Total Burden and Costs**  Gasoline Refiners and Importers : Number of respondents (80 refiners/39 importers) 119 Number of responses: 33,284 Annual burden hours, all re finers and importers*: 34,177 Annual cost, all ref

iners and importers*: $2,396,810 *These burden estimates are for all collection activities preformed b y all refiners (see Table 6(e).1) Gasoline Terminal and Pipeline Operators : Number of respondents ( 60 pipelines/1200 terminals) : 1,260 Number of responses: 4,320 Annual burden hours, all terminal/pipeline operators: 4,32030

Annual cost, all terminal operators: $172,800 Research and Development Applications : Number of resp ondents: 1 Number of responses: 1 Annual burden, all R&D gasoline users: 0.5 0 Annual cost, all R&D gasoline users: $24 Gasoline Additive Manufacturers Number of respondents 1 , 175 Number of responses: 1 , 175 Annual burden hours: 2 , 350 Annual cost: $ 156,275 Denatured Fuel Ethanol and Other Oxygenate Producers Number of respondents 105 Number of responses: 42,315 Annual burden hours : 42,776 Annual cost : $3,539,099
**6(e) Bottom Line Burden Hours and Cost Tables**  (i ) Respondent Tally The total annual hourl y burden and cost for th is I CR is estimated to be 83,62 4 hours and $ 6,265,008 , respectivel y. The total number of responses for th is I CR is estimated to be 81,09 5

.31

**Table 6(e).1: Annual Burdens and Costs for Gasoline Refiners and Importers and Denatured Fuel Ethanol and Other Oxygenate Producers** 

Co llect io n Act iv it y Re sp ons es per Resp ondent Nu

mber of Resp ond ent s Bur de n Ho ur s per Resp ons e To ta l An nu al Co st ($ per respond en t) To ta l Nu

mb er of Resp ons es To ta l Ho ur s

pe r Year (all refine rsand im port ers ) To ta l An nu al Co st ($ all refinersand im port ers ) 1) Annu al refiner/impo rt er averag in g rep ort : Refiners 3 80 0.35 $166 240 84 $13,260 Import ers 1 39 0.35 $55 39 14 $2, 155 Den at ur ed

fu elet hanolp rod

uc ers 1 105 0.35 $55 105 37 $5, 801 2) Cred it / allot ment report : 1 70 0.75 $61 70 53 $4, 253 3) T est ad

d’ l bat chesof C G Refiners(ow

n eq uip) 400 50 1 $34,240 20,000 20,000 $1,712,000 Refiners(lab) 400 25 1 $29,600 10,000 10,000 $740,000 Import ers(lab) 27 30 1 $1,998 810 810 $59,940 Den at ur ed

fu elet hanolp rod

uc ers(l ab) 400 105 1 $29,600 42,000 42,000 $3,108,000 4) Alt ernat iv e s ampling

& t est in g P CG 40 15 1 $2,660 600 600 $39,900 B ut ane 5 20 0.75 $213 100 75 $4, 250 5) S mal l refiners/sm all vo lum e refineries : P TD s 1 12 2 $133 12 24 $1, 596 Report in g 1 12 0.5 $19 12 6 $222 6) Annu al averag in g rep ort for t em porary hardsh ip 1 2 0.5 $19 2 1 $37 7) Alt ernat iv e s ampling

/t esting for t ru ck im port ers 12 10 1 $621 120 120 $6, 210 8) At te st engagem ent s: Refiners 3 80 5 $1,440 240 1,200 $115,200 Import ers 1 39 5 $480 39 195 $18,720 Den at ur ed

fu elet hanolp rod

uc ers 1 105 5 $480 105 525 $50,400 9) Refiner Q/A t esti ng 10 100 1 $400 1,000 1,000 $40,000 10) G aso lin e Ad

di tive Manu

fact ur er P TD s 1 1175 2 $133 1,175 2,350 $156,275 11) Denat ur ed

F ue l Et hanol P rod

uc er P TD s 1 105 2 $133 105 210 $13,965 To ta l 76,774 79,303 $6,092,18432

**Table 6(e)2: Annual Burdens and Costs for Gasoline Terminals, Pipelines and Users of Research and Developme**  **nt (R&D) Gasoline**

Collection Activity Annual Responses per Respondent Number of

Respondents Burden Hours

per Response Total Annual Cost

($ per respondent) Total Number of Responses Total Hours per

Year (all entities) Total Annual Cost

($ all entities) Sampling/testing for small refiner/small volume refinery g asoline : Terminals Pipelines 2 2 1200

60 1.0

1.0 80

80 2400

120 2400

120 96,000

4,800 Q/A periodic sampling/ testing for defense: Terminals Pipelines 10 10 120

60 1.0 1.0 400

400 1200

600 1200

600 48,000

24,000 R&D Applications 1 1 0.5 24 1 0.5 24 Total 4,321 4,321 172,82433 (ii) Variations in the Annual Bottom Line No annual variations in the respondent reporting/recordkeeping burden or cost over the course of this clearance period are expected. **6( f**  **) Burden Statement**  Because the universe of respondents to the sulfur program is quite diverse, there is no “ty pic al” respondent. The annual burden is estimated to average between 12 and 500 hours per respondent, depending on the information collection requirements of the particular part y. The average number of hours per response is estimated to be approximately

1 h our. Burden means the total time, effort, or financial resources expended b y 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, i nstall, and utilize technology

and sy stems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to compl y with any previously

appli cable 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 conduc t or sponsor, and a person is not required to respond to, a collection of information unless it displays a currentl y 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 an y suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this ICR und er Docket ID Number EPA

- HQ

- OAR

- 2010

- 0258 , which is available for online viewing at www.regulations.gov , or in person viewing at the Air and Radiation Docket and Information Center in the EPA Docket Center (EPA/DC), EPA West, Room 3334, 1301 Constitution Av enue, NW, Washington, D.C. The EPA Docket Center Public Reading Room is open from 8:30 a.m. to 4:30 p.m., Monday through Friday , excluding legal holiday s. The telephone number for the Reading Room is (202) 566

- 1744, and the telephone number for the Air and Radiation Docket and Information Center is (202) 566

- 1742 . An electronic version of the public docket is available at www.regulations.gov. This site can be used to submit or view public comments, access the index listing of the contents of the public docket, and to access those documents in the public docket that are available electronically . When in the sy stem, select “search,” then key in the Docket ID Number identified above. Also, you can send comments to the Office of Information and Regulatory Affairs, Office of Management and Budget, 725 17th Street, NW, Washington, D.C. 20503, Attention: Desk Officer for EPA. Please include the EPA Docket ID Number EPA

- HQ

- OAR

- 2010

- 0258 and OMB Control Number 2060

- 0437 in any correspondence.34 C. Attachments Citations regarding the legal authority for the information collection requirements related to the control of gasoline sulfur content under the sulfur program are contained in the attachment. Due to the length and complex technical nature of the regulati ons under the sulfur program, they

are not contained in the attachment. These sulfur regulations are located in subpart H of 40 CFR part 80. Attachment Legal Authorit y Citations Clean Air Act 42 U.S.C. 7414. Section 114: Inspection, Monitoring, and Entry (a) For the purpose: (i) of developing or assisting in the development of an y implementation plan under Section 110 or 111(d), an y standard of performance under Section 111, any

emission standard under Section 112, [, or any regulation of solid waste combustion under Sect ion 129,] [or any regulation under section 129 (relating to solid waste combustion),]1 (ii) of determining whether an y person is in violation of any such standard or an y requirement of such a plan, or (iii) carrying out any

provision of this Act (e xcept a provision of title II with respect to a manufacturer of new motor vehicles or new motor vehicle engines): (1) the Administrator may require an y person who owns or operates any emission source, who manufactures emission control equipment or proces s equipment, who the Administrator believes may have information necessary

for the purposes set forth in this subsection, or who is subject to any

requirement of this Act (other than a manufacturer subject to the provisions of Section 206(c) or 208 with re spect to a provision of title II) on a one

- time, periodic or continuous basis to

- (A) establish and maintain such records; (B) make such reports; (C) install, use, and maintain such monitoring equipment, and use such audit procedures, or methods; (D) sample such emissions (in accordance with such procedures or methods, at such locations, at such intervals, during such periods and in such manner as the Administrator shall prescribe);35 (E) keep records on control equipment parameters, production variables or other indirect data when direct monitoring of emissions is impractical; (F) submit compliance certifications in accordance with Section 114(a)(3); and (G) provide such other i nformation as the Administrator may reasonabl y require; and (2 the Administrator or his authorized representative, upon presentation of his credentials

- (A) shall have a right of entry to, upon, or through any premises of such person or in which an y records required to be maintained under paragraph (1) of this section are located, and B) may at reasonable times have access to and copy any records, inspect an y monitoring equipment and method required under paragraph (1), and sample an y emissi ons which such person is required to sample under paragraph (1). 45 U.S.C. 7542.

Section 208: Information Collection: (a) Manufacturers responsibility

. "Every manufacturer shall establish and maintain such records, make such reports, and provide such information as the Administrator may reasonabl y require to enable him to determine whether such manufacturer has acted or is acting in compliance with this part and the regulations thereunder and shall, upon request of an officer or emplo yee dul y desi gnated b y the Administrator, permit such officer or employee at reasonable times to have access to and copy such records."