September 24, 2012

Page 1 of 11 **SUPPORTING STATEMENT FOR AN INFORMATION COLLECTION REQUEST**  **1. IDENTIFICATION OF THE INFORMATION COLLECTION**  **1(a) Title of the Information Collection:**  TITLE: Notice of Supplemental Distribution of a Registered Pesticide Product OMB No.: 2070
- 0044 EPA No.: 0278. 11 **1(b) Short Characterization/Abstract**  This information collection activity notifies the Environmental Protection Agency (EPA) of supplemental distribution of registered pesticide products. As mandated by the Federal Insecticide, Fungicide and Rodenticide Act (FIFRA), as amended, EPA is responsible for the regulation of pesticides. Section 3 (e) o f FIFRA (7 U.S.C. 136a (e)) allows pesticide registrants to distribute or s ell registered pesticide product s under a different name or in addition to the registered name (see Attachment A)
. According to 40 CFR 152.132, registrants may distribute or sell their registered product under another company ’s name and address instead of (or in addition to) their own. Such distribution and sale is termed “supplemental distribution” and the product is termed a “distributor product.” EPA requires pesticide registrant s who enter into supplemental distribution agreements with other companies to submit Form 8570
- 5, Notice of Supplemental Distribution of a Registered Pesticide Product (see Attachment B). This information collection request (I CR) is a proposed renewal of an existing ICR currently approved b y Office of Management and Budget (OMB) and is due to expire on July 31, 2013
. **2. NEED FOR AND USE OF THE COLLECTION**  **2(a) Need/Authority for the Collection**  This information is required to be submitted pursuant to Section 3 (e) of FIFRA, as amended. Regulations pertaining to su pplemental distribution of pesticide products are contained in Title 40 C FR Part 152.132 (see Attachment C )
. **2(b) Practical Utility/Users of the Data**  Section 3 (e) of FIFRA requires pesticide registrants to notify the Agency

when the registrant has entered into an agreement with a second company to distribute the registrant's product under the second company's name and product name. The distributor is considered an agent of the registrant for all intents and purposes under the Act, and both the registrant and the distributor may

be held liable for violations pertaining to the distributor product. EPA’s Office of Pesticide Programs is responsible for maintaining information about supplemental distribution agreements.September 24, 2012

Page 2 of 11 **3. NON DUPLICATION, CONSULTATIONS, AND**  **OTHER COLLECTION CRITERIA**  **3(a) Non duplication**  This is the only

information collection activity of its kind, and the information collected under this program is collected onl y once per receipt of a notice of distributor registration. Therefore, the pos sibility of duplication does not exist. **3(b) Public Notice Required Prior to ICR submission to OMB**  Pursuant to 5 CFR 1320.8(d), in proposing to renew this I CR, EPA is publishing a Federal Register Notice that provides a 60
- day public notice and comment period. The materials related to the proposed renewal of this ICR, as well as any comments submitted during the public comment period may

be accessed as described in section 6(f) of this supporting statement. **3(c) Consultations**  Under 5 CFR 1320.8(d)(1) , agencies are require d to consult with potential ICR respondents and data users about specific aspects of I CRs before submitting an original or renewal I CR to OMB for review and approval. During the development of this renewal ICR, EPA staff will contact appropriate stakeholders and ask them for their assessment of the regulatory

burden estimates expressed by the Agency

in this ICR. A summary of these consultations will be provided as part of the supporting statement during the second comment period (Attachment D)
. **3(d) Effects of Less Frequent Collection**  This activity

is only conducted once per "event" (one notification is submitted per product) ; it is not possible to reduce the frequency of the collection. EPA must maintain the current frequency

of this collection in order to avoid violating FIFRA Section 3 (e)
. **3(e) General Guidelines**  **Long -**  **term recordkeeping:** The only PRA
- imposed guideline in 5 CFR 1320.6 that may be exceeded in this collection is the record
- keeping retention period. The registrant and the distributor are expected to maintain copies of their distribution agreement (EPA Form 8570
- 5) as long as the registration is valid or until the parties notify EPA that they

have voluntarily dissolved the distribution agreement. Registrations are valid unless they are voluntarily

canceled or withdrawn b y the registrant or until EPA has cause to suspend or cancel the registration as a result of the Registration Review Program or an adverse finding b y the Agency. Since the average period of market ability of a pesticide ranges from 15 to 30 years, the PRA
- imposed guideline indicating that data, other than health, medical, or tax records need not be retained for more than 3 years generall y will be exceeded in this program.September 24, 2012

Page 3 of 11 **Electronic submissions:** OMB regulations require agencies to provide a statement indicating whether the proposed collection of information involves the use of automated, electronic, mechanical, or other technological collection techniques or other forms of information technology , e.g., permitting electronic submission of responses, and an explanation of the decision (5 CFR 1320.5(a)(iii)(E)). At this time, OPP is not offering a fully electronic submission option
. As this information collection request indicates, both the basic product registrant and the distributor must sign the required notification
. While EPA Form 8570
- 5 is available and fillable online, the form currentl y need s to be printed out to be signed and mailed
. The Agency

is activel y working to extend full electronic submission op tions in keeping with the June 22, 2012 OMB memo on "Reducing Reporting and Paperwork Burdens" and other related policy

and guidance. In the future, the Agency hopes to offer a fully electronic version of this form, including electronic signature and submission, through the Agency's Central Data Exchange (CDX). Electronic submission should reduce the time needed to complete the form and th e activities described in Sections 4 and 5 of th is IC R while improving the overall quality of submissions. **3(f) Confidentiality**  Product distributorship data submitted by basic product registrants under FIFRA S ection 3(e) are considered b y the Office of Pesticide Programs (OPP) to contain no confidential business information (CBI). **3(g) Sensitive Questions**  No information of a sensitive or private nature is requested in conjunction with this information collection activity . Further, this information collection activity complies with provisions of the Privacy Act of 1974 and OMB Circular A
- 108. **4. THE RESPONDENTS AND THE INFORMATION REQUESTED**  **4(a) Respondents/NAICS Codes**  The North American Industrial Classification System (NAICS) code for businesses participating in this program is **325320** (Pesticide and other Agricultural Chemical Manu facturing). **4(b) Information Requested**  **(i) Data Items, Including Record Keeping Requirements**  P ursuant to 40 CFR 152.132, supplemental distribution of a registered pesticide is permitted if the registrant meets all of the conditions and submits a completed and signed EPA Form 8570
- 5, Notice of Supplemental Distribution of a Registered Pesticide Product
. Sub
section 152.132 (a) requires the registrant to furnish the following information:September 24, 2012

Page 4 of 11 • EPA registration number of the product to be distributed;
• EPA
- assigned distributor company number;
• Name of the registered product to be distributed;
• N ame and address of the basic product registrant ; • N ame to be used on the distributed product;
• N ame and address of the distributor;
• S ignature and title of the distributor and date signed; and
• S ignature and title of the basic product registrant and date signed. **(ii) Respondent Activities**  For each distributor product, the basic product registrant must send to EPA a completed Form 8570
- 5 , signed b y both the basic product registrant and the distributor (Attachment E provides detailed information on EPA’s requirements)
. Responsibility for regulatory

compliance rests primarily

with the basic product registrant. However, both the registrant and the distributor may be held liable for any

violation of FIFRA. A registrant wishing to distribute a registered product under a different name or through a different company must provide the following information to EPA: Read Read form and instruction s. Request If necessary, obtain an EPA company number for the supplemental distributor. Compile Review information for accuracy and appropriateness. Submit Submit EPA Form 8570
- 5 to the Agency. Store File or otherwise maintain the information. EPA Form 8570
- 5 requires the distributor to have an EPA
- assigned company number. If the distributor company is different from the registrant of the product and has not previously obtained an EPA company number , one needs to be assigned to them before the form can be completed for submission (see Attachment F for instructions on how to obtain an EPA company number)
. The Agency estimates conservativel y that one - third of the responses submitted to EPA on Form 8570
- 5 are completed using new ly
- assigned company numbers
. Th e one - third estimate is considered conservative because the number of entities submitting requests to EPA for company number assignment during a reporting period is often far fewer than the tot al number of forms that use newl y- assigned distributor company number s . This is because c ompanies often enter into distribution agreements for multiple products, either with the same or with different registrants, and notifications for all of those produc ts get submitted around the same time period
.September 24, 2012

Page 5 of 11 **5. THE INFORMATION COLLECTED**  **- AGENCY ACTIVITIES, COLLECTION**  **METHODOLOGY, AND INFORMATION MANAGEMENT 5(a)**  **Agency Activities** Notices of Supplemental Distribution of a Registered Pesticide Product are pin
-punched with the date of receipt. The forms are copied, screened for completeness, and included with a letter acknowledging receipt of each notification that is sent to the registrant, along with, if relevant, a checklist of items to be corrected. Consist ent with 40 CFR 152.132(d)(1) , starting in 2010, a product team reviews the product information submitted on the form and follows up with the registrant through the OPP division where the original product is registered. Subsequent processing steps are the electronic entry and filing of distributor information under the original registration of the product, and maintenanc e of electronic records. Assign If necessary, assign an EPA company number to the supplemental distributor. Verify Verify the regulatory status of the primary registration to be supplementally

distributed; Acknowledge receipt Provide a receipt of the notice by mailing a copy to the distributor company ; Product information review Check product information ; make decisions ; if necessary, follow
-up with

registrant ; Process information Enter information from the form into the computerized "Distributor File," a

part of the Office of Pesticide Programs Integrated Network (OPPIN) ; and File and maintain information The original form is electronically filed in the regulatory file of the parent

Section 3 registration which is maintained by th e Office of Pesticide Programs ’ Information Services Center. **5(b) Collection Methodology and Management**  Registrants voluntaril y enter into agreements with distributors. They are required, under FIFRA, to notify

the Agency

of these agreements. EPA maintains the original notifications in the regulatory

file of the parent Section 3 registration at the Office of Pesticide Programs In formation Services Center. **5(c) Small Entity Flexibility**  Most of the companies participating in this program would qual ify as small entities. The Agency closel y examined potential burdens to small entities and instituted changes to this program in 1984. At that time, OMB approved the changes. The Agency also re
- evaluated the general burden categories in 1986. The Agenc y believes that the burden imposed by this activity has been minimized to what is believed to be the minimal level at which this program can effectivel y function under the requirements specified in the FIFRA and the regulations for the enforcement of FIFRA
.September 24, 2012

Page 6 of 11 **5(d) Collection Schedule**  Not applicable. This activity is conducted onl y once per "event" when the registrant submits a Notice of Supplemental Distribution of a Registered Pesticide Product, to the Agency
. Therefore, there is no set schedule for coll ection of this information. **6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION**  **6(a) Estimating Respondent Burden**  The burden associated with this collection of info rmation is estimated to be approximately 19 minutes per response . The respondent burden estimate on the per
- response basis has changed slightly from previous years due to a previousl y unaccounted
- for activity which is conservatively

estimated to apply

to one - third of the responses submitted. To complete Form 8570
- 5, a distributor’s EP A
- assigned company number must be included. Distributors without an EPA company number must send a formal request letter on company letter
- head to the Agency

to get one assigned ( Attachment F ) . EPA estimates that one
- third of the responses submitted to E PA on Form 8570
- 5 are completed using newl y- assigned company numbers. This is a conservative estimate because companies often enter into distributor agreements to distribute two or more registered products. The number of entities submitting requests to E PA for company number assignment during the reporting period is far fewer than the total number of forms that use newl y- assigned distributor company numbers. The exact number of company number requests that are submitted specifically for the purposes of b ecoming a distributor cannot be determined at this time, and EPA has used the larger estimate of one
- third. The additional step is estimated to add 4.8 minutes to the previously approved total per
- response burden of approximately 1 4.5 minutes. Therefore, the total respondent burden is estimated to be 19 minutes per response. However, due to an overall decrease in the number of supplemental distribution notifications received b y the Agency over the last several years , the total burden hours have also decreased . Whereas EPA had expected to receive about 1,895 notice submissions annually over the past 3 years, based on the actual number of submissions received annually over that period ( 1, 764 in FY200 9 , 1 , 365 in FY20 10 , and 1, 224 in FY20 11 ), the A genc y now expect s to receive only 1, 451 notice submissions annually over the next 3 years . Given this change, EPA estimates th e total annual burden associated with the notice of supplemental distribution of a registered pesticide product to be 387 hours. **6(b) Estimating Respondent Costs**  Consistent with recent I CR renewals , OPP is using labor cost estimates from Agency economists with respect to wages, benefits and overhead for all labor categories for affected industries, state government, and EPA employees. This approach uses a transparent and cons istent methodology

and current publicl y- available data to provide more accurate estimates and allow eas y replication of the estimates.September 24, 2012

Page 7 of 11 **Labor Cost Approach**  **Description** Methodology: The methodology uses data on each sector and labor type for an Unloaded wage rate

(hourly wage rate), and calculates the Loaded wage rate (unloaded wage rate + benefits), and the Fully loaded wage rate (loaded wage rate + overhead). Fully loaded wage rate s are used to calculate respondent costs. This renewal uses data from 20 11 , which is the most recent. Unloaded Wage Rate: Wages are estimated for occupations (management, technical, and clerical) within

applicable sectors. The Agency uses average wage data for the relevant sectors available in the National Industry
- Specific Occupational Employment and Wage Estimates from the Bureau of Labor Statistics (BLS) at http://www.bls.gov/oes/current/oes_nat.htm
. Sectors: The specific North American Industry Classification System (NAICS) code and

website for each sector is included in that sector’s wage rate table. Within each sector, the wage data are provided by Standard Occupational Classification (SOC). The SOC system is used by Federal statistical agencies to classify workers into occupational categories for the purpose of collecting, calculating, or disseminating data (see http://www.bls.gov/oes/current/oes_stru.htm). Loaded Wage Rate : Benefits represent 43% of unloaded wage rates, based on benefits for all civilian non
farm workers, from http://www.bls.gov/news.release/ecec.t01.htm
. Fully Loaded Wage Rate: The loaded wage rate is multiplied by 50% (EPA guidelines 20
- 70%) to get overhead

costs. A cop y of the formula work sheet s used to estimate the labor rates and to derive the regis trants’ full y loaded rates and overhead costs for this renewal are listed in Attachmen t G **. Table 1.**  **Estimated Respondent Burden/Cost**  **per Supplemental Distribution Application REGISTRANT**  **HOURS, RATES TOTAL** 
**Collection Activities Mgmt, $/hr**  **Technical, $/hr**  **Clerical, $/hr Hours**  **Costs** $ 124.10 $ 61.21 $ 36.79 Read instructions 0.08
- - 0.08 $9.93 Process, compile, review information for accuracy and appropriateness 0.05
- - 0.05 $6.21 If necessary, obtain an EPA company number for the supplemental distributor
- - 0.08 0.08 $2.94 Complete and submit EPA Form 8570
- 5 0.03
- - 0.03 $3.72 Store, file, or maintain information
- - 0.08 0.08 $2.94 Total 0.16 0.00 0.16 **0.32 $23.78**  ANNUAL BURDEN: 3 87 Hours ANNUAL C OSTS: $ 3 4 , 505September 24, 2012

Page 8 of 11 **6(c) Estimating Agency Burden and Cost**  To determine Agency

costs, the Agency

used the Bureau of Labor Statistics estimates of labor rates for the North American Industry Classification System code for the Federal Ex ecutive Branch (NAICS 999100). Table 2 summ arizes the Agency process in reviewing the supplemental distribution applications, with associated hours and costs for each task. A copy of the formula work sheet s used to estimate the labor rates and to derive the Agency ’s full y loaded rates and overhead costs for this renewal are listed in Attachmen t H **. Table 2. Estimated Agency Burden/Cost per Supplemental Distribution Application.**  **REGISTRANT HOURS, RATES**  **TOTAL Collection Activities**  **Mgmt, $/hr Technical, $/hr**  **Clerical, $/hr Hours**  **Costs** $ 120.32 $ 77.85 $ 44.05 If necessary, assign an EPA company number to the supplemental distributor. - - 0.08 0.08 $3.52 Verify, acknowledge receipt 1

- - 0.03 0.03 $1.51

• Initial product screening2

- 0.36
- 0.36 $27.90

• Product review meeting2 0.63
- - 0.63 $75.46

• Process disapproved product distribution information2 - 0.42
- 0.42 $32.42 Process: Enter form information into electronic file in OPPIN - 0.50
- 0.50 $38.93 File and maintain information
- 0.02
- 0.02 $1.30 Total 0.63 1.29 0.03 **1.95 $52.78**  Source: U.S. Department of Labor, Bureau of Labor Statistics. http://www.bls.gov/oes/current/naics4_999100.htm May, 2011. 1 Approximat e ly 90% of forms received by EPA are appropriately completed and undergo standard processing, requiring only clerical and technical labor types
. 2 The rest of the forms (approximately 10%) require review by the Agency's product review team, requiring all three types of labor. The total annual Agency

burden associated with the notice of supplemental distribution of a reg istered pesticide product is 9 70 hours. This represents an increase over the Agency burden estimate d for the 2009 I CR (625 hours) due to a review process that was i mplemented in 2010. The tasks marked by the superscript 2 represent the new review process in which some of the product information must be reviewed b y the Agency to determine th at supplementalSeptember 24, 2012

Page 9 of 11 distributed product names are consistent with 40 CFR 152.132(d)(1) and are not “misleading.” The annual total Agency

cost is $7 6 , 589 , increased from $25,905 of the 2009 I CR. **6(d) Bottom Line Burden Hours an**  **d Cost Tables**

**Total Annual Respondent and Agency Burden and Costs Total**  **Hours Costs**  **Annual Respondent Burden/Cost Estimates 3**  **87 $3**  **4 ,**  **505 Annual Agency Burden/Cost Estimates**  **9 70**  **$ 7**  **6 ,**  **589 6(e)**  **Reasons for Change in Burden** The total annual respondent burden associated with the notice of supplemental distribution of a registered pesticide product i s 3 87 hours , a 68 hour decrease from 45 5 hours estimated in the I CR from 200 9 . This decrease is an adjustment. The average number of supplemental registrations received by the EPA over the last three years is approximately 1, 451 responses per year (1, 764 in FY200 9 , 1 , 365 in F Y20 10 , and 1, 224 in FY20 11 ). Based on these numbers, the Agency estimate s that it will receive an average of 1, 451 supplemental registrations annually for the next three years. **6(f) Burden Statement**  The total estimated annual respondent paperwork burden to comply with this information collection activity

is 3 87 hours , or about 1 9 minutes per response , adjusted up from 15 minutes per response from the last renewal . The per
- response increase is due to the inclusion of a required step in the notification process that was not previous ly considered as part of this ICR but is estimated to apply

to a third of the responses . This estimate includes the time needed to review instructions; utilize technology and s ys tems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing inf ormation; adjust the existing ways to compl y with any previously

applicable instructions and requirements; train personnel to respond to a collection of information; search existing data sources; complete and review the collection of information; and trans mit 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 currentl y valid OMB control number. The OMB control numbers for EPA’s regulation s in title 40 of the CFR, after appearing in the **Federal Register** , are listed in 40 CFR part 9, and included on the related collection instrument or form, if applicable (see Attachment I)
. The Agency

has established a public docket for this I CR under Docket ID No. EPA
- HQ
OPP
- 2012
- 0544 , which is available for online viewing at www.regulations.gov , or in person viewing at the OPP Regulatory Public Docket in Rm. S
- 4400, One Potomac Yard (South Building), 2777 S. Cry stal Drive, Arlington, VA. This docket facility is open from 8:30 a.m. to 4 p.m., Monday

through Friday , excluding legal holidays. The docket telephone number is (703) 305
- 5805. You may

submit comments regarding the Agency's need for this information, theSeptember 24, 2012

Page 10 of 11 accuracy of the provided burden estimates and any suggested methods for minimizing respondent burden, including the use of automated collection techniques. Submit your comments, referencing Docket ID No. EPA
- HQ
- OPP
- 2012
- 0544 and OMB Control No. 2070
- 0 0 44 , to (1) EPA online using www.regulations.gov (our preferred method), or by mail to: Public Information and Records Integrity Branch (PIRIB), Mail Code: 7502P, Office of Pesticide Programs (OPP), Environmental Protection Agency , 1200 Pennsylvania Ave., NW, Washington, DC 20460, and (2) OMB b y mail to: Office of Information and Regulatory Affairs, Office of Management and Budget (OMB), Attention: Desk Officer for EPA, 725 17th Street, NW, Washington, DC 20503.September 24, 2012

Page 11 of 11 **Attachments List**  All of the attachments listed below can be found in the docket for this ICR (unless otherwise noted), accessible electronically through **www.Regulations.gov** . On the main page, select **Advanced Search** from the menu bar at the top and select **Do cket Search**  . Enter the Docket ID Number, EPA
- HQ
- OPP
- 2012
- 0544 , in the **Docket ID** field. Click on the **Submit button** . From the results page, you will be able to link to the docket view or directly open select documents found in the docket. **Attachment A 7 U.S**  **.C. 136a**

**– Section 3 of FIFRA**  . Also available at online at the US House

of Representatives’ US Code website
. **Attachment B EPA Form 8570**  **- 5**  **-** Notice of Supplemental Distribution of a Registered

Pesticide Product Also o nline at http://www.epa.gov/opprd001/forms/8570
- 5.pdf **Attachment C 40 CFR**  **P art 152.132**  **- Obligations**  **and Rights of Registrants -** 

**Supplemental Distribution.** Also available online at the National Archives and Records Administration’s Electronic CFR Website
. **Attachment D** (Reserved) **Attachment E Requirements for Approval of Supplemental Distribution** 

Also available at : http://www.epa.gov/opprd001/registrationmanual/chapter9.html **Attachment F**  **How to Obtain a n EPA**  **Company Number**

http://www.epa.gov/pesticides/registrationkit/company
- num_addr
- chg.pdf **Attachment G**  Work Sheets used to Calculate Registrant Labor Costs **Attachment H**  Work Sheets used to C alculate EPA & Federal Government Labor Costs **Attachmen t**  **I Display Related to OMB Control #2070**  **- 0044** 

**– Listings of Related** 

**Regulations in 40 CFR 9.1.** Also available online at the National Archives and Records Administration’s Electronic CFR Website
.