1 INFORMATI ON COLLECTION REQUEST (ICR) United States Environmental Protection Agency (EPA) Part A of the Supporting Statement ( March 201 4 )
1. ID ENTIFICATION OF THE INFORMATION COLLECTION 1(a) Title: Regulation of Fuels and Fuel Additives: Gasoline Volatility ; Reporting

Requirements for Parties Which Produce or Import Gasoline Containing Ethanol, and Reporting Requirements for Parties Seeking a Testing Exemption (40 CFR 80.27) EPA I CR Number 1367. 1 1 , OMB Control Number 2060

- 0178 1(b) Abstract Gasoline volatility , as measured b y Reid Vapor Pressure (RVP) in pounds per square inch (psi), is controlled in the spring and summer in order to minimize evaporative hydrocarbon emissions from motor vehicles. The standards, 7.8 psi or 9.0 psi, for each s tate (excluding Alaska and Hawaii) and the District of Columbia, are at 40 CFR 80.27(a). The addition of ethanol to gasoline increases the RVP by about one psi. Gasoline that contains at least nine volume percent ethanol , and no more than 10 volume perce nt ethanol, is subject to a standard that is 1.0 psi greater. As an aid to compliance and enforcement, the regulation at 40 CFR 80.27 (d)(3) requires that the product transfer document (PTD) , which accompanies a shipment of gasoline containing ethanol , sh all contain a legible and conspicuous statement that the gasoline contains ethanol and the percentage concentration of ethanol. This is intended to deter the mixing within the distribution sy stem, particularly in retail storage tanks, of gasoline which co ntains ethanol in the 9

- 10 percent range with gasoline that does not contain ethanol in the 9

- 10 percent range . Such mixing would likel y result in a gasoline with an ethanol concentration outside the 9

- 10 percent range , but with an RVP above the applicable standard of 7.8 or 9.0 psi

. It is estimated that there are approximately 2,0 00 producers and importers (mostly blenders as opposed to refiners and importers) of gasoline blended with ethanol. These are the parties responsible for generating th e PTDs. Parties wishing to conduct research or emissions certification on gasoline that does not meet the volatility standard are required to obtain a testing exemption in accordance with 40 CFR 80.27(e). The EPA receives approximately two requests per y ear for testing exemptions. EPA has additional PTD requirements for gasoline containing ethanol at 40 CFR 80.1503 . Those requirements are covered in a separate I CR.
2. NEED FOR AND USE OF THE COLLECTION 2(a) Need/Authorit y for the Collection Section 2 11(h) of the Clean Air Act (Act) requires EPA to promulgate regulations prohibiting the sale or distribution of gasoline whose volatility , as measured by RVP, exceeds certain standards during the high ozone season. The Act and regulations at 40 CFR 80.27 and2

80.28 permit gasoline containing 9

- 10 percent ethanol to have an RVP that is one psi greater than the standard that would otherwise appl y. Normally, the gasoline distribution sy stem treats gasoline as a fungible product. That is, gasolines from numerous sources are mixed together (also known as commingling) in tanks at terminals and retail outlets. Therefore, without the required statement on the PTD, gasoline containing ethanol in the 9

- 10 percent range could easily be commingled with gasoline conta ining ethanol outside that range . This could result in gasoline that exceeds the applicable 7.8 psi or 9.0 psi standard, and not have ethanol in the 9

- 10 percent range to qualify

for the one psi exemption allowed by the Act and regulations. Thus, it is i mperative that gasoline marketers, shippers, and distributors know if a shipment of gasoline contains ethanol, and in what concentration. The required statement on the PTD of gasoline blended with ethanol will significantl y aid industry compliance and EPA ’s ability to enforce the volatility standards. Thus , the rule requires that the customary business practice (CBP) PTD for a shipment of gasoline containing ethanol state that the gasoline contains ethanol and the percentage concentration of ethanol. The rule does not have a recordkeeping requirement. However, PTDs are usuall y retained in the normal course of business for five ye ars. The PTD is generated by any part y that produces or imports gasoline that contains ethanol. As required b y s ection 211(h) of the Act, the Agency promulgated a final rule in 1991. The reporting requirement in 40 CFR 80.27(d)(3) was promulgated under authority of section 211(h) of the Act, 42 U.S.C. § 7545(h) and sections 114 and 208 of the Act, 42 U.S.C. §§ 7414 and 75 42, and provides: "Each invoice, loading ticket, bill of lading, delivery ticket and other document which accompanies the shipment of gasoline containing ethanol shall contain a legible and conspicuous statement that the gasoline being shipped contains ethanol and the percentage concentration of ethanol." These regulations provide for the enforcement of the standards for the maximum RVP that will be allowed during the high ozone portion of the y ear, extending from May 1 (suppliers) or June 1 (all other persons) through September 15. Regulatory control of volatility

stems from a recognition of the major impact that increases in the RVP of gasoline have on the emissions of volatile organic compounds (VOCs). Consequent to the excessive emission of VOCs i s the formation of ozone in the ambient air, a major summertime health problem in many urban areas. The reporting (actually

labeling) requirement is necessary because the Act gave certain ethanol blends a one pound per square inch (psi) allowance above the otherwise applicable RVP standard. The records regarding the shipment of ethanol blends to a retailer or to any "midstream" distribution point will assist Agency enforcement officials, when inspecting those shipments, in identifying those gasoli ne blends that qualify for the one psi allowance , and those parties who may

be liable for v iolations if the blend is not in compliance . The records are also necessary to assist regulated parties in avoiding violations when handling multiple shipments of g asoline during the high ozone season , and can be used by parties in establishing a legal defense.3

Parties wishing to conduct research or emissions certification on gasoline that does not meet the volatility

standard may

obtain a testing exemption by providing the information specified at 40 CFR 80.27(e) to EPA. Thus, if a test facility w as inspected by

EPA, and gasoline was found that did not meet the standard, and the facility had an exemption, there would not be a violation. 2(b) Practical Utility

/Users of the Data The collection of information is necessary for the proper performance of the functions of the Agency

and has practical utility . The information contained in the PTDs for gasoline blended with ethanol is used to identify those g asoline blends that may qualify for the one psi allowance, as provided by the Act and b y the rule. The required record also helps prevent the commingling of gasoline containing the required amount of ethanol necessary to be eligible for the one psi waiver with gasoline that does not qualify . Such commingling would usually result in a violation. The testing exemption provides flexibility for research or emissions certification. Agency enforcement officers need this information to assist in identifying v iolations and violating parties. There is no recordkeeping requirement under this rule. Industry entities, including blenders of ethanol and gasoline, and distributors of gasoline containing ethanol, as well as retailers (who ultimately receive the gasol ine but have no recordkeeping requirements under the rule) need the information in order to prevent violations that can occur from commingling multiple gasoline shipments during the high ozone season. 3. NONDUPLICATION, CONSUL TAT IONS, AND OTHER COLLECTION CRI TERIA 3(a) Nonduplication The information collection is not duplicative. The PTDs are the onl y records available to recipients of gasoline that document the percentage of ethanol that has been blended into the gasoline. The reporting requirement for a testing exemption is the only practical approach. 3(b) Public Notice Required Prior to ICR Submission to OMB In compliance with the Paperwork Reduction Act, a notice requesting public comment was published in the Federal Register on January 17 , 2014 (79 FR 3199). Two comments were received. However, they raised concerns for the use of ethanol in gasoline and did not address issues relevant to the ICR. 3(c) Consultations Based on discussions with industry representatives, the general conse nsus is that the burden is very

small. The information is generally computer

- generated, pre

- printed, or hand stamped on the PTDs. The rule does not require that the PTDs be retained. Only about two requests for testing exemptions are received annually

. 3(d) Effects of Less Frequent Collection4

This labeling activity

is the minimum necessary to alert downstream distributors/marketers that a shipment of gasoline contains a certain amount of ethanol . The labeling requirement applies only to those produc ing or importing gasoline blended with ethanol. The Agency

allows maximum flexibility in the form of the labeling. Neither record maintenance nor reporting to the Agency is required. No new documents are required since PTDs are routinely used in the gas oline distribution network. Testing exemptions are requested only as necessary
. 3(e) General Guidelines The collection is in compliance with OMB guidelines. To the extent that some affected companies may

be relatively

small businesses, their informational requirements do not change since the requirement is already the minimal possible in order to give other businesses and EPA information that is necessary for compliance. 3(f) Confidentiality
In formation claimed as confidential is handled in accordance with EPA Freedom of In formation Act regulations at 40 CFR 2. 3(g) Sensitive Questions The re are no sensitive questions. 4. THE RESPONDENTS AND THE INFORMATION REQUESTED 4(a) Respondents/SIC/NAI CS Codes The respondents are related to the following major group Standard Industrialization Classification (SI C) codes:
2869

- Denatured Alcohol Manufacturing
2911

- Petroleum Refineries
4212

- Gasoline Distributors
5171

- Gasoline Bulk Stations and Terminals
5172

- Gasoline Merchant Wholesalers (except bulk stations, terminals)
5541

- Retailers/Wholesale Purchaser

- consumers The respondents are related to the following major group NAICS codes:5

324110

- Petroleum Refineries
325193

- Denatured Alcohol Manufacturing
424710

- Gasoline Bulk Stations and Terminals
424720

- Gasoline Merchant Wholesalers (except bulk stations, termina ls)
4(b) Information Requested (i) Data Items, Including Recordkeeping Requirements This I CR covers the reporting/labeling requirement at 40 CFR 80.27(d)(3) for the PTDs for shipments of gasoline containing ethanol. Ethanol is generall y splash

- bl ended into a gasoline tanker truck at a terminal truck rack at ten volume percent. The blender creates a statement on the PTD that the product contains ten percent ethanol. The same is required for a refiner who produces gasoline blended with ethanol at a refinery and an importer of gasoline blended with ethanol. Each distributor/transferor transfers this PTD on to the next transferor and ultimatel y to the retail level. Man y refiners/blenders/importers already included this information on the PTDs prior to the EPA regulatory requirement (also, some states already required this information), and for them this requirement represented no new burden. Even where it did represent a new burden, in just about all cases the information is now encoded automatical ly by computer or otherwise routinel y stamped or entered on the PTD, resulting in an extremely small reporting burden. There is no burden for transferors, as they already had to transfer a PTD with each shipment of gasoline as a customary business practic e (CBP). This rule has no recordkeeping requirement. Parties needing a testing exemption must submit the information specified at 40 CFR 80.27(e). (ii) Respondent Activities The following are required: Read and comprehend the regulations. Train pe rsonnel to meet the requirements. Develop the information for the PTD and/or testing exemption. Gather and organize the information. Review the information, perform qualit y assurance, and take corrective action, if necessary , to meet the regulatory requirements. Enter the information onto the PTD or submit the request for a testing exemption to EPA.6

5. THE INFORMATION COLLECTED

-- AGENCY ACTIVITIES, COLLECTION METHODOLOGY AND INFORMATION MANAGEMENT 5(a) Agency

Activities The foll owing are required: Develop a thorough understanding of the regulatory requirements. Convey the requirements and respond to inquiries in a clear manner. Provide access to the regulations and guidance documents. Timely process requests for testing exemp tions. Monitor compliance with the PTD requirement.

5(b) Collection Methodology and Management The information collection, to the maximum extent practicable, uses appropriate information technology

to reduce burden and improve data quality , agency efficiency and responsiveness to the public. Ethanol blender/distributors generall y use computer

- printed language stating that the product contains ethanol and the amount (usuall y1 0 percent) . This information is printed on PTDs, and in many cases the information itself was already printed prior to the rule. EPA also allows the use of coded statements to reduce the space the statement requires on the PTD. EPA may examine these records during investigations regarding gasoline exceeding the applicab le RVP standard. Requests for a testing exemption are routinel y reviewed and granted b y EPA. 5(c) Small Entity

Flexibility The information collection reduces to the extent practicable and appropriate the burden on persons who shall provid e information to or for the Agency , including with respect to small entities, as defined b y the Regulatory Flexibility Act (5 U.S.C. § 601(6)), the use of such techniques as: (1) establishing differing compliance or reporting requirements or timetables that take into account the resources available to those who are to respond; (2) the clarification, consolidation, or simplification of compliance and reporting requirements; or (3) an exemption from coverage of the collection of information, or any part there of. The approach of this information collection holds burdens to the minimum consistent with obtaining the required compliance levels. The labeling requirement applies only to those7

entities that produce or import gasoline blend ed with ethanol . It en ables those parties, as well as retail level entities, to comply with the law. However, retail entities have no requirement to make or maintain records. Therefore, the smallest entities have no burden under this collection and for those small blenders an d importers who do have a burden, the burden is minimal. The information required is not in any prescribed format, allowing for maximum flexibility in how to print the information, including the use of short codes, and does not necessitate any new records

. Therefore, no further flexibility is needed. 5(d) Collection Schedule There is no reporting requirement to EPA and there is no required maintenance period. There is no collection schedule; the statement is added to the CBP transfer document when the blend is produced or imported

.

6. ESTIMATING THE BURDEN AND COST OF THE COLLECTION It is estimated that there are 2,0 00 producers and importers of gasoline blended with ethanol. The vast majority is blended at terminals. Som e ethanol is blended at a refinery or contained in imported gasoline Based on information received from respondents and from EPA experience, for most respondents the required information is automatically computer

- generated or preprinted on the PTDs. This means the reporting requirement is almost immeasurable for these parties. Other parties may

spend about ten seconds per transaction to stamp or otherwise enter the information on the PTDs. (Respondent estimates were: Exxon

– less than 1 second, Kinder M organ

– one second, Magellan Pipeline

– 1 second for automated PTDs, 10 seconds for hand

- stamped PTDs, independent industry

expert

- 1 second.) The average for all respondents is estimated to be about one second per transaction. There is no recordkeeping requirement. It is estimated to take four hours to prepare a request for a testing exemption. Based on data from the U.S. Department of Labor, Bureau of Labor Statistics, (20 12 data adjusted to 201 4 ), EPA estimates that the hourly cost, includ ing benefits and other employ ee costs, for this industry

and for the period of this I CR, to be about $ 8 6 per hour for a ty pical labor mix. Almost all gasoline containing ethanol will be shipped by truck. Assume 9 8 percent of all gasoline contains ethanol. I f 9 8 percent of the 1 3 4 billion gallons of gasoline that is consumed annuall y nationwide contains ethanol, this comes to 13 1 billion gallons of gasoline. If the average truck shipment is 3,000 gallons of gasoli ne, then about 44 million truckloads/shipments of gasoline with ethanol are produced/imported annually . Thus 44 million PTDs will receive the required statement on ethanol content annuall y. 6(a) Estimating Respondent Burden8

For 44 million PTDs (respo nses), at and average burden of 1 second per PTD, the annual burden is 1 2,222 hours, or about six hours for each of the estimated 2,000 producers and importers. There is an additional hour of labor for each of the estimated 10 0 new producers or importers annuall y to implement the requirement, for a net annual burden for producers and importers of 1 2,222 + 10 0= 1 2,322 hours. The two requests for testing exemptions, at 4 hours each, add 8 hours annually, for an annual total of 44 , 0 00,002 responses and 1 2,322 +8= 1 2,330 hours. There is no burden for transferors and recipients because the transmittal of PTDs is a customary

business practice. 6(b) Estimating Respondent Costs (i) Estimating Labor Costs In discussions with industry , four labor categories were identified as having involvement: managerial, legal, professional/technical (prof/tech) and clerical. According to the Bureau of Labor Statistics, May 20 12 National Industry

- Specific Occupational Employ ment and Wage Estimates, mean wages were: Wages Managerial $ 55.22 per hour Legal $ 62.93 per hour Prof/Tech $ 43.73 per hour Clerical $17. 62 per hour Doubling for compan y overhead and emplo yi ng a 3 % annual inflation factor to bring the rates to the ye ar 201 4 , and, for convenience, r ounding to the nearest even dollar , gives the following rates that will be used for this ICR: Total Employer Cost Managerial $ 1 18 Legal $1 34 Prof/Tech $ 94 Clerical $ 3 8 The labor mix for each task is assumed to be about 0.05 hour managerial, 0.05 hour legal, 0.7 hour professional/technical, and 0.2 hour technical. This gives an average labor cost of about $ 8 6 per hour, which will be used in this ICR. (ii) Estimating Capital and Operations and Maintenan ce Costs There are no capital costs as the PTD is a CBP. There are operations and maintenance costs for cop yi ng and postage for the two exemption requests annually , and are estimated at $10 each for a total of $20. (iii) Capital/Start

- up Operating and Mainte nance (O /M) Costs9

There are no O&M costs. (iv) Annualizing Capital Costs There are no annualized capital costs. 6(c) Estimating EPA Burden and Cost The labeling activit y that is the subject of this I CR imposes no burden or costs on EPA. EPA would conduc t inspections even without the requirement, but the required information on the PTD facilitates the investigation of possible violations. It is estimated that the Agency

will spend 2 hours evaluating a request for a testing exemption at accost of $80 per hour. 6(d) Estimating the Respondent Universe and Total Burden and Costs For producers and importers of gasoline containing ethanol, 1 2, 222 hours at $ 86 per hour gives a total of $ 1, 051,092 , or about $ 526 per respondent ( 2,0 00 respondents) annuall y to generate the required statement on PTDs. For the estimated 10 0 new producers or importers each ye ar, there is an additional hour of labor for each, $ 86 per respondent, to implement the requirement, for a total of $ 8,6 00 . Thus, the total annual cost for producers and importers is $ 1, 051,092 +$ 8,6 00=$1, 060,492 . For parties wishing a testing exemption, 8 hours at $ 86 per hour gives a total of $ 688 , or $ 3 44 per respondent (2 respondents) . There are no costs for transferors and recipients

. There are no Purchased Services Costs. There are no Annualized Startup Costs. There are no Annualized Capital Costs. Thus, the only non - labor costs are Operating and Maintenance (O&M) costs are for copyingand postage for the two exemption requests annually , and are estimated at $10 each for a total of $20.
6(e) Bottom L ine Burden Hours and Cost Tables (i) Respondent Tally
PTD L anguage 12,222 hours $1, 051,092 New Programming 100 $ 8,6 00 Testing Exemptions 8 $ 688 Mailing of Exemptions 0 $ 20 (ii) Agency

Tall y Review of Testing Exemption Requests 4 hours $32010

(iii) Variations in the Annual Bottom L ine
None. 6( f ) Reasons for Change of Burden The use of ethanol in gasoline has remained stable for the past three y ears and thus the estimated hourly

burden has not changed. 6( g ) Burden Statement The annual public reporting and recordkeeping burden for this collection of information is estimated to average less than one hours per response. Burden means the total time, effort, or financial resources expended by persons to generate, maintain, retain, or disclose or provide information to or for a Federal agency . This includes the time needed to review instructions; develop, acquire, install, and utilize technology and sy stems for the purposes of collecting, validating, and verifying information, processing and maintaining information, and disclosing and providing information; adjust the existing ways to comply with an y previo usly

applicable instructions and requirements; train personnel to be able to respond to a collection of information; search data sources; complete and review the collection of information; and transmit or otherwise disclose the information. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it 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 estimates, and an y suggested methods for minimizing respondent burden, including the use of automated collection techniques, EPA has established a public docket fo r this I CR under Docket ID Number EPA

- HQ

- OAR

- 2007

- 0478 , which is available for online viewing at www.regulations.gov, or in person viewing at the [insert your Program Office docket name] in the EPA Docket Center (EPA/DC), WJC West, Room 3334 , 1301 Constitution Avenue, 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. An electronic version of the p ublic 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, Attent ion: Desk Officer for EPA. Please include the EPA Docket ID Number EPA

HQ

- 2007

- 0478 and OMB Control Number 2060

- 0178 in any correspondence.
B. COLLECTION OF INFORMATION EMPLOYING STATI STI CALMETHODS11

This section is not applicable because statistical methods are not used in th is data collection associated with the Gasoline Volatility Rule.