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- 1 - SUPPOR TING ST AT EMENT Regulations of Fuel and Fuel Additives: Renewable Fuel Pathway s (RFS) Pathway I I and Te chnical Amendments to the RFS2 Standards EP A A. JUSTIFICA

TI ON 1. Id entification of the Information Collection a. **Title:** Regulations of Fuel and Fuel Additives: Renewable Fuel Pathway s (RFS) Pathway I I and Technical Amendments to the RFS2 Standards EPA I CR No.2469.01, OMB Control Number 2060
-NEW. b. Short characteri zation: **SUMMAR**

**Y:** EP A is proposing to amend certain of the renewable fuels standard (RFS2) program regulations at 40 CFR Part 80, Subpart M. W e believe these proposals will facilitate the introduction of new renewable fuels as well as improve impleme ntation of the program. This proposal includes various changes related to biogas including changes to the revised compressed natural gas (CNG)/liquefied natural gas (LNG) pathway

and amendments to various associated registration, recordkeeping, and report ing provisions. This proposed regulation includes a lifecycle greenhouse gas emissions analy sis for renewable electricity , renewable diesel and naphtha produced from landfill biogas. Adding these new pathway s will enhance the ability of the biofuels indu stry to supply advanced biofuels, including cellulosic biofuels, which greatl y reduce the greenhouse gas emissions (GHG) compared to the petroleum
- based fuels they r eplace. It also addresses “nameplate capacity” issues for certain production facilities th at do not claim exemption from the 20% greenhouse gas (GHG) reduction threshold. In this notice, EP A addresses issues related to crop residue and corn kernel fiber and proposes an approach to determining the volume of cellulosic RI Ns produced from various cellulosic feedstocks. W

e also include a lifecycle anal ys is of advanced butanol and discuss the potential to allow for commingling of compliant products at the retail facility level as long as the environmental performance of the fuels would not be detri mental. Several other amendments to the RFS2 program are included. EP A is also proposing various changes to the E15 mis
- fueling mitigation regulations (E15 MMR) at 40 CFR Part 80, Subpart N. Among the E15 changes proposed are technical corrections and amendments to sections dealing with labeling, E15 survey s, product transfer documents, and prohibited acts. W e also propose to amend the definitions in order to address a concern about the rounding of test results for ethanol content violations. These c hanges are not addressed in this I CR because they do not change the cost and burden estimates from the E15 I CR 2408.02 . Lastly , EP A is proposing changes to the survey requirements associated with the ultra
- low sulfur diesel (ULSD) program. This change is also not addressed here because there are fewer than 9 respondents.Page |
- 2 -

2. Need For, and Use of, the Collection a. Authority

for the Collection Sections 1 14 and 208 of the Clean Air Act (CAA), 42 U.S.C. §§ 7414 and 7542, authorize EP

A to require recordkeeping and reporting regarding enforcement of the provisions of Title II of the CAA. b. Practical Utility

/Uses of the Data The recordkeepin g and reporting requirements of this regulation will allow EP A to monitor compliance with the introduction of new renewable fuel pathway s to improve on its implementation of the RFS2 program. The new pathways will enhance the ability of the biofuels industry

to supply advanced biofuels, including cellulosic biofuels which will greatl y reduce the greenhouse gas emissions (GHG) compared to the petroleum
- based fuels they replace.
3. Non - duplication, Consultation, and other Collection Criteria a. Non - du

plication Ef forts have been made to eliminate duplication in this information collection. Most information requested will assert claims as being confidential business information (CBI) and will be available to the EP A from the af

fected parties directly

. The information is not considered general in nature and is not found in other databases, directories or sources. The data submitted to EP A is specific to a compan y’ s business practices. b. Public Notice A Notice of Proposed Rulemaking has been publish ed in the Federal Register for comments ( 78 FR 36041 , June 14, 2013 ). c. Consultations Many of the changes are being proposed in order to facilitate the introduction of new renewable fuels under the RFS2 program b y suggestion of industry stakeholders. Other changes are being proposed to allow flexibility and better facilitation of the rule.Page |
- 3 - d. Ef fects of Less Frequent Data Collection Wehave designed the reporting schedule to coincide with existing reporting deadlines applicable to many of the same parties under such programs as RFG (Reformulated Gasoline) and anti
- dumping and diesel fuel. Less frequent collection of data would make it impossible to carry out the provisions of the CAA and EI SA. e. General Guidelines This rule does not exceed any of the OMB guidelines. f. Confidentiality Weinform respondents that they may assert claims of business confidentiality (CBI) for information they submit. Actual RINs should not be treated as confidential business information under RFS2, as they are necessary

identifiers to accompany renewable fuels. An y information claimed as confidential will be treated in accordance with 40 CFR Part 2 and established Agency procedures. Information that is received without a claim of confidentiality m ay be made available to the public without further notice to the submitter under 40 CFR § 2.203. g. Sensitive Information This information collection does not require submission of any sensitive information. 4. The Respondents and the Information Requested a. Respondents/with NAI CS and SI C Codes The respondents to this information collection fall into the following general industry categories: petroleum refineries (3241 10/291 1), eth ylalcohol manufacturers (325193/2869), other basic organic chemical manufacturing (325199/2869), chemical and allie d products merchant wholesalers (424690/5169), petroleum bulk stations and terminals (422710/5171), petroleum and petroleum products merchant wholesalers (422720/5172), and other fuel dealers (454319/5989). Using the terminology

associated with the RFS2 Rule, we have assumed the following classes of party which are covered b y this supporting statement.

 Producers of renewable fuels  Importers of renewable fuels  Feedstock producers from waste treatment plants  Feedstock producers from L andfills  Parties wh o own RINs (including foreign RIN owners)Page |
- 4 - b. In formation Requested i. Reporting: For new pathway registration and renewable electricity and fuels produced from biogas that qualify as renewable fuel and that are registered for RIN generation, we are p roposing for producers to submit the following additional information as part of their existing quarterl y and annual reporting obligations (reported amounts should be provided as monthly summaries on an annual/calendar year basis, and must be obtained from a utility meter that is continuously measured):

 Actual total amount of electricity used at the facility  Actual total amount of electricity purchased for the facility  Actual amount of total renewable electricity produced on - site, including source of energy and the equipment or process used to generate the renewable electricity  Calculation that verifies the facility m eets the specified 20 percent minimum electricity production requirement based on the reported total amount of electricity used at the fa cility , total amount of fossil
- fuel based electricity purchased, and total amount of renewable electricity produced . Quarterl y reports are due as follows:

Quarterl y Reporting Schedule for RFS2 Program **Quarter Covered by Quarterly Report**  **Due Date for Quarterly Report**  January - March May 31 April
- June August 31 July
- September November 30 October
- December February 28 Annual reports are due on February 28 for the preceding year. ii. Recordkeeping: For recordkeeping purposes, we are proposing that producers retain the additional information, calculations and supporting documents required for registration and reporting. The producer must also review and verify all related supporting do cuments such as design documents, calculations, regulatory permits, and contracts between facilities that track the raw biogas from the point of withdrawal from its source, the various injection/withdraw points into the distribution pipeline, the various p roduction facilities, and the final step for use as transportation fuel. Respondents must keep copies of all reports filed for five (5) years. The regulatory requirements for registration, reporting and recordkeeping as discussed in this proposed rulemaking can be located in the following applicable regulatory sections 80.1450, 80.1451 and 80.1454, respectivel y.Page |
- 5 -

5. The Information Collected, Agency A ctivities, Collection Methodology , and In formation Management a. Agency

A ctivities

 All reports, petit ions and registrations will be reviewed b y EP A for completeness and for potential violations.  Potential violations will be referred to enforcement personnel.  Registration numbers will be issued for new registrants.  R eporting parties will be contacted if th ere is a problem with their submission or if an incomplete registration is dormant for more than a ye ar. b. Collection and Methodology and Management EP A would like to continue to monitor RI N generation from fuel produced using the new pathway s and their general use in the market place. EP A wants to continue to receive all reports, registrations, initial registrations and updates. W e anticipate receiving data in a simplified and secure fashion via the Agency's electronic Central Data Exchange (CDX). Information claimed as CBI will be stored in appropriatel y controlled areas. c. Small Entity

Flexibility Section 21 1(o)(9)(A) of the Clean Air act provides an exemption from RFS requirements through 2010 for “small refineries,” defined as refinerie s having an average aggregate dail y crude oil throughput for a calendar year that does not exceed 75,000 barrels. It also provides possible extensions of this exemption, through individual petitions to EP

A. In this Notice of Proposed Rulemaking (NPRM) th ere is an amendment to update the definition of small entity to ensure fairness within the market as it relates to extensions and exemptions. d. Collection Schedule Registrations of new renewable fuel pathway s, PTD’ s from feedstock (landfills and waste treatment plants) and nameplate petitions are also being received on a rolling basis. Updates may

be sent in at any

time after initial registration. New parties may enter the regulated industry

at any time, triggering registration requirements. 6. Estimating the Burden and Cost of Collection a. Estimating the Respondent Universe Wedrew upon experience implementing RFS2 and similar regulations among the same entities to develop estimates of the burden associated with this collection.Page |
- 6 - b. Estimating the Respondent Burden and Cost Three labor categories are involved: managerial (includes legal and professional review), technical, and clerical. The estimates used the Bureau of Labor Statistics figures from "National Industry
- Specific Occupational Employ ment & Wa ge Estimate “Petroleum and Coal Products Manufacturing” (May 2012), with a 3% annual inflation factor applied to bring the values to the present. Usin g this method, the following wages and benefits appl y b y category : Wa ges and Benefits

– Petroleum and Coal Products Manufacturing Managerial $67.44 per hour Te chnical $65.56 per hour Clerical $22.17 per hour Doubling for compan y overhead be yond wages and benefits, and for convenience, rounding up to the dollar, gives the following rates for this I CR: To tal Employer Cost Managerial $135.00 per hour Te chnical $131.00 per hour Clerical $ 44.00 per hour It is assumed that for each hour of activity the mix will be about 0.1 hour managerial, 0.7 hour technical, and 0.2 hour clerical. This gives an average labor cost of $1 14 per hour, which will be used in this I CR. For purchased services related to attest engagements and some items o f registration, we have doubled this hourly cost to $228 for overhead cost for associated with this collection. There is no O & M cost associated with this collection. The estimates b y party are indicated in T ables 1

– 4 below
.
c. Estimating the Agency Burden and Cost EP A must generate company and facility

registration number(s) for new registrants and notify

them of these numbers that appear on reports. Report formats and instructions/guidance must be prepared b y Agency personne l. Reports will be processed by contractors and must be reviewed by A genc y personnel. Reporting parties must be contacted if there is a problem with their submission. This supporting statement considers all Agency costs associated with accepting new re gistrants and new reports associated with RFS2, as expressed in EP A IC R Number 2469.01. Using the RFS2, and the RFG and anti
- dumping ICR, and other recent fuels
related ICRs as a guide in developing these initial estimates for RFS, we anticipate that the RFS2 and other rule amendments may require the equivalent labor of one full timePage |
- 7 -

GS - 13 technical emplo ye es for a total of $185,000, and labor costs of $88,000 in the clerical category

and $31,000 in the management category
. 1 Since we are using the CDX, som e costs incurred b y the Agency will be tied to the number of registrants who send us reports. Adding the following values results in an annual estimated Agency burden as follows: One GS - 13 t echnical employee (full time) = $ 1 85,000 One GS - 7 clerical w orker (full
- time) = $ 88,000 One GS - 15 manager (1/8 time) = $ 31,000 **TOT AL=**  **$ 304,000**  As with all items in this supporting statement, we strongl y encourage comment on the estimated Agency

burden and on the Agency activities associated with this proposed information collection. d. Estimating the Respondent Universe Wewere able to estimate the number of regulated entities drawing upon experience regulating the same or similar entities. In this collection EP A is proposing amen dments and technical changes to three existing regulations. For biogas and electricity feedstock producers from waste treatment plants and landfills, we have assumed the following classes of party , with the number of each in parenthesis:

 Wa ste water treatment plants biogas feedstock producers (3,500)  Landfill biogas feedstock producers (1,908) [Note: The above estimates are derived from the following sources: 1) Landfills: Municipal Solid Wa ste (MSW) in the United States : 201 1 Facts and Figures, available at http://www.epa.gov/epawaste/nonhaz/municipal/pubs/MSWcharacterization_fnl_ 060713_2_rpt . 2) The U.S. Department of Energy , Federal Energy

Management Program, Biomass and Alternative Methane Fuels (BAMF), Super ESPC Program Fact Sheet found at web site www1.eere. **energy** .gov/femp/pdfs/bamf_ **wastewater** .pdf

, stated that there are

1 These estimates are derived from "OPM Salary Table 2013
- DCB," ef fective January 2013. This table may be found at http://www.opm .gov/policy
- data
- oversight/pay
- leave/salaries
- wa ges/2013/general
schedule/washington
- baltimore
- northern
- virginia
- dc
- md
- va - wv - pa - annual
- rates - by
- grade
- and
- step/ . The extreme of step 10 was assumed for all categories. W e have assumed a full
- t ime GS
- 7 clerical worker, one full
- time GS
- 13 technical worker, and a GS
- 15 manager working one
- eighth of his/her time managing this project (0.125). All values were multiplied by 1.6 (which is a common factor utilized in ICRs to account for overhead cost s). W

e rounded the resulting dollar value to the nearest thousand. This cost is per year
.Page |
- 8 - 16,000 waste water treatment plants in the United States and only 2% or 3,500 of these facilities mostly

the large ones will participate in capturing waste water digest er gas to produce electricity
. This supporting statement includes reporting estimates involving biogas feedstock at landfill and wastewater treatment plants. These parties must provide certain information about their feedstock to biofuel producers and to EP A upon request. The biofuel producers are required to obtain product transfer documents from biogas feedstock producers who supply energy feedstock fo r them. The biofuels producer is the entity who will be obtaining RINs for the final fuel used in commerce. Biofuels producers must provide certain information about their feedstock to EP A upon request.Page |
- 9 -

Co llec tion A

ct ivity Nu mb er of Re sp ondents Num ber of

Re sp ons es per Party Total N um ber

of Res pons es Tim e per

Res pons e (H ours ) Co st

per Re sp ons e (Dollars ) Total

Hours Total Cos t

(Dollars ) **40 C FR Part 80, Subpart M**  **Renew abl**  **e Fuel**  **s St** **andard (R**  **FS2) - 80.1**  **416 Pathw**  **ay Re**  **gistr ation Re**  **quir em** **en ts Produce**  **rs and Im**  **por te**  **rs - 80.1426**  **(Classifie d as Ce**  **llulostic ty pe**  **s Fr om** 

**Landfill Biogas and W aste**  **T re**  **atm en**  **t Plants - biogas)** Re newable C NG/ LN G -Biogas (W as te Treatm ent Plants & Diges ters ) 10 1 10 8 $912 80 $9,120 Butanol (Corn Starc h) - Corn Starc h (40% us ed at fac ility) (D Code 5) 10 1 10 8 $912 80 $9,120 Re newable C NG/ LN G -(Biogas from Landfills )(A ny)(D Code 3) 10 1 10 8 $912 80 $9,120 Re newable Elec tric ity ( Biogas from Landfills )(A ny)(D Code 3) 10 1 10 8 $912 80 $9,120 Ce llulos ic N aphtha (Fis her - Trops ch Proc es s/ Landfill)(20% us age at fac ility) (D c ode 3) 10 1 10 8 $912 80 $9,120 Ce llulos ic Di es el (Fis her - Trops ch Proc es s/ Landfill)(20% us age at fac ility)(D c ode 7) 10 1 10 8 $912 80 $9,120 Na pththa (Fis her - Trops ch Proc es s / Landfills ) (D Code 5) 10 1 10 8 $912 80 $9,120 Re newable D ies el (Fis her - Trops ch Proc es s / Biogas Landfills )(D Code 4) 10 1 10 8 $912 80 $9,120 Re newable D ies el (Fis her - Trops ch Proc es s / Biogas Landfills )(D Code 5) 10 1 10 8 $912 80 $9,120 **TOTA LS**  **90 90**  **720 $82,080**  **Inform ation Colle**  **ct ion Burde**  **n by T**  **yp e**  **of Party** Ta bl e I - Ne w Pat hwa ys - P rodu cers an d Im por te rsPage |
- 10 -

Collec tion A

ct ivity Nu mb er of Respo ndents Nu mb er of

Re sp ons es per Party Total N um ber

of Respo ns es Tim e per

Re sp ons e Cost p er

Res pons e (Dollars ) Total

Ho ur s **80.1452- EPA M oderated Transaction System**  **(EM TS) Re**  **quirem ent-Reporting**  Al ternate Reporting Method for s ell and Buy Trans ac tions for A ssi gned R INs **300 100**  **30000 0.15**  **$17** 4500 **80.1466 - R**  **egistration Requirem ents - Bonding**  **(Re quire**  **Fore gin partie**  **s that se ll to Im**  **porte rs to be**  **Subje ct** **t o U.S. Jurisdiction and Post a Bond)**  Foreign Ethanol Produc ers 10 1 10 8 $912 80 Foregin Ethanol I mp orters 10 1 10 8 $912 80 Foregin Renewable Fuel Produc ers 10 1 10 8 $912 80 **80.1450 C ancellation of Com**  **pany Registration** Su bm it c orrec tions of defic ienc ies to EPA on form s 20 1 20 16 $1,824 320 In itiate NewRegis tration Requirem ents 10 1 10 16 $1,824 160 NewCDX

Re gis tr ations 10 1 10 2 $228 20 **80.1450 - E** 

**nglish Language Registrations** 3 2 6 6 $684 36 **TO TA**  **LS 373**  **108 30076**  **64.15 $7,313**  **5276 Inform** **ation Colle ction Burde**  **n by T**  **yp e**  **of Party** Table 2 - EM TS -ChangesPage |
- 11 -

**Colle ction A** 

**ctiv ity**  **Num be**  **r of Partie**  **s Num**  **be r of** 

**Re sponse**  **s pe r**  **Party To**  **tal Num be**  **r of**

**Re sponse**  **s Ti**  **me pe**  **r**

**Re sponse**  **(Hour) Cost pe**  **r**

**Res ponse**  **(Dollars) To**  **tal**

**Hours To**  **tal Cost**

**(Dollars)**
**Th ird Party** 

**Disclosure**

Landfills - Biogas 1,908 1 1908 0.25 $28.50 477 $54,378.00

Wa st ew ater Treatm ent Plants - Biogas 3,500 1 3500 0.25 $28.50 875 $99,750.00 **TO TA**  **L 5,408**  **5408 1352**  **$154,128.00 Inform**  **ation Colle ction Burde**  **n by T**  **yp e**  **of Party** Ta bl e 3 - B iogas Feedstock Pr odu cersPage |
- 12 - Nu mb er of Re sp ondents Nu mb er of Res pons es per Party Total Num ber of R es pons es Tim e per

Re sp ons e (H ours ) Co st

per Res pons e (Dollars ) Total

Ho urs Total C os t

(Do llars) **80.1416 - Facility Electrical G eneration Requirem**  **ents - Reporting** Fac ilities Meeting 60% GH G R educ tion w ithout Produc tion of 20% Elec tric ity (liquid to G as ) - Petitions 10 1 10 8 $912 80 $9,120 **1426( f)(10 (11) and 13 - Tracking Verification of Biogas and renew** **able electricity used as Tr**  **ansportation Fuel - Registration** Subm its Contrac ts and P TD 's - Dis tributed in dedic ated or s har ed pipeline or trans mi ssi on line 90 50 4500 0.1 $2 450 $51,300 Cellulos ic dies el and naphtha (biogas ) - Produc e at leas t 20% of total am ount of proc es s Elec tric ity us ed at its fac ility - Petition 10 1 25 8 $912 200 $22,800 **Additional I**

**nfor ma**  **tion Subm ittal of Processes to Existing Reports - Reporting**  Fuel Supply Plan 90 1 310 8 $912 2480 $282,720 Qu arterly and Annual R eports 90 5 450 3 $342 1350 $153,900 **TO TA**  **L 290**  **58 5295**  **27.1 $3,080**  **4560 $519,840**  **Inform ation Colle**  **ct ion Burde**  **n by T**  **yp e**  **of Party** Ta bl e 4 - RF S Regu lati onA men dmen ts - P rodu cersPage | 13

e. Bottom L ine Burden Hours and Costs From the tables, we estimate the following annual totals: **TOT AL**  **NO. OF RESPONDENTS:**  **6,1 6**  **1 TOT**  **AL NO. OF**  **RESPONSES: 40,869**  **TOT AL**  **BURDEN HOURS: 1**  **1 ,**  **9 08**  **TO TA**  **L COST TO RESPONDENTS:**  **$ 1,357,512**  f. Reason for Change in Burden There is no previous I CR for this collection. g. Burden Statement The annual public reporting and recordkeeping burden for this collection of information is estimated to be .37 hours per response (total number of hours divided by total number of responses). Burden means the total time, ef fort, 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 s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and p roviding information; adjust the existing way s to compl y 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 informat ion; 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 EP A'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, EP A has established a public docket for this I CR under Docket ID number EP A - HQ - OAR - 2012 - 0401, which is available for online viewing at www.regulations.gov,or in person viewing at the Air Docket in the EP A Docket Center in W

ashington, DC (EP

A/DC). The docket is located in the EP A We st Building, 1301 Constitution Av enue, NW , Room 3334, and is open from 8:30 a.m. to 4:30 p.m., Eastern Standard Time, Monday through Friday

, excluding l egal holiday s. The telephone number for the Reading Room is (202) 566
- 1744, and the telephone number for the Air Docket is (202) 566
- 1742. Yo u may use www.regulations.gov to submit or view public comments, access the index listing of the contents of th e public docket, and to access those documents in the public docket that are available electronically . W hen in the sy stem, select “search,” then key in the Docket ID Number EP A - HQ - OAR - 2012 - 0401. Also, you can send commentsPage | 14

to the Of fice of Information an d Regulatory A ff airs, Of fice of Management and Budget, 725 17th Street, NW

, W ashington, D.C. 20503, Attention: Desk Of ficer for EP

A. Please include the EP

A Docket ID Number EP

A - HQ - OAR - 2012 - 0401 and OMB Control Number 2060
-NEW in any correspondence.

.