## Supporting Statement For Inform ation Collection Request Engine Emission Defect Information Reports and Voluntary

Emission Recall Reports (Renewal) ICR Number 282. 15 OMB Number 2060
- 0048

42 USC 7521 § 206 42 USC 7521 § 213 (d) 40 CFR Part 85 40 CFR Part 89 40 CFR Part 90 40 CFR Part 91 40 CFR Part 92 40 CFR Part 94 40 CFR Part 1048 40 CFR Part 1051 40 CFR Part 10 6 8
June 2010
Certification and Compliance Division Office of Transportation and Air Quality Office of Air and Radiation U.S. Environmental Protection AgencyICR #0282. 1 5 Supporting Statement Page 2 1. Identification of the Information Collection 1(a) Title and Number o f The Information Collection Engine Emission Defect Information Reports and Voluntary Emission Recall Reports (Renewal). EPA Numb er 0282.1 5 , OMB Control Number: 2060 - 0048. 1(b) Short Characterization/Abstract Under Section 206(a) of the CAA (42 USC 7521), engine manufacturers may not legall y introduce their products into US commerce unless EPA has certified that their production complies with applicable emission standards. Section 213(d) extends all emission certification and compliance provisions to non
- road engines and vehicles. During the certification process, manufacturers must demonstrate that their products comply with applicable emissions standards throughout their useful lives. However, EPA ' s own in
- use testing has shown that some engines exceed the emissions standards during their useful lives for a variety of reasons. Those reasons include defe cts in materials or design or other factors. Per sections 207(c)(1) and 213 of the Clean Air Act (CAA), when emission testing shows that a substantial number of properl y maintained and used engines produced by a manufacturer do not conform to emission standards, the manufacturer is required to recall the engines. When manufacturers learn of the existence of emission
- related defects in 25 engines or more (10 in the case of locomotives) of the same class and model year, they are required to submit a Defe ct In formation Report (D IR). DIRs contain information about the engines on which a defect has been found and a description of the defect and its effects on engine performance and emissions
. EPA uses these reports to target potentially nonconforming class es of engines for future testing, to monitor compliance with applicable regulations and to order a recall, if necessary
. Manufacturers can also initiate a recall voluntarily b y submitting a Voluntary Emission Recall Report (VERR). VERRs contain inform ation such as the procedures used by manufacturers to notify

engine owners, the identification of engines affected, and repairs to be completed on recalled engines. Manufacturers also submit progress reports that track the number of engines repaired. VERRs and VERR updates allow EPA to determine whether the manufacturer conducting the recall is acting in accordance with the CAA and to examine and monitor the effectiveness of the recall campaign. This information is collected b y the Heavy- duty and Nonroad Engine Group ( HDNE G), Certifi cation and Innovative Solutions Division (C ISD ), Office of Transportation and Air Quality (OTAQ), Office of Air and Radiation (OAR), U.S. Environmental Protection Agency (EPA). Besides CCD, this information could be used by the Office of Enforcement and Compliance and the Department of Justice for enforcement purposes. Non
- confidential portions of the information submitted to EPA could be disclosed to the public upon request. This information is used by trade association s, environmental groups, and the public. Respondents may submit this information in an electronic format and EPG stores it in a database.ICR #0282. 1 5 Supporting Statement Page 3 EPA estimate s that approximate ly 75 engine manufacturers will respond to this collection with an approximate cost of $ 2, 293,648. 2. Need For and Use of the Collection 2(a) Need/Authority for The Collection EPA ' s emission compliance programs, including
- emissions related recalls, are statutoril y mandated; the agency

does not have discretion t o cease these functions. Sections 207(c)(1) and 213 of the Clean Air Act (CAA) mandate engine manufacturers to conduct recalls when in
- use emission testing shows that a substantial number of properl y maintained and used engines of the same class or engine family do not conform to emission standards. Section 208(a) of the Clean Air Act provides EPA with the authority to require a manufacturer to " make reports and provide information the Administrator may reasonably require to determine whether the manufac turer or other person has acted or is acting in compliance " with Title II of th e Clean Air Act and applicable regulations . Regulations implementing such reporting requirements are codified at:

 40 CFR part 85, subpart T (On
- highway , Heavy- duty Truck Engin es)  40 CFR part 89, subpart I (Non
- road Compression
- ignition Engines)  40 CFR part 90, subpart I (Non
- road Spark
- ignition Engines)  40 CFR part 91, subpart J (Marine Spark
- ignition Engines)  40 CFR part 92, subpart E (L ocomotives and Locomotive Engines)  40 CF R Part 94 , subpart E (Marine Compression
- ignition Engines)  40 CFR Part 1068, subpart F (General provisions for engines certified under: o Part 1033

– Lo comotives o Part 1039 - Non - road Compression
- ignition Engines o Part 1042 - Marine Compression
- ignition Engine s o Part 1045 - Marine Spark
- ignition Engines o Part 1048

– Large Spark
- ignition Engines o Part 1051

– Recreational Vehicles (Snowmobiles and All Terrain Vehicles only) o Part 1054 - Non - road Spark
- ignition Engines o Stationary

engines certified under Parts 1039, 10 48 and 1054 ) The information collected under this information collection request is needed to identify potentially

noncompl yi ng engines. Those engines are then targeted for future testing to ensure that they comply with emission standard s throughout the ir useful livesICR #0282. 1 5 Supporting Statement Page 4 2(b) Practical Utility

/Users of The Data EPA uses the information requested to ensure compliance with the Clean Air Act ' s in
- use emission requirements
. This information collection enables EPA to ensure that engine manufacturers are complying with applicable in
- use emission regulations, measure the impact of non - road engines ' emissions on air quality , and take corrective actions as needed. DIRs notify

EPA of the existence of defects in a significant number of eng ines that may cause engine emissions to exceed applicable standards. These reports enable the Agency to take action, as needed. VERRs are used to determine if a manufacturer is acting in accordance with the Clean Air Act and to examine and monitor the ef fectiveness of the recall campaign. Measures of effectiveness include the procedures the manufacturer is following to notify vehicle owners and provide timely repairs, the percentage of vehicle owners that are responding to recall notification and the number of engines that are being repaired. The information will be received and used b y HDNEG/C IS D/OTAQ/OAR. Non
confidential portions of the information submitted to EPG is available to and used by importers, environmental groups, members of the public and local, state and federal government organizations. 3 . Non - duplication, Consultations, and Other Collection Criteria 3(a) Non - duplication The information requested under this I CR is required by statute. Because of its special ized nature, the information collected is not available from any other source. 3(b) Public Notice Required Prior to I CR Submission to OMB An announcement of the public comment period for this I CR renewal was published in the Federa l Register on April 30, 20 10 ( 7 5 Federal Register 22776 ). No comments have been received. 3(c) Consultations In updating this information collection request, EPA consult ed manufacturers of on
- road and nonroad engines
. The consultations with the manu facturers ' representatives sought to clarify burden estimates , employee mix in the responses, and the clarity of the requirements associated with this I CR . EPA consulted the following respondents:

 Del R. Nelson, Project Engineer Emissions Arctic Cat, Inc
. 601 Brooks Ave. South Thief River Falls, MN 56701 phone: 218
- 681 - 9799 (ext. 4121) dnelson@arcticcatinc.comICR #0282. 1 5 Supporting Statement Page 5

 Jean - Michel Desaulniers Bombardier Recreational Products, Inc. 726, rue Saint
- Joseph Valcourt, Q uebec Canada J0E 2L0 Phone: 450
- 532 - 6188 jean
- michel.desaulniers@brp.com

 Larry Keller Polaris Industries, Inc. 2100 Highway

55 Medina, MN 55340 Phone: 651
- 408 - 7253 larry .keller@polarisind.com

 Ravinder Singh Cummins Inc. 500 Jackson St. Columbus, I

N 47201 Phone: 284
- 576 - 5504 ravinder.d.singh@cummins.com 3(d) Effe cts o f Less Frequent Collection This information is only

collected when certain circumstances which potentially involve non - compliance with statutory and regulatory

requirements trigger these events
. Thus, manufacturers are required to provide this information only when potential violations exist
. Less frequent collection of DIRs and V ERRs would allow potential violations to go undetected
. Follow
- up progress reports on voluntary recalls are collected quarterl y for up to six quarters
. These progress reports or updates are used to monitor the progress of a recall campaign, observing the promptness with which engines subject to the recall receive the remedial repair
. Experience has shown that the quarterly reporting interval , which corresponds to most manufacturers’ internal cycles, is generally the minimum interval for effective oversight of a recall campaign. 3(e) General Guidelines DIRs and VERRs are required by regulation to be submitted not more than 15 day s after an emissions
- related defect is found (or in the case of a VERR, within 15 days after vehicle owner notification) to affe ct 25 or more engines (10 for locomotives) of the same model year or engine famil y . If information necessary to complete the written report is not available to the respondent within 15 days, the respondent may submit the missing information when it become s available.ICR #0282. 1 5 Supporting Statement Page 6 Applicable regulations do not require respondents to submit information more frequentl y than on a quarterl y basis on a per defect basis
. R espondent s must report defects within 15 day s after becoming aware of them. A respondent may become aware of additional defects shortly after having submitted a report. This new defect will have its own timeline. This collection also requires manufacturers to retain records on defects for five years from the date of manufacture of the vehicle. 3(f) Confi dentiality Any claimed confidential business information that meets the criteria set forth by 5 U.S.C. §552 and 40 CFR Part 2 will be treated as such. 3(g) Sensitive Questions No questions of a sensitive nature are asked. 4. The Respondents and the Infor mation Requested 4(a) Respondents/NAI CS Codes Respondents are manufacturers of non
- road engines within the following North American Industry Classification Sy stem (NAICS) codes:
● 333618 Other Engine Equipment Manufacturing ● 336312 Gasoline Engine and Engine Parts Manufacturing 4(b) In formation Requested (i) Data Items Subsections A through E below list most of the data items requested under this info rmation collection. Some of these data items are required to be kept in records and submitted only

upon request. The lists in these sections are meant to give an idea of what is usually requested. For a complete list of all data items applicable for each ty pe of engine, please refer to the regulations listed in Section 2(a). A. D efect Information Reports (DIRs) Manufacturers are required to submit defect information reports only when their data indicates that an emission
- related defect may exist in a substantial number of properl y maintain engines. The term “substantial number” has different definitions in some of the regulations covered b y this collection; however, the majority of the regulations define this term as 25 engines or more (10 for locomot ives). Part 1068 establish thresholds based on projected sales (40 CFR 1068,501(e))
.ICR #0282. 1 5 Supporting Statement Page 7 Manufacturers must report within 15 working days (21 day s for engines subject to Part 1068) after a defect is found in a substantial number of engines . These requirem ents appl y only to engines which have already been sold to the public and remain in effect for five ye ars after the model year in which the engine was certified. For engines subject to Part 1068, the requirements apply for the entire useful life of the eng ine or five years after the end of the model year, whichever is longer [40 CFR 1068.501(b)(4)]. Data items requested in Defect Information Reports include:

 The manufacturer's corporate name  A description of the defect  A description of the class or categ ory of engines  Number of vehicle or engines estimated or known to have the defect and explanation of derivation.  The address of the plant(s) where they were produced  Evaluation of the emissions impact and any driveability problems it might cause  Available emissions data related to the defect  Indication of an y anticipated manufacturer follow
- up B. Voluntary

Emission Recall Reports (VERRs) Manufacturers have the option to voluntarily initiate a recall. If the recall involves 25 eng ines or more (one for locomotives), they must notify

EPA about the recall within 15 day s of the date they

first started to notify engine owners about the recall. In formation items requested in Voluntary Emission Recall Reports include:ICR #0282. 1 5 Supporting Statement Page 8

 A description of the class or category of engines being recalled  A description of the modifications or repairs made to correct the defects  A description of the method being used to identify and contact the owners  A description of an y conditions for eligibility for repair and an y reasons for the conditions  A description of the procedure to be followed b y the owner to obtain repairs and where the repairs can be obtained  If repairs are not being performed at dealers, a description of who will perform the repairs and where the defect will be remedied  Copies of the letters of notification to be sent to the vehicle owners  A description of the s ys tem for assuring an adequate supply of parts is available for the repairs and that they

are performed in a timely manner.  Copies of all necessary instructions to be sent to the persons who are to perform the repairs  A description of the impact of the proposed changes on fuel consumption, driveability , and safety of the engines  A sample of an y labels to be applied to the participant engine s identifying the recall being perf ormed C. VERR Progress Reports VERR Quarterl y Progress Reports document the progress of voluntary recalls. Manufacturers of on
- highway , heav y- duty truck engines, non
- road compression ignition engines and locomotives are required to submit VERR quarterl y reports for six quarters following the beginning of an y recall campaign (40 CFR 85.1904(b) and 40 CFR 92.404(b)). These reports must be submitted no later than 25 working day s after the end of each calendar quarter. Manufacturers of non
- road spark
- ignition engines need to submit only one report within 18 months of the start of owner notification (40 CFR 90.804(b)). Marine engine manufacturers need to submit a report one year from the start of owner notification (40 CFR 90.804(b)). Other variations may

exist among the different categories of engines. Data items include:

 Recall campaign number  Date of owner notification and completion  Number of engines involved  Number of engines known or estimated to be affected by the defect  Number of or engines brought in and inspected as part of the campaign  Number of engines found to have the defect after inspection  Number of engines actually receiving repair  Number of engines determined to be unavailable due to exportation, thef t, scrapping or other reasons  Number of engines determined to be ineligible because of improper maintenance or useICR #0282. 1 5 Supporting Statement Page 9

 Copies of an y service bulletins sent to dealers which relate to the defect that had not previously

been reported  Copies of all communications transmitted to vehicle owners which relate to the defect to be corrected not previously submitted  Revisions to any

of the information previousl y submitted  Vehicle owner contact information upon request For non - road and marine spark
- ignition engines only :
 Methods used to notify owners and dealers  Number of engines known or estimated to be affected  Number of engines actually being repaired  Number of owners and dealers involved  Number of engines determined to be ineligible because of improper maintenance or use D . Recordkeeping Requirements Manufacturers are required to keep records of all the data gathered to compile the reports for at least five years (40 CFR parts 85.1906(b), 90.805(b), and 91.905(b)). Recalls related to recalls under Part 1068 must be kept for at least three ye ars after that last required report was submitted (40 CFR 1068.530). Lo comotive and locomotive engine manufacturers under Part 92 however, must keep these records for eight ye ars ( 40 CFR 92.406(b)). Manufacturers are required t o make all records available to EPA upon request (40 CFR Parts 85.1906(b), 90.805(b), 91.905(b), and 92.406(b)). The following information must also be maintained in a form suitable for inspection, such as electronic storage devices or databases :
 The names and addresses of vehicle or engine owners:  To whom notification was given  Who received remedial repair or inspection  Who was determined not to be eligible because of improper maintenance or use (ii) Respondent Activities The activities manufacturers need to perform to comply with the requirements of each ty pe of report are as follows:

 Monitor engine performance b y collecting information on the frequency of customer or dealer complaints and findings b y their own research depar tments (customary

business practice)  Review instructions and regulations  Compile data  Prepare and submit report  Maintain recordsICR #0282. 1 5 Supporting Statement Page 10 5. The Information Collected -- Agency Activities, Collection Methodology, and Information Management 5(a) Agency

Activities EPA officials carry

out the following activities:

 Review regulations  Answer respondents ' questions  Review reports for completeness and compliance with regulations  Analyze reports to determine the impact of the situation described in the report on emission levels  Evaluate manufacturers ' procedures to determine if the problem is being addressed correctly and how effective a recall campaign is  Recommend, if needed, additional compliance activ ities such as further testing or research  Id entify

engine classes that may

need follow up in the future  Summarize and store the information electronically 5(b) Collection Methodology and Management EPA currentl y makes extensive use of electronic media in gathering and evaluating information; therefore, EPA prefers to receive the reports electronicall y. However, it is the manufacturers ' choice to submit their reports on paper if they so prefer. Once the data is received, the information is entered into a database and reviewed for completeness. If the manufacturer chooses to make hard cop y submittals, then EPA manually enters the information into the database. The reviewer analy ses the information to ensure compliance with the CAA and applicable regu lations. 5(c) Small Entity

Flexibility The information requested is considered to be the minimum needed to effectively maintain the emission control programs ' integrity and comply

with the requirements of the Clean Air Act. Further measures to simpli fy reporting requirements for small businesses do not appear prudent or necessary
. 5(d) Collection Schedule DIRs are collected on occasion only
. If the defect requires a recall, a reporting scheduled is triggered. Sections 4(b)(i)(A) through 4(b)(i)(D ) describe the schedule.ICR #0282. 1 5 Supporting Statement Page 11 6. Estimating the Burden and Cost of the Collection Please refer to Table 1 in the attachment for details. 6(a) Estimating Respondent Burden Burden estimates were taken from the previous I CR and revised to reflect experience gained b y EPA and comments from fewer than 10 respondents consulted by EPA. 6(b) Estimating Respondent Costs (i) Estimating Labor Costs To estimate labor costs, EPA used the Bureau of Labor Statistics ' publication Occupational Employment and W ages, 2008 . EPA then increased the hourly wage estimates by a factor of 2.1 to account for benefits and overhead. The specific rates used are listed below. These are mean hourl y rates. Table 2 Labor Costs Estimates Occupation SOC Code Number Mean Hourly Rate

(BLS) 2.1 Factor for

Overhead and Benefits Mechanical Engineers 17 - 2141 $ 38.74 $ 81.35 Engine ering Managers 11 - 9041 $ 59.04 $123.98 Lawyers 23 - 1011 $ 62.03 $ 130.26 Secretaries, Except Legal, Medical and Executive 43 - 6014 $ 14.93 $ 31.35
(ii) Estimating Capital and Operations and Maintenance Costs Operation and Maint enance costs (O&M Costs) associated with this information collection include CDs , photocopying, postage and other shipping expenses and phone calls. CDs are used b y manufacturers to submit data electronicall y and to keep records. There are no capital start - up costs associated with this collection.ICR #0282. 1 5 Supporting Statement Page 12 (iii) Capital/Start Up Operations and Maintenance Costs There are no capital start
- up costs associated with the renewal of this I CR. (iv) Annualizing capital costs There are no capital start
- up costs associated with this information collection. 6(c) Estimating Agency Burden Please refer to Table 3 in the attachment for detail ed calculations
. Table 4 below summarizes EPA ' s labor costs a ssociated with this information collection. These costs are based on hourly wage rates obtained from the Office of Personnel Management (OPM) and adjusted b y a factor of 1.6 to account for benefits and overhead. Table 4 Agency Labor Costs Occupation Ho urly Rate 1.6 Federal Factor for Benefits and Overhead Engineer (GS
- 13 /10 ) $ 55.46 $ 88.73 Lawyers (GS
- 13/10) $55.46 $88.73 Contractors (amount spent in FY 2009)

– Defect and Recall Reports Processing $41,330 Due to a shortage of personnel, EPA contra cts out the processing of DIRs and VERRs. The Contractor answers questions from manufacturers regarding how to prepare and submit reports, reviews reports for completeness, uploads them into a database, and identifies those that need special follow up. EP A personnel follow up with manufacturers in matters that require regulatory

interpretation and enforce the requirements, as needed.ICR #0282. 1 5 Supporting Statement Page 13 6(d) Estimating the Respondent Universe and Total Burden and Costs There are approximately

338 engi ne manufacturers (respondents) who obtain certificates of conformity with EPA emission regulations. All of them need to compl y with defect and recall regulations. Manufacturers need to submit DIRs only when they

learn that a significant number of properl y maintain engines are affected b y a particular defect. Therefore, not all manufacturers will respond to this collection every year. Based on previous experience, EPA exp ects to receive approximately 225 DIRs from 7 5 different respon dents per year during the next three years . This is a significant increa se from previous response levels. T h is increase is mainl y due to two factors: (1) the pool of possible respondents has significantly increased in the last few years; and (2) EPA has n oted that not all manufacturers are aware of their responsibilities to report and cure defects found in their products. To address this issue, EPA plan s to step up efforts to verify compliance with defect reporting and recall regulations. This should res ult in a higher number of respondents to this information collection. 6(e) Bottom L ine Burden Hours and Cost Tables (i) Respondent Tally

 Number of Respondents: 75  Number of Activities: 13  Total Hours per Y ear: 26, 563  Total Labor Cost per Year: $2,2 76 , 608  Total Capital Costs per Year: 0  Total O&M Costs per Year: $ 17,040  Total Costs: $2, 293,648 (ii) The Agency

Tall y
 Number of Respondents: 75  Number of Activities: 12  Total Hours per Year: 1,858  Total Labor Cost per Year: $ 44,126.36  Total Capital Costs per Year: 0  Total O&M Costs per Year: $ 637 in addition to $41,330 in contract dollars  Total Costs: $ 86,093ICR #0282. 1 5 Supporting Statement Page 14 6(f) Reasons for change in burden There is an increase in burden as sociated with this I CR renewal due to: (1) a significant increase in the estimated number of respondents; and (2) an increase in estimated frequency
. This increases are due adjustments EPA has made to its estimates. 6(g) Burden Statement The annual public reporting and recordkeeping burden for this collec tion is estimated to average 354 hours per respondent. Burden means the total time, effort, or financial resources expended by

pe rsons 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 sy stems for the purposes of collecting, validat ing, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing way s to comply with an y previously

applicable instructions and requirements; train personnel to be able to respond to a co llection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of informat ion unless it display s a currently valid OMB control number. The OMB control numbers for EPA ' s regulations are listed in 40 CFR part 9 and 48 CFR chapter 15. To comment on the Agency' s need for this information, the accuracy of the provided burden estim ates, and any suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket for this I CR under Docket ID No. EPA - HQ - OAR- 2006 - 0895 . The Docket public reading room is located in the EPA Docket Center, Room 3334 in the EPA West Building, located at 1301 Constitution Ave., NW, Washington, D.C. The Docket is open to the public on all federal government work day s from 8:30 A.M. to 4:30 P.M. An electronic version of the public docke t is available through EPA Dockets (EDOCKET) at http://www.epa.gov/edocket. Use EDOCKET 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 electronicall y. Once in the system, 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, DC 20503, Attention: Desk Office for EPA. Please include the EPA Docket ID No. EPA - HQ - OAR- 2006 - 0895 and OMB control number (2060
- 0048) in an y correspondenc e .